Gulf Island Awarded Government Services Contract
Rhea-AI Summary
Gulf Island Fabrication (NASDAQ: GIFI) has secured a significant task order from the U.S. Defense Logistics Agency (DLA) through its Englobal government services business. The contract, valued at over $7.0 million, involves upgrading and installing an automated fuel handling system at the Fleet Logistics Center in Yokosuka, Japan.
The project is scheduled to commence in September 2025 with completion expected in Q1 2028. This task order is part of a broader indefinite-delivery, indefinite-quantity contract extending through September 2029, allowing DLA to issue similar fuel system upgrade orders worldwide. The award follows Gulf Island's acquisition of Englobal in Q2 2025.
Positive
- Secured new task order worth over $7.0 million from U.S. Defense Logistics Agency
- Contract includes potential for additional task orders through September 2029
- Successfully integrated Englobal acquisition with positive customer feedback
- Expansion into government services sector diversifies revenue streams
Negative
- Extended project timeline stretching to Q1 2028 may impact cash flow timing
- Fixed-price contract structure carries potential cost overrun risks
News Market Reaction
On the day this news was published, GIFI declined 3.25%, reflecting a moderate negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
THE WOODLANDS, Texas, Sept. 23, 2025 (GLOBE NEWSWIRE) -- Gulf Island Fabrication, Inc. (NASDAQ: GIFI) (“Gulf Island” or the “Company”), a leading steel fabricator and service provider to the industrial, energy and government sectors, today announced that its Englobal government services business has been awarded a task order from the U.S. Defense Logistics Agency (the “DLA”) to upgrade and install an automated fuel handling system at the Fleet Logistics Center in Yokosuka (Yokose), Japan.
The task order is fixed-price with an estimated value in excess of
“We are extremely proud to be supporting the U.S. Military through this contract, which highlights Englobal’s proven history of delivering critical services to the U.S. government,” said Richard Heo, President and CEO of Gulf Island. “We remain encouraged by the positive feedback from customers and potential strategic partners since we completed the Englobal acquisition in the second quarter 2025, and this award affirms our confidence that customers will resume awarding contracts to Englobal following the transaction. We continue to see meaningful opportunities to grow our customer base, diversify into new markets, and enhance the value of our current offerings through the Englobal acquisition.”
ABOUT GULF ISLAND
Gulf Island is a leading fabricator of complex steel structures, modules and automation systems, and a provider of specialty services, including engineering, project management, commissioning, repair, maintenance, scaffolding, coatings, welding enclosures, cleaning and environmental, and technical field services to the industrial, energy and government sectors. The Company’s customers include U.S. and, to a lesser extent, international energy producers; refining, petrochemical, LNG, industrial and power operators; EPC companies; and federal, state and local governments. The Company is headquartered in The Woodlands, Texas and its primary operating facilities are located in Houma, Louisiana and Houston, Texas. For more information please visit www.gulfisland.com.
CAUTIONARY STATEMENT
This release contains forward-looking statements. Forward-looking statements are all statements other than statements of historical facts. The Company cautions readers that forward-looking statements are not guarantees of future performance and actual results may differ materially from those anticipated, projected or assumed in the forward-looking statements. Important factors that can cause its actual results to differ materially from those anticipated in the forward-looking statements include, but are not limited to, the factors described under “Risk Factors” in Part I, Item 1A of the Company’s annual report on Form 10-K for the year ended December 31, 2024, as updated by subsequent filings with the SEC. Additional factors or risks that the Company currently deems immaterial, that are not presently known to the Company or that arise in the future could also cause the Company’s actual results to differ materially from its expected results. Given these uncertainties, investors are cautioned that many of the assumptions upon which the Company’s forward-looking statements are based are likely to change after the date the forward-looking statements are made, which it cannot control. Further, the Company may make changes to its business plans that could affect its results. The Company cautions investors that it undertakes no obligation to publicly update or revise any forward-looking statements, which speak only as of the date made, for any reason.
COMPANY INFORMATION
| Richard W. Heo | Westley S. Stockton |
| Chief Executive Officer | Chief Financial Officer |
| 713.714.6100 | 713.714.6100 |
FAQ
What is the value of Gulf Island's new DLA contract?
When will Gulf Island (NASDAQ: GIFI) complete the DLA project in Japan?
What type of contract did Gulf Island receive from the Defense Logistics Agency?
How long can Gulf Island receive additional task orders under the DLA contract?
When did Gulf Island acquire Englobal?
