Koil Energy Solutions (KLNG) Q4 2025 earnings summary

Executive summary

• Achieved record Q4 2025 revenue of $7.3 million, up 22% year-over-year and 14% sequentially, with record order intake and new international customers.

• Full-year 2025 revenue reached $24.1 million, a 6% increase year-over-year, driven by a 45% rise in service contracts despite a decline in fixed price contracts.

• Adjusted EBITDA for 2025 was $970,000 (4% margin), down from $3.54 million in 2024, reflecting investments in growth initiatives and a $570,000 receivable write-down.

• Net income for Q4 2025 was $343,000, but a net loss of $38,000 was recorded for the full year due to higher expenses.

• Focused on profitable growth and international expansion, particularly in Brazil, with a strategic roadmap to be presented in May 2026.

Financial highlights

• Q4 2025 gross margin was 35%, down from 40% in Q4 2024 due to a less favorable project mix.

• Q4 2025 adjusted EBITDA was $721,000, compared to $961,000 in Q4 2024.

• Full-year SG&A expenses rose to $8.3 million from $6.2 million in 2024.

• Q4 2025 net income per share was $0.03; full year 2025 net loss per share was $0.00.

• Cash balance at year-end 2025 was $1.54 million, down from $3.42 million at year-end 2024.

Outlook and guidance

• Management remains confident in delivering profitable growth, citing recent project awards and ongoing strategic investments.

• Bidding activity and order intake for subsea tieback projects increasing, with strong momentum expected in 2026.

• Industry analysts forecast a 20% increase in subsea tree awards and 8% rise in installations in 2026, supporting future sales and service growth.

• Strategic roadmap being refined with new goals through 2030 to be presented at an investor conference in May 2026.

• Continued investment in R&D and international market expansion.