KOIL Energy Reports Fourth Quarter and Full Year 2025 Results

Rhea-AI Summary

KOIL Energy (OTCQB: KLNG) reported fourth-quarter 2025 revenue of $7.3 million (up 22% year-over-year) and gross margin of 35%. Adjusted EBITDA margin for Q4 was 10% ($704,000). Full-year 2025 revenue was $24.0 million (+6% YoY) with adjusted EBITDA of $1.0 million, down from $3.5 million in 2024 as the company invested in rental equipment, IP development and Brazil operations.

KOIL cited strong order intake, double-digit service and product growth, and plans to present updated growth targets at an investor conference May 7–8, 2026.

Positive

• Q4 revenue +22% year-over-year to $7.3M
• Full-year revenue of $24.0M (+6% YoY)
• Service revenue growth of 24% in Q4
• Product sales growth of 21% in Q4
• Strong order intake positioning company for upcoming quarters

Negative

• Gross margin declined from 40% to 35% (500 bps)
• Full-year adjusted EBITDA fell from $3.5M to $1.0M
• SG&A increased by $237,000 in Q4
• Investments consumed free cash flow, reducing near-term EBITDA

- Revenue of $7.3 million, 22% growth

- Gross margin of 35%

- Adjusted EBITDA margin of 10%

HOUSTON, March 31, 2026 (GLOBE NEWSWIRE) -- KOIL Energy Solutions, Inc. (OTCQB: KLNG), a specialist in deepwater energy production and distribution equipment and services, released today its fourth quarter and full year 2025 results.

"We achieved a record revenue of $7.3 million this quarter," said Erik Wiik, President and Chief Executive Officer of KOIL Energy. "Our growth initiatives are delivering profitable growth with an EBITDA margin of 10% while we continue to invest heavily in growth."

Fourth Quarter 2025 Results:

For the three months ending December 31, 2025, KOIL Energy generated revenues of $7.3 million dollars. This is 22% higher than Q4 last year and 14% higher than last quarter. Both services and fixed priced contracts experienced significant year-over-year growth. Service revenue grew 24% and fixed priced contracts, or Product sales, increased by 21% compared to Q4 last year. This was driven by an exceptional order intake over the past two quarters.

Gross profit for the quarter totaled $2.5 million dollars, or 35% of revenues, compared to $2.4 million dollars, or 40% of revenues, during the fourth quarter of 2024. While profitability was unchanged on a dollar basis, the margin decline reflected a less favorable mix of projects.

Selling, general, and administrative expenses equaled $2.1 million for the quarter, up $237,000 from the prior year, driven by growth initiatives.

Adjusted EBITDA was 10% of revenue, or a gain of $704,000.

Full Year 2025 Results:

For the full year 2025, we achieved revenue of 24 million dollars, marking a 6% year-over-year increase. Adjusted EBITDA was $1 million in 2025 compared to $3.5 million dollars in 2024. The reduction was mainly driven by investments tied to our growth initiatives. KOIL remained focused on long‑term growth by deploying free cash flow to acquire new rental equipment and fund the development of intellectual property, the establishment of our Brazil operations, and international sales. These investments are already delivering positive growth results. We are currently refining our growth strategy and setting ambitious new goals through 2030. We look forward to presenting these plans at an in‑person and online investor conference in Houston on May 7–8, 2026, held in conjunction with the Offshore Technology Conference (OTC). Formal invitations will be sent shortly.

In summary, we remain highly confident in our ability to continue to deliver profitable growth. Recent project awards have positioned us strongly for the upcoming quarters.

KOIL will host an investor conference call to review its fourth quarter of 2025 results on Tuesday, March 31, 2026, 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.)

PARTICIPANT WEBCAST LINK:

https://edge.media-server.com/mmc/p/qjebi4ez/

PARTICIPANT DIALS:
PARTICIPANT DIAL IN (TOLL FREE) 1-833-630-1956
PARTICIPANT INTERNATIONAL DIAL IN 1-412-317-1837

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
Comparative Condensed Consolidated Income Statement
	Three Months Ended December 31,								Years Ended December 31,
(In thousands, except per share amounts)		2025				2024				2025				2024
Revenues	$	7,252			$	5,941			$	24,051			$	22,734
Cost of sales		4,753				3,536				16,094				13,985
Selling, general and administrative		2,106				1,876				8,326				6,192
Operating income (loss)		393				529				(369	)			2,557
Total other (income) expense		(1	)			(17	)			(404	)			(79	)
Income (loss) before income tax expense		394				546				35				2,636
Income tax expense		51				9				73				16
Net income (loss)	$	343			$	537			$	(38	)		$	2,620
Net income (loss) per share, basic	$	0.03			$	0.04			$	(0.00	)		$	0.21
Weighted-average shares outstanding, basic		12,608				12,344				12,133				12,344
Comparative Condensed Consolidated Balance Sheets
	December 31,
(In thousands)		2025				2024
Assets:
Cash	$	1,535			$	3,422
Other current assets		8,410				6,784
PP&E, net		3,642				2,791
Other non-current assets		6,227				5,743
Total assets	$	19,814			$	18,740
Liabilities:
Current liabilities		5,140				4,524
Other long-term liabilities		5,711				5,612
Total liabilities		10,851				10,136
Stockholders' equity		8,963				8,604
Total liabilities and stockholders' equity	$	19,814			$	18,740
Adjusted EBITDA
	Three Months Ended December 31,								Years Ended December 31,
(In thousands)		2025				2024				2025				2024
Net income (loss)	$	343			$	537			$	(38	)		$	2,620
(Deduct) Add: Interest (income) expense, net		10				(17	)			(6	)			(47	)
Add: Income tax expense		51				9				73				16
Add: Depreciation and amortization		141				134				590				571
Add: Share-based compensation		134				300				375				376
Add (Deduct): Loss (gain) on sale of asset		-				(2	)			(12	)			1
Add: Loss (Gain) on Litigation Settlement		-				-				(333	)			-
Add: Restructuring costs		1				-				280				-
Add: Severance		41				-				41				-
Adjusted EBITDA	$	721			$	961			$	970			$	3,537
Cash Flow Data
	Three Months Ended December 31,								Year Ended December 31,
(In thousands)		2025				2024				2025				2024
Cash provided by (used in):
Operating activities	$	137			$	553			$	(901	)		$	1,726
Investing activities		(381	)			(246	)			(1,533	)			(373	)
Financing activities		(154	)			(7	)			562				39
Effect of exchange rate changes on cash, cash equivalents, and restricted cash		(15	)			-				(15	)			-
Change in cash	$	(413	)		$	300			$	(1,887	)		$	1,392

FAQ

What were KOIL Energy (KLNG) Q4 2025 revenue and margin results?

Q4 2025 revenue was $7.3 million, with a gross margin of 35% and adjusted EBITDA margin of 10%. According to KOIL Energy, revenue rose 22% year-over-year while margin dipped due to a less favorable project mix.

Why did KOIL Energy (KLNG) adjusted EBITDA fall in full-year 2025?

Adjusted EBITDA dropped to $1.0 million in 2025 from $3.5 million in 2024 due to investments. According to KOIL Energy, spending on rental equipment, IP development and Brazil operations drove the reduction.

How did KOIL Energy (KLNG) perform in product and service lines in Q4 2025?

Service revenue grew 24% and product sales grew 21% year-over-year in Q4 2025. According to KOIL Energy, both lines benefited from exceptional order intake over the prior two quarters.

When is KOIL Energy (KLNG) holding its investor conference and earnings call in 2026?

KOIL Energy will host an investor conference May 7–8, 2026, with a Q4 results call on March 31, 2026 at 10:00 am ET. According to KOIL Energy, the conference aligns with the Offshore Technology Conference and will include webcasting details.

What near-term operational impacts did KOIL Energy (KLNG) report for upcoming quarters?

KOIL Energy said recent project awards and strong order intake have positioned it well for upcoming quarters. According to KOIL Energy, these wins support expected revenue momentum while investments continue to shape growth plans through 2030.