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Koil Energy Solutions (KLNG)
OTHER OTC:KLNG
US Market
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Koil Energy Solutions (KLNG) AI Stock Analysis

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KLNG

Koil Energy Solutions

(OTC:KLNG)

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Neutral 56 (OpenAI - Gpt-5.6Sol)
Rating:56Neutral
Price Target:
$3.50
▲(19.86% Upside)
Action:Reiterated
Date:08/18/26
The score is driven primarily by improving profitability and a healthier leverage profile, but it is held back by weak cash flow quality (negative operating and free cash flow) and earnings volatility. Technicals support an uptrend, though momentum looks stretched. Valuation is a notable headwind given the very high P/E, while the earnings call was broadly positive on growth and execution progress but flagged working-capital and project-timing risks.
Positive Factors
Revenue and service growth
Rapid growth across both products and services indicates stronger customer demand and broader revenue opportunities. The faster expansion of services can deepen lifecycle relationships and support a more diversified business model over the next several quarters.
Negative Factors
Weak cash conversion
Negative cash generation means reported earnings are not yet translating into liquidity, increasing dependence on working-capital releases or external funding. If project collections remain uneven, cash constraints could limit investment and weaken financial flexibility.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue and service growth
Rapid growth across both products and services indicates stronger customer demand and broader revenue opportunities. The faster expansion of services can deepen lifecycle relationships and support a more diversified business model over the next several quarters.
Read all positive factors

Koil Energy Solutions (KLNG) vs. SPDR S&P 500 ETF (SPY)

Koil Energy Solutions Business Overview & Revenue Model

Company Description
Koil Energy Solutions, Inc. is an energy services firm that supplies specialized equipment and comprehensive support to the energy and offshore sectors. The company excels in engineering and project management for subsea systems, overseeing their ...
How the Company Makes Money
Koil Energy Solutions makes money primarily by selling energy-services products and by providing project-based services tied to offshore/subsea oil and gas activity. Key revenue streams include: (1) product revenue from supplying subsea and offsho...

Koil Energy Solutions Earnings Call Summary

Earnings Call Date:Aug 13, 2026
(Q2-2026)
|
% Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Positive
The call highlights strong top-line momentum (78% revenue growth), marked profitability gains (EBITDA up $955k, net income and EPS improvement), rapid expansion of higher-growth service and rental segments (service +115%), strategic asset additions and entry into Brazil. Offsetting items include modest gross margin compression (1ppt), higher SG&A/headcount, tighter cash/working capital driven by project billing timing, elevated receivables, and reliance on a large H2 project that creates execution and collection risk. On balance, the positives (substantial revenue and profit growth, successful strategic wins and capacity investments) outweigh the financial timing and operational risks discussed.
Positive Updates
Record Revenue Growth
Q2 2026 revenues of $9.2 million, a 78% increase year-over-year from $5.2 million, driven by strong subsea industry momentum and strategic investments.
Negative Updates
Slight Gross Margin Compression
Gross profit of $3.0 million equaled 32% of revenues, down 1 percentage point from 33% in Q2 2025, attributed to mix shift toward large, longer-term projects with slightly lower margins.
Read all updates
Q2-2026 Updates
Negative
Record Revenue Growth
Q2 2026 revenues of $9.2 million, a 78% increase year-over-year from $5.2 million, driven by strong subsea industry momentum and strategic investments.
Read all positive updates
Company Guidance
Management guided that most work on the major subsea umbilical project will be executed in the second half of 2026 and that the company’s roadmap to 2030 prioritizes three growth pillars—distribution systems, Brazilian expansion, and rental equipment—backed by an asset‑based lending facility with $5.0M capacity (borrowings $2.4M at June 30) to fund fleet growth (including a newly acquired 3,500‑metric‑ton modular offshore carousel); they pointed to a large addressable market (Westwood: 1,380 planned subsea tree installations over the next four years) and cited Q2 metrics supporting the outlook: revenues $9.2M (+78% YoY from $5.2M), service revenue +115% YoY, product sales +49% YoY, new customers contributing 32% of revenue, EBITDA $1.1M (12% margin, +$955k YoY), net income $652k ($0.05 EPS), gross profit $3.0M (32% of revenue), working capital $3.8M, cash $922k, net receivables $7.3M, SG&A $2.3M, and headcount 90 (up from 74).

Koil Energy Solutions Financial Statement Overview

Summary
Improving fundamentals with revenue growth and a return to profitability, plus a more moderate leverage profile. However, cash generation is a major weakness: operating cash flow and free cash flow are negative despite positive earnings, and results have been historically volatile, raising durability and execution risk.
Income Statement
62
Positive
Balance Sheet
66
Positive
Cash Flow
38
Negative
BreakdownTTMMar 2026Mar 2025Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue31.02M24.05M22.73M15.34M12.98M17.23M
Gross Profit10.11M7.96M8.75M4.85M4.68M5.84M
EBITDA1.53M221.00K3.13M-1.00M-1.00M3.40M
Net Income823.00K-38.00K2.62M-1.55M-2.93M2.33M
Balance Sheet
Total Assets23.92M19.81M18.74M17.06M16.61M14.73M
Cash, Cash Equivalents and Short-Term Investments922.00K1.53M3.42M2.03M2.35M3.68M
Total Debt5.25M7.15M6.16M6.71M7.66M1.89M
Total Liabilities13.76M10.85M10.14M11.44M9.51M4.45M
Stockholders Equity10.16M8.96M8.60M5.62M7.11M10.27M
Cash Flow
Free Cash Flow-1.93M-2.45M1.35M-27.00K-1.29M-1.42M
Operating Cash Flow-1.22M-901.00K1.73M203.00K1.24M-1.07M
Investing Cash Flow-2.46M-1.53M-373.00K-226.00K-2.26M-113.00K
Financing Cash Flow2.42M562.00K39.00K-300.00K-303.00K1.11M

Koil Energy Solutions Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2.92
Price Trends
50DMA
2.59
Positive
100DMA
2.44
Positive
200DMA
2.39
Positive
Market Momentum
MACD
0.17
Negative
RSI
55.53
Neutral
STOCH
54.92
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 2.92 is above the 20-day moving average (MA) of 2.76, above the 50-day MA of 2.59, and above the 200-day MA of 2.39, indicating a bullish trend. The MACD of 0.17 indicates Negative momentum. The RSI at 55.53 is Neutral, neither overbought nor oversold. The STOCH value of 54.92 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

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
65
Neutral
$15.17B7.614.09%5.20%3.87%-62.32%
56
Neutral
$35.80M44.798.90%43.64%-25.53%
50
Neutral
$455.29K1.64-7.15%
49
Neutral
$87.50M-31.40-2.49%-5.48%32.73%
46
Neutral
$157.02M-0.4873.91%-4.78%22.13%
45
Neutral
$100.93M27.3526.73%86.31%
45
Neutral
$3.63M-0.18-5.97%67.30%-227.60%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
KLNG
Koil Energy Solutions
3.01
1.21
67.22%
DWSN
Dawson Geophysical Company
3.34
1.71
104.91%
RCON
Recon Technology
1.60
-420.40
-99.62%
NINE
Nine Energy Service, Inc.
10.64
2.44
29.76%
KLXE
KLX Energy Services Holdings
1.53
-0.42
-21.50%
DTI
Drilling Tools International
2.54
0.54
27.00%

Koil Energy Solutions Corporate Events

Business Operations and StrategyPrivate Placements and Financing
Koil Energy Wins Major Subsea Umbilical Carousel Project
Positive
Jun 17, 2026
On June 11, 2026, KOIL Energy Solutions announced it had secured a major project award for subsea umbilical handling, spooling, and storage services that will utilize two large carousels. The company plans to deploy a newly acquired 3,500-metric-t...
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: Aug 18, 2026