KOIL Energy Reports Third Quarter 2026 Results
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Rhea-AI Summary
KOIL Energy Solutions (OTCQB: KLNG) reported third-quarter 2026 revenue of $10.3 million, up 62% from the same quarter last year. Revenue rose 13% sequentially, marking a fifth consecutive quarter of double-digit sequential growth. Net income was $207,000, or $0.02 per basic share, versus a $413,000 loss. Adjusted EBITDA was $837,000 versus negative $251,000; this measure excludes certain expenses and gains.
Gross profit rose to $2.8 million, but gross margin fell to 27% from 32%. Quarterly operating cash use increased to $748,000 from $365,000. KOIL secured its first subsea umbilical maintenance contract in Brazil and, after quarter-end, a subsea cable management services contract. On October 28, it entered an agreement to raise approximately $5.6 million in gross proceeds through common stock or equivalents, intended to expand its rental fleet and service capabilities.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Hollow bars mark forward-looking points. How the balance works
Positive
- Major point. Forward-looking: it has not happened yet and may not happen.Approximately $5.6 million in gross proceeds targeted under an equity financing agreement to expand rental equipment and services. 16% of market cap
- Moderate pointThird-quarter revenue of $10.3 million increased 62% year over year and 13% sequentially.
- Moderate pointThird-quarter net income of $207,000 reversed a $413,000 loss; basic EPS improved to $0.02 from negative $0.03.
- Minor pointFifth consecutive quarter of double-digit sequential revenue growth extended the growth record.
- Minor pointThird-quarter operating income of $447,000 compared with a $462,000 operating loss a year earlier.
12 minor points
- Minor pointThird-quarter gross profit of $2.8 million increased from $2.1 million a year earlier.
- Minor pointThird-quarter selling, general and administrative expenses of $2.327 million declined from $2.514 million.
- Minor pointThird-quarter adjusted EBITDA of $837,000, or 8% of revenue, compared with negative $251,000.
- Minor pointNine-month revenue of $27.709 million increased from $16.799 million in the comparable 2025 period.
- Minor pointNine-month net income of $1.100 million compared with a $381,000 loss; basic EPS reached $0.09 versus negative $0.03.
- Minor pointNine-month operating income of $1.393 million compared with a $762,000 loss a year earlier.
- Minor pointNine-month adjusted EBITDA of $2.528 million increased from $249,000 a year earlier.
- Minor pointBrazil contract secured KOIL's first subsea umbilical maintenance campaign in that market.
- Minor pointSubsea Cable Management Services contract secured after quarter-end includes field personnel and specialized rental equipment.
- Minor pointNewly acquired mobile carousel completed its first campaign in September, expanding service capabilities.
- Minor point. Forward-looking: it has not happened yet and may not happen.KOIL 2030 strategy renewed with plans focused on systems solutions, Brazilian expansion and rental equipment.
- Minor pointOne million work hours surpassed without a recordable incident.
Negative
- Major point. Forward-looking: it has not happened yet and may not happen.Common stock or common stock equivalents under the approximately $5.6 million financing would dilute existing holders. 16% of market cap
- Moderate pointThird-quarter gross margin fell to 27% from 32% a year earlier.
- Moderate pointThird-quarter operating cash use of $748,000 increased from $365,000 a year earlier.
- Moderate pointCash of $561,000 at September 30, 2026 declined from $1.535 million at December 31, 2025.
- Moderate pointCurrent liabilities of $11.497 million increased from $5.140 million at December 31, 2025.
2 minor points
- Minor pointNine-month operating cash use of $1.055 million increased from $1.039 million a year earlier.
- Minor pointNine-month selling, general and administrative expenses of $6.974 million increased from $6.220 million a year earlier.
AI-generated analysis. How Rhea-AI works. Not financial advice.
HOUSTON, Nov. 13, 2026 (GLOBE NEWSWIRE) -- KOIL Energy Solutions, Inc. (OTCQB: KLNG), a specialist in deepwater energy production and distribution equipment and services, today announced its third quarter 2026 results.
- Record revenue of
$10.3 million ,62% year-over-year increase compared to third quarter of 2025 - Fifth quarter of sequential quarterly double-digit revenue growth
- Adjusted EBITDA of
$837,000 or8% of revenue - Awarded first significant contract in Brazil
- Raised
$5.6 Million in Equity Capital to finance rental equipment
"The KOIL team continues to raise the bar, delivering record revenue quarter after quarter while surpassing one million work hours without a recordable incident,” said Erik Wiik, President and Chief Executive Officer of KOIL Energy. “Achieving profitable growth alongside this extraordinary safety milestone is truly remarkable. We also deeply appreciate the confidence our investors have placed in KOIL by providing the equity capital to further expand our service capacity. Their support has strengthened our position to capitalize on the opportunities in a robust subsea market."
Third Quarter 2026 Financial Results:
For the three months ending September 30, 2026, KOIL Energy generated revenues of
Gross profit for the quarter totaled
Corporate Updates:
During the quarter it was announced that KOIL secured a significant contract in Brazil, marking the Company's first subsea umbilical maintenance campaign in the world's largest deepwater market. This first significant contract in Brazil represents a major step towards establishing KOIL as the preferred provider of subsea umbilical services throughout the region. The contract includes the re-termination and testing of umbilical elements including chemical injection and hydraulic control lines, as well as electrical cables. KOIL is utilizing proprietary methodology and specialized equipment to safely and efficiently perform the pull-in, removal, and replacement of new elements.
In September, the Operations Team successfully completed its first campaign utilizing our newly acquired mobile carousel. The 3,500-metric-ton modular offshore carousel system was deployed to transpool approximately 50 miles of subsea umbilical cable, which was then transported and transferred to our existing land-based carousel for long term storage. This successful first deployment demonstrates the expanded capabilities and flexibility the new equipment brings to our service offering.
Subsequent to September 30, 2026, KOIL announced that it had secured a significant contract for Subsea Cable Management Services where the Company will deploy a dedicated team of experienced service supervisors and technicians to provide operational support and coordination, including umbilical spooling and operations. The scope also includes specialized rental equipment and highlights KOIL’s ability to complement its subsea equipment offerings with experienced field service personnel and ongoing operational support.
To further expand KOIL's global reach, the Company also announced a strategic alliance with Pipeline Network, a consultancy focused on the oil and gas pipeline services sector, designed to expand its international presence, operational capabilities, and customer support across the Eastern Hemisphere.
Demand forecasts continue to reinforce confidence in offshore markets, with the industry firmly in an upcycle. Sixty-three offshore final investment decisions (FIDs) have already been recorded in 2026, with another 26 expected by year-end, bringing the potential total to 89 compared with 57 in 2025. The subsea outlook also remains robust, with approximately 1,380 trees forecast through 2030 and award activity expected to accelerate over the next several years, according to market analysts.
The Company has renewed its growth strategy called "KOIL 2030," which is a bold strategic roadmap focused on three pillars: 1) systems solution, 2) Brazilian expansion, and 3) rental equipment.
Shareholders can find a more detailed overview of the Company's strategy by visiting the investor relations section of KOIL's website.
Subsequent to the end of third quarter, on October 28, 2026, KOIL Energy proudly announced that it has entered into a securities purchase agreement with certain institutional and other accredited investors to raise approximately
The financing is intended to support the next phase of the Company’s growth journey by allowing us to expand our rental equipment fleet and strengthen our service capabilities to better serve our customers.
KOIL will host an investor conference call to discuss its third quarter of 2026 results on Friday, November 13, 2026, at 9:00 am Eastern Time.
Interested parties may listen to the call through a webcast link or by dialing in. (See below for details.)
PARTICIPANT WEBCAST LINK:
https://edge.media-server.com/mmc/p/x2pceq5y
Participant Toll-Free Dial: 1-833-630-1956
Participant Toll/Int’l Dial: 1-412-317-1837
Conference Code: Koil Energy Solutions call
Replay Dials (valid for 7 days after the event)
Replay Toll-Free: 1-855-669-9658
Replay Toll: 1-412-317-0088
Replay Code: 8514985
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 Contact:
ir@koilenergy.com
281-862-2201
| 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) | 2026 | 2025 | 2026 | 2025 | |||||||||||
| Revenues | $ | 10,306 | $ | 6,367 | $ | 27,709 | $ | 16,799 | |||||||
| Cost of sales | 7,532 | 4,315 | 19,342 | 11,341 | |||||||||||
| Selling, general and administrative | 2,327 | 2,514 | 6,974 | 6,220 | |||||||||||
| Operating income (loss) | 447 | (462 | ) | 1,393 | (762 | ) | |||||||||
| Total other (income) expense | (219 | ) | 57 | (221 | ) | 403 | |||||||||
| Income (loss) before income tax expense | 228 | (405 | ) | 1,172 | (359 | ) | |||||||||
| Provision for income tax | 21 | 8 | 72 | 23 | |||||||||||
| Net income (loss) | $ | 207 | $ | (413 | ) | $ | 1,100 | $ | (381 | ) | |||||
| Net income (loss) per share, basic | $ | 0.02 | $ | (0.03 | ) | $ | 0.09 | $ | (0.03 | ) | |||||
| Weighted-average shares outstanding, basic | 12,502 | 12,169 | 12,318 | 12,115 | |||||||||||
| Comparative Condensed Consolidated Balance Sheets | |||||||||||||||
| September 30, | December 31, | ||||||||||||||
| (In thousands) | 2026 | 2025 | |||||||||||||
| Assets: | |||||||||||||||
| Cash | $ | 561 | $ | 1,535 | |||||||||||
| Other current assets | 14,355 | 8,410 | |||||||||||||
| PP&E, net | 6,339 | 3,642 | |||||||||||||
| Other non-current assets | 5,827 | 6,227 | |||||||||||||
| Total assets | $ | 27,082 | $ | 19,814 | |||||||||||
| Liabilities: | |||||||||||||||
| Current liabilities | 11,497 | 5,140 | |||||||||||||
| Other long-term liabilities | 4,998 | 5,711 | |||||||||||||
| Total liabilities | 16,495 | 10,851 | |||||||||||||
| Stockholders' equity | 10,587 | 8,963 | |||||||||||||
| Total liabilities and stockholders' equity | $ | 27,082 | $ | 19,814 | |||||||||||
| Adjusted EBITDA | |||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
| (In thousands) | 2026 | 2025 | 2026 | 2025 | |||||||||||
| Net income (loss) | $ | 207 | $ | (413 | ) | $ | 1,100 | $ | (382 | ) | |||||
| Add: Interest expense (income), net | 174 | - | 182 | (16 | ) | ||||||||||
| Add: Income tax expense | 21 | 8 | 72 | 23 | |||||||||||
| Add: Depreciation and amortization | 238 | 146 | 597 | 449 | |||||||||||
| Add: Share-based compensation | 181 | 92 | 562 | 241 | |||||||||||
| Add (Deduct): Loss (gain) on sale of asset | 16 | - | 15 | (12 | ) | ||||||||||
| Add: Loss (Gain) on Litigation Settlement | - | (84 | ) | - | (333 | ) | |||||||||
| Add: Restructuring costs | - | - | - | 279 | |||||||||||
| Adjusted EBITDA | $ | 837 | $ | (251 | ) | $ | 2,528 | $ | 249 | ||||||
| Cash Flow Data | |||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
| (In thousands) | 2026 | 2025 | 2026 | 2025 | |||||||||||
| Cash provided by (used in): | |||||||||||||||
| Operating activities | $ | (748 | ) | $ | (365 | ) | $ | (1,055 | ) | $ | (1,039 | ) | |||
| Investing activities | (2,904 | ) | (1,074 | ) | (2,914 | ) | (1,152 | ) | |||||||
| Financing activities | 2,733 | 798 | 2,998 | 716 | |||||||||||
| Change in cash | $ | (919 | ) | $ | (641 | ) | $ | (971 | ) | $ | (1,475 | ) | |||
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What were KOIL Energy's third-quarter 2026 revenue and earnings?
KOIL reported $10.3 million in revenue and $207,000 in net income, or $0.02 per basic share. Revenue increased 62% year over year. In the third quarter of 2025, the company recorded a $413,000 net loss, or $0.03 per basic share.
What equity financing did KOIL Energy announce after the third quarter of 2026?
KOIL entered a securities purchase agreement on October 28, 2026 to raise approximately $5.6 million in gross proceeds through a private investment in public equity financing. Institutional and other accredited investors would purchase common stock or common stock equivalents. The company intends to expand its rental equipment fleet and strengthen service capabilities.
How much of KOIL Energy's third-quarter 2026 revenue came from service contracts?
Service contracts accounted for approximately 70% of revenue in the third quarter of 2026.
What international alliance did KOIL Energy announce with its third-quarter 2026 results?
KOIL announced an alliance with Pipeline Network, a consultancy focused on oil and gas pipeline services. The company described the alliance as designed to expand its international presence, operational capabilities and customer support across the Eastern Hemisphere.