Stabilis Solutions, Inc. Q4 FY2024 earnings call

• 2024 was a strong year operationally, with the team building a leading last mile LNG solutions platform. • Prioritized asset optimization and operational efficiency, investing majority of CapEx in 2024 in growth-related investments, particularly expanding infrastructure along U.S. Gulf Coast. • Reinvesting ahead of demand for small-scale LNG. • Andy Puhala reviewed financial performance: Q4 net income $2.1 million, adjusted EBITDA $4 million (record Q4), margin 23.2%. Full year adjusted EBITDA $11.8 million. • Strong cash position: $9 million cash and equivalents, $4.3 million availability under credit facilities, net debt to trailing twelve-month adjusted EBITDA of 0.03 times.

Fourth quarter revenue decreased 4% compared to Q4 2023. The decline was due to lower oil and gas customer activity, offset by 35% increase in aerospace revenues, 23% increase in power generation revenues, and over 500% growth in marine bunkering revenues. In Q4, ~49% of revenues were from aerospace and marine customers, vs 14% in Q4 2023. Full year 2024 revenue was $73.3 million, a 0.2% increase vs 2023. Gallons delivered increased by over 8 million gallons, but was offset by lower natural gas commodity prices. Full year adjusted EBITDA was $11.8 million, up from $6.8 million in 2023.

• Remain committed to strategy prioritizing operational efficiency and disciplined capital, with focus on growth in marine, aerospace, and distributed power solutions. • Invested majority of CapEx in 2024 in growth-related investments, with significant CapEx to be allocated for incremental growth in marine and aerospace markets. • Prioritize growth within high-potential markets, reinvesting ahead of demand for small-scale LNG.

Q: Martin Malloy asked about the timetable for the relocation of the equipment for the liquefaction train to the Gulf Coast region.

A: Casey Crenshaw mentioned the relocation of the unit to George West and installing storage, working on multiple paths to deploy, including financing and contracts.

Q: Tate Sullivan asked about the G&A line and CapEx for growth investments.

A: Casey Crenshaw said G&A had adjustments for bonus accruals and Westy Ballard's separation, and Andy Puhala noted G&A run rate likely to continue. Regarding CapEx, Q4 was related to moving the liquefaction train and installing storage in George West.

Q: Barry Haimes asked about the new train's timetable, cost, and potential profit.

A: Casey Crenshaw estimated $20-25 million to finish construction, potential $10-15 million additional gross margin, timing dependent on commercial contracts.

Q: Spencer Lehman asked about data centers.

A: Casey Crenshaw said data centers are part of distributed power, which is a growth market, and Andy Puhala noted they have a strong connection to distributed power but no current data center work to discuss yet.