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Gulf Island Fabrication (GIFI)
NASDAQ:GIFI
US Market

Gulf Island Fabrication (GIFI) AI Stock Analysis

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Gulf Island Fabrication

(NASDAQ:GIFI)

Rating:72Outperform
Price Target:
$7.50
▲(10.29%Upside)
Gulf Island Fabrication's overall stock score is driven by solid financial performance, technical indicators pointing to bullish momentum, and an attractive valuation. Strategic acquisitions and the share repurchase program are positives, though macroeconomic uncertainties and revenue challenges in certain divisions present risks.

Gulf Island Fabrication (GIFI) vs. SPDR S&P 500 ETF (SPY)

Gulf Island Fabrication Business Overview & Revenue Model

Company DescriptionGulf Island Fabrication, Inc. (GIFI) is a leading provider of fabrication and construction services for the industrial and energy sectors. The company specializes in the fabrication of complex steel structures, modules, and vessels, serving industries such as oil and gas, petrochemical, marine, and renewable energy. Headquartered in Houston, Texas, Gulf Island Fabrication operates state-of-the-art facilities that are strategically located to support the demanding needs of its clients across the Gulf Coast region.
How the Company Makes MoneyGulf Island Fabrication generates revenue primarily through contracts for the fabrication of large steel structures and modules used in various industrial applications, particularly within the energy sector. The company earns money by undertaking large-scale construction projects, which include the design, engineering, and assembly of steel components and facilities. Key revenue streams include contracts with oil and gas companies for offshore platforms and onshore facilities, as well as projects for marine and renewable energy customers. In addition, Gulf Island Fabrication may engage in partnerships or joint ventures with other construction or engineering firms to enhance its service offerings and expand its market reach. The company's earnings are influenced by factors such as the demand for energy infrastructure, global oil prices, and investment trends in renewable energy projects.

Gulf Island Fabrication Earnings Call Summary

Earnings Call Date:May 06, 2025
(Q1-2025)
|
% Change Since: -1.59%|
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 financial resilience with improvements in profitability and cash flow management. The strong balance sheet and positive cash generation provide a solid foundation, though revenue growth poses a challenge.
Income Statement
65
Positive
The income statement shows a positive trend with a significant recovery in net income from the previous losses. The TTM (Trailing-Twelve-Months) gross profit margin is approximately 14.5%, and the net profit margin is about 7.9%. However, revenue has declined slightly from the previous year, indicating potential challenges in sales growth. The EBIT and EBITDA margins are solid at 6.1% and 6.8% respectively, reflecting operational improvements.
Balance Sheet
72
Positive
The balance sheet is strong with an equity ratio of approximately 70%, suggesting financial stability and low leverage with a debt-to-equity ratio of 0.012. This indicates the company’s prudent financial management. The return on equity (ROE) is also respectable at 12.75%, showing efficient use of equity in generating profits.
Cash Flow
68
Positive
The cash flow statement shows a positive operating cash flow and a healthy free cash flow of $10.35 million in the TTM. The free cash flow to net income ratio is approximately 0.84, indicating good cash generation relative to net income. However, the operating cash flow to net income ratio is slightly above 1, which is adequate but suggests room for improvement in cash conversion efficiency.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue156.59M159.20M151.07M142.32M93.45M250.96M
Gross Profit22.74M22.25M-11.90M7.89M1.66M-17.75M
EBITDA10.64M12.28M-21.92M-5.13M-8.10M-5.29M
Net Income12.33M14.74M-24.40M-3.35M-4.80M-27.38M
Balance Sheet
Total Assets138.16M133.22M128.43M134.87M135.27M231.34M
Cash, Cash Equivalents and Short-Term Investments66.28M66.07M46.41M43.13M52.89M51.16M
Total Debt1.12M19.00M20.00M2.10M2.00M10.00M
Total Liabilities41.46M40.11M49.46M32.24M31.36M104.98M
Stockholders Equity96.70M93.10M78.97M102.62M103.91M126.36M
Cash Flow
Free Cash Flow10.35M12.90M4.32M-12.01M-26.30M-30.22M
Operating Cash Flow13.45M18.25M7.20M-8.92M-24.81M-19.01M
Investing Cash Flow-13.80M-25.96M-503.00K-8.87M37.40M2.61M
Financing Cash Flow-3.76M-3.46M-1.87M-1.97M-1.16M9.86M

Gulf Island Fabrication Technical Analysis

Technical Analysis Sentiment
Positive
Last Price6.80
Price Trends
50DMA
6.60
Positive
100DMA
6.56
Positive
200DMA
6.46
Positive
Market Momentum
MACD
0.09
Positive
RSI
55.99
Neutral
STOCH
41.18
Neutral
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 6.8 is above the 20-day moving average (MA) of 6.71, above the 50-day MA of 6.60, and above the 200-day MA of 6.46, indicating a bullish trend. The MACD of 0.09 indicates Positive momentum. The RSI at 55.99 is Neutral, neither overbought nor oversold. The STOCH value of 41.18 is Neutral, 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 (58)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
72
Outperform
$109.18M9.2313.54%18.83%
72
Outperform
$395.86M12.529.13%8.06%38.46%
MEMEC
70
Neutral
$323.49M14.649.40%-8.42%164.82%
APAP
67
Neutral
$57.67M13.727.11%-3.60%
58
Neutral
$1.34B4.08-2.93%10.79%3.41%-51.76%
44
Neutral
$7.53M-10.62%11.70%11.36%22.93%
43
Neutral
$35.98M-76.24%8.71%-164.66%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GIFI
Gulf Island Fabrication
6.80
0.53
8.45%
AP
Ampco-Pittsburgh
2.95
2.20
293.33%
HIHO
Highway Holdings
1.71
-0.27
-13.64%
NWPX
Northwest Pipe Company
40.99
7.94
24.02%
MEC
Mayville Engineering Company
15.81
-0.36
-2.23%
TPCS
TechPrecision
3.56
-0.02
-0.56%

Gulf Island Fabrication Corporate Events

Private Placements and FinancingM&A TransactionsLegal Proceedings
Gulf Island Completes Acquisition of ENGlobal Units
Neutral
Jun 17, 2025

Gulf Island Fabrication, Inc. has been involved in a financial arrangement with ENGlobal Corporation, which filed for chapter 11 bankruptcy on March 5, 2025. The company entered into a DIP Credit Agreement to lend ENGlobal up to $3.5 million, facilitating ENGlobal’s restructuring process. On May 12 and June 16, 2025, Gulf Island completed the acquisition of ENGlobal’s automation, engineering, and government services businesses. The acquisition involved a credit bid of the full DIP Loan amount and additional cash payments totaling $5 million.

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
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.Date of analysis: Jun 05, 2025