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Koil Energy Solutions (KLNG)
OTHER OTC:KLNG
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Koil Energy Solutions
(OTC:KLNG)
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Rating:63Neutral
Price Target:
$2.50
▲(3.73% Upside)
Koil Energy Solutions' overall stock score reflects strong financial recovery and positive future outlook, driven by revenue growth and market expansion. However, high valuation, recent financial challenges, and mixed technical signals temper the optimism.
Positive Factors
Revenue Growth
The 22% revenue growth, driven by service and contract sales, indicates strong demand and effective market penetration, supporting long-term expansion.
Expansion into Brazil
Entering the Brazilian market with new contracts enhances Koil's geographic diversification and growth potential in a key LNG market.
Record High Backlog
A record high backlog suggests sustained demand and future revenue visibility, providing a stable foundation for continued operational success.
Negative Factors
Negative EBITDA and Net Loss
Negative EBITDA and net loss highlight financial challenges, potentially impacting cash flow and limiting reinvestment in growth initiatives.
OMSI Limited Receivable Write-off
The write-off of a significant receivable underscores credit risk and could strain financial resources, affecting liquidity and profitability.
Decreased Gross Profit Margin
A declining gross profit margin suggests increased cost pressures, which may erode profitability if not managed effectively over time.
Koil Energy Solutions (KLNG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$29.37M
Dividend YieldN/A
Average Volume (3M)36.63K
Price to Earnings (P/E)202.5
Beta (1Y)0.89
Revenue Growth9.34%
EPS Growth-87.60%
CountryUS
Employees63
SectorEnergy
Sector Strength52
IndustryOil & Gas Equipment & Services
Share Statistics
EPS (TTM)-0.03
Shares Outstanding12,188,202
10 Day Avg. Volume48,767
30 Day Avg. Volume36,635
Financial Highlights & Ratios
PEG Ratio-0.04
Price to Book (P/B)3.33
Price to Sales (P/S)1.26
P/FCF Ratio21.18
Enterprise Value/Market Cap0.86
Enterprise Value/Revenue1.11
Enterprise Value/Gross Profit3.23
Enterprise Value/Ebitda74.57
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusModerate Buy
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Koil Energy Solutions Business Overview & Revenue Model
Company DescriptionKoil 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 subsea equipment and systems; connection and termination operations services; well-commissioning services; and construction support services. The company also provides project management and engineering; spooling; testing and commissioning; storage management; and refurbishment and repurposing of recovered subsea equipment, as well as support services for offshore interventions. In addition, it offers loose steel tube flying lead and umbilical hardware products, as well as riser isolation valves and subsea isolation valve services. Further, the company provides installation aids, including flying lead installation systems, tensioners, lay chutes, buoyancy modules, clump weights, mud mats, pumping and testing skids, control booths, fluid drum carriers, under-rollers, carousels, running and parking deployment frames, termination shelters, pipe straighteners, subsea deployment basket system, horizontal drive units, and rapid deployment cartridges. It serves energy companies, subsea equipment manufacturers, subsea equipment installation contractors, offshore drilling contractors, engineering and construction companies, and other companies involved in maritime operations. The company was formerly known as Deep Down, Inc. and changed its name to Koil Energy Solutions Inc. in April 2022. Koil Energy Solutions Inc. was founded in 1997 and is headquartered in Houston, Texas.
How the Company Makes MoneyKoil Energy Solutions generates revenue through multiple key streams. The primary source of income comes from the sale of liquefied natural gas to various industries, including power generation, transportation, and manufacturing. Additionally, the company earns money by providing engineering and construction services for LNG facilities, which involves designing, building, and maintaining infrastructure for LNG production and distribution. Consulting services focused on energy efficiency and sustainability further contribute to the revenue model. KLNG also engages in strategic partnerships with other energy firms and government entities, enhancing its market position and facilitating larger projects that can lead to increased earnings. The company may also benefit from long-term contracts with customers, ensuring a stable flow of income.
Koil Energy Solutions Earnings Call Summary
Earnings Call Date:Nov 14, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Apr 01, 2026
Earnings Call Sentiment Neutral
Koil Energy demonstrated strong revenue growth and expansion into new markets, particularly in Brazil, alongside a record high backlog indicating a positive future outlook. However, financial challenges such as negative EBITDA, a significant receivable write-off, and decreased profit margins present concerns. Overall, the positive aspects are balanced by significant lowlights.Q3-2025 Updates
Positive Updates
Revenue Growth
Koil Energy increased revenue by 22% this quarter, generating $6.4 million, which is also 22% higher than Q3 last year. Service revenue grew by 33%, and fixed price contracts or product sales increased by 15% compared to Q3 last year.
Expansion into Brazil
Koil Energy has been awarded its first two contracts in Brazil, marking a significant step forward in the company's growth strategy.
Record High Backlog
The company achieved a record high backlog due to recent contract awards, indicating a positive outlook for future quarters.
Positive Market Feedback
Received positive client feedback from the U.S., Brazil, and Norway, suggesting future subsea tieback activities may increase significantly.
Negative Updates
Negative EBITDA and Net Loss
Adjusted EBITDA was negative 3% of revenue, resulting in a loss of $249,000 due to a write-off of a receivable. The company recorded a net loss of $413,000, translating to a loss of $0.03 per fully diluted share, compared to a net income of $523,000 or $0.04 per share in Q3 2024.
OMSI Limited Receivable Write-off
A receivable from OMSI Limited in the U.K. was written off due to non-payment for over 7 months, impacting financial results.
Decreased Gross Profit Margin
Gross profit margin declined to 32% from 40% in the same quarter last year, despite unchanged profitability on a dollar basis, due to a higher mix of pass-through procurement costs.
Increased SG&A Expenses
Selling, general, and administrative expenses increased by $928,000 from the prior year, driven by the OMSI write-off, higher legal costs, and addition of key personnel.
Company Guidance
During the third quarter of 2025, Koil Energy reported a revenue increase of 22% to $6.4 million, compared to both the previous quarter and the same period last year. This growth was primarily driven by a 33% rise in service revenue and a 15% increase in fixed price contracts. Despite the revenue growth, the company faced a net loss of $413,000, or $0.03 per fully diluted share, largely due to a $569,000 write-off from a UK client, OMSI Limited, and increased expenses in legal costs and personnel. Gross profit remained at $2.1 million but represented a lower margin of 32% due to a higher mix of pass-through procurement costs. Koil Energy's working capital stood at $4.9 million, with $1.9 million in cash and $5.4 million in net receivables. The company has a strong backlog and anticipates positive performance going forward, buoyed by recent significant contract wins and increased bidding activities.Koil Energy Solutions Financial Statement Overview
Summary
Koil Energy Solutions has shown significant financial recovery with strong revenue growth and profitability improvements. The balance sheet is stable, but historical volatility could present future risks. Positive cash flows support operations and growth, but maintaining consistency is crucial.Income Statement
Koil Energy Solutions showcases a significant improvement in its financial performance over the past year. The company achieved a notable revenue growth rate of 48.14%, with revenues rising from $15.34 million to $22.73 million. The net profit margin improved substantially to 11.52% from a negative position, indicating a strong return to profitability. The gross profit margin also increased to 38.48%, highlighting enhanced operational efficiency. However, historical volatility in EBIT and EBITDA margins signals some instability in operational performance.75
Positive
Balance Sheet
The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.72, which is manageable. The equity ratio stands at 45.89%, suggesting a balanced leverage structure. The return on equity improved considerably to 30.45%, driven by the profitable year. However, past fluctuations in equity and liabilities indicate potential risks in maintaining this structure.65
Positive
Cash Flow
Cash flow analysis indicates a positive trajectory, with free cash flow increasing to $1.35 million from a negative position. The operating cash flow to net income ratio stands at 0.66, showing reasonable cash generation from operations. Free cash flow to net income ratio is 0.52, reflecting efficient capital management. Despite these strengths, previous years of negative free cash flow warrant caution.70
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 22.74M | 22.73M | 15.34M | 12.98M | 17.23M | 12.98M |
| Gross Profit | 7.84M | 8.75M | 4.85M | 4.68M | 5.84M | 4.92M |
| EBITDA | 340.00K | 3.13M | -1.00M | -1.00M | 3.40M | -4.96M |
| Net Income | 156.00K | 2.62M | -1.55M | -2.93M | 2.33M | -6.06M |
Balance Sheet | ||||||
| Total Assets | 19.66M | 18.74M | 17.06M | 16.61M | 14.73M | 14.94M |
| Cash, Cash Equivalents and Short-Term Investments | 1.95M | 3.42M | 2.03M | 2.35M | 3.68M | 3.75M |
| Total Debt | 7.91M | 6.16M | 6.71M | 7.66M | 1.89M | 4.32M |
| Total Liabilities | 11.16M | 10.14M | 11.44M | 9.51M | 4.45M | 7.04M |
| Stockholders Equity | 8.50M | 8.60M | 5.62M | 7.11M | 10.27M | 7.90M |
Cash Flow | ||||||
| Free Cash Flow | -1.90M | 1.35M | -27.00K | -1.29M | -1.42M | -377.00K |
| Operating Cash Flow | -483.00K | 1.73M | 203.00K | 1.24M | -1.07M | -206.00K |
| Investing Cash Flow | -1.40M | -373.00K | -226.00K | -2.26M | -113.00K | -158.00K |
| Financing Cash Flow | 709.00K | 39.00K | -300.00K | -303.00K | 1.11M | 586.00K |
Koil Energy Solutions Technical Analysis
Positive
2.41
Price Trends
2.49
Negative
2.20
Positive
2.01
Positive
Market Momentum
0.01
Positive
51.28
Neutral
19.97
Positive
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 2.41 is below the 20-day moving average (MA) of 2.45, below the 50-day MA of 2.49, and above the 200-day MA of 2.01, indicating a neutral trend. The MACD of 0.01 indicates Positive momentum. The RSI at 51.28 is Neutral, neither overbought nor oversold. The STOCH value of 19.97 is Positive, 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% | |
63 Neutral | $29.37M | 202.52 | 13.64% | ― | 9.34% | -87.60% | |
53 Neutral | $98.56M | -15.66 | -5.18% | ― | 7.46% | -165.76% | |
44 Neutral | $52.78M | -15.90 | -19.81% | ― | -22.31% | 39.11% | |
44 Neutral | $30.32M | -0.39 | ― | ― | -12.57% | -45.75% | |
42 Neutral | $14.79M | -0.60 | -8.78% | ― | -3.41% | -50.85% | |
39 Underperform | $15.56M | -0.36 | ― | ― | 2.59% | 16.02% |
* Energy Sector Average
KLNG
Koil Energy Solutions
2.41
0.04
1.69%
DWSN
Dawson Geophysical Company
1.70
0.28
19.72%
RCON
Recon Technology
1.26
-1.00
-44.25%
NINE
Nine Energy Service
0.36
-0.66
-64.71%
KLXE
KLX Energy Services Holdings
1.70
-2.94
-63.36%
DTI
Drilling Tools International
2.80
-0.30
-9.68%
Koil Energy Solutions Corporate Events
Koil Energy’s Earnings Call: Challenges and Future Prospects
Sep 1, 2025
Koil Energy Solutions Inc. recently held its earnings call, revealing a challenging second quarter marked by a decrease in overall revenue and gross margin. Despite these setbacks, the company expressed optimism for future growth, having secured significant new projects and maintaining a robust sales pipeline that suggests potential for improved financial performance.
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.