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Gulf Island Fabrication (GIFI)
NASDAQ:GIFI
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Gulf Island Fabrication
(NASDAQ:GIFI)
Rating:72Outperform
Price Target:
$7.50
▲(12.28%Upside)
Gulf Island Fabrication (GIFI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$108.37M
Dividend YieldN/A
Average Volume (3M)61.90K
Price to Earnings (P/E)9.1
Beta (1Y)0.70
Revenue Growth18.83%
EPS GrowthN/A
CountryUS
Employees751
SectorIndustrials
Sector Strength93
IndustryManufacturing - Metal Fabrication
Share Statistics
EPS (TTM)0.23
Shares Outstanding16,223,560
10 Day Avg. Volume53,941
30 Day Avg. Volume61,904
Financial Highlights & Ratios
PEG Ratio-0.40
Price to Book (P/B)1.07
Price to Sales (P/S)0.00
P/FCF Ratio7.63
Enterprise Value/Market Cap0.83
Enterprise Value/Revenue0.15
Enterprise Value/Gross Profit4.05
Enterprise Value/Ebitda-9.77
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Gulf Island Fabrication Business Overview & Revenue Model
Company DescriptionGulf Island Fabrication, Inc. (GIFI) is a leading fabricator of complex steel structures, modules, and marine vessels primarily serving the energy sector. The company operates through various segments, including fabrication, shipbuilding, and services, delivering a range of products such as offshore platforms, specialty steel structures, and marine vessels. Gulf Island Fabrication is known for its expertise in heavy fabrication, precision engineering, and delivering large-scale projects for oil and gas, industrial, and marine industries.
How the Company Makes MoneyGulf Island Fabrication generates revenue primarily through its fabrication and shipbuilding contracts. The company secures projects from clients in the energy, industrial, and marine sectors, focusing on custom-built structures and vessels. Key revenue streams include the construction of offshore oil and gas platforms, specialty steel fabrication for industrial applications, and the building of marine vessels such as tugboats and barges. Additionally, Gulf Island Fabrication provides maintenance and repair services, which contribute to its earnings. The company's financial performance is influenced by factors such as oil and gas industry trends, government contracts, and strategic partnerships with major energy firms.
Gulf Island Fabrication Earnings Call Summary
Earnings Call Date:May 06, 2025
(Q1-2025)
| % Change Since: -3.33%|
Next Earnings Date:Aug 12, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted a strong start to fiscal 2025 with growth in the Fabrication division and strategic acquisitions. However, significant declines in the Services division revenue, along with macroeconomic uncertainties and expected near-term challenges, balanced the positive aspects.Q1-2025 Updates
Positive Updates
Strong Start to Fiscal 2025
Gulf Island's strategic actions led to a strong start in fiscal 2025, with revenue of $40 million and adjusted EBITDA of $4.5 million.
Fabrication Division Growth
Fabrication revenue increased by 21% compared to the first quarter of the previous year, driven by higher small-scale fabrication activity.
Strategic Acquisition of ENGlobal Assets
Gulf Island acquired certain assets from ENGlobal Corporation, expected to diversify business into new markets and increase overall value.
Share Repurchase Program
The company continued its share repurchase program, purchasing approximately 1.1 million of common stock in April.
Negative Updates
Services Division Revenue Decline
Revenue for the Services division decreased by 22% compared to the previous year due to lower offshore maintenance activity and project delays.
Macroeconomic Uncertainty Impact
Trade and macroeconomic uncertainties are delaying project award decisions, affecting both fabrication and services businesses.
Expected Near-Term Challenges
Despite a strong first quarter, the company anticipates significant challenges for the remainder of 2025 due to economic headwinds and integration of ENGlobal assets.
Company Guidance
In the first quarter of fiscal year 2025, Gulf Island reported strong financial results with a revenue of $40 million and an adjusted EBITDA of $4.5 million, driven largely by small-scale fabrication activities. Despite macroeconomic challenges impacting capital spending, the company remains committed to its strategic priorities, including pursuing profitable growth and maintaining operational efficiency. Gulf Island's acquisition of certain assets from ENGlobal Corporation is expected to diversify its business and enhance its market offerings, although it may result in operating losses of $1 to $2 million during the integration period in 2025. The company ended the quarter with a robust cash position of over $67 million and a debt obligation of $19 million, providing flexibility to execute its growth strategy. However, ongoing trade uncertainties and lower capital spending by customers in the Gulf region are anticipated to affect the company's near-term outlook, potentially leading to a decline in second-quarter results.Gulf Island Fabrication Financial Statement Overview
Summary
Gulf Island Fabrication demonstrates a solid recovery with improved profitability and cash flow generation. The company's balance sheet is strong, characterized by low leverage and high equity. While recent improvements are promising, historical volatility and industry cyclicality pose potential risks.Income Statement
Gulf Island Fabrication has shown significant improvement in profitability, with a TTM (Trailing-Twelve-Months) net profit margin of 9.26% compared to losses in previous years. Revenue growth is modest at 5.38% from 2023 to 2024. Gross profit margin improved to 13.98% in TTM. These improvements suggest a positive trajectory, though historical volatility in earnings remains a concern.65
Positive
Balance Sheet
The balance sheet is strong with a low debt-to-equity ratio of 0.012 and a robust equity ratio of 69.88%. The return on equity (ROE) has improved to 15.83% in the TTM. High liquidity and low leverage indicate financial stability, although past fluctuations in equity levels suggest potential risks.70
Positive
Cash Flow
Free cash flow has grown significantly by 198.61% from 2023 to 2024, indicating improved cash generation. The operating cash flow to net income ratio is 1.24, reflecting efficient cash management. Overall, cash flow stability has improved, supporting operational resilience.75
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 159.20M | 151.07M | 142.32M | 93.45M | 250.96M | Gross Profit |
| 22.25M | -11.90M | 7.89M | 1.66M | -17.75M | EBIT |
| 12.28M | -25.88M | -3.42M | -13.48M | -27.16M | EBITDA |
| 12.28M | -21.92M | -5.13M | -8.10M | -5.29M | Net Income Common Stockholders |
| 14.74M | -24.40M | -3.35M | -4.80M | -27.38M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 66.07M | 46.41M | 43.13M | 52.89M | 51.16M | Total Assets |
| 133.22M | 128.43M | 134.87M | 135.27M | 231.34M | Total Debt |
| 19.00M | 20.00M | 2.10M | 2.00M | 10.00M | Net Debt |
| -8.28M | -18.18M | -31.12M | -50.89M | -33.16M | Total Liabilities |
| 40.11M | 49.46M | 32.24M | 31.36M | 104.98M | Stockholders Equity |
| 93.10M | 78.97M | 102.62M | 103.91M | 126.36M |
| Cash Flow | Free Cash Flow | |||
| 12.90M | 4.32M | -12.01M | -26.30M | -30.22M | Operating Cash Flow |
| 18.25M | 7.20M | -8.92M | -24.81M | -19.01M | Investing Cash Flow |
| -25.96M | -503.00K | -8.87M | 37.40M | 2.61M | Financing Cash Flow |
| -3.46M | -1.87M | -1.97M | -1.16M | 9.86M |
Gulf Island Fabrication Technical Analysis
Positive
6.68
Price Trends
6.46
Positive
6.60
Positive
6.39
Positive
Market Momentum
0.02
Negative
58.28
Neutral
84.63
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GIFI, the sentiment is Positive. The current price of 6.68 is above the 20-day moving average (MA) of 6.31, above the 50-day MA of 6.46, and above the 200-day MA of 6.39, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 58.28 is Neutral, neither overbought nor oversold. The STOCH value of 84.63 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GIFI.
Gulf Island Fabrication Risk Analysis
Gulf Island Fabrication disclosed 32 risk factors in its most recent earnings report. Gulf Island Fabrication reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Gulf Island Fabrication Peers Comparison
Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $70.53M | 16.74 | 7.11% | ― | -3.60% | ― | |
72 Outperform | $108.37M | 9.06 | 13.54% | ― | 18.83% | ― | |
70 Outperform | $319.81M | 13.91 | 9.40% | ― | -8.42% | 164.82% | |
67 Neutral | $393.64M | 12.16 | 9.13% | ― | 8.06% | 38.46% | |
66 Neutral | $4.49B | 12.28 | 5.32% | 248.53% | 4.08% | -12.00% | |
44 Neutral | $7.75M | ― | -10.62% | 6.82% | 11.36% | 22.93% | |
43 Neutral | $34.62M | ― | -76.24% | ― | 8.71% | -164.66% |
* Industrials Sector Average
Performance Comparison
GIFI
Gulf Island Fabrication
6.68
0.05
0.75%
AP
Ampco-Pittsburgh
3.57
2.34
190.24%
HIHO
Highway Holdings
1.73
-0.35
-16.83%
NWPX
Northwest Pipe Company
39.35
5.56
16.45%
MEC
Mayville Engineering Company
15.02
-1.39
-8.47%
TPCS
TechPrecision
3.67
0.07
1.94%
Gulf Island Fabrication Corporate Events
Stock Buyback
Gulf Island Fabrication Expands Share Repurchase Program
Positive
Jun 4, 2025
On June 4, 2025, Gulf Island Fabrication, Inc. announced that its board of directors approved a $5 million increase in its share repurchase program, raising the total authorization to $10 million. The expiration of the program was also extended to December 15, 2026. As of the announcement date, the company has $5.6 million available for repurchases, which can be executed at management’s discretion through various transaction methods.
Executive/Board ChangesShareholder Meetings
Gulf Island Fabrication Holds Virtual Shareholders’ Meeting
Neutral
May 15, 2025
On May 15, 2025, Gulf Island Fabrication, Inc. held its annual shareholders’ meeting virtually, where shareholders elected five directors, approved executive compensation, and ratified Ernst & Young LLP as the independent auditor for 2025. The meeting saw significant shareholder participation, with over 13 million shares represented, indicating strong engagement in the company’s governance decisions.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.