KOIL Energy Reports Third Quarter 2025 Results
- Revenue of $6.4 million, 22% growth
- Gross margin of 32%
- Adjusted EBITDA margin of -3% due to a write-off
- Successful entry into renewables
- First Contracts in Brazil
HOUSTON, Nov. 14, 2025 (GLOBE NEWSWIRE) -- KOIL Energy Solutions, Inc. (OTCQB: KLNG), a specialist in deepwater energy production and distribution equipment and services, released today its third quarter 2025 results.
"We increased revenue by 22% this quarter; KOIL Energy is growing again,” said Erik Wiik, President and Chief Executive Officer of KOIL Energy. "During the quarter KOIL Energy generated revenues of $6.4 million. These are clear indicators of strengthening demand both within services and products."
Third Quarter 2025 Results:
For the three months ending September 30, 2025, Koil Energy generated revenues of $6.4 million dollars. This is 22% higher than last quarter and 22% higher than Q3 last year. Both services and fixed priced contracts experienced significant growth. Service revenue grew 33% and fixed priced contracts, or Product sales, increased by 15% compared to Q3 last year. This was driven by an exceptional order intake over the past four months.
Services have expanded into renewables with a significant contract handling the spooling of subsea power cables for an offshore wind farm project. KOIL recognizes its service team for successfully winning this project and receiving excellent client feedback throughout the project’s execution.
KOIL Energy has been awarded the first contracts in Brazil. These are not significant in value and have therefore not been announced earlier. This includes a maintenance survey on a production vessel off the coast of Brazil and a rental equipment agreement for three subsea deployment frames. These are currently being fabricated in country. KOIL recognizes its team in Brazil and those that are supporting this initiative from Houston. This is a big step forward in our growth strategy.
Gross profit for the quarter totaled $2.1 million dollars, or 32% of revenues, compared to $2.1 million dollars, or 40% of revenues, during the third quarter of 2024. While profitability was unchanged on a dollar basis, the margin decline reflected a higher mix of pass-through procurement costs.
Selling, general, and administrative expenses equaled $2.5 million for the quarter, up $928,000 from the prior year. Most of the increase was driven by write-off of a receivable.
Adjusted EBITDA was -3% of revenue, or a loss of $249,000, caused by a write-off of a receivable. Payments from a client located in the UK, have been outstanding for more than seven months without any explanation or communication from the company, OMSi Ltd. As a precaution, we have decided to write off the receivable this quarter. KOIL Energy intends to collect the full amount of $569,000 and has filed a lawsuit and served it to the customer.
In summary, we remain highly confident in our ability to deliver on our long-term growth strategy. Recent wins have positioned us strongly for the upcoming quarters. On profit margins, we are proactively increasing project contingencies to manage cost volatility and protect returns. Collection of the receivable will be an upside for net profit.
KOIL will host an investor conference call to review its third quarter of 2025 results on Friday, November 14, 2025, at 10:00 am Eastern Time.
Interested parties may listen to the call through a webcast link or using the dial in numbers. (See details below.)
GENERAL EVENT DETAILS
Title: Koil Energy Third Quarter 2025 Earnings Conference Call
Date: 11/14/2025
Start time: 10:00am EST - Start of live event
PARTICIPANT WEBCAST LINK:
https://edge.media-server.com/mmc/p/qw97wuus
PARTICIPANT DIALS:
Participant Dial Toll-Free: 1-833-630-1956
Participant Dial Toll/Int'l: 1-412-317-1837
Conference ID/PW: Koil Energy Solutions
Replay available for 7 days after the call:
Replay Dial Toll-Free: 1-855-669-9658
Replay Dial Toll/Int'l: 1-412-317-0088
Replay PW: 2024102
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.
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
Financial Tables:
| KOIL ENERGY SOLUTIONS, INC. | |||||||||||||||
| SUMMARY FINANCIAL DATA | |||||||||||||||
| (UNAUDITED) | |||||||||||||||
|
Comparative Condensed Consolidated Income Statement | |||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
| (In thousands, except per share amounts) | 2025 | 2024 | 2025 | 2024 | |||||||||||
| Revenues | $ | 6,367 | $ | 5,223 | $ | 16,799 | $ | 16,793 | |||||||
| Cost of sales | 4,315 | 3,159 | 11,341 | 10,449 | |||||||||||
| Selling, general and administrative | 2,514 | 1,586 | 6,220 | 4,316 | |||||||||||
| Operating income (loss) | (462 | ) | 478 | (762 | ) | 2,028 | |||||||||
| Total other (income) expense | (57 | ) | (47 | ) | (403 | ) | (62 | ) | |||||||
| Income (loss) before income tax expense | (405 | ) | 525 | (359 | ) | 2,090 | |||||||||
| Income tax expense | 8 | 2 | 22 | 7 | |||||||||||
| Net income (loss) | $ | (413 | ) | $ | 523 | $ | (381 | ) | $ | 2,083 | |||||
| Net income (loss) per share, basic | $ | (0.03 | ) | $ | 0.04 | $ | (0.03 | ) | $ | 0.17 | |||||
| Weighted-average shares outstanding, basic | 12,169 | 12,119 | 12,115 | 12,235 | |||||||||||
|
Comparative Condensed Consolidated Balance Sheets | |||||||||||||||
| September 30, | December 31, | ||||||||||||||
| (In thousands) | 2025 | 2024 | |||||||||||||
| Assets: | |||||||||||||||
| Cash | $ | 1,948 | $ | 3,422 | |||||||||||
| Other current assets | 7,844 | 6,784 | |||||||||||||
| PP&E, net | 3,431 | 2,791 | |||||||||||||
| Other non-current assets | 6,434 | 5,743 | |||||||||||||
| Total assets | $ | 19,657 | $ | 18,740 | |||||||||||
| Liabilities: | |||||||||||||||
| Current liabilities | 5,185 | 4,524 | |||||||||||||
| Other long-term liabilities | 5,945 | 5,612 | |||||||||||||
| Total liabilities | 11,130 | 10,136 | |||||||||||||
| Stockholders' equity | 8,501 | 8,604 | |||||||||||||
| Total liabilities and stockholders' equity | $ | 19,631 | $ | 18,740 | |||||||||||
|
Adjusted EBITDA | |||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
| (In thousands) | 2025 | 2024 | 2025 | 2024 | |||||||||||
| Net income (loss) | $ | (413 | ) | $ | 523 | $ | (381 | ) | $ | 2,083 | |||||
| (Deduct) Add: Interest (income) expense, net | - | (17 | ) | (16 | ) | (30 | ) | ||||||||
| Add: Income tax expense | 8 | 2 | 22 | 7 | |||||||||||
| Add: Depreciation and amortization | 146 | 144 | 449 | 437 | |||||||||||
| Add: Share-based compensation | 92 | 23 | 241 | 76 | |||||||||||
| Add (Deduct): Loss (gain) on sale of asset | - | - | (12 | ) | 3 | ||||||||||
| Add: Loss (Gain) on Litigation Settlement | (84 | ) | - | (333 | ) | - | |||||||||
| Add: Restructuring costs | - | - | 279 | - | |||||||||||
| Adjusted EBITDA | $ | (251 | ) | $ | 675 | $ | 249 | $ | 2,576 | ||||||
|
Cash Flow Data | |||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
| (In thousands) | 2025 | 2024 | 2025 | 2024 | |||||||||||
| Cash provided by (used in): | |||||||||||||||
| Operating activities | $ | (282 | ) | $ | 936 | $ | (1,038 | ) | $ | 1,174 | |||||
| Investing activities | (1,090 | ) | (47 | ) | (1,152 | ) | (127 | ) | |||||||
| Financing activities | 469 | 209 | 716 | 45 | |||||||||||
| Change in cash | $ | (903 | ) | $ | 1,098 | $ | (1,474 | ) | $ | 1,092 | |||||
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