Gulf Island Fabrication (GIFI) AI Stock Analysis

• Market Cap: $190.70M
• Dividend Yield: N/A
• Average Volume (3M): 155.89K
• Price to Earnings (P/E): 21.8
• Beta (1Y): 0.48
• Revenue Growth: 0.26%
• EPS Growth: -48.11%
• Country: US
• Employees: 751
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): 0.10
• Shares Outstanding: 15,998,611
• 10 Day Avg. Volume: 198,950
• 30 Day Avg. Volume: 155,887
• PEG Ratio: -0.05
• Price to Book (P/B): 1.20
• Price to Sales (P/S): 0.70
• P/FCF Ratio: 8.64
• Enterprise Value/Market Cap: 0.36
• Enterprise Value/Revenue: 0.41
• Enterprise Value/Gross Profit: 3.03
• Enterprise Value/Ebitda: 5.33
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: $13.00 ▲(8.97% Upside)

Gulf Island Fabrication's overall score reflects a balanced outlook. The company's financial performance shows recovery signs, supported by a strong balance sheet. The technical analysis indicates bullish momentum, though caution is warranted due to overbought signals. Valuation is moderate, and the earnings call suggests strategic growth despite current challenges. The acquisition by IES Holdings is a significant positive factor, potentially enhancing future prospects.

Positive Factors

Strategic Acquisition

The acquisition of ENglobal diversifies Gulf Island's offerings, potentially opening new revenue streams and enhancing competitive positioning in automation and engineering.

Strong Liquidity Position

A robust cash position provides Gulf Island with the flexibility to invest in growth opportunities and weather economic fluctuations, supporting long-term stability.

Merger with IES Holdings

The merger with IES Holdings is expected to enhance Gulf Island's market reach and capabilities, supporting U.S. infrastructure projects and potentially driving long-term growth.

Negative Factors

Revenue Decline

A decline in revenue indicates challenges in maintaining sales momentum, which could impact profitability and market position if not addressed.

Post-Acquisition Losses

Post-acquisition losses from ENglobal highlight integration challenges, which may strain resources and delay expected benefits from the acquisition.

Decreased Fabrication Revenue

A significant drop in fabrication revenue suggests reduced demand or project delays, potentially impacting Gulf Island's core business and financial performance.

Gulf Island Fabrication Business Overview & Revenue Model

Company Description

Gulf Island Fabrication, Inc. (GIFI) is a publicly traded company that specializes in providing fabrication services and products primarily for the energy sector, including oil and gas, and renewable energy markets. The company operates through various segments, including Fabrication, Marine, and Services. Core offerings include the fabrication of offshore structures, modular systems, and specialized marine services, focusing on delivering high-quality solutions to meet the demands of its clients in complex industrial environments.

How the Company Makes Money

Gulf Island Fabrication generates revenue through multiple key streams, primarily by providing fabrication services for energy infrastructure projects, which include large-scale offshore platforms and modular construction for onshore facilities. The company also earns income through its marine services, which involve the repair and maintenance of vessels and offshore installations. Significant partnerships with major energy companies and contractors enhance GIFI's market reach and allow it to secure large contracts. Additionally, the company benefits from cyclical demand in the oil and gas industry, alongside a growing focus on renewable energy solutions, thereby diversifying its revenue sources.

Gulf Island Fabrication Financial Statement Overview

Summary

Gulf Island Fabrication is showing signs of recovery with improving revenue and profit margins. The balance sheet remains strong with low leverage and a solid equity base. Cash flow generation is an area to watch, as recent declines in free cash flow could impact future flexibility. Overall, the company is on a positive trajectory but needs to focus on enhancing operational efficiency and cash flow stability.

Income Statement

Gulf Island Fabrication has shown a positive revenue growth rate of 9.09% in the TTM, indicating a recovery from previous declines. The gross profit margin improved to 14.49%, and the net profit margin stands at 6.45%, reflecting better cost management. However, the EBIT and EBITDA margins are relatively low at 2.58% and 4.99%, respectively, suggesting room for improvement in operational efficiency.

Balance Sheet

The company maintains a low debt-to-equity ratio of 0.20, indicating conservative leverage. Return on equity is moderate at 10.63%, showing decent profitability relative to shareholder equity. The equity ratio is strong, suggesting a solid capital structure with a high proportion of equity financing.

Cash Flow

Operating cash flow to net income ratio is 0.56, indicating that cash generation is slightly lagging behind net income. Free cash flow has declined by 16.22% in the TTM, which could be a concern if it continues. However, the free cash flow to net income ratio of 0.81 suggests that the company is still generating significant cash relative to its earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	166.77M	159.20M	151.07M	142.32M	93.45M	117.73M
Gross Profit	22.37M	22.25M	-11.90M	7.89M	1.66M	-7.87M
EBITDA	12.73M	14.04M	-22.71M	-5.52M	-3.80M	-11.99M
Net Income	9.11M	14.74M	-24.40M	-3.35M	-22.17M	-27.43M
Balance Sheet
Total Assets	146.73M	133.22M	128.43M	134.87M	135.27M	236.74M
Cash, Cash Equivalents and Short-Term Investments	63.36M	66.07M	46.41M	43.13M	52.89M	51.16M
Total Debt	19.00M	19.00M	20.00M	0.00	0.00	10.00M
Total Liabilities	52.42M	40.11M	49.46M	32.24M	31.36M	112.26M
Stockholders Equity	94.30M	93.10M	78.97M	102.62M	103.91M	124.48M
Cash Flow
Free Cash Flow	8.64M	12.90M	4.32M	-12.01M	-26.30M	-30.22M
Operating Cash Flow	9.92M	18.25M	7.20M	-8.92M	-24.81M	-19.01M
Investing Cash Flow	-2.40M	-25.96M	-503.00K	-8.87M	37.40M	2.61M
Financing Cash Flow	-5.92M	-3.46M	-1.87M	-1.97M	-1.16M	9.86M

Gulf Island Fabrication Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 11.93
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: 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 11.93 is above the 20-day moving average (MA) of 11.86, above the 50-day MA of 9.89, and above the 200-day MA of 7.53, indicating a bullish trend. The MACD of 0.51 indicates Positive momentum. The RSI at 87.18 is Negative, neither overbought nor oversold. The STOCH value of 31.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GIFI.

Gulf Island Fabrication Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IIIN	73 Outperform	$646.96M	15.89	11.36%	3.36%	22.39%	112.75%
NWPX	71 Outperform	$602.91M	17.16	9.78%	―	7.61%	25.35%
GIFI	66 Neutral	$190.70M	21.79	9.95%	―	0.26%	-48.11%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
MEC	63 Neutral	$370.81M	30.84	5.06%	―	-12.38%	-0.71%
TG	54 Neutral	$261.48M	23.06	1.26%	―	-3.42%	―
AP	53 Neutral	$73.17M	-13.53	-8.73%	―	0.20%	88.39%

Gulf Island Fabrication Corporate Events

Gulf Island Fabrication Announces Merger with IES Holdings

On November 7, 2025, Gulf Island Fabrication, Inc. entered into a merger agreement with IES Holdings, Inc., where Gulf Island will become an indirect wholly owned subsidiary of IES. As part of the merger, each share of Gulf Island’s common stock will be converted into $12.00 in cash. The company’s board has approved the merger and recommends shareholder approval. The merger also outlines the treatment of equity awards, with specific provisions for directors and executive officers, including accelerated vesting conditions upon change of control and termination of employment.

IES Holdings to Acquire Gulf Island Fabrication

On November 7, 2025, Gulf Island Fabrication, Inc. and IES Holdings, Inc. announced a definitive agreement for IES to acquire Gulf Island for $12.00 per share, valuing the transaction at approximately $192 million. The merger, expected to close by March 31, 2026, aims to expand IES’s fabrication capabilities and enhance its ability to support U.S. infrastructure projects, with Gulf Island’s strategic Gulf Coast location and experienced workforce playing a key role. The acquisition is subject to shareholder and regulatory approvals, and certain shareholders have already agreed to support the transaction.