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New Fortress Energy (NFE)
NASDAQ:NFE
US Market
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New Fortress Energy (NFE) AI Stock Analysis

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NFE

New Fortress Energy

(NASDAQ:NFE)

Rating:48Neutral
Price Target:
$2.50
▲(6.38% Upside)
New Fortress Energy's overall stock score is primarily impacted by its financial instability, as evidenced by declining revenues, net losses, and high leverage. The bearish technical indicators further weigh on the score. While the high dividend yield is a positive aspect, it is overshadowed by the negative P/E ratio and liquidity concerns. The Nasdaq compliance notice adds additional risk, contributing to a lower overall score.
Positive Factors
EBITDA contribution
San Juan 5 & 6 should continue to provide $150M-$200M in EBITDA annually.
Long-term growth potential
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.
Negative Factors
Debt concerns
Investors have increasingly focused on the company's debt stack, which has contributed to NFE stock being down roughly 65% since the company reported Q1 earnings.
Short-term financial outlook
Price target falls to $4/sh from $13, indicating decreased confidence in the company's short-term financial outlook.
Volume disruptions
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 Inc. operates as an integrated gas-to-power infrastructure company that provides energy and development services to end-users worldwide. The company operates in two segments, Terminals and Infrastructure, and Ships. The Terminals and Infrastructure segment engages in the natural gas procurement and liquefaction; and shipping, logistics, facilities and conversion, or development of natural gas-fired power generation. The Ships segment offers floating storage and regasification units, and liquefied natural gas (LNG) carriers which are leased to customers under long-term or spot arrangements. The company operates LNG storage and regasification facility at the Port of Montego Bay, Jamaica; marine LNG storage and regasification facility in Old Harbour, Jamaica; landed micro-fuel handling facility in San Juan, Puerto Rico; marine LNG storage and regasification facility in Sergipe, Brazil; and LNG receiving facility in La Paz, Mexico, as well as Miami facility. New Fortress Energy Inc. was founded in 1998 and is based in New York, New York.
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: |
Next Earnings Date:Nov 05, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mix of positive achievements, such as the successful sale of the Jamaica asset and strong liquidity, alongside challenges like lower-than-expected quarterly earnings and project delays. The company is actively addressing these through strategic refinancing and asset sales, but some uncertainties remain, particularly regarding the timing of auctions and project completions.
Q1-2025 Updates
Positive Updates
Jamaica Sale Completion
The sale was completed for $1.055 billion, resulting in net proceeds of $800 million and a gain of $430 million. This transaction exceeded initial forecasts.
Strong Liquidity Position
The company ended Q1 with $448 million in cash and a pro forma liquidity of over $1.1 billion after the Jamaica sale. This positions the company well for near-term financial obligations.
Brazil Project Advancements
Significant progress has been made on power plants in Brazil, with CELBA at 95% completion and PortoCem at 54%. Both projects are on track for commercial operation dates in late 2025 and mid-2026, respectively.
High-Value Long-Term Contracts
The company has secured long-term contracts in Brazil, providing stable and predictable cash flows, particularly with Norsk Hydro and CELBA 2, which are inflation-linked and protected from gas price volatility.
EBITDA Guidance Increase
EBITDA plus gains are expected to be $1.25 billion to $1.5 billion for the year, which is higher than the previous estimate.
Negative Updates
Lower-than-Expected Quarterly Earnings
Q1 adjusted EBITDA was $82 million, lower than forecasted due to the absence of one-time gains and a $200 million net loss reported for GAAP.
Delayed Auctions in Brazil
The capacity auction scheduled for June was postponed, leading to some uncertainty, although it is expected to occur in 2025.
Challenges in Puerto Rico
Puerto Rico's energy system is outdated and under-invested, with a lack of sufficient reserve and high reliance on diesel for power generation, leading to inefficiencies and higher costs.
FLNG 2 Project Delays
No significant progress was made on the FLNG 2 project over the last 60 days, with focus diverted to other priorities such as the Jamaica sale.
Company Guidance
During the NFE First Quarter 2025 Earnings Call, the company reported consistent core earnings, with figures of $110 million, $177 million, $109 million, and $116 million over recent quarters, despite a decrease in EBITDA due to the absence of one-off results. For 2025, NFE forecasts EBITDA plus gains between $1.25 billion and $1.5 billion, with the sale of its Jamaica assets already contributing $800 million in net proceeds and a $430 million gain. The company has also highlighted its focus on debt reduction, asset sales, and leveraging long-term, high-quality cash flows, aiming to refinance its corporate debt structure. Key financial metrics include a $1.055 billion sale price for Jamaican assets and $778 million in net proceeds, while notable contracts, such as FSRU charters, are expected to add approximately $50 million in annual EBITDA. NFE's liquidity stood at over $1.1 billion at the end of Q1 2025, with plans to utilize this position to address near-term debt maturities and capitalize on growth opportunities in Brazil and Puerto Rico.

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
55
Neutral
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.
Balance Sheet
60
Neutral
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.
Cash Flow
50
Neutral
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue2.15B2.36B2.41B2.37B1.32B451.65M
Gross Profit838.99M1.09B1.14B1.19B581.81M125.30M
EBITDA-15.56M317.51M1.11B440.85M350.45M-160.19M
Net Income-503.25M-249.04M547.88M194.48M97.10M-182.15M
Balance Sheet
Total Assets13.03B12.87B10.50B7.71B6.88B1.91B
Cash, Cash Equivalents and Short-Term Investments447.86M492.88M155.41M675.49M187.51M601.52M
Total Debt9.63B9.50B7.37B4.89B4.14B1.36B
Total Liabilities11.12B10.87B8.72B6.26B4.88B1.53B
Stockholders Equity1.75B1.88B1.64B1.29B1.79B366.96M
Cash Flow
Free Cash Flow-1.79B-2.03B-2.21B-818.90M-584.58M-282.56M
Operating Cash Flow484.99M586.74M824.76M355.11M84.77M-125.57M
Investing Cash Flow-2.19B-2.07B-2.90B-82.73M-2.27B-157.63M
Financing Cash Flow2.27B2.22B1.53B321.96M1.82B819.50M

New Fortress Energy Technical Analysis

Technical Analysis Sentiment
Negative
Last Price2.35
Price Trends
50DMA
3.13
Negative
100DMA
3.63
Negative
200DMA
7.64
Negative
Market Momentum
MACD
-0.20
Negative
RSI
40.20
Neutral
STOCH
19.68
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 2.35 is below the 20-day moving average (MA) of 2.49, below the 50-day MA of 3.13, and below the 200-day MA of 7.64, indicating a bearish trend. The MACD of -0.20 indicates Negative momentum. The RSI at 40.20 is Neutral, neither overbought nor oversold. The STOCH value of 19.68 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 (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
71
Outperform
$2.90B21.979.25%2.12%19.02%20.13%
71
Outperform
$1.70B16.377.36%4.74%8.40%17.90%
68
Neutral
$4.51B17.998.24%3.55%13.43%6.49%
68
Neutral
$1.21B12.4515.50%7.05%6.29%-1.67%
66
Neutral
$15.26B7.303.22%5.27%4.16%-60.82%
48
Neutral
$644.37M11.07-28.26%17.02%-15.03%-201.87%
45
Neutral
$1.90B2,080.95-0.59%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
NFE
New Fortress Energy
2.35
-9.15
-79.57%
CPK
Chesapeake Utilities
124.46
6.21
5.25%
NWN
Northwest Gas
41.55
3.37
8.83%
SPH
Suburban Propane
18.43
2.14
13.14%
OGS
ONE Gas
75.21
7.92
11.77%
CTRI
Centuri Holdings, Inc.
21.41
4.85
29.29%

New Fortress Energy Corporate Events

Delistings and Listing ChangesRegulatory Filings and Compliance
New Fortress Energy Faces Nasdaq Compliance Notice
Negative
Aug 22, 2025

On August 19, 2025, New Fortress Energy Inc. received a notice from Nasdaq indicating non-compliance with a listing rule due to the delayed filing of its Form 10-Q for the period ended June 30, 2025. The company has 60 days to submit a compliance plan and potentially up to 180 days to file the report, with no immediate impact on its Nasdaq listing. However, failure to comply could lead to delisting of its Class A common stock. The company is working diligently to meet the filing requirements within the given timeline.

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.

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.

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: Sep 03, 2025