Koil Energy Solutions (KLNG) Q1 2026 earnings summary

Executive summary

• Achieved record quarterly revenue of $8.2 million in Q1 2026, up 56% year-over-year and 13% sequentially, driven by increased fixed-price contract activity, lump-sum projects, and new customer wins.

• EBITDA reached $572,000, a 69% year-over-year increase, with net income of $241,000 or $0.02 per diluted share, compared to a net loss of $29,000 in Q1 2025.

• Delivered four consecutive quarters of significant growth, supported by major contract wins in the Gulf of Mexico, West Africa, and international expansion.

• Focused on subsea tie-back projects and leveraging industry trends toward deepwater and ultra-deepwater developments.

Financial highlights

• Gross profit totaled $2.6 million (32% margin), up from $1.7 million (31% margin) in Q1 2025.

• Selling, general, and administrative expenses rose to $2.3 million, mainly due to increased headcount and non-recurring audit and marketing costs.

• Working capital stood at $5.1 million, with $1.2 million in cash and $7.5 million in net receivables as of March 31, 2026.

• Operating cash flow was $414,000, compared to $(766,000) in the prior year; cash used in investing activities was $216,000, and $535,000 was used in financing activities.

Outlook and guidance

• Raised growth ambitions with a roadmap to 2030 focused on distribution systems, Brazilian expansion, and rental equipment.

• Management expects continued growth, supported by record bidding activity, a robust backlog, and new clients contributing a larger share of revenue.

• Confident in balancing profitability with ongoing investments to support long-term growth.