Cool Company (CLCO) Q2 2025 earnings summary

Executive summary

• Q2 2025 operating revenue was $85.5 million, with adjusted EBITDA rising to $56.5 million and net income at $11.9 million, supported by new vessel deliveries and a strong charter backlog.

• Operates a fleet of 13 LNG carriers with a mix of short- and long-term charters, focusing on organic growth and vessel acquisitions.

• Liquidity remains robust at $226 million, with ongoing share buybacks and disciplined asset acquisition strategy.

• Backlog stands at approximately $1.54 billion, with $907 million firm, supporting future cash flows.

• Average TCE for Q2 was $69,900 per day, slightly down from prior periods.

Financial highlights

• Total operating revenue was $85.5 million in Q2 2025, flat quarter-over-quarter and above prior guidance.

• Adjusted EBITDA for Q2 2025 was $56.5 million, above analyst consensus of $54.2 million.

• Net income for Q2 2025 was $11.9 million, up from $9.1 million in Q1, but H1 2025 net income was $20.9 million, down 67% year-over-year.

• Average daily TCE rate for H1 2025 was $70,200, reflecting lower charter rates and more off-hire days.

• Share buybacks totaled $40 million over two years, with 858,689 shares repurchased at an average price of $5.77.

Outlook and guidance

• Q3 operating revenues expected to remain similar to Q2, with some vessels moving to spot charters at lower rates.

• No further capital expenditure for newbuild vessels as of June 30, 2025.

• 50% of fleet days are covered by backlog through 2027, providing stability amid market volatility.

• Gradual market recovery expected, with potential for winter strengthening in Q3 2025.

• Strategy includes ongoing assessment of growth via vessel acquisitions and market consolidation.