New Fortress Energy (NFE) Q1 2025 earnings summary

Executive summary

• Q1 2025 core earnings were stable at $116 million, with no material one-off items, and a net loss attributable to common stockholders of $200 million, compared to net income of $54 million in Q1 2024.

• Completed the sale of Jamaica assets for $1.055 billion, generating $800 million in net proceeds and a $430 million gain, with proceeds used to repay $270 million of the Revolving Facility and $55 million of Term Loan A, and the remainder added to liquidity.

• Revenue for Q1 2025 was $471 million, down from $690 million in Q1 2024, primarily due to the termination of the Puerto Rico grid stabilization project and lower delivered volumes.

• The company is focused on generating long-duration, repeatable cash flows through long-term contracts and integrated LNG-to-power operations, with a strategic shift toward asset-level financing.

• Liquidity concerns persist, with substantial doubt about the ability to continue as a going concern due to negative operating cash flows and increased interest expense, despite improved liquidity from asset sales.

Financial highlights

• Q1 2025 Adjusted EBITDA was $82 million, down from $340 million in Q1 2024 and $313 million in Q4 2024, reflecting the absence of one-time gains.

• Segment operating margin was $106 million in Q1 2025, down from $384 million in Q1 2024 and $240 million in Q4 2024.

• Core SG&A was $34 million, flat sequentially; forecasted at $30 million per quarter for the rest of 2025.

• Cash on hand at quarter-end was $448 million, with total available liquidity post-Jamaica sale reaching $1.1 billion.

• Interest expense increased to $214 million in Q1 2025 from $77 million in Q1 2024.

Outlook and guidance

• Full-year 2025 EBITDA plus gains expected in the range of $1.25 billion to $1.5 billion, with $500 million from core earnings and $750 million–$1 billion from one-off gains.

• Core earnings forecast to remain stable in the first half and accelerate in the second half as Brazilian assets come online.

• Anticipated resolution of a $659 million FEMA claim, with timing and amount uncertain.

• Additional FSRU contracts, asset sales, and new projects in Brazil, Nicaragua, and Puerto Rico are expected to contribute to future earnings.

• Ongoing liquidity strategies include asset sales, capital raising, and delaying discretionary payments.