Gulf Island Fabrication recently published its results for the second quarter of 2025.
Consolidated revenue for the second quarter of 2025 was US$37.5 million, compared to US$41.3 million for the prior year period. Consolidated net loss for the second quarter of 2025 was US$0.6 million, compared to net income of US$1.9 million for the second quarter of 2024.
Adjusted gross operating profit for the second quarter of 2025 was US$1.9 million, compared to US$2.5 million for the prior year period.
Gulf Island said the adjusted gross operating profit excludes US$1.8 million of transaction and related costs associated with the acquisition of automation specialist Englobal, but includes post-acquisition operating losses of US$0.5 million associated with the Englobal business.
For Gulf Island’s fabrication segment, revenue for the second quarter of 2025 was US$15.8 million, a decrease of US$2.9 million, or 15.4 per cent, compared to the second quarter of 2024, primarily due to lower small-scale fabrication activity.
The fabrication segment’s operating income was US$0.4 million for the second quarter of 2025, compared to US$1.1 million for the second quarter of 2024. Gross operating profit for the second quarter of 2025 was US$1.1 million, down from US$1.8 million for the prior year period.
The decrease was primarily due to lower revenue, lower utilisation of facilities and resources, and post-acquisition operating losses of US$0.3 million associated with the Englobal automation business acquired in May 2025, offset partially by a more favourable project margin mix.
Gulf Island’s cash and short-term investments balance at June 30, 2025 was US$62.2 million, including US$1.2 million of restricted cash associated with outstanding letters of credit.
At June 30, 2025, the company had total debt of US$19 million, bearing interest at a fixed rate of three per cent per annum, with annual principal and interest payments of approximately US$1.7 million through December 2038.
The estimated fair value of the debt was US$12.9 million at June 30, 2025, based on an estimated market rate of interest.
“We believe our focus on the more stable services and small-scale fabrication businesses has produced a more durable business model, as evidenced by our second quarter adjusted [gross operating profit] of US$1.9 million, despite continued softness in the offshore services market and lower fabrication activity,” said Richard Heo, Gulf Island’s President and Chief Executive Officer.
“While our near-term results have been negatively impacted by depressed activity in the Gulf of America and the uncertain macroeconomic conditions stemming from uncertain trade policies, we are seeing improved bidding activity in the fabrication market, and subsequent to quarter-end, we received a limited notice to proceed contract for approximately $20.0 million.
“This initial award is for the procurement of materials for a structural steel project and the full award is expected during the third quarter 2025.”
Heo said Gulf Island ended the quarter, “in a strong financial position,” with a period-end cash and investments balance of US$62.2 million.
“We remain encouraged by the outlook for our business, with early integration efforts of the Englobal acquisition further adding to our confidence,” added Heo.
“We believe our strong financial position will enable us to continue executing on our disciplined capital allocation strategy—aligned with our commitment to maximise return on invested capital and create long-term shareholder value.”