New Fortress Energy Reports 29% Q2 Drop

Key Points

• Severe year-over-year revenue decline, with revenue down 29.5% to $301.7 million in Q2 2025 compared to Q2 2024.

• The Terminals and Infrastructure segment swung to a loss, while Ships segment margins remained stable, based on non-GAAP Segment Operating Margin.

• Significant $699 million non-cash impairment in Q2 2025, along with the launch of a strategic alternatives review.

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New Fortress Energy (NASDAQ:NFE), an energy infrastructure company focused on liquefied natural gas and power projects, reported severe financial setbacks in results released on September 5, 2025. The company posted a sharp drop in revenue, major non-cash impairments, and a collapse in core segment profitability. While there were operational advances in select development projects and progress in the Ships segment, the overall quarter signaled acute financial pressure and growing uncertainty about demand and cost management.

Business Overview and Recent Focus

New Fortress Energy operates as an integrated energy infrastructure business, with its core activities spanning natural gas procurement, liquefaction, and distribution, as well as power plant development and vessel chartering. The company’s approach combines owning and operating liquefied natural gas (LNG) terminals, power plants, and a fleet of ships including floating storage and regasification units (FSRUs).

Recently, the company focused on ramping up infrastructure in Brazil and Puerto Rico, securing long-term shipping contracts, and progressing gas-to-power plant projects. Success for New Fortress Energy hinges on expanding gas sales agreements, efficient project execution, obtaining regulatory approvals across operating jurisdictions, and managing its capital structure effectively.

Quarterly Performance and Key Developments

The quarter marked a significant downturn for the company across several financial metrics. Revenue fell to $301.7 million in Q2 2025, a steep drop from $428.0 million in Q2 2024. Adjusted EBITDA, a non-GAAP measure of core profitability excluding one-time items, swung from a $120.2 million profit in Q2 2024 to a $3.7 million loss. The company recorded a net loss of $557 million for Q2 2025.

The most prominent drivers were a $699 million non-cash impairment on assets and goodwill, as well as lower margins in core segments. These impairment charges reflect a reduction in the estimated value of assets bought or developed earlier, meaning those assets are now considered less valuable than previously forecast. Partial relief came from a $473 million gain on the sale of Jamaican operations, which supplied fresh liquidity but also reduced the Caribbean footprint.

Segment results sharply diverged. The Terminals and Infrastructure segment, responsible for operating LNG terminals and power generation facilities, moved from a $214.3 million segment operating margin (non-GAAP) in Q2 2024 to a $7.2 million loss. In contrast, the Ships segment, which charters vessels such as FSRUs and LNG carriers, delivered a $32.2 million segment operating margin (non-GAAP), down from $34.1 million in Q2 2024.

Operationally, progress was made on new power and LNG projects. The company began commissioning the 624 megawatt CELBA gas-to-power plant in Brazil; The PortoCem power plant, also in Brazil, is more than 70% complete and fully funded. The FLNG 1 (Floating Liquefied Natural Gas) platform operated at or above planned output levels, excluding scheduled downtime. However, revenue from the CELBA and PortoCem assets has yet to materialize, as they are not yet fully online. In Puerto Rico, negotiations continued with PREPA, the territory’s main power authority, but only a temporary agreement was in place and was subject to recurring renewal. Regulatory and contractual uncertainty remains a headwind, particularly in Puerto Rico and for new projects in Brazil and Nicaragua.

Transaction and integration costs jumped to $75.4 million from $1.8 million in Q2 2024, and interest expense more than doubled compared to Q2 2024. As of June 30, 2025, the total cash balance was $821 million, of which $551 million was unrestricted. The company’s current portion of long-term debt and short-term borrowings increased from $539.1 million as of December 31, 2024, to $1,181.6 million as of June 30, 2025. These changes led management to launch a formal review of strategic alternatives, including possible asset sales, capital raising, debt amendments, or other measures to shore up the balance sheet. No dividend adjustment was noted, and NFE does not currently pay a dividend.

Outlook and What to Watch

The company did not provide any formal forward guidance for fiscal 2025 or later periods. Management flagged the expected startup of the CELBA and PortoCem power plants, along with expansion in Nicaragua and Puerto Rico, as key factors anticipated to improve earnings once operational. However, the company also cautioned that it may not recognize any revenue from projects until full commercial operation begins, which could occur well after initial completion dates.

Investors should closely monitor the pace at which new assets reach commercial operation and the status of long-term agreements, especially in core markets like Brazil and Puerto Rico. The ongoing strategic alternatives process, involving reviews of recapitalization, refinancing, and possible asset sales, also signals that debt and liquidity management will be critical in the quarters ahead. With the Terminals and Infrastructure segment having shifted to a loss (Segment Operating Margin of $(7.2) million, non-GAAP) and overall revenue sharply lower ($301.7 million in Q2 2025), the ability to stabilize operations and negotiate favorable contracts will be crucial for New Fortress Energy in the near future.

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

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