- Record revenue of $10.3 million, 62% year-over-year increase compared to third quarter of 2025
- Fifth quarter of sequential quarterly double-digit revenue growth
- Adjusted EBITDA of $837,000 or 8% of revenue
- Awarded first significant contract in Brazil
- Raised $5.6 million in equity capital to finance rental equipment
“The KOIL team continues to raise the bar, delivering record revenue quarter after quarter while surpassing one million work hours without a recordable incident,” said Erik Wiik, President and Chief Executive Officer of KOIL Energy. “Achieving profitable growth alongside this extraordinary safety milestone is truly remarkable. We also deeply appreciate the confidence our investors have placed in KOIL by providing the equity capital to further expand our service capacity. Their support has strengthened our position to capitalize on the opportunities in a robust subsea market.”
Third Quarter 2026 Financial Results:
For the three months ending September 30, 2026, KOIL Energy generated revenues of $10.3 million, 62% higher than the third quarter of 2025, and a 13% increase sequentially. The KOIL team demonstrated impressive flexibility and responsiveness in meeting increased customer demand for subsea services, with service contracts accounting for approximately 70% of revenue.
Gross profit for the quarter totaled $2.8 million, or 27% of revenues, compared to $2.1 million, or 32% of revenues, during the third quarter of 2025. Selling, general, and administrative expenses during the quarter equaled $2.3 million compared to $2.5 million year over year. Adjusted EBITDA equaled 8% of revenue, representing an increase of $1.1 million compared with the third quarter of 2025.
Corporate Updates:
During the quarter it was announced that KOIL secured a significant contract in Brazil, marking the Company’s first subsea umbilical maintenance campaign in the world’s largest deepwater market. This first significant contract in Brazil represents a major step towards establishing KOIL as the preferred provider of subsea umbilical services throughout the region. The contract includes the re-termination and testing of umbilical elements including chemical injection and hydraulic control lines, as well as electrical cables. KOIL is utilizing proprietary methodology and specialized equipment to safely and efficiently perform the pull-in, removal, and replacement of new elements.
In September, the Operations Team successfully completed its first campaign utilizing our newly acquired mobile carousel. The 3,500-metric-ton modular offshore carousel system was deployed to transpool approximately 50 miles of subsea umbilical cable, which was then transported and transferred to our existing land-based carousel for long term storage. This successful first deployment demonstrates the expanded capabilities and flexibility the new equipment brings to our service offering.
Subsequent to September 30, 2026, KOIL announced that it had secured a significant contract for Subsea Cable Management Services where the Company will deploy a dedicated team of experienced service supervisors and technicians to provide operational support and coordination, including umbilical spooling and operations. The scope also includes specialized rental equipment and highlights KOIL’s ability to complement its subsea equipment offerings with experienced field service personnel and ongoing operational support.
To further expand KOIL’s global reach, the Company also announced a strategic alliance with Pipeline Network, a consultancy focused on the oil and gas pipeline services sector, designed to expand its international presence, operational capabilities, and customer support across the Eastern Hemisphere.
Demand forecasts continue to reinforce confidence in offshore markets, with the industry firmly in an upcycle. Sixty-three offshore final investment decisions (FIDs) have already been recorded in 2026, with another 26 expected by year-end, bringing the potential total to 89 compared with 57 in 2025. The subsea outlook also remains robust, with approximately 1,380 trees forecast through 2030 and award activity expected to accelerate over the next several years, according to market analysts.
The Company has renewed its growth strategy called “KOIL 2030,” which is a bold strategic roadmap focused on three pillars: 1) systems solution, 2) Brazilian expansion, and 3) rental equipment.
Shareholders can find a more detailed overview of the Company’s strategy by visiting the investor relations section of KOIL’s website.
Subsequent to the end of third quarter, on October 28, 2026, KOIL Energy announced that it has entered into a securities purchase agreement with certain institutional and other accredited investors to raise approximately $5.6 million of gross proceeds through a private investment in public equity (“PIPE”) financing of common stock or common stock equivalents.
The financing is intended to support the next phase of the Company’s growth journey by allowing us to expand our rental equipment fleet and strengthen our service capabilities to better serve our customers.
