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Flex Lng (FLNG)
NYSE:FLNG
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FLEX LNG
(NYSE:FLNG)
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Rating:57Neutral
Price Target:
$26.00
â–²(2.89% Upside)
Action:DowngradedDate:02/14/26
The score is held back primarily by leveraged financials and a weakening 2025 earnings/cash-flow trend, plus currently soft technical momentum. Offsetting factors include a very high dividend yield and an earnings call that reinforced strong liquidity and backlog, albeit with cautious guidance due to spot-market volatility and potential oversupply.
Positive Factors
Contract backlog & coverage
A multi-decade equivalent firm backlog and ~78% of 2026 days fixed provide durable revenue visibility that buffers the business from spot volatility. This long-term charter coverage supports predictable cash flows, underwriting of dividends and capital planning over the medium term.
Strong liquidity & hedging
Substantial cash reserves, deferred debt maturities and a material interest-rate hedge program reduce near-term refinancing and interest-rate exposure. Together these factors preserve financial flexibility and capacity to fund dry-docks, maintain dividends, and ride through shipping cycles.
High TCEs & operational uptime
Sustained TCEs near $70k/day and near-100% technical uptime translate into strong margin capture and efficient asset utilization. High daily earnings and operational reliability support cash conversion and make the modern fleet competitive for contract renewals and long-term charters.
Negative Factors
Elevated leverage
A materially higher debt-to-equity profile limits strategic flexibility in a capital-intensive, cyclical industry. Elevated leverage raises refinancing and covenant risks if spot rates weaken, constraining ability to invest or absorb prolonged earnings shocks despite stable asset values.
Weakened earnings & cashflow trend
A noticeable decline in net income and softer revenue trends reduce internal cash generation and amplify reliance on external liquidity. Given past free cash flow volatility, persistent earnings weakness would erode reserves and could pressure dividends or capex funding in weaker markets.
Industry supply overhang
A large orderbook and imminent deliveries imply a structural oversupply risk that can depress spot TCEs for several seasons. That trend directly threatens earnings for spot-exposed vessels and creates uncertainty when charter options are declared, weakening medium-term cash visibility.
FLEX LNG (FLNG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.47B
Dividend Yield12.31%
Average Volume (3M)402.88K
Price to Earnings (P/E)20.0
Beta (1Y)0.43
Revenue Growth-3.20%
EPS Growth6.76%
CountryUS
Employees9
SectorEnergy
Sector Strength52
IndustryOil & Gas Midstream
Share Statistics
EPS (TTM)0.43
Shares Outstanding54,087,770
10 Day Avg. Volume537,001
30 Day Avg. Volume402,875
Financial Highlights & Ratios
PEG Ratio-0.49
Price to Book (P/B)1.88
Price to Sales (P/S)3.88
P/FCF Ratio10.01
Enterprise Value/Market Cap1.96
Enterprise Value/Revenue8.28
Enterprise Value/Gross Profit15.66
Enterprise Value/Ebitda11.79
Forecast
1Y Price Target
$25.00Price Target Upside-1.07% Downside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)1.86
Revenue Forecast (FY)$330.33M
FLEX LNG Business Overview & Revenue Model
Company DescriptionFlex LNG Ltd., through its subsidiaries, engages in the seaborne transportation of liquefied natural gas (LNG) worldwide. As of February 16, 2022, it owned and operated nine M-type electronically controlled gas injection LNG carriers; and four vessels with generation X dual fuel propulsion systems. It also provides chartering and management services. Flex LNG Ltd. was incorporated in 2006 and is based in Hamilton, Bermuda.
How the Company Makes MoneyFLEX LNG generates revenue primarily through long-term time charters and spot market operations for its LNG carriers. The company enters into contracts with major energy companies and utilities, which provide a stable income stream over extended periods. Additionally, FLEX LNG benefits from the spot market, where it can capitalize on fluctuating demand and pricing for LNG transportation services. The company may also engage in partnerships with LNG producers and terminal operators, enhancing its operational capabilities and market presence. Factors contributing to its earnings include the global demand for LNG, charter rates, and the utilization rates of its fleet.
FLEX LNG Earnings Call Summary
Earnings Call Date:Feb 11, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 29, 2026
Earnings Call Sentiment Positive
The call conveyed a generally positive financial and operational performance for 2025 — adjusted EBITDA ($251M), adjusted net income ($101M), strong cash balance ($448M), high TCEs (~$72k/day), near‑100% fleet uptime, and a continued robust dividend policy (yield ~11.5%). At the same time management emphasized significant near‑term risks: volatile spot markets, modest expected earnings from spot exposure, slightly higher OpEx, and a large near‑term delivery pipeline that could weigh on rates. Overall the company met guidance and maintains strong liquidity and backlog, while flagging cautious expectations for spot earnings and uncertainty around charter options and growing supply in 2026–27.Q4-2025 Updates
Positive Updates
Strong Adjusted Profitability in 2025
Adjusted EBITDA of $251 million and adjusted net income of $101 million for full year 2025, in line with prior guidance.
Robust Cash and Balance Sheet Position
Year-end cash balance of $448 million, no debt maturing before 2029, and a book equity ratio of 27%, providing financial flexibility.
Consistent Dividend Track Record and High Yield
Board declared a $0.75 per share quarterly dividend (18th consecutive such dividend). Last 12 months dividend of $3.00 per share implies an approximate dividend yield of 11.5%; ~$770 million distributed since 2021.
High Fleet Utilization and Operational Efficiency
Close to 100% technical uptime (net of dry docks); completed 64 dry dock days in 2025 vs budgeted 80 days, freeing more available days for revenue generation.
Strong TCE Levels
Fleet average TCE around $70,100/day in Q4 and approximately $71,700–$72,000/day for the full year 2025; 2026 guidance TCE range of $65,000–$75,000/day.
Large Contract Backlog and Coverage
Minimum firm backlog equivalent to 50 years of employment (up to 75 years if options are exercised); 78% of available days in 2026 fixed on long-term charters.
Successful Interest Rate Hedging
Interest rate swap portfolio valued at $17.5 million on the balance sheet, average fixed rate ~2.5%, hedge ratio ~70% into mid-2027; swaps have generated ~$132 million in realized and unrealized gains since Jan 2021.
Positive Market Demand Signals (Europe & U.S.)
Global LNG export rose ~4% y/y to ~429 million tonnes in 2025; U.S. exports grew ~25% y/y and Europe imports increased ~24% y/y, supporting demand for tonnage.
Long-Term Contract Wins
Flex Constellation due to complete final voyage in March before commencing a 15-year time charter, adding long-term revenue visibility.
Asset Value Support from Stable Newbuilding Prices
Newbuilding price for a standard modern 2-stroke vessel remained around $250 million, supporting valuations for existing modern tonnage.
Negative Updates
Revenue Impact from Softer Spot Exposure
Full year sell-in revenues were $340 million; a $15 million reduction year-on-year primarily attributed to higher market exposure with Flex Constellation and Flex Artemis trading in a softer spot market.
Wide 2026 Guidance Ranges Reflect Spot Volatility
2026 guidance shows wide ranges—revenues $310M–$340M, TCE $65k–$75k/day and adjusted EBITDA $225M–$255M—due to exposure of 3 vessels to volatile spot markets and uncertain fixtures.
Higher Operating Expense per Day
OpEx per day for Q4 was $16,600 and full year OpEx $15,800/day (above prior guidance of $15,500/day); 2026 budgeted OpEx $16,000/day driven by scheduled maintenance and crew/ inflationary pressures.
Caution on Near-Term Market Oversupply
Significant newbuilding deliveries in 2026–27 (90–95 vessels expected in 2026; orderbook ~290 vessels ≈ 40% of existing fleet) may increase tonnage supply and pressure spot rates in the near term.
Uncertainty on Charter Options
Several charter options (e.g., Flex Resolute, Flex Courageous, Flex Freedom) are due to be declared in 2026–2027; outcomes are uncertain and will affect future contract coverage.
Reduced Asian Demand Dynamics
China imports declined ~15% y/y in 2025 and India remained price-sensitive (reduced LNG imports during JKM > $10), creating uneven demand across Asia versus strong European demand.
Management Flags Modest Spot Earnings Expectation
Company expects modest earnings from its spot-exposed vessels in 2026 given volatile market and many new deliveries; management marked earnings/cashflow decision factor to a lighter green.
Company Guidance
Flex LNG guided 2026 full‑year revenues of $310–$340 million, a fleet average TCE of about $65,000–$75,000 per day and adjusted EBITDA of $225–$255 million; management expects three vessels (Flex Volunteer, Flex Aurora and Flex Artemis) to be spot‑exposed while ~78% of available days are fixed and 10 vessels remain on time charters, with a minimum firm backlog of 50 years (up to 75 years if options are exercised). They budget OpEx at ~$16,000/day, plan three dry‑dockings in 2026 (average cost ~$5.9 million and ~20 days off per docking), report a year‑end cash balance of $448 million, no debt maturing before 2029, an interest‑rate swap portfolio valued at ~$17.5 million with an average fixed rate of 2.5% and ~70% hedge ratio into mid‑2027, and the Board declared a $0.75/share quarterly dividend (LTM $3.00/share, ~11.5% yield).FLEX LNG Financial Statement Overview
Summary
Strong margins and generally supportive cash conversion, but earnings and cash flow weakened in 2025 and the balance sheet is meaningfully leveraged (rising debt-to-equity), reducing flexibility.Income Statement
Profitability remains strong on a margin basis (2025 gross margin ~53% and net margin ~22%), but earnings power has weakened versus prior years (net income fell to ~$75M in 2025 from ~$118–120M in 2023–2024). Revenue has been soft for several years and was essentially flat-to-down, with a particularly sharp decline flagged in 2025, indicating elevated top-line volatility despite still-solid operating profitability.58
Neutral
Balance Sheet
The balance sheet is meaningfully leveraged: debt-to-equity increased to ~2.57x in 2025 (from ~1.84–2.24x in 2021–2024), which reduces flexibility in a cyclical/shipping-linked business. Equity has trended down since 2022 and returns on equity have moderated (about 10% in 2025 vs ~15–21% in 2022–2024), suggesting higher balance-sheet risk even though the asset base is relatively stable.45
Neutral
Cash Flow
Cash generation is generally supportive, with free cash flow closely tracking net income in most years (near 1.0x in 2022–2025), but operating cash flow coverage softened to ~0.81x in 2025 (down from >1.1x in 2022–2024). Free cash flow has also been volatile historically, including large negatives in 2020–2021, and 2025 shows a decline in free cash flow versus 2024.55
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 347.64M | 356.35M | 371.02M | 347.92M | 343.45M |
| Gross Profit | 183.77M | 207.58M | 227.62M | 209.76M | 209.04M |
| EBITDA | 252.42M | 298.89M | 302.20M | 336.96M | 288.36M |
| Net Income | 74.81M | 117.68M | 120.04M | 188.04M | 162.21M |
Balance Sheet | |||||
| Total Assets | 2.62B | 2.67B | 2.71B | 2.68B | 2.57B |
| Cash, Cash Equivalents and Short-Term Investments | 447.70M | 437.15M | 410.43M | 332.33M | 200.65M |
| Total Debt | 1.85B | 1.81B | 1.81B | 1.71B | 1.64B |
| Total Liabilities | 1.90B | 1.86B | 1.86B | 1.77B | 1.68B |
| Stockholders Equity | 719.26M | 806.63M | 847.65M | 907.09M | 889.39M |
Cash Flow | |||||
| Free Cash Flow | 134.85M | 182.79M | 175.03M | 208.86M | -51.09M |
| Operating Cash Flow | 134.85M | 182.80M | 175.03M | 208.87M | 214.84M |
| Investing Cash Flow | 0.00 | -4.00K | -2.00K | -5.00K | -265.93M |
| Financing Cash Flow | -124.96M | -155.61M | -96.54M | -77.75M | 123.10M |
FLEX LNG Technical Analysis
Positive
25.27
Price Trends
26.06
Positive
25.55
Positive
24.35
Positive
Market Momentum
0.36
Negative
59.15
Neutral
82.39
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FLNG, the sentiment is Positive. The current price of 25.27 is below the 20-day moving average (MA) of 26.70, below the 50-day MA of 26.06, and above the 200-day MA of 24.35, indicating a bullish trend. The MACD of 0.36 indicates Negative momentum. The RSI at 59.15 is Neutral, neither overbought nor oversold. The STOCH value of 82.39 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FLNG.
FLEX LNG Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $1.32B | 13.43 | 8.57% | 1.27% | 2.46% | 33.89% | |
76 Outperform | $1.50B | 12.76 | 11.21% | 13.08% | -27.21% | -62.22% | |
71 Outperform | $142.84M | 2.52 | 12.11% | 5.08% | 4.34% | 18.88% | |
68 Neutral | $49.81B | 27.29 | 65.06% | 2.03% | 7.79% | 33.93% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
62 Neutral | $4.69B | 78.64 | 2.99% | 2.68% | 19.15% | 329.74% | |
57 Neutral | $1.47B | 19.98 | 9.81% | 12.31% | -3.20% | 6.76% |
* Energy Sector Average
FLNG
FLEX LNG
27.32
6.47
31.00%
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DLNG
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36.16
17.29
91.64%
FLEX LNG Corporate Events
Flex LNG Posts Solid Q4 2025 Results, Maintains $0.75 Dividend and Names New CEO
Feb 11, 2026
Flex LNG Ltd. reported unaudited fourth-quarter 2025 results on February 11, 2026, posting vessel operating revenues of $87.5 million, net income of $21.6 million and basic earnings per share of $0.40, with a Time Charter Equivalent rate of $70,119 per day. The company ended 2025 with $447.6 million in cash, $1.85 billion of long-term debt and vessel book value of $2.10 billion, while adjusted full-year 2025 EBITDA reached $251.1 million and adjusted net income $101.1 million.
The board declared a fourth-quarter 2025 cash dividend of $0.75 per share on February 10, 2026, continuing a payout level that has delivered about $770 million to shareholders since 2021. Flex LNG highlighted benefits from $530 million of refinancing completed in 2025, which reduced interest costs, pushed all debt maturities beyond 2029 and strengthened the balance sheet, and it appointed Marius Foss as CEO, who stressed the company’s long-term LNG shipping contract backlog as a buffer against a softer, more volatile spot market expected over the next 12–18 months.
The most recent analyst rating on (FLNG) stock is a Buy with a $31.00 price target. To see the full list of analyst forecasts on FLEX LNG stock, see the FLNG Stock Forecast page.
Flex LNG Appoints Marius Foss as CEO
Dec 5, 2025
On December 5, 2025, Flex LNG Ltd. announced the appointment of Mr. Marius Foss as the new Chief Executive Officer of Flex LNG Management AS. Mr. Foss, who has been with the company since 2018, previously served as Interim CEO and Chief Commercial Officer, and has over 35 years of experience in the shipping industry. His leadership is expected to strengthen the company’s development and position in the LNG market.
The most recent analyst rating on (FLNG) stock is a Buy with a $30.00 price target. To see the full list of analyst forecasts on FLEX LNG stock, see the FLNG Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.