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New Fortress Energy (NFE)
NASDAQ:NFE
US Market

New Fortress Energy (NFE) AI Stock Analysis

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New Fortress Energy

(NASDAQ:NFE)

Rating:55Neutral
Price Target:
$3.50
▼(-9.79%Downside)
NFE's overall stock score reflects significant financial and technical risks, including high leverage and bearish market trends. While the company shows strong liquidity and positive long-term growth potential through asset sales and strategic developments, these are offset by immediate concerns over financial stability and compliance risks.
Positive Factors
Growth Projects
NFE has multiple projects in Brazil, including the Santa Catarina Terminal, Barcarena Terminal, and two power plants, which are expected to drive long-term growth.
Revenue Generation
San Juan 5 & 6 should continue to provide $150M-$200M in EBITDA annually.
Negative Factors
Debt Concerns
Investors have increasingly focused on the company's debt stack, contributing to a significant decline in stock value.
Financial Performance
NFE reported 1Q results meaningfully below consensus and forward 'core EBITDA' guidance fell ~30% below prior estimates.
Operational Challenges
Maintenance in Puerto Rico and Jamaica was a drag on Q1 terminal volumes, and with Jamaica sold, Q2 volumes are expected to be messy.

New Fortress Energy (NFE) vs. SPDR S&P 500 ETF (SPY)

New Fortress Energy Business Overview & Revenue Model

Company DescriptionNew Fortress Energy (NFE) is a global energy infrastructure company focused on providing modern energy solutions to drive the world's transition to clean energy. It operates primarily in the energy sector, specializing in the production, distribution, and logistics of liquefied natural gas (LNG). NFE is committed to reducing carbon emissions while delivering reliable and affordable energy to diverse markets worldwide.
How the Company Makes MoneyNew Fortress Energy makes money through its integrated LNG value chain by producing, processing, and distributing liquefied natural gas. The company generates revenue from the sale of LNG to a variety of customers, including utilities, industrial end-users, and transportation companies. Key revenue streams include long-term supply contracts, spot market sales, and infrastructure development projects. NFE also engages in strategic partnerships and joint ventures to expand its market reach and enhance its service offerings. The company's earnings are significantly impacted by global energy demand, LNG pricing, and its ability to efficiently manage and operate its energy assets.

New Fortress Energy Earnings Call Summary

Earnings Call Date:May 14, 2025
(Q1-2025)
|
% Change Since: -42.77%|
Next Earnings Date:Jul 31, 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 shows strength in revenue generation and operational cash flow, but faces challenges with profitability and leverage. High debt levels and negative net profit margin are key concerns. Strategic improvements in efficiency and debt management are essential.
Income Statement
60
Neutral
New Fortress Energy shows a mixed performance in its income statement. The gross profit margin is strong, indicating good cost management, but the net profit margin is negative, highlighting issues in profitability. Although there is some revenue growth over the years, the recent decline from 2023 to 2024 is concerning. EBIT and EBITDA margins are relatively low, suggesting room for improvement in operational efficiency.
Balance Sheet
55
Neutral
The balance sheet reveals a high debt-to-equity ratio, indicating significant leverage, which could pose financial risks. Return on equity is negative, reflecting the company's struggle to generate profits from shareholders' equity. The equity ratio is relatively low, suggesting a reliance on debt financing over equity.
Cash Flow
65
Positive
Cash flow analysis indicates challenges in free cash flow generation, with negative free cash flow growth. However, the operating cash flow to net income ratio is positive, suggesting that cash flows from operations are relatively healthy compared to net income. The company needs to focus on improving its free cash flow position to ensure financial stability.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue2.36B2.41B2.37B1.32B451.65M
Gross Profit1.09B1.14B1.19B581.81M125.30M
EBITDA317.51M1.11B440.85M350.45M-160.19M
Net Income-249.04M547.88M194.48M97.10M-263.96M
Balance Sheet
Total Assets12.87B10.50B7.71B6.88B1.91B
Cash, Cash Equivalents and Short-Term Investments492.88M155.41M675.49M187.51M601.52M
Total Debt9.50B7.37B4.89B4.14B1.36B
Total Liabilities10.87B8.72B6.26B4.88B1.53B
Stockholders Equity1.88B1.64B1.29B1.79B366.96M
Cash Flow
Free Cash Flow-2.03B-2.21B-818.90M-584.58M-282.56M
Operating Cash Flow586.74M824.76M355.11M84.77M-125.57M
Investing Cash Flow-2.07B-2.90B-82.73M-2.27B-157.63M
Financing Cash Flow2.22B1.53B321.96M1.82B819.50M

New Fortress Energy Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price3.88
Price Trends
50DMA
3.84
Positive
100DMA
6.56
Negative
200DMA
9.01
Negative
Market Momentum
MACD
-0.15
Negative
RSI
61.02
Neutral
STOCH
91.67
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NFE, the sentiment is Neutral. The current price of 3.88 is above the 20-day moving average (MA) of 2.78, above the 50-day MA of 3.84, and below the 200-day MA of 9.01, indicating a neutral trend. The MACD of -0.15 indicates Negative momentum. The RSI at 61.02 is Neutral, neither overbought nor oversold. The STOCH value of 91.67 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for NFE.

New Fortress Energy Risk Analysis

New Fortress Energy disclosed 71 risk factors in its most recent earnings report. New Fortress Energy 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

New Fortress Energy Peers Comparison

Overall Rating
UnderperformOutperform
Sector (69)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
CPCPK
75
Outperform
$2.84B22.569.04%2.25%20.41%13.64%
NWNWN
72
Outperform
$1.64B16.177.36%4.81%3.88%11.80%
69
Neutral
€25.55B13.9512.66%4.54%-10.92%23.63%
OGOGS
68
Neutral
$4.33B17.478.08%3.71%7.73%2.36%
SPSPH
64
Neutral
$1.19B12.6914.42%7.11%4.02%-14.66%
NFNFE
55
Neutral
$1.06B11.07-28.26%10.31%-15.03%-201.87%
47
Neutral
$1.96B2,095.240.11%
* Utilities Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
NFE
New Fortress Energy
3.88
-15.67
-80.15%
CPK
Chesapeake Utilities
121.87
17.31
16.56%
NWN
Northwest Gas
40.74
7.14
21.25%
SPH
Suburban Propane
18.29
0.78
4.45%
OGS
ONE Gas
72.31
12.34
20.58%
CTRI
Centuri Holdings, Inc.
22.00
2.90
15.18%

New Fortress Energy Corporate Events

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.

M&A TransactionsBusiness Operations and Strategy
New Fortress Energy Amends Credit Agreements for Sale
Neutral
May 12, 2025

New Fortress Energy has entered into several amendments to its credit agreements in anticipation of closing the sale of its Jamaican business to Excelerate Energy Limited Partnership on May 12, 2025. These amendments, including the Twelfth Amendment to the Credit Agreement, the Fifth Amendment to the Credit Agreement, and the Eighth Amendment to the Uncommitted Letter of Credit and Reimbursement Agreement, adjust financial covenants and allow the company to use proceeds from the asset sale to reinvest in its business and repay debt. The amendments provide flexibility in financial management by waiving certain repayment requirements and adjusting covenants, potentially impacting the company’s financial strategy and stakeholder interests.

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.Date of analysis: Jul 02, 2025