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Koil Energy Solutions (KLNG)
OTHER OTC:KLNG
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Koil Energy Solutions
(OTC:KLNG)
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Rating:65Neutral
Price Target:
$2.00
▼(-6.10% Downside)
Koil Energy Solutions' overall score reflects its strong recent financial performance and potential for future growth, tempered by mixed technical indicators and valuation concerns. The challenging earnings call results and historical volatility also weigh on the score.
Koil Energy Solutions (KLNG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$25.80M
Dividend YieldN/A
Average Volume (3M)51.86K
Price to Earnings (P/E)24.3
Beta (1Y)0.74
Revenue Growth9.73%
EPS Growth108.20%
CountryUS
Employees63
SectorEnergy
Sector Strength52
IndustryOil & Gas Equipment & Services
Share Statistics
EPS (TTM)<0.01
Shares Outstanding12,088,202
10 Day Avg. Volume32,297
30 Day Avg. Volume51,861
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap0.98
Enterprise Value/Revenue1.17
Enterprise Value/Gross Profit3.25
Enterprise Value/Ebitda19.03
Forecast
1Y Price Target
$2.00Price Target Upside-6.10% Downside
Rating ConsensusHold
Number of Analyst Covering1
Koil Energy Solutions Business Overview & Revenue Model
Company DescriptionKoil Energy Solutions, Inc., an energy services company, provides equipment and support services to the energy and offshore industries. It offers engineering and project management services, including the design, installation, and retrieval of subsea equipment and systems; connection and termination operations services; well-commissioning services; and construction support services. The company also provides project management and engineering; spooling; testing and commissioning; storage management; and refurbishment and repurposing of recovered subsea equipment, as well as support services for offshore interventions. In addition, it offers loose steel tube flying lead and umbilical hardware products, as well as riser isolation valves and subsea isolation valve services. Further, the company provides installation aids, including flying lead installation systems, tensioners, lay chutes, buoyancy modules, clump weights, mud mats, pumping and testing skids, control booths, fluid drum carriers, under-rollers, carousels, running and parking deployment frames, termination shelters, pipe straighteners, subsea deployment basket system, horizontal drive units, and rapid deployment cartridges. It serves energy companies, subsea equipment manufacturers, subsea equipment installation contractors, offshore drilling contractors, engineering and construction companies, and other companies involved in maritime operations. The company was formerly known as Deep Down, Inc. and changed its name to Koil Energy Solutions Inc. in April 2022. Koil Energy Solutions Inc. was founded in 1997 and is headquartered in Houston, Texas.
How the Company Makes MoneyKoil Energy Solutions generates revenue through multiple streams, primarily by developing and operating LNG infrastructure projects which include terminals and storage facilities. The company earns money from the sale of liquefied natural gas to industrial, commercial, and governmental customers. Additionally, KLNG provides consultancy services, helping clients optimize their energy usage and reduce costs, which contributes to its earnings. Strategic partnerships with other energy firms, governmental agencies, and technology providers enhance its market reach and operational efficiency, further supporting revenue growth.
Koil Energy Solutions Earnings Call Summary
Earnings Call Date:Aug 14, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 06, 2025
Earnings Call Sentiment Neutral
The earnings call revealed a challenging second quarter with a decrease in overall revenue and gross margin. However, the company secured significant new projects and has a robust sales pipeline, indicating potential for future growth and improved financial performance.Q2-2025 Updates
Positive Updates
Significant Subsea Tie-Back Project Award
Koil Energy was awarded a significant subsea tie-back project in the Gulf of America, including subsea distribution equipment and commissioning services for a major international oil company.
Largest Greenfield Project in a Decade
Koil Energy secured a major international greenfield project, involving the design and manufacture of over 20 proprietary subsea flying leads, marking its largest project of this kind in nearly a decade.
Increase in Service Contract Revenue
Revenue from service contracts increased by 66% year-over-year, indicating a strong performance in this business segment.
Robust Sales Pipeline and Growth Outlook
Koil Energy reported a solid backlog and a strong sales pipeline, expecting improved financial performance in the second half of the year due to large project wins and a rise in global demand for subsea equipment and services.
Negative Updates
Overall Revenue Decline
Koil Energy experienced a 10% decrease in revenue compared to the second quarter of last year, with a total revenue of $5.2 million.
Decrease in Gross Margin
Gross margin decreased to 33% from 39% compared to the same quarter last year, primarily due to reduced throughput and lower labor utilization.
Fixed Price Projects Revenue Drop
Revenue from fixed price projects decreased by 36%, affected by lower order intake in prior quarters.
Increased SG&A Expenses
Selling, general, and administrative expenses increased by $696,000 from the prior year, largely due to additional personnel and restructuring investments.
Net Income Decline
Net income for the quarter was only $61,000, a significant drop from $984,000 in Q2 2024, reflecting lower margins from fixed-price contracts.
Company Guidance
During Koil Energy's Second Quarter 2025 Conference Call, the company reported a challenging quarter with revenues of $5.2 million, marking a 10% decrease compared to the previous year's second quarter. The gross margin stood at 33% of revenue, influenced by underutilization of direct labor capacity, while adjusted EBITDA was 3% of revenue, equating to $163,000. The decline in fixed price project revenues was a notable contributor, with a 36% drop, although service contract revenues increased by 66%. The company's two largest customers, who previously accounted for 72% of Q2 2024 revenues, represented only 38% in Q2 2025. Despite these challenges, Koil Energy has increased headcount by 12 in anticipation of future growth and has secured significant new projects, including a subsea tie-back project and a cable management services project for a renewable energy initiative. With an expected improvement in financial performance in the second half of the year, the company remains focused on executing its strategic plan amid a robust sales pipeline.Koil Energy Solutions Financial Statement Overview
Summary
Koil Energy Solutions has shown significant financial recovery with strong revenue growth and profitability improvements. However, historical volatility in margins and past negative cash flows present potential risks.Income Statement
Koil Energy Solutions showcases a significant improvement in its financial performance over the past year. The company achieved a notable revenue growth rate of 48.14%, with revenues rising from $15.34 million to $22.73 million. The net profit margin improved substantially to 11.52% from a negative position, indicating a strong return to profitability. The gross profit margin also increased to 38.48%, highlighting enhanced operational efficiency. However, historical volatility in EBIT and EBITDA margins signals some instability in operational performance.75
Positive
Balance Sheet
The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.72, which is manageable. The equity ratio stands at 45.89%, suggesting a balanced leverage structure. The return on equity improved considerably to 30.45%, driven by the profitable year. However, past fluctuations in equity and liabilities indicate potential risks in maintaining this structure.65
Positive
Cash Flow
Cash flow analysis indicates a positive trajectory, with free cash flow increasing to $1.35 million from a negative position. The operating cash flow to net income ratio stands at 0.66, showing reasonable cash generation from operations. Free cash flow to net income ratio is 0.52, reflecting efficient capital management. Despite these strengths, previous years of negative free cash flow warrant caution.70
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 21.60M | 22.73M | 15.34M | 12.98M | 17.23M | 12.98M |
| Gross Profit | 7.80M | 8.75M | 4.85M | 4.68M | 5.84M | 4.92M |
| EBITDA | 1.33M | 3.13M | -996.00K | -1.00M | 3.40M | -4.96M |
| Net Income | 1.09M | 2.62M | -1.55M | -2.93M | 2.33M | -6.06M |
Balance Sheet | ||||||
| Total Assets | 19.62M | 18.74M | 17.06M | 16.61M | 14.73M | 14.94M |
| Cash, Cash Equivalents and Short-Term Investments | 2.19M | 3.42M | 2.03M | 2.35M | 3.68M | 3.75M |
| Total Debt | 7.09M | 6.16M | 6.71M | 7.66M | 1.89M | 248.00K |
| Total Liabilities | 10.83M | 10.14M | 11.44M | 9.51M | 4.45M | 7.04M |
| Stockholders Equity | 8.79M | 8.60M | 5.62M | 7.11M | 10.27M | 7.90M |
Cash Flow | ||||||
| Free Cash Flow | 931.00K | 1.35M | -27.00K | -1.29M | -1.42M | -377.00K |
| Operating Cash Flow | 2.08M | 1.73M | 203.00K | 1.24M | -1.07M | -206.00K |
| Investing Cash Flow | -1.13M | -373.00K | -226.00K | -2.26M | -113.00K | -158.00K |
| Financing Cash Flow | -211.00K | 39.00K | -300.00K | -303.00K | 1.11M | 586.00K |
Koil Energy Solutions Technical Analysis
Positive
2.13
Price Trends
1.69
Positive
1.77
Positive
1.93
Positive
Market Momentum
0.15
Negative
56.85
Neutral
69.70
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 2.13 is above the 20-day moving average (MA) of 2.04, above the 50-day MA of 1.69, and above the 200-day MA of 1.93, indicating a bullish trend. The MACD of 0.15 indicates Negative momentum. The RSI at 56.85 is Neutral, neither overbought nor oversold. The STOCH value of 69.70 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 |
|---|---|---|---|---|---|---|---|
73 Outperform | 129.16M | 10.65 | 11.84% | ― | 19.15% | -71.62% | |
65 Neutral | $25.80M | 24.25 | 13.64% | ― | 9.73% | 108.20% | |
55 Neutral | 66.16M | -3.79 | ― | ― | -2.48% | 83.11% | |
47 Neutral | 62.72M | -8.03 | -47.38% | ― | -38.69% | -30.53% | |
46 Neutral | 35.32M | -0.49 | 149.58% | ― | -13.29% | -106.14% | |
45 Neutral | 30.34M | -0.77 | 44.58% | ― | 3.23% | 31.76% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% |
* Energy Sector Average
Performance Comparison
KLNG
Koil Energy Solutions
2.13
0.70
48.95%
DWSN
Dawson Geophysical Company
2.02
0.47
30.32%
RCON
Recon Technology
2.16
-0.81
-27.27%
NCSM
Ncs Multistage Holdings
50.84
30.89
154.84%
NINE
Nine Energy Service
0.70
-0.42
-37.50%
KLXE
KLX Energy Services Holdings
2.05
-3.34
-61.97%
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.