KOIL Energy Reports Third Quarter 2025 Results

- Revenue of $6.4 million, 22% growth

- Gross margin of 32%

- Adjusted EBITDA margin of -3% due to a write-off

- Successful entry into renewables

- First Contracts in Brazil

HOUSTON, Nov. 14, 2025 (GLOBE NEWSWIRE) -- KOIL Energy Solutions, Inc. (OTCQB: KLNG), a specialist in deepwater energy production and distribution equipment and services, released today its third quarter 2025 results.

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

Third Quarter 2025 Results:

For the three months ending September 30, 2025, Koil Energy generated revenues of $6.4 million dollars. This is 22% higher than last quarter and 22% higher than Q3 last year. Both services and fixed priced contracts experienced significant growth. Service revenue grew 33% and fixed priced contracts, or Product sales, increased by 15% compared to Q3 last year. This was driven by an exceptional order intake over the past four months.

Services have expanded into renewables with a significant contract handling the spooling of subsea power cables for an offshore wind farm project. KOIL recognizes its service team for successfully winning this project and receiving excellent client feedback throughout the project’s execution.

KOIL Energy has been awarded the first contracts in Brazil. These are not significant in value and have therefore not been announced earlier. This includes a maintenance survey on a production vessel off the coast of Brazil and a rental equipment agreement for three subsea deployment frames. These are currently being fabricated in country. KOIL recognizes its team in Brazil and those that are supporting this initiative from Houston. This is a big step forward in our growth strategy.

Gross profit for the quarter totaled $2.1 million dollars, or 32% of revenues, compared to $2.1 million dollars, or 40% of revenues, during the third quarter of 2024. While profitability was unchanged on a dollar basis, the margin decline reflected a higher mix of pass-through procurement costs.

Selling, general, and administrative expenses equaled $2.5 million for the quarter, up $928,000 from the prior year. Most of the increase was driven by write-off of a receivable.

Adjusted EBITDA was -3% of revenue, or a loss of $249,000, caused by a write-off of a receivable. Payments from a client located in the UK, have been outstanding for more than seven months without any explanation or communication from the company, OMSi Ltd. As a precaution, we have decided to write off the receivable this quarter. KOIL Energy intends to collect the full amount of $569,000 and has filed a lawsuit and served it to the customer.

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.

KOIL will host an investor conference call to review its third quarter of 2025 results on Friday, November 14, 2025, at 10:00 am Eastern Time.

Interested parties may listen to the call through a webcast link or using the dial in numbers. (See details below.)

GENERAL EVENT DETAILS

Title: Koil Energy Third Quarter 2025 Earnings Conference Call

Date: 11/14/2025

Start time: 10:00am EST - Start of live event

PARTICIPANT WEBCAST LINK:

https://edge.media-server.com/mmc/p/qw97wuus 

PARTICIPANT DIALS:

Participant Dial Toll-Free: 1-833-630-1956

Participant Dial Toll/Int'l: 1-412-317-1837

Conference ID/PW: Koil Energy Solutions

Replay available for 7 days after the call:

Replay Dial Toll-Free: 1-855-669-9658

Replay Dial Toll/Int'l: 1-412-317-0088

Replay PW: 2024102

The earnings release and a replay of the conference call will also be available on the Company's website, www.koilenergy.com, under the "Investors" section.

KOIL Energy will host an investor conference call to review its second quarter 2025 results on Thursday, August 14, 2025, at 10:00 am Eastern Time.

PARTICIPANT WEBCAST LINK:

https://edge.media-server.com/mmc/p/tnpz3b6k

PARTICIPANT DIALS:

Participant Toll-Free: 1-833-630-1956

Participant Toll/Int'l: 1-412-317-1837

Password: Koil Energy Solutions call

Replay Dials: (available up to 7 days after the call)

Replay Toll-Free: 1-877-344-7529

Replay Toll/Int'l: 1-412-317-0088

Replay Password: 3264769

The earnings release and a replay of the conference call will also be available on the Company's website, www.koilenergy.com, under the "Investors" section.

About KOIL (www.koilenergy.com)

KOIL Energy is a leading energy services company offering subsea equipment and support services to the world's energy and offshore industries. We provide innovative solutions to complex customer challenges presented between the production facility and the energy source. Our core services and technological solutions include distribution system installation support and engineering services, umbilical terminations, loose-tube steel flying leads, and related services. Additionally, KOIL Energy's experienced team can support subsea engineering, manufacturing, installation, commissioning, and maintenance projects located anywhere in the world.

Forward-Looking Statements

Any forward-looking statements in the preceding paragraphs of this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties in that actual results may differ materially from those projected in the forward-looking statements. In the course of operations, we are subject to certain risk factors, competition and competitive pressures, sensitivity to general economic and industrial conditions, international political and economic risks, availability and price of raw materials and execution of business strategy. For further information, please refer to the Company's filings with the Securities and Exchange Commission, copies of which are available from the Company without charge.

Investor Relations:
[e-mail]
281-862-2201

Financial Tables:

KOIL ENERGY SOLUTIONS, INC.
SUMMARY FINANCIAL DATA
(UNAUDITED)
Comparative Condensed Consolidated Income Statement
	Three Months Ended September 30,								Nine Months Ended September 30,
(In thousands, except per share amounts)		2025				2024				2025				2024
Revenues	$	6,367			$	5,223			$	16,799			$	16,793
Cost of sales		4,315				3,159				11,341				10,449
Selling, general and administrative		2,514				1,586				6,220				4,316
Operating income (loss)		(462	)			478				(762	)			2,028
Total other (income) expense		(57	)			(47	)			(403	)			(62	)
Income (loss) before income tax expense		(405	)			525				(359	)			2,090
Income tax expense		8				2				22				7
Net income (loss)	$	(413	)		$	523			$	(381	)		$	2,083
Net income (loss) per share, basic	$	(0.03	)		$	0.04			$	(0.03	)		$	0.17
Weighted-average shares outstanding, basic		12,169				12,119				12,115				12,235
Comparative Condensed Consolidated Balance Sheets
	September 30,				December 31,
(In thousands)		2025				2024
Assets:
Cash	$	1,948			$	3,422
Other current assets		7,844				6,784
PP&E, net		3,431				2,791
Other non-current assets		6,434				5,743
Total assets	$	19,657			$	18,740
Liabilities:
Current liabilities		5,185				4,524
Other long-term liabilities		5,945				5,612
Total liabilities		11,130				10,136
Stockholders' equity		8,501				8,604
Total liabilities and stockholders' equity	$	19,631			$	18,740
Adjusted EBITDA
	Three Months Ended September 30,								Nine Months Ended September 30,
(In thousands)		2025				2024				2025				2024
Net income (loss)	$	(413	)		$	523			$	(381	)		$	2,083
(Deduct) Add: Interest (income) expense, net		-				(17	)			(16	)			(30	)
Add: Income tax expense		8				2				22				7
Add: Depreciation and amortization		146				144				449				437
Add: Share-based compensation		92				23				241				76
Add (Deduct): Loss (gain) on sale of asset		-				-				(12	)			3
Add: Loss (Gain) on Litigation Settlement		(84	)			-				(333	)			-
Add: Restructuring costs		-				-				279				-
Adjusted EBITDA	$	(251	)		$	675			$	249			$	2,576
Cash Flow Data
	Three Months Ended September 30,								Nine Months Ended September 30,
(In thousands)		2025				2024				2025				2024
Cash provided by (used in):
Operating activities	$	(282	)		$	936			$	(1,038	)		$	1,174
Investing activities		(1,090	)			(47	)			(1,152	)			(127	)
Financing activities		469				209				716				45
Change in cash	$	(903	)		$	1,098			$	(1,474	)		$	1,092