Stabilis Solutions, Inc. Q4 FY2025 earnings call

• Working with advisors on special-purpose vehicle structure for Galveston liquefaction facility with third-party debt and equity. - Actively engaged in engineering, design, and ordering long lead items for Galveston project toward FID. - Commercial and operational teams focused on delivering best-in-class service in growth markets. - Contracts provide visibility into sustainable multi-year growth starting 2027. - Fourth quarter performance discussed with revenue, EBITDA, cash from operations, liquidity, and capex details.

Fourth quarter revenue decreased 23% year-over-year, driven by a 22% decrease in LNG gallons sold and lower rental and service revenue. Marine bunkering revenues fell 42% year-over-year, power generation revenues decreased 56% due to conclusion of large multi-year contracts. Aerospace revenues increased 17%, industrial revenues increased 12%. Adjusted EBITDA was $1.5 million (down from $4 million last year), margin 11.5% (down from 23.2% last year). Cash from operations was ~$670,000. Liquidity at quarter end was $10.2 million. Capital expenditures totaled $3.1 million, primarily for Galveston LNG project and related barge, with further investments anticipated in 2026 for project and data center contract.

• Anticipate investing one to two million in additional capital in first quarter of 2026 for Galveston project and routine maintenance capex. - Expect to invest additional capital into mobile equipment and related assets for data center contract beginning early 2027, funded by customer prepayments. - 2026 represents important transitional year with FID on Galveston facility as foundational milestone, and growth in other markets with contracts providing visibility.

• Global events like war can change the dialogue and impact project dynamics. - Geopolitical challenges in China may affect monetization of joint venture stake. - Shortage of Jones Act LNG bunkering vessels in certain regions can impact marine bunkering contracts and extensions.

Q: About data center customer demand and contract extension opportunities.

A: Discussed three areas of data center participation - commissioning, bridging, and backup power. Explained how contracts are structured and risk mitigators.

Q: On $200 million data center contract, how generated and pricing vs other energy solutions.

A: Based on LNG cost and expected demand, and pricing varies by contract duration.

Q: How to fulfill large data center contract, supply sources.

A: Using third-party liquefaction offtake agreements and providing turnkey solution.

Q: Derailers of Galveston facility FID.

A: Additional offtake negotiations, capital structure discussions, and global events like Middle East conflict.

Q: Carnival contract non-renewal, intermediate fuel.

A: Jones Act vessel unavailability led to non-renewal, intermediate options like MGO or rerouting.

Q: Bunkering vessel leased, usage.

A: Still in process, will circle back on details.

Q: Aerospace contracting visibility.

A: Contracted work with one-year and re-extended contracts, expecting growth, but no fit-for-purpose liquefier contracted yet.

Q: Merger consideration.

A: Believe project financing SPV is optimized capital structure, aim for profitable growth.

Q: Monetizing China joint venture stake.

A: Joint venture agreement has specific monetization periods, geopolitical factors to consider.

Q: Second liquefier deployment.

A: Available to deploy, waiting on customer finalization of placement.