Koil Energy Solutions (KLNG)
OTHER OTC:KLNG
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Koil Energy Solutions
(OTC:KLNG)
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Rating:46Neutral
Price Target:
$2.00
▼(-25.09% Downside)
Action:ReiteratedDate:04/06/26
KLNG scores low mainly due to the 2025 profitability reversal and negative operating/free cash flow, which outweigh revenue growth and reasonable leverage. Technicals also remain bearish (below key moving averages with negative MACD). The earnings call adds some support via improving Q4 results and backlog/service momentum, but near-term margin and working-capital risks keep the overall score subdued.
Positive Factors
Service Revenue Growth
A 45% increase in service revenue signals a structural shift toward recurring, field/technical services that are less lumpy than fixed-price projects. Over 2-6 months this durable mix change should stabilize top-line volatility, improve lifetime customer value, and support steadier utilization and margin recovery as service contracts scale.
Negative Factors
Weak Cash Generation
Negative operating cash flow and materially negative free cash flow represent a structural funding weakness. Persisting cash deficits constrain the company’s ability to self-fund equipment, IP and Brazil expansion, increase reliance on external financing, and raise execution risk for growth initiatives across the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Service Revenue Growth
A 45% increase in service revenue signals a structural shift toward recurring, field/technical services that are less lumpy than fixed-price projects. Over 2-6 months this durable mix change should stabilize top-line volatility, improve lifetime customer value, and support steadier utilization and margin recovery as service contracts scale.
Read all positive factors
Koil Energy Solutions (KLNG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$26.20M
Dividend YieldN/A
Average Volume (3M)36.63K
Price to Earnings (P/E)20.5
Beta (1Y)0.89
Revenue Growth5.80%
EPS Growth-101.91%
CountryUS
Employees63
SectorEnergy
Sector Strength52
IndustryOil & Gas Equipment & Services
Share Statistics
EPS (TTM)>-0.01
Shares Outstanding12,188,202
10 Day Avg. Volume48,767
30 Day Avg. Volume36,635
Financial Highlights & Ratios
PEG Ratio7.30
Price to Book (P/B)3.14
Price to Sales (P/S)1.17
P/FCF Ratio-11.51
Enterprise Value/Market Cap1.21
Enterprise Value/Revenue1.32
Enterprise Value/Gross Profit4.01
Enterprise Value/Ebitda150.79
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Koil Energy Solutions Business Overview & Revenue Model
Company Description
Koil Energy Solutions, Inc., an energy services company, provides equipment and support services to the energy and offshore industries. It offers engineering and project management services, including the design, installation, and retrieval of sub...
How the Company Makes Money
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Koil Energy Solutions Earnings Call Summary
Earnings Call Date:Mar 31, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 11, 2026
Earnings Call Sentiment Neutral
The call presented a mixed but improving picture: a strong fourth quarter (Q4 revenue +22% YoY, 14% sequential growth, Q4 EBITDA and margin improvement) and meaningful service revenue growth (+45%) and record order intake provide positive momentum and evidence that growth investments (ERP, Brazil facility, partnerships) are beginning to pay off. However, full-year profitability declined materially (adjusted EBITDA down ~$2.6M), gross margins compressed (39% to 33%), cash balances fell, and a $570k receivable write-down plus higher SG&A and headcount weighed on results. Overall, positives and negatives are balanced — showing recovery and long-term potential but with near-term profitability and working capital challenges.Positive Updates
Strong Q4 Revenue and Sequential Growth
Fourth quarter revenue of $7.3M (22% year-over-year increase vs. $5.9M) and 14% sequential growth from Q3 2025, indicating a meaningful recovery late in the year.
Negative Updates
Decline in Full-Year Profitability
Adjusted EBITDA for 2025 was $1.0M versus $3.6M (company cited $3.5M) in 2024 — a reduction of approximately $2.6M year-over-year, driven by investments and lower utilization early in the year.
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Q4-2025 Updates
Positive
Negative
Strong Q4 Revenue and Sequential Growth
Fourth quarter revenue of $7.3M (22% year-over-year increase vs. $5.9M) and 14% sequential growth from Q3 2025, indicating a meaningful recovery late in the year.
Read all positive updates
Company Guidance
Koil’s forward-looking guidance emphasizes disciplined, profitable growth through 2026 and into a refined 2030 plan: management will deploy free cash flow to buy rental equipment, fund IP development, establish Brazil operations and support increased bidding activity (South America bidding at its highest level), while targeting gross margins in the high‑30% range (40% a stretch target in Brazil); operational priorities include scaling service delivery (service revenue grew 45% in 2025) and converting a growing backlog into revenue after a Q4 boost (Q4 revenue $7.3M, EBITDA $700K, 10% margin; Q4 revenue +22% YoY and +14% sequential). They flagged market tailwinds — subsea tree awards are forecast to rise from 247 to 296 in 2026 (+20%) and installation activity ~+8% — and noted subsea tiebacks can often reach first oil within ~2 years of FID. Financial context for the plan: full‑year 2025 revenue $24M (+6% YoY) with adjusted EBITDA ~$1.0M (EBITDA ~$960K, down $2.6M vs 2024) after $1.3M of growth‑related spend (including $680K from higher headcount and a $570K receivable write‑down); balance sheet at 12/31/25 showed $4.8M working capital, $1.5M cash and $4.7M net receivables, and headcount ~68 (plus 3 in Brazil).Koil Energy Solutions Financial Statement Overview
Summary
Income Statement
46
Neutral
Balance Sheet
58
Neutral
Cash Flow
34
Negative
| Breakdown | Dec 2025 | Mar 2025 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 24.05M | 22.73M | 15.34M | 12.98M | 17.23M |
| Gross Profit | 7.96M | 8.75M | 4.85M | 4.68M | 5.84M |
| EBITDA | 221.00K | 3.13M | -1.00M | -1.00M | 3.40M |
| Net Income | -38.00K | 2.62M | -1.55M | -2.93M | 2.33M |
Balance Sheet | |||||
| Total Assets | 19.81M | 18.74M | 17.06M | 16.61M | 14.73M |
| Cash, Cash Equivalents and Short-Term Investments | 1.53M | 3.42M | 2.03M | 2.35M | 3.68M |
| Total Debt | 7.15M | 6.16M | 6.71M | 7.66M | 1.89M |
| Total Liabilities | 10.85M | 10.14M | 11.44M | 9.51M | 4.45M |
| Stockholders Equity | 8.96M | 8.60M | 5.62M | 7.11M | 10.27M |
Cash Flow | |||||
| Free Cash Flow | -2.45M | 1.35M | -27.00K | -1.29M | -1.42M |
| Operating Cash Flow | -901.00K | 1.73M | 203.00K | 1.24M | -1.07M |
| Investing Cash Flow | -1.53M | -373.00K | -226.00K | -2.26M | -113.00K |
| Financing Cash Flow | 562.00K | 39.00K | -300.00K | -303.00K | 1.11M |
Koil Energy Solutions Technical Analysis
Positive
2.67
Price Trends
2.18
Negative
2.30
Negative
2.15
Negative
Market Momentum
-0.07
Negative
53.89
Neutral
65.91
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KLNG, the sentiment is Positive. The current price of 2.67 is above the 20-day moving average (MA) of 2.04, above the 50-day MA of 2.18, and above the 200-day MA of 2.15, indicating a neutral trend. The MACD of -0.07 indicates Negative momentum. The RSI at 53.89 is Neutral, neither overbought nor oversold. The STOCH value of 65.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KLNG.
Koil Energy Solutions Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
52 Neutral | $112.41M | 21.26 | -11.82% | ― | 1.98% | 52.93% | |
51 Neutral | $79.27M | -0.60 | 147.42% | ― | -10.26% | -27.55% | |
49 Neutral | $120.69M | 17.71 | -3.08% | ― | 3.35% | -200.76% | |
46 Neutral | $26.20M | 20.52 | 1.81% | ― | 5.80% | -101.91% | |
42 Neutral | $65.03M | ― | -6.84% | ― | 67.30% | -227.58% | |
38 Underperform | $455.29K | -4.62 | ― | ― | 1.41% | -10.37% |
* Energy Sector Average
KLNG
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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.