- Record revenue of $9.2 million, a 78% year-over-year increase compared to the second quarter of 2025
- Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) of $1.1 million, or 12% of revenue
- Fourth quarter of sequential quarterly double-digit revenue growth
- Record 115% year-over-year growth for services contracts
- Revenues from fixed-price contracts grew 49% year-over-year
- Major investment in rental equipment
- New $5 million lending facility to support continued growth
“With strong momentum across the subsea industry, KOIL’s team remains sharply focused on execution and growth, delivering record financial performance quarter after quarter,” said Erik Wiik, President and Chief Executive Officer of KOIL Energy. “Our second quarter results reflect the strength of a top-tier sales team and outstanding project execution. Bold investments in rental equipment and the flawless work of our service technicians fueled record-setting growth in our services business.”
Second Quarter 2026 Financial Results:
For the three months ending June 30, 2026, KOIL Energy generated revenues of $9.2 million, 78% higher than the second quarter of 2025, and a 13% increase sequentially. This performance includes a 115% year-over-year increase in service revenue, highlighting the impact of our strategic investments and operational excellence.
Gross profit for the quarter totaled $3.0 million, or 32% of revenues, compared to $1.7 million, or 33% of revenues, during the second quarter of 2025. Selling, general, and administrative expenses during the quarter equaled $2.3 million, equal to the previous quarter. Adjusted EBITDA equaled 12% of revenue, representing a sequential increase of $546,000 and an increase of $955,000 compared with the second quarter of 2025.
Fixed price projects, or product manufacturing, grew by 49% year-over-year, marking another quarter of high production activity. Revenue declined 21% sequentially due to lower percentage-of-completion revenue recognized from materials procurement. Nevertheless, the quarter reflected continued high project activity, including significant milestone achievements on major system projects. All milestones were achieved on time or ahead of schedule.
Corporate Updates:
In June 2026, KOIL announced the award of a major project for subsea umbilical handling, spooling, and storage services. This project requires two large carousels, including a large mobile offshore carousel and a stationary land-based carousel to execute the work. This award was a pivotal moment for KOIL and further validates the Company’s strategy to expand its rental equipment and services platform. The project is being executed by KOIL’s experienced service team and contributed to second quarter results through rapid completion of construction activities and early mobilization of the assets. Most of the project work is expected to be performed during the second half of 2026, followed by the long-term storage of the customer’s umbilical system.
To support execution of the project, KOIL secured financing and acquired a new mobile carousel, while also redeploying an underutilized carousel from its existing fleet. The newly acquired 3,500-metric-ton modular offshore carousel is designed to be assembled onboard a vessel, enabling rapid mobilization and redeployment to project locations in the United States and internationally. The carousel is essentially a new asset and is now ready for mobilization to its first project.
Subsequent to June 30, 2026, KOIL announced that it secured a significant contract in Brazil, marking the Company’s first subsea umbilical maintenance campaign in the world’s largest deepwater market. The project represents an important milestone in establishing KOIL as the preferred provider of subsea umbilical maintenance services in Brazil and the broader region.
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.
The global subsea market remains highly attractive, with growth in greenfield developments complemented by even faster expansion in subsea tie-back projects, creating a compelling near-term and long-term global opportunity. Subsea tie-backs represent the core area of KOIL’s expertise.
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.
