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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 57 (OpenAI - 5.2)
Rating:57Neutral
Price Target:
$2.50
▼(-6.37% Downside)
Action:Reiterated
Date:06/17/26
The score is held back primarily by uneven financial quality—thin TTM profitability and weak/volatile free cash flow—despite strong recent technical momentum. Valuation is a further headwind given the very high P/E, partially offset by positive corporate developments (new project win and improved liquidity via a revolving credit facility).
Positive Factors
Major subsea carousel project win
The award requires deploying a newly acquired 3,500‑metric‑ton modular carousel and redeploying an underused carousel, supporting KOIL’s rental equipment scale-up. This materially boosts asset utilization, creates multi‑month project revenue, and deepens customer relationships in subsea services.
Negative Factors
Thin, volatile profitability
Near‑breakeven operating results and a ~0.9% net margin leave little cushion for cost shocks or project delays. Historical swings between double‑digit margins and substantial declines highlight limited operating leverage and heightened earnings volatility, constraining durable profit generation.
Read all positive and negative factors
Positive Factors
Negative Factors
Major subsea carousel project win
The award requires deploying a newly acquired 3,500‑metric‑ton modular carousel and redeploying an underused carousel, supporting KOIL’s rental equipment scale-up. This materially boosts asset utilization, creates multi‑month project revenue, and deepens customer relationships in subsea services.
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
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Koil Energy Solutions Earnings Call Summary

Earnings Call Date:Mar 31, 2026
(Q4-2025)
|
% Change Since: |
Next Earnings Date:Aug 10, 2026
Earnings Call Sentiment Neutral
The call presented a mixed but improving picture: a strong fourth quarter (Q4 revenue +22% YoY, 14% sequential growth, Q4 EBITDA and margin improvement) and meaningful service revenue growth (+45%) and record order intake provide positive momentum and evidence that growth investments (ERP, Brazil facility, partnerships) are beginning to pay off. However, full-year profitability declined materially (adjusted EBITDA down ~$2.6M), gross margins compressed (39% to 33%), cash balances fell, and a $570k receivable write-down plus higher SG&A and headcount weighed on results. Overall, positives and negatives are balanced — showing recovery and long-term potential but with near-term profitability and working capital challenges.
Positive Updates
Strong Q4 Revenue and Sequential Growth
Fourth quarter revenue of $7.3M (22% year-over-year increase vs. $5.9M) and 14% sequential growth from Q3 2025, indicating a meaningful recovery late in the year.
Negative Updates
Decline in Full-Year Profitability
Adjusted EBITDA for 2025 was $1.0M versus $3.6M (company cited $3.5M) in 2024 — a reduction of approximately $2.6M year-over-year, driven by investments and lower utilization early in the year.
Read all updates
Q4-2025 Updates
Negative
Strong Q4 Revenue and Sequential Growth
Fourth quarter revenue of $7.3M (22% year-over-year increase vs. $5.9M) and 14% sequential growth from Q3 2025, indicating a meaningful recovery late in the year.
Read all positive updates
Company Guidance
Koil’s forward-looking guidance emphasizes disciplined, profitable growth through 2026 and into a refined 2030 plan: management will deploy free cash flow to buy rental equipment, fund IP development, establish Brazil operations and support increased bidding activity (South America bidding at its highest level), while targeting gross margins in the high‑30% range (40% a stretch target in Brazil); operational priorities include scaling service delivery (service revenue grew 45% in 2025) and converting a growing backlog into revenue after a Q4 boost (Q4 revenue $7.3M, EBITDA $700K, 10% margin; Q4 revenue +22% YoY and +14% sequential). They flagged market tailwinds — subsea tree awards are forecast to rise from 247 to 296 in 2026 (+20%) and installation activity ~+8% — and noted subsea tiebacks can often reach first oil within ~2 years of FID. Financial context for the plan: full‑year 2025 revenue $24M (+6% YoY) with adjusted EBITDA ~$1.0M (EBITDA ~$960K, down $2.6M vs 2024) after $1.3M of growth‑related spend (including $680K from higher headcount and a $570K receivable write‑down); balance sheet at 12/31/25 showed $4.8M working capital, $1.5M cash and $4.7M net receivables, and headcount ~68 (plus 3 in Brazil).

Koil Energy Solutions Financial Statement Overview

Summary
Mixed fundamentals: revenue is growing strongly and gross margin is steady, while leverage appears manageable and improving. However, TTM profitability is very thin (slightly negative EBIT; ~0.9% net margin) and cash conversion is the key weakness with negative free cash flow and high volatility year-to-year.
Income Statement
56
Neutral
Balance Sheet
60
Neutral
Cash Flow
38
Negative
BreakdownMar 2026Mar 2025Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue24.05M22.73M15.34M12.98M17.23M
Gross Profit7.96M8.75M4.85M4.68M5.84M
EBITDA221.00K3.13M-1.00M-1.00M3.40M
Net Income-38.00K2.62M-1.55M-2.93M2.33M
Balance Sheet
Total Assets19.81M18.74M17.06M16.61M14.73M
Cash, Cash Equivalents and Short-Term Investments1.53M3.42M2.03M2.35M3.68M
Total Debt7.15M6.16M6.71M7.66M1.89M
Total Liabilities10.85M10.14M11.44M9.51M4.45M
Stockholders Equity8.96M8.60M5.62M7.11M10.27M
Cash Flow
Free Cash Flow-2.45M1.35M-27.00K-1.29M-1.42M
Operating Cash Flow-901.00K1.73M203.00K1.24M-1.07M
Investing Cash Flow-1.53M-373.00K-226.00K-2.26M-113.00K
Financing Cash Flow562.00K39.00K-300.00K-303.00K1.11M

Koil Energy Solutions Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2.67
Price Trends
50DMA
2.43
Positive
100DMA
2.30
Positive
200DMA
2.36
Positive
Market Momentum
MACD
<0.01
Positive
RSI
46.22
Neutral
STOCH
25.63
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 2.67 is above the 20-day moving average (MA) of 2.65, above the 50-day MA of 2.43, and above the 200-day MA of 2.36, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 46.22 is Neutral, neither overbought nor oversold. The STOCH value of 25.63 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%
62
Neutral
$182.90M37.6826.73%64.11%
57
Neutral
$30.62M132.112.61%21.55%-89.00%
52
Neutral
$455.29K8.21-3.74%
50
Neutral
$73.09M-21.10-2.98%-3.52%-117.16%
49
Neutral
$48.39M-0.64105.06%-8.92%-7.64%
41
Neutral
$30.13M-0.81-6.84%67.30%-227.58%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
KLNG
Koil Energy Solutions
2.53
1.03
68.33%
DWSN
Dawson Geophysical Company
6.36
5.03
378.20%
RCON
Recon Technology
0.42
-2.03
-82.82%
NINE
Nine Energy Service, Inc.
11.52
3.32
40.49%
KLXE
KLX Energy Services Holdings
2.44
0.52
27.08%
DTI
Drilling Tools International
2.09
-0.64
-23.44%

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...
Business Operations and StrategyPrivate Placements and Financing
Koil Energy Secures New $5 Million Revolving Credit Facility
Positive
May 22, 2026
On May 19, 2026, Koil Energy Solutions entered into a Loan and Security Agreement with nFusion Capital Finance for a new $5 million asset-based revolving credit facility secured by a first-priority lien on substantially all of the company&#8217;s ...
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: Jun 17, 2026