Excelerate Energy EPS Jumps 31 Percent

Key Points

• Adjusted EPS (non-GAAP) was $0.34, exceeding expectations for Q2 2025, Adjusted EPS rose 30.8% compared to Q2 2024.

• Revenue (GAAP) reached $204.6 million in Q2 2025 but missed analyst estimates by 10.6%.

• Quarterly dividend increased by approximately 33% to $0.08 per share, payable September 4, 2025 along with higher full-year 2025 Adjusted EBITDA (non-GAAP) guidance.

• These 10 stocks could mint the next wave of millionaires ›

Excelerate Energy (NYSE:EE), a leading provider of Floating Storage and Regasification Units (FSRUs) and integrated LNG solutions, released its earnings for the second quarter of fiscal 2025 on August 11, 2025. The company’s most important news from the release was its strong adjusted profitability despite a revenue shortfall and the announcement of a 33% increase in its quarterly dividend. Adjusted earnings per share of $0.34 surpassed analyst estimates of $0.30, while GAAP revenue of $204.6 million was below forecasts of $228.95 million. The period also saw a rise in adjusted EBITDA (non-GAAP) and improved full-year 2025 Adjusted EBITDA guidance, while headline revenue and net income faced pressure from acquisition-related costs. Overall, the quarter reflected significant operational progress but highlighted some volatility and one-time impacts from integrations.

Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report.

Business Overview and Recent Focus

Excelerate Energy (NYSE:EE) is at the core of the global liquefied natural gas (LNG) value chain, known for its fleet of Floating Storage and Regasification Units (FSRUs). These FSRU vessels make it possible to receive, store, and convert LNG into natural gas for markets around the world. By providing these LNG regasification services, Excelerate supports energy security and the transition to cleaner energy in a number of regions.

The company’s main business drivers are its long-term, take-or-pay contracts, which offer steady and predictable revenue. Take-or-pay contracts are agreements where customers pay regardless of how much of the booked service they use, making revenue less sensitive to daily shifts in LNG prices. In recent periods, Excelerate has focused on strategic growth in key markets, leveraging its fleet and infrastructure, and securing new assets that can be expanded or repurposed for downstream integration, such as through power plant acquisitions or new LNG carrier purchases. Key factors for ongoing success include reliable fleet operations, integration of new acquisitions, and maintaining robust, low-risk contract portfolios.

Quarter Highlights and Operational Developments

Several standout events shaped the second quarter for Excelerate. The most notable was the completion of the acquisition of a large integrated LNG and power platform in Jamaica. This included two major LNG terminals and a combined heat and power facility. Management reports that the performance of these assets is "exceeding operational expectations" supporting increased adjusted EBITDA. However, this transaction also brought considerable upfront costs, with transition and transaction expenses reaching $27.7 million in Q2 2025, Interest expense (GAAP) rose to $20.7 million in Q2 2025 from $12.1 million in Q2 2024. This increase was due to the added debt used to finance the acquisition.

Revenue (GAAP) grew 11.6% compared to Q2 2024, reaching $204.6 million, though it missed analyst expectations by $24.4 million. That segment’s revenue rose to $55.7 million from $32.3 million a year ago, but contracted sharply from $166.7 million in the prior quarter. This drop aligns with what management called "expected seasonality" and differences in timing for vessel-related operating costs. Contracted terminal services, which account for a major share of total revenue, were essentially flat at $148.8 million.

Margins and cash flow remained healthy even as acquisition-related and integration expenses pressured the company’s net income. Adjusted gross margin (non-GAAP) expanded to $118.1 million, up from $105.6 million in Q2 2024. The company ended the quarter with a strong liquidity position: $426.0 million of unrestricted cash and a fully undrawn $500 million revolving credit facility as of June 30, 2025. Adjusted net income (non-GAAP) rose 40.5% compared to Q2 2024, though it dipped from the prior quarter due to higher short-term interest and one-time costs.

Strategic moves extended beyond acquisitions. In July, Excelerate acquired the LNG carrier "Excelerate Shenandoah", adding flexibility for future expansion and potential conversion to an FSRU. The company also finalized an agreement with Petrobras to install a reliquefaction unit on a Brazilian FSRU. This unit is designed to capture and reuse LNG vapor, which helps minimize product loss and reduce the vessel’s direct greenhouse gas emissions. Management highlights that this upgrade is expected to "eliminate all excess cargo losses due to boil off and lower Excelerate's Scope 1 emissions," supporting both operational efficiency and regulatory goals.

With debt funding a large part of the Jamaica acquisition, goodwill and intangible assets also jumped, reflecting the new ownership of these acquired businesses. Continual investment is evident in higher property and equipment totals, and the company declared a quarterly dividend increase to $0.08 per share—a 33% rise. Management states its goal is to maintain "low double-digit annual dividend growth rate commencing in 2026 and continuing through 2028."

Outlook and Investor Focus

Guidance for full-year 2025 Adjusted EBITDA was raised in the earnings release. The company now expects adjusted EBITDA (non-GAAP) between $420 million and $440 million for full year 2025, up from previous guidance of $345 million to $365 million. Estimated maintenance capital expenditures for FY2025 were also raised to $65 million to $75 million, with committed growth capital for 2025 increased to $95 million to $105 million. Management attributes these higher full-year 2025 Adjusted EBITDA targets to the integration of the Jamaica platform and the purchase of the new LNG carrier.

The quarterly dividend was raised by approximately 33% to $0.08 per share, payable September 4, 2025. Management plans to pursue steady dividend hikes in future years, targeting a "low double-digit annual dividend growth rate" commencing in 2026 and continuing through 2028. These include the integration and long-term performance of the new Jamaican assets, maintaining stable terminal services revenue, managing debt and interest expense after the acquisition, and capitalizing on demand for reliable LNG solutions in growth regions. Management has provided updated financial guidance, giving investors tangible targets for EBITDA, capital spending, and dividend growth in the next 12 to 36 months.

Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.

Where to invest $1,000 right now

When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor’s total average return is 1,060%* — a market-crushing outperformance compared to 182% for the S&P 500.

They just revealed what they believe are the 10 best stocks for investors to buy right now, available when you join Stock Advisor.

See the stocks »

*Stock Advisor returns as of August 4, 2025

JesterAI is a Foolish AI, based on a variety of Large Language Models (LLMs) and proprietary Motley Fool systems. All articles published by JesterAI are reviewed by our editorial team, and The Motley Fool takes ultimate responsibility for the content of this article. JesterAI cannot own stocks and so it has no positions in any stocks mentioned. The Motley Fool recommends Excelerate Energy. The Motley Fool has a disclosure policy.