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New Fortress Energy (NFE)
:NFE
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New Fortress Energy
(NASDAQ:NFE)
Rating:53Neutral
Price Target:
$3.50
▲(46.44% Upside)
Positive Factors
EBITDA Contribution
San Juan 5 & 6 should continue to provide $150M-$200M in EBITDA annually.
Long-Term Growth
NFE has multiple projects in Brazil, including the Santa Catarina Terminal and Barcarena Terminal, which are expected to drive long-term growth.
Negative Factors
Debt Concerns
The company's debt load continues to be a near-term overhang with net debt to LTM EBITDA (adjusted for the Jamaica sale) at approximately 11x.
Earnings Performance
NFE reported 1Q results meaningfully below consensus and forward 'core EBITDA' guidance fell about 30% below prior estimates.
Market Confidence
Price target falls to $4/sh from $13, indicating decreased confidence in the company's short-term financial outlook.
New Fortress Energy (NFE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$655.33M
Dividend Yield16.74%
Average Volume (3M)9.63M
Price to Earnings (P/E)11.1
Beta (1Y)1.47
Revenue Growth-15.03%
EPS Growth-201.87%
CountryUS
Employees722
SectorEnergy
Sector Strength44
IndustryRegulated Gas
Share Statistics
EPS (TTM)N/A
Shares Outstanding274,198,300
10 Day Avg. Volume9,274,715
30 Day Avg. Volume9,628,133
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap17.15
Enterprise Value/Revenue5.24
Enterprise Value/Gross Profit13.40
Enterprise Value/Ebitda-722.17
Forecast
1Y Price Target
$5.00Price Target Upside109.21% Upside
Rating ConsensusHold
Number of Analyst Covering5
New Fortress Energy Business Overview & Revenue Model
Company DescriptionNew Fortress Energy (NFE) is a leading energy infrastructure company focused on natural gas logistics. The company operates in the sectors of natural gas supply, transportation, and distribution, primarily serving industrial, commercial, and residential customers. NFE's core products and services include the development of liquefied natural gas (LNG) facilities, the import and export of LNG, and the integration of natural gas supply chains, enhancing energy accessibility and sustainability.
How the Company Makes MoneyNew Fortress Energy generates revenue through multiple streams, primarily from the sale and distribution of liquefied natural gas (LNG) and associated services. The company earns money by contracting with various customers, including power generation facilities and industrial clients, who require reliable natural gas supply. Key revenue streams include fees for LNG terminal services, long-term contracts for gas supply, and revenue from infrastructure projects that enhance gas distribution capabilities. Additionally, strategic partnerships with governments and private sector entities in regions with growing energy needs contribute significantly to NFE's earnings, allowing the company to expand its market presence and operational capacity.
New Fortress Energy Earnings Call Summary
Earnings Call Date:Jul 31, 2025
(Q1-2025)
| % Change Since: -20.86%|
Next Earnings Date:Nov 05, 2025
Earnings Call Sentiment Neutral
The earnings call highlights several positive developments, including a successful asset sale in Jamaica, strong progress in Brazil, and robust liquidity. However, these are balanced by challenges such as lower-than-expected earnings, delays in Brazil's capacity auction, and ongoing challenges in Puerto Rico's energy system.Q1-2025 Updates
Positive Updates
Successful Jamaica Asset Sale
The company completed the sale of its Jamaica assets for $1.055 billion, resulting in net proceeds of $800 million and a $430 million gain.
Strong Performance in Brazil
Progress in Brazil with key assets nearing operational status: a 624-megawatt power plant expected to reach COD in the second half of 2025, and a 1.6 gigawatt plant on track for mid-2026. Contracts in Brazil are inflation-linked and provide stable cash flows.
Robust Liquidity Position
Ending Q1 2025 with $448 million in cash, $275 million available under revolving credit facilities, and $393 million from asset sales, totaling over $1.1 billion in pro forma liquidity.
FSRU Charter Contracts
New FSRU contracts signed, generating approximately $200 million in future earnings and increasing annual cash flow by up to $50 million.
Positive Construction Updates
Construction progress in Brazil with CELBA plant at 95% completion and PortoCem at 54% despite challenging weather conditions.
Negative Updates
Lower-than-Expected Earnings
Q1 2025 adjusted EBITDA was $82 million, lower than initial forecasts due to delays in recognizing certain expected payments.
Postponed Brazil Capacity Auction
The Brazil capacity auction, originally scheduled for June 2025, was delayed, creating short-term uncertainty.
Puerto Rico Energy System Challenges
Puerto Rico's energy system is under-invested and antiquated, with over 50% of power generated from oil and diesel.
Restricted Cash for Brazil CapEx
Significant amounts of cash are restricted for CapEx in Brazil, limiting flexibility in the use of funds.
Company Guidance
During the NFE First Quarter 2025 Earnings Call, CEO Wes Edens provided detailed financial guidance and operational updates. Core earnings were consistent with expectations, ranging from $109 million to $177 million over recent quarters, and are projected to accelerate in the second half as new assets, particularly in Brazil, come online. The forecast for EBITDA, including gains, is elevated to $1.25 billion to $1.5 billion for the year. The recent $1.055 billion Jamaica sale generated $800 million in net proceeds and a $430 million gain, contributing to this forecast. The company anticipates resolving a $659 million FEMA claim soon and has secured $143 million in profit from re-letting surplus FSRU assets. Additionally, NFE has planned asset sales and debt reduction strategies to simplify the balance sheet, with an aim to extend debt duration and lower costs. Long-term contracts in Brazil and Puerto Rico are expected to generate $500 million in annual margin, highlighting NFE's focus on maintaining stable, long-duration cash flows.New Fortress Energy Financial Statement Overview
Summary
New Fortress Energy faces financial instability with declining revenues and increasing net losses. High leverage and negative free cash flow indicate potential liquidity and solvency risks. While operational cash generation is positive, significant improvements in profitability and cash management are necessary for long-term sustainability.Income Statement
New Fortress Energy (NFE) exhibits unstable profitability with a fluctuating net income, showing a significant loss in the TTM (Trailing-Twelve-Months) period. The gross profit margin remains healthy, but the net profit margin is negative due to substantial net losses. Revenue growth is inconsistent, with recent declines. There is a concerning drop in EBITDA margin in the TTM, indicating operational challenges.55
Neutral
Balance Sheet
The balance sheet for NFE reveals a high debt-to-equity ratio, indicating significant leverage, which could pose financial risks. However, the equity ratio shows a moderate level of equity financing. Return on equity is negative in the TTM, reflecting recent net losses. Overall, the financial stability is weakened by high liabilities relative to equity.60
Neutral
Cash Flow
NFE's cash flow statement indicates negative free cash flow growth and a substantial free cash flow deficit, highlighting liquidity challenges. The operating cash flow to net income ratio remains positive, suggesting that the company generates operational cash despite net losses. However, the free cash flow to net income ratio is negative, underscoring ongoing cash management issues.50
Neutral
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 2.36B | 2.41B | 2.37B | 1.32B | 451.65M |
| Gross Profit | 1.09B | 1.14B | 1.19B | 581.81M | 125.30M |
| EBITDA | 317.51M | 1.11B | 440.85M | 350.45M | -160.19M |
| Net Income | -249.04M | 547.88M | 194.48M | 97.10M | -182.15M |
Balance Sheet | |||||
| Total Assets | 12.87B | 10.50B | 7.71B | 6.88B | 1.91B |
| Cash, Cash Equivalents and Short-Term Investments | 492.88M | 155.41M | 675.49M | 187.51M | 601.52M |
| Total Debt | 9.50B | 7.37B | 4.89B | 4.14B | 1.36B |
| Total Liabilities | 10.87B | 8.72B | 6.26B | 4.88B | 1.53B |
| Stockholders Equity | 1.88B | 1.64B | 1.29B | 1.79B | 366.96M |
Cash Flow | |||||
| Free Cash Flow | -2.03B | -2.21B | -818.90M | -584.58M | -282.56M |
| Operating Cash Flow | 586.74M | 824.76M | 355.11M | 84.77M | -125.57M |
| Investing Cash Flow | -2.07B | -2.90B | -82.73M | -2.27B | -157.63M |
| Financing Cash Flow | 2.22B | 1.53B | 321.96M | 1.82B | 819.50M |
New Fortress Energy Technical Analysis
Negative
2.39
Price Trends
3.20
Negative
4.43
Negative
8.09
Negative
Market Momentum
-0.29
Positive
37.44
Neutral
14.76
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NFE, the sentiment is Negative. The current price of 2.39 is below the 20-day moving average (MA) of 3.28, below the 50-day MA of 3.20, and below the 200-day MA of 8.09, indicating a bearish trend. The MACD of -0.29 indicates Positive momentum. The RSI at 37.44 is Neutral, neither overbought nor oversold. The STOCH value of 14.76 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NFE.
New Fortress Energy Peers Comparison
Overall Rating
UnderperformOutperform
Sector (56)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $2.94B | 22.26 | 9.25% | 2.09% | 19.02% | 20.13% | |
71 Outperform | $1.67B | 16.13 | 7.36% | 4.80% | 8.40% | 17.90% | |
68 Neutral | $4.55B | 18.10 | 8.24% | 3.49% | 13.43% | 6.49% | |
64 Neutral | $1.20B | 12.41 | 15.50% | 6.95% | 6.29% | -1.67% | |
56 Neutral | C$4.17B | 2.02 | 16.25% | 5.63% | 10.63% | -51.09% | |
53 Neutral | $655.33M | 11.07 | -28.26% | 16.74% | -15.03% | -201.87% | |
42 Neutral | $1.82B | 2,080.95 | -0.59% | ― | ― | ― |
* Energy Sector Average
Performance Comparison
NFE
New Fortress Energy
2.39
-10.99
-82.14%
CPK
Chesapeake Utilities
124.81
12.47
11.10%
NWN
Northwest Gas
40.83
4.00
10.86%
SPH
Suburban Propane
18.59
2.61
16.33%
OGS
ONE Gas
76.26
11.24
17.29%
CTRI
Centuri Holdings, Inc.
20.50
4.68
29.58%
New Fortress Energy Corporate Events
Private Placements and FinancingBusiness Operations and Strategy
New Fortress Energy Amends Credit Agreement, Extends Maturity
Neutral
Aug 14, 2025
On August 8, 2025, New Fortress Energy Inc. entered into the Ninth Amendment to its Uncommitted Letter of Credit and Reimbursement Agreement, transitioning the facility from uncommitted to committed. This amendment extends the maturity date to November 14, 2025, introduces an asset sale sweep prepayment provision, and modifies fees and pricing, with commitments reduced to approximately $195,000, further decreasing to $155,000 by October 5, 2025.
The most recent analyst rating on (NFE) stock is a Hold with a $15.00 price target. To see the full list of analyst forecasts on New Fortress Energy stock, see the NFE Stock Forecast page.
Executive/Board ChangesShareholder Meetings
New Fortress Energy Elects Directors at Annual Meeting
Neutral
Jun 25, 2025
At the 2025 Annual Meeting of Stockholders held on June 18, 2025, New Fortress Energy Inc. elected three Class III directors to serve until the 2028 Annual Meeting. Additionally, stockholders ratified the appointment of Ernst & Young LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025. These decisions reflect the company’s ongoing governance and financial oversight strategies.
The most recent analyst rating on (NFE) stock is a Hold with a $15.00 price target. To see the full list of analyst forecasts on New Fortress Energy stock, see the NFE Stock Forecast page.
Delistings and Listing ChangesRegulatory Filings and Compliance
New Fortress Energy Faces Nasdaq Non-Compliance Notice
Negative
May 27, 2025
On May 20, 2025, New Fortress Energy Inc. received a notice from Nasdaq indicating non-compliance with Nasdaq Listing Rule 5250(c)(1) due to the delayed filing of its Form 10-Q for the period ended March 31, 2025. The company has 60 days to submit a compliance plan, with potential for an extension until November 11, 2025, if accepted. The notice does not immediately affect the company’s stock listing, but failure to comply could lead to delisting. New Fortress Energy is working to file the report promptly.
The most recent analyst rating on (NFE) stock is a Hold with a $15.00 price target. To see the full list of analyst forecasts on New Fortress Energy stock, see the NFE Stock Forecast page.
M&A Transactions
New Fortress Energy Sells Jamaican Business for $1.055B
Neutral
May 21, 2025
On May 14, 2025, New Fortress Energy Inc. and Atlantic Energy Holdings LLC completed the sale of their Jamaican business to Excelerate Energy Limited Partnership for $1.055 billion in cash. This acquisition, initially announced on March 26, 2025, is expected to impact New Fortress Energy’s operations and market positioning by divesting its assets in Jamaica.
The most recent analyst rating on (NFE) stock is a Hold with a $15.00 price target. To see the full list of analyst forecasts on New Fortress Energy stock, see the NFE Stock Forecast page.
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.