Koil Energy Solutions (KLNG) Q2 2026 earnings summary

Executive summary

• Achieved record Q2 2026 revenue of $9.2 million, a 78% year-over-year increase, driven by strong momentum in the subsea industry, major project awards, and international expansion, particularly in Brazil.

• Net income for Q2 2026 was $652,000 ($0.05 per diluted share), up from $61,000 ($0.01 per share) in Q2 2025, reflecting improved project throughput and operational leverage.

• Adjusted EBITDA reached $1.1 million (12% margin), up $955,000 year-over-year, driven by higher revenues and improved operating performance.

• Service contract revenue grew 115% year-over-year; fixed price contracts up 49% year-over-year, with new customers accounting for 32% of Q2 revenue.

• Strategic investments in rental equipment, operational excellence, and a new asset-based lending facility supported growth and liquidity.

Financial highlights

• Q2 2026 revenue: $9.2 million (up 78% year-over-year); gross profit: $3 million (32% margin); net income: $652,000; adjusted EBITDA: $1.1 million.

• Net income per share: $0.05 vs. $0.01 in Q2 2025.

• SG&A expenses were $2.3 million, up $339,000 year-over-year, mainly from higher personnel and IT costs.

• Cash at June 30, 2026: $922,000; working capital: $3.8 million; total assets: $23.9 million.

• Financing activities provided $1.86 million in cash in the first half of 2026, including $2.4 million in borrowings under the new credit facility.

Outlook and guidance

• Most major carousel project work will be performed in the second half of 2026, with long-term storage revenue expected.

• Continued focus on growth pillars: distribution systems, Brazilian expansion, and rental equipment, under the “KOIL 2030” strategy.

• Management expects strong demand for subsea tie-back and maintenance projects, with adequate liquidity for the next 12 months.