Koil Energy Solutions, Inc. (KLNG) research, news, and more from GeoInvesting

Company description

Tue, 06 Aug 2024 14:34:26 GMT

Koil Energy Solutions' core services and technological solutions include distribution system installation support and engineering services, umbilical terminations, loose-tube steel flying leads, and related services. Additionally, our highly experienced team can support subsea engineering, manufacturing, installation, commissioning, and maintenance projects located anywhere in the world.

Research

Tue, 31 Mar 2026 16:30:19 GMT

Koil Energy Solutions, Inc. (OTCQB:KLNG) ($2.24; $26.1M market cap) announced Q4 and full-year 2025 results:

Q4 sales of $7.3 million vs. $5.9 million in the prior year
Q4 2025 EPS: $0.03 vs. $0.04 in the prior year
Full-year sales of $24.0 million vs. $22.7 million in the prior year
Full-year 2025 EPS: loss of $0.00 vs. $0.21 in the prior year

Management Commentary:

"We achieved a record revenue of $7.3 million this quarter. Our growth initiatives are delivering profitable growth with an EBITDA margin of 10% while we continue to invest heavily in growth."

"KOIL remained focused on long-term growth by deploying free cash flow to acquire new rental equipment and fund the development of intellectual property, the establishment of our Brazil operations, and international sales."

"We are currently refining our growth strategy and setting ambitious new goals through 2030."

"In summary, we remain highly confident in our ability to continue to deliver profitable growth. Recent project awards have positioned us strongly for the upcoming quarters."

Our Quick Take:

It was nice to see revenue growth and a rebound to profitability. That being said, we are waiting for the operating leverage to kick to a more meaningful degree as management implied in the Q3 conference call. We’re somewhat disappointed with the Q4 gross margins. Is the company “chasing” sales at the expense of gross margins? We’ll be on the call to see if management expects gross margins to improve in 2026.

Koil Energy Solutions, Inc. provides engineering, equipment, and support services for offshore energy operations, specializing in subsea system design, installation, maintenance, and hardware products for energy and maritime industry clients.

Research

Tue, 13 Jan 2026 21:43:29 GMT

KOIL Energy Solutions, Inc. (OTCQB:KLNG) ($2.64; $32.2M market cap) announced the award of a significant contract:

Awarded a contract to supply a subsea distribution system for a deepwater project in the Gulf of America.
Scope includes SUTAs, HDMs, STFLs, mudmat structures, and ancillary hardware.
KOIL will handle engineering, procurement, fabrication, assembly, integration, and testing.
Project will be executed at KOIL’s Houston, Texas facility.
Final delivery scheduled for Q3 2026.
Offshore installation services option included.

Management Commentary:

"This contract underscores our team’s success in delivering innovative, integrated solutions," said Erik Wiik, CEO of KOIL Energy. "Our growth strategy is driven by a continued focus on delivering not only exceptional equipment but also integrated system solutions that create greater value for our customers.”

Our Quick Take:

This is the sixth significant contract KLNG announced since late 2024. Our commentary is similar to last time. They are firing on all cylinders and rising contract momentum + operating leverage (mentioned on their Q3 2025 results) infers their upcoming quarters should be strong. Strong contract momentum is the primary reason we added the stock to our Focus and Top Five Model Portfolios.

Research

Tue, 06 Jan 2026 18:34:32 GMT

KOIL Energy Solutions, Inc. (OTCQB:KLNG) ($2.45; $29.9M market cap) announced a significant contract win:

Awarded a manufacturing contract by an international offshore installation company.
Scope includes engineering, procurement, and fabrication of major steel components to upgrade a vessel-mounted installation carousel for subsea deployment in South America.
The project will be executed at KOIL’s Houston, Texas facility, with additional skilled contractor personnel mobilized.
Work to begin immediately and is scheduled for completion in Q1 2026.

Our Quick Take:

In the past, KLNG stated it would only issue press releases for contracts it considers significant. This marks the fifth significant contract announced since late 2024, indicating they are firing on all cylinders. Rising contract momentum + operating leverage (mentioned on their Q3 2025 results) infers their upcoming quarters should be strong. Strong contract momentum is the primary reason we added the stock to our Focus and Top Five Model Portfolios.

–

Frequency Electronics, Inc. (NASDAQ:FEIM) ($53.16; $519.8M market cap) announced a new contract win:

Awarded a $9.2 million contract for a geostationary environmental satellite program
Deliverables include oscillators, frequency distribution units, and spares for three satellites; deliveries scheduled through 2028
Four additional satellites may be procured to expand the constellation
Reinforces FEI’s capability and reliability in GEO satellite constellations

Management Commentary:

"We are proud to be selected as a trusted supplier for this heritage program. This contract is a testament to the long-standing relationship we have built with our customers and the quality and precision of our products as well as the value we provide to our customers." — Tom McClelland, President and CEO

Our Quick Take:

In the recent Q1 2025 ER, management stated they would receive multiple awards in the upcoming months, meaning this announcement should not be a surprise to anyone who is following the company. This award reinforces our confidence in management’s credibility and their ability to deliver on commitments. We also like that the PR mentions the potential for four additional satellites, which could materialize as contracts in the future. FEIM currently resides in the Select Coverage Model Portfolio.

Frequency Electronics, Inc. designs and manufactures precision time and frequency control products and GPS-based systems for satellite communications, secure government and commercial communications, and telecommunication infrastructure.

Research

Fri, 14 Nov 2025 16:14:35 GMT

KOIL Energy Solutions, Inc. (OTCQB:KLNG) ($2.38; $28.8M market cap) announced Q3 2025 results:

Q3 2025 sales of $6.4 million vs. $5.2 million in the prior year
Q3 2025 loss per share: loss of ($0.03) vs. EPS of $0.04 in the prior year
Q3 2025 non-GAAP EPS of $0.01 vs $0.04 in the prior year (after adding back no cash account receivable write-off)
Gross margin was 32%, down from 40% last year due to a higher mix of pass-through procurement costs
Adjusted EBITDA margin was -3% due to a $569,000 write-off related to a UK client (OMSi Ltd.); legal action has been initiated (adding back this write off for non-gaap EPS above)
Service revenue grew 33%, product sales rose 15%
Entered renewables space with subsea power cable project for offshore wind
Awarded first contracts in Brazil, including a vessel maintenance survey and rental agreement for subsea deployment frames

Management Commentary:

"We increased revenue by 22% this quarter; KOIL Energy is growing again,” said Erik Wiik, President and CEO of KOIL Energy.

"During the quarter KOIL Energy generated revenues of $6.4 million. These are clear indicators of strengthening demand both within services and products."

"In summary, we remain highly confident in our ability to deliver on our long-term growth strategy. Recent wins have positioned us strongly for the upcoming quarters. On profit margins, we are proactively increasing project contingencies to manage cost volatility and protect returns. Collection of the receivable will be an upside for net profit."

Our Quick Take:

While it’s great to see that the company posted a nice increase in revenue, it’s somewhat disappointing that they took a steep gross margin hit. Part of this management team's turnaround that’s been going on for a couple years was centered around them having better control over contract margins. Regardless, it still doesn’t change the bullish thesis, given the strong contract momentum.

Research

Thu, 09 Oct 2025 04:00:00 GMT

Koil Energy Solutions, Inc. (OTCQB:KLNG) ($2.48; $33.2M market cap) announced it was awarded a significant contract to supply six Steel Tube Flying Leads (Subsea Umbilical) and associated equipment for a project in the Gulf of America.

This marks the fourth significant contract announcement in the last 12 months, but it should be noted that the company does not generally provide specific financial details of the contract wins.

December 18, 2024: Awarded a contract to supply electrical and hydraulic distribution manifolds for a West Africa project. (Link)
March 17, 2025: Awarded a contract for Multi-Quick Connector (MQC) Plates for a project in the Gulf of America. (Link)
August 29, 2025: Awarded a contract for control equipment for a subsea isolation valve system. (Link)
October 8, 2025: Awarded a contract to supply steel tube flying leads and related subsea distribution equipment. (Link)

Research

Thu, 14 Aug 2025 17:24:04 GMT

Koil Energy Solutions, Inc. (OTCQB:KLNG) ($1.20; $15.1M market cap) announced Q2 2025 results:

Q2 2025 sales of $5.2 million vs. $5.8 million in the prior year
Q2 2025 EPS: $0.01 vs. $0.08 in the prior year
Awarded three new projects:
- Subsea tie-back project in the Gulf of America for a major international oil company.
- Cable management services project for a renewable energy initiative with five months of continuous work.
- Largest project in nearly a decade: over 20 proprietary subsea flying leads for a major international greenfield project; follow-on service work expected.
- Management expects strong revenue growth over the next four quarters, citing accelerating order momentum and a robust pipeline.

"After a modest first half of 2025, momentum is building. Today, we announced three new projects, and recent weeks have brought a sharp rise in service activity and robust order intake on fixed-price contracts. These are clear indicators of strengthening demand heading into the second half of the year." – Erik Wiik, President and CEO

"We now have the necessary capabilities in place to successfully execute the increased workload ahead."

Our Quick Take:

The three newly awarded projects, including the company’s largest in nearly a decade, not only add a meaningful backlog but also diversify revenue across oil & gas and renewable markets, potentially reducing some of the historical lumpiness. One thing this quarter illustrates is something we have said from the beginning of our coverage on the stock, that growth will be lumpy.

Given the high barriers to entry in deepwater subsea solutions and the recent uptick in order momentum, we see the potential for a period of consistent earnings performances, factors the market may not yet be pricing in.

Research

Tue, 20 May 2025 20:29:00 GMT

Koil Energy Solutions, Inc. (OTCQB:KLNG) ($2.25; $27.9M market cap) announced Q1 2025 results:

Q1 2025 sales of $5.3 million vs. $5.8 million in the prior year
Q1 2025 EPS of $(0.00) vs. $0.05 in the prior year

"After four consecutive quarters of stellar performance, these results fell short of our expectations. We increased our base cost structure in response to last year’s elevated revenue levels, without adequately accounting for the inherent volatility in fixed-price contracts. We always knew our growth journey would have its ups and downs, and while this quarter presented a challenge, it reinforces our commitment to carefully building sustainable momentum and delivering long-term value to our shareholders.”

"Our team will remain focused on growing the company and delivering on our growth strategy. We are excited to see that two-thirds of the recent growth in service contracts was tied to the installation of the equipment we built last year, affirming the success of our bundling strategy. Order intake and bidding activity have picked up significantly, and we believe this momentum will continue throughout 2025."

"In the coming quarters we will focus on sharpening our financial execution, driving higher utilization across our workforce, managing working capital with discipline, and ensuring that our growth investments are appropriately scaled and timed."

"KOIL Energy remains a great investment opportunity! We offer mission-critical deepwater solutions with a high barrier to market entry. KOIL Energy is a fast-growing company with a strong foundation and no long-term debt."

Koil Energy Solutions, Inc. provides engineering, equipment, and support services for offshore energy operations, specializing in subsea system design, installation, maintenance, and hardware products for energy and maritime industry clients.

Research

Tue, 15 Apr 2025 20:51:08 GMT

Koil Energy Solutions, Inc. (OTCQB:KLNG) ($1.70; $22.4M market cap) announced Q4 2024 full year 2024 results:

Q4 sales of $5.9 million vs $4.0 million in the prior year
Q4 EPS of $0.04 vs a loss of $0.07 in the prior year
Full year sales of $22.7 million vs $15.3 million in the prior year
Full year EPS of $0.21 vs a loss of $0.13 in the prior year

“For the full year 2024, we achieved revenue of $23 million, marking a 48% year-over-year increase. Modified EBITDA improved from a loss last year to $3.5 million. My sincere congratulations and gratitude to the men and women of KOIL Energy. This is nothing short of a remarkable turnaround.”

“While we celebrate the results from 2024, we are very excited for our future. In 2025, our team will remain focused on growing the company and delivering on our growth strategy.”

KLNG was one of the companies that presented at the MS Microcaps Virtual conference in early March 2025, you can see that replay here.

Shares now are trading at a P/E of 9x. One thing to pay attention to, for companies that offer services to the oil and gas industry, is the price of oil since the drillers/explorers will curtail growth spending if prices dip too low. The price per barrel of oil is currently at $61 vs. $71 on December 31, 2024.

This would also be something to be aware of with Mind Technology, Inc. (NASDAQ:MIND), another subsea service and equipment provider that presented at the MS Microcaps Virtual Conference. You can see that replay here.

It’s worth noting that both companies are expanding their businesses into non-traditional oil and gas customers.

KOIL Energy is a leading energy services company offering subsea equipment and support services to the world's energy and offshore industries.

Research

Tue, 18 Mar 2025 16:46:16 GMT

Koil Energy Solutions, Inc. (OTCQB:KLNG) ($2.15; $28.6M market cap) yesterday during the trading day, the company announced a significant contract win to deliver subsea distribution equipment for a U.S project.

“This award is particularly exciting for several reasons. Firstly, it represents a repeat order from a valued client, showcasing their continued trust in our capabilities. Secondly, it features our advanced 20,000 psi technology, highlighting our commitment to innovation. Lastly, as the MQC is a cornerstone product within the subsea controls segment, this achievement paves the way for further growth.”

There was no specific financial data on the contract so it is unclear how significant it may be. However, during the CEOs fireside chat at the MS Microcaps Virtual Conference on March 7, 2025, the CEO mentioned that they would only announce contracts that are significant and that the key to reducing revenue lumpiness is to have at least one or two large contracts per quarter.

So, this development could give us some visibility that the positive growth trends that have been occurring over the prior few quarters will continue in the near term. In case you missed it, you can watch the presentation here.

KOIL Energy is a leading energy services company offering subsea equipment and support services to the world's energy and offshore industries.

Research

Mon, 04 Nov 2024 22:06:03 GMT

Koil Energy Solutions, Inc. (OTCQB:KLNG) ($1.75; $23.2M market cap) announced Q3 2024 results:

Sales of $5.2 million vs $4.1 million in the prior year
EPS of $0.04 vs a loss of $0.01 in the prior year

“We delivered another quarter of robust performance, highlighted by year-over-year growth,” said Erik Wiik, President and CEO of KOIL. “Compared to the third quarter of last year, revenue grew 27%, gross margin increased to 40%, and adjusted EBITDA improved from a loss to a margin of 13%, all driven by our proactive growth strategy. These efforts have produced an earnings per share of $0.17, year-to-date.

“Our clients consistently provide positive feedback on our team’s performance, and we remain dedicated to maintaining this sentiment. I want to extend my heartfelt thanks to our employees, because we would not be able to achieve these results without their unwavering commitment to delivering exceptional quality while we continue to grow this remarkable company. Let me also offer my thanks to our shareholders, for their continued interest in the great investment opportunity that is KOIL Energy.”

Although this was the weakest quarter so far in 2023, revenues remained above the critical $5 million threshold, and the company was able to report earnings of $0.04. Notably, the company recently announced a significant contract win expected to be completed in the first quarter of 2025. As previously communicated, we anticipate quarterly results to be somewhat unpredictable, though they should stabilize as the company progresses through its restructuring process. This restructuring includes expanding the product and service offerings to customers, such as maintenance projects.

Research

Fri, 04 Oct 2024 18:38:05 GMT

Open Forum Focus Model Portfolio Holding Koil Energy Solutions, Inc. (OTCQB:KLNG) announced a significant contract to provide maintenance services on an offshore platform for an international oil and gas company.

“Planning, engineering, and procurement activities have already commenced at KOIL's facility in Houston, TX, with the offshore maintenance work projected to be completed in the first quarter of 2025.”

We think the company is ridiculously cheap. However, the key for unlocking value will be in the ability of management to reduce quarterly lumpiness by securing more projects that have recurring revenue.

As a reminder, Open Forum Model portfolio holdings are stocks reiterated via Open Forums as some of the very highest conviction picks in our coverage universe.