KOIL Energy Reports Second Quarter 2025 Results and Provides a Business Update
MWN-AI** Summary
Koil Energy Solutions, Inc. (OTCQB: KLNG) has reported its second quarter 2025 financial results, showing a revenue of $5.2 million, which reflects a 10% decrease compared to the same period last year. Despite this revenue decline, the company announced promising developments, including the securing of three new projects aimed at enhancing its market position in deepwater energy production and distribution.
Gross margin for the quarter stood at 33%, which the company attributes to increased headcount and lower labor utilization early in the quarter. The adjusted EBITDA margin was at 3%, translating to an adjusted EBITDA of $163,000. This performance resulted in a net income margin of 1.2% of revenue, highlighting the challenges faced during Q2 as the team worked to respond to rising order intake in June.
KOIL President and CEO Erik Wiik commented on the company's growing momentum and strategic focus on long-term growth. The firm recently announced key projects, including a subsea tie-back project in the Gulf of America and a cable management services project for a renewable energy initiative. A significant greenfield project has also been awarded, which includes the design and manufacture of over 20 proprietary subsea flying leads, the largest project KOIL has undertaken in nearly a decade.
With these developments and a solid order pipeline, the company is optimistic about its potential for revenue growth in the upcoming quarters. Koil Energy will hold an investor conference call to discuss these results and future plans, further illustrating its commitment to strengthening its market outlook and operational capacities. The company's strategic approach is aimed at balancing short-term challenges with long-term profitability and operational efficiency.
MWN-AI** Analysis
KOIL Energy Solutions, Inc. has demonstrated resilience in its Q2 2025 results, reporting revenues of $5.2 million. Although this reflects a 10% decline year-over-year, it is critical to consider the broader context of recent developments. The company’s gross margin of 33%—despite being impacted by increased headcount and lower labor utilization—indicates potential for operational efficiency as new projects ramp up. The adjusted EBITDA margin of 3% suggests current profitability challenges, yet these may improve with anticipated growth in service activity.
The awarding of three significant projects represents a strategic pivot and could provide the catalyst for revenue growth in the upcoming quarters. The subsea tie-back project in the Gulf of America and the major international greenfield project position KOIL to capitalize on both traditional and renewable energy sectors. These projects likely reflect a strengthening demand in the energy market, which could positively influence revenue streams moving forward.
Investors should approach KOIL with cautious optimism. The company’s strategy of expanding headcount to handle new workloads reinforces its long-term growth vision. However, maintaining a balance between growth and profitability will be essential. As evidenced in the second half of the year, if KOIL can manage effective execution of these projects, we could see a significant uptick in both revenue and profit margins.
Given the current stock price volatility and KOIL's recent performance, a wait-and-see approach is advisable. Monitoring how well KOIL translates its project wins into tangible financial results will be crucial. Investors should also stay updated on any operational shifts or changes in industry dynamics impacting the energy market. Overall, KOIL Energy presents a potentially undervalued opportunity contingent on strategic project execution and market recovery.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
- Revenue of $5.2 million
- Gross margin of 33%
- Adjusted EBITDA margin of 3%
- Awarded three new projects
HOUSTON, Aug. 14, 2025 (GLOBE NEWSWIRE) -- Koil Energy Solutions, Inc. (OTCQB: KLNG), a specialist in deepwater energy production and distribution equipment and services, released today its second quarter 2025 results and announced three new projects.
“After a modest first half of 2025, momentum is building. Today, we announced three new projects, and recent weeks have brought a sharp rise in service activity and robust order intake on fixed?price contracts,” said Erik Wiik, President and Chief Executive Officer of KOIL Energy. “These are clear indicators of strengthening demand heading into the second half of the year.”
Second Quarter 2025 Results :
For the three months ending June 30, 2025, Koil Energy generated revenue of $5.2 million and adjusted EBITDA of $163,000, resulting in a 3% margin. These results represent a 10% decrease in revenue compared to the second quarter of the previous year. Gross margin equaled 33%, driven by increased headcount combined with lower labor utilization early in the quarter. Accordingly, net income was at 1.2% of revenue. At quarter-end, the Company's cash on hand was $2.2 million. While our team responded to the increased order intake with solid top-line throughput in June, it did not offset the gap created earlier in the quarter.
The increase in headcount is intentional and aligned with our vision for long-term growth. We remain watchful to balance growth with profitability, ensuring that these investments deliver near-term results. These investments, which impacted second quarter margins, have positioned us to execute on the growth plan we have set for the company. We now have the necessary capabilities in place to successfully execute the increased workload ahead.
Business Update:
We are excited to announce the following new projects:
- KOIL Energy has been awarded a significant subsea tie-back project in the Gulf of America. The scope of work includes subsea distribution equipment and commissioning services for a major international oil company.
- KOIL Energy has been awarded a significant cable management services project for a renewable energy project including 5 months of continuous assignments for our service team.
- KOIL Energy has been selected as the supplier for a major international greenfield project, which includes the design and manufacture of over 20 of our proprietary subsea flying leads. This represents our largest project in almost a decade and will be carried out over the next 15 months at our Houston, Texas facility. Follow-on service work is expected to be awarded at a later stage.
Our focus has remained firmly on driving growth and executing our strategic plan. In addition to the significant and major projects mentioned, our sales team achieved a steady flow of new service contracts - clear signs of strong and accelerating momentum. With these large wins, along with a robust pipeline of high-probability opportunities, we are well-positioned to drive revenue growth over the next four quarters.
KOIL Energy will host an investor conference call to review its second quarter 2025 results on Thursday, August 14, 2025, at 10:00 am Eastern Time.
PARTICIPANT WEBCAST LINK:
https://edge.media-server.com/mmc/p/tnpz3b6k
PARTICIPANT DIALS:
Participant Toll-Free: 1-833-630-1956
Participant Toll/Int'l: 1-412-317-1837
Password: Koil Energy Solutions call
Replay Dials: (available up to 7 days after the call)
Replay Toll-Free: 1-877-344-7529
Replay Toll/Int'l: 1-412-317-0088
Replay Password: 3264769
The earnings release and a replay of the conference call will also be available on the Company's website, www.koilenergy.com , under the "Investors" section.
About KOIL ( www.koilenergy.com )
KOIL Energy is a leading energy services company offering subsea equipment and support services to the world's energy and offshore industries. We provide innovative solutions to complex customer challenges presented between the production facility and the energy source. Our core services and technological solutions include distribution system installation support and engineering services, umbilical terminations, loose-tube steel flying leads, and related services. Additionally, KOIL Energy's experienced team can support subsea engineering, manufacturing, installation, commissioning, and maintenance projects located anywhere in the world.
Forward-Looking Statements
Any forward-looking statements in the preceding paragraphs of this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties in that actual results may differ materially from those projected in the forward-looking statements. In the course of operations, we are subject to certain risk factors, competition and competitive pressures, sensitivity to general economic and industrial conditions, international political and economic risks, availability and price of raw materials and execution of business strategy. For further information, please refer to the Company's filings with the Securities and Exchange Commission, copies of which are available from the Company without charge.
Investor Relations:
ir@koilenergy.com
281-862-2201
| KOIL ENERGY SOLUTIONS, INC. | |||||||||||||||
| SUMMARY FINANCIAL DATA | |||||||||||||||
| (UNAUDITED) | |||||||||||||||
| Comparative Condensed Consolidated Income Statement | |||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
| (In thousands, except per share amounts) | 2025 | 2024 | 2025 | 2024 | |||||||||||
| Revenues | $ | 5,183 | $ | 5,779 | $ | 10,433 | $ | 11,570 | |||||||
| Cost of sales | 3,454 | 3,530 | 7,052 | 7,290 | |||||||||||
| Selling, general and administrative | 1,964 | 1,268 | 3,693 | 2,729 | |||||||||||
| Operating income (loss) | (235 | ) | 981 | (312 | ) | 1,551 | |||||||||
| Total other (income) expense | (304 | ) | (5 | ) | (359 | ) | (14 | ) | |||||||
| Income (loss) before income tax expense | 69 | 986 | 47 | 1,565 | |||||||||||
| Income tax expense | 8 | 2 | 15 | 5 | |||||||||||
| Net income (loss) | $ | 61 | $ | 984 | $ | 32 | $ | 1,560 | |||||||
| Net income (loss) per share, basic | $ | 0.01 | $ | 0.08 | $ | 0.00 | $ | 0.13 | |||||||
| Weighted-average shares outstanding, basic | 12,088 | 12,188 | 12,088 | 12,079 | |||||||||||
| Comparative Condensed Consolidated Balance Sheets | |||||||
| June 30, | December 31, | ||||||
| (In thousands) | 2025 | 2024 | |||||
| Assets: | |||||||
| Cash | $ | 2,193 | $ | 3,422 | |||
| Other current assets | 7,515 | 6,784 | |||||
| PP&E, net | 3,355 | 2,791 | |||||
| Other non-current assets | 6,553 | 5,743 | |||||
| Total assets | $ | 19,616 | $ | 18,740 | |||
| Liabilities: | |||||||
| Current liabilities | 4,626 | 4,524 | |||||
| Other long-term liabilities | 6,205 | 5,612 | |||||
| Total liabilities | 10,831 | 10,136 | |||||
| Stockholders' equity | 8,785 | 8,604 | |||||
| Total liabilities and stockholders' equity | $ | 19,616 | $ | 18,740 | |||
| Adjusted EBITDA | |||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
| (In thousands) | 2025 | 2024 | 2025 | 2024 | |||||||||||
| Net income (loss) | $ | 61 | $ | 984 | $ | 32 | $ | 1,560 | |||||||
| (Deduct) Add: Interest (income) expense, net | (2 | ) | (5 | ) | (16 | ) | (13 | ) | |||||||
| Add: Income tax expense | 8 | 2 | 15 | 5 | |||||||||||
| Add: Depreciation and amortization | 156 | 149 | 303 | 293 | |||||||||||
| Add: Share-based compensation | 79 | 34 | 149 | 53 | |||||||||||
| Add (Deduct): Loss (gain) on sale of asset | (11 | ) | 3 | (12 | ) | 3 | |||||||||
| Add: Loss (Gain) on Litigation Settlement | (250 | ) | - | (250 | ) | - | |||||||||
| Add: Restructuring costs | 122 | - | 279 | - | |||||||||||
| Adjusted EBITDA | $ | 163 | $ | 1,167 | $ | 500 | $ | 1,901 | |||||||
| Cash Flow Data | |||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
| (In thousands) | 2025 | 2024 | 2025 | 2024 | |||||||||||
| Cash provided by (used in): | |||||||||||||||
| Operating activities | $ | (99 | ) | $ | (82 | ) | $ | (406 | ) | $ | (756 | ) | |||
| Investing activities | (810 | ) | 16 | (820 | ) | (62 | ) | ||||||||
| Financing activities | (268 | ) | 329 | (3 | ) | 247 | |||||||||
| Change in cash | $ | (1,177 | ) | $ | 263 | $ | (1,229 | ) | $ | (571 | ) | ||||
FAQ**
How does Koil Energy Solutions Inc KLNG plan to improve its revenue growth following the reported $5.2 million in Q2 2025, especially considering the 10% decrease compared to the previous year?
Given the gross margin of 33%, what strategies is Koil Energy Solutions Inc KLNG implementing to enhance profitability while investing in new projects and maintaining headcount?
With the adjusted EBITDA margin at only 3%, what measures is Koil Energy Solutions Inc KLNG taking to increase operational efficiency and improve this margin in future quarters?
Can Koil Energy Solutions Inc KLNG provide insights into how the awarded three new projects will impact its financial performance and contribute to long-term strategic goals?
**MWN-AI FAQ is based on asking OpenAI questions about Koil Energy Solutions Inc (OTC: KLNG).
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