Form type: 10-Q
Period end: 2026-06-30
| Three Months Ended June 30, 2026 | Three Months Ended June 30, 2025 | Six Months Ended June 30, 2026 | Six Months Ended June 30, 2025 | |
|---|---|---|---|---|
| Revenue | 312,502,000 | 304,100,000 | ||
| Total Revenue | ||||
| Cost of revenue | 210,380,000 | 208,162,000 | ||
| Total COGS | ||||
| Gross Profit | ||||
| Depreciation and amortization | 53,241,000 | 56,431,000 | ||
| Depreciation, depletion and amortization | 107,867,000 | 127,785,000 | ||
| Income tax expense (benefit) | -7,964,000 | 10,400,000 | ||
| Interest expense | 226,672,000 | 186,389,000 | ||
| Net income attributable to noncontrolling interests | -1,514,000 | -2,196,000 | ||
| Operations and maintenance | 41,048,000 | 57,403,000 | ||
| Other income statement items (derived) | 5,807,000 | 22,516,000 | ||
| Other nonoperating income (expense), net | 1,236,000 | -59,024,000 | ||
| Other operating costs | 48,684,000 | 242,696,000 | ||
| Total Expenses | ||||
| Net Income | - | - | - | - |
| Net income (loss) available to common stockholders | - | - | ||
| Basic earnings per share | - | - |
| June 30, 2026 | December 31, 2025 | |
|---|---|---|
| Assets | ||
| Accounts receivable | 276,693,000 | 451,962,000 |
| Cash and cash equivalents | 161,191,000 | 226,453,000 |
| Deferred contract costs | 11,226,000 | 12,027,000 |
| Goodwill and intangibles | 190,358,000 | 187,596,000 |
| Inventory | 119,834,000 | 119,447,000 |
| Operating lease right-of-use assets | 198,071,000 | 394,795,000 |
| Other assets (derived) | 8,751,355,000 | 8,442,551,000 |
| Other current assets | 59,357,000 | 49,152,000 |
| Other noncurrent assets | 109,222,000 | 140,804,000 |
| Prepaid expenses and other current assets | 512,557,000 | 400,347,000 |
| Restricted cash and equivalents | 338,956,000 | 130,489,000 |
| Total Assets | ||
| Liabilities | ||
| Accounts payable | 608,408,000 | 731,619,000 |
| Accrued liabilities | 1,032,745,000 | 597,776,000 |
| Debt | 8,858,351,000 | 8,178,919,000 |
| Deferred revenue | 13,808,000 | 14,133,000 |
| Deferred revenue, noncurrent | 9,000,000 | 9,750,000 |
| Deferred tax liabilities | 70,195,000 | 76,502,000 |
| Finance lease liabilities, current | 1,824,000 | 2,425,000 |
| Finance lease liabilities, noncurrent | 635,000 | 701,000 |
| Operating lease liabilities, current | 81,216,000 | 69,832,000 |
| Operating lease liabilities, noncurrent | 0 | 318,118,000 |
| Other accrued liabilities | 145,361,000 | 104,092,000 |
| Other current liabilities | 247,889,000 | 0 |
| Other liabilities (derived) | 3,473,000 | 31,520,000 |
| Other noncurrent liabilities | 88,353,000 | 92,291,000 |
| Taxes payable | 0 | 18,314,000 |
| Total Liabilities | ||
| Equity | ||
| Stockholders equity | -553,650,000 | 182,647,000 |
| Total stockholders equity attributable to parent | - | |
| Noncontrolling interests | 121,212,000 | 126,984,000 |
| Total Equity | - | |
| Six Months Ended June 30, 2026 | Six Months Ended June 30, 2025 | |
|---|---|---|
| Operating activities | ||
| Net income | -773,559,000 | -721,888,000 |
| Depreciation and amortization | 107,867,000 | 127,785,000 |
| Stock-based compensation | 8,812,000 | 5,021,000 |
| Changes in operating assets and liabilities, net | 378,639,000 | 252,891,000 |
| Net cash from operating activities | - | - |
| Investing activities | ||
| Investing activities, net | -83,848,000 | 452,517,000 |
| Net cash from investing activities | - | |
| Financing activities | ||
| Financing activities, net | 497,393,000 | -309,461,000 |
| Net cash from financing activities | - | |
| Net change in cash | - | |
| Cash at beginning of period | 965,577,000 | |
| Cash at end of period | 821,407,000 | |
| Six Months Ended June 30, 2026 | Six Months Ended June 30, 2025 | |
|---|---|---|
| Balance at beginning of period | 309,631,000 | 2,000,701,000 |
| Net income | -773,559,000 | -721,888,000 |
| Other equity movements | 31,490,000 | 102,891,000 |
| Balance at end of period | -432,438,000 | 1,381,704,000 |
The accompanying unaudited condensed financial statements have been prepared by New Fortress Energy Inc., a public reporting company classified under Natural Gas Distribution, directly from the Company's connected books and records as of and for the period ended June 30, 2026. In the opinion of management, the interim financial statements reflect all adjustments necessary for a fair statement of the results for the interim period presented, and the results of operations for the interim period are not necessarily indicative of the results to be expected for the full fiscal year. The Company's Terminals and Infrastructure segment includes all terminal operations in Puerto Rico, Mexico and Brazil, as well as vessels utilized in terminal or logistics operations, and the Company centrally manages its LNG supply and the deployment of its vessels utilized in terminal, logistics or sub-charter operations, which allows it to optimally manage its LNG supply and fleet. The Ships segment currently includes one vessel chartered under a long-term arrangement to a third party as part of the Energos Formation Transaction, and vessels in the Ships segment transition to the Terminals and Infrastructure segment once the Company begins to utilize them in its own operations.
Revenue for the period was $312,502,000, compared with $304,100,000 in the prior period, an increase of 2.8%, while cost of revenue was $210,380,000, compared with $208,162,000 in the prior period. Deferred revenue was $13,808,000 at the current period end, compared with $12,536,000 at the prior period end, and noncurrent deferred revenue was $9,000,000, compared with $10,500,000 at the prior period end. Beginning in 2027, the Company expects to meet demand under long-term supply contracts, which are based on an index such as Henry Hub plus a fixed fee component. The Company reported a net loss of $372,955,000 for the period, and based on weighted-average basic shares outstanding of 285,607,906, basic loss per share was $1.30.
Total debt was $11,161,258,000 at June 30, 2026, including debt of $8,858,351,000, compared with prior-period balances of $7,810,211,000 of long-term debt and $1,181,559,000 of current debt. Interest expense was $226,672,000 for the period, compared with $186,389,000 in the prior period, an increase of 21.6%. Finance lease liabilities consisted of $1,824,000 of current obligations and $635,000 of noncurrent obligations, compared with $4,120,000 and $1,220,000, respectively, at the prior period end. Current operating lease liabilities were $81,216,000, compared with $74,940,000 at the prior period end, noncurrent operating lease liabilities declined to zero from $340,289,000, and operating lease right-of-use assets were $198,071,000, compared with $419,789,000 at the prior period end.
Stockholders' equity was a deficit of $553,650,000 at June 30, 2026, compared with stockholders' equity of $1,259,266,000 at the prior period end. Including noncontrolling interests of $121,212,000, compared with $122,438,000 at the prior period end, total equity was a deficit of $432,438,000. Shares subject to possible redemption of $41,154,000 at the prior period end were reduced to zero during the current period.
| Current | Prior | |
|---|---|---|
| Debt | 8,858,351,000 | 8,178,919,000 |
| Finance lease liabilities, current | 1,824,000 | 2,425,000 |
| Finance lease liabilities, noncurrent | 635,000 | 701,000 |
| Operating lease liabilities, current | 81,216,000 | 69,832,000 |
| Operating lease liabilities, noncurrent | 0 | 318,118,000 |
| Total debt | 8,942,026,000 | 8,569,995,000 |
| Current | Prior | |
|---|---|---|
| Stockholders equity | -553,650,000 | 182,647,000 |
| Total stockholders' equity | -553,650,000 | 182,647,000 |
For the period ended June 30, 2026, New Fortress Energy Inc. reported a net loss of $372,955,000 on revenue of $312,502,000. The net loss represented a basic loss per share of $1.30 based on weighted-average basic shares outstanding of 285,607,906. The Company is a public reporting company classified under Natural Gas Distribution. Revenue increased 2.8% to $312,502,000 from $304,100,000 in the comparable prior-year period, driven by [COMPLETE: description of drivers of revenue growth].
Cost of revenue increased 1.1% to $210,380,000 from $208,162,000, while operations and maintenance expense decreased 28.5% to $41,048,000 from $57,403,000 and other operating costs decreased 79.9% to $48,684,000 from $242,696,000, primarily attributable to [COMPLETE: description of drivers of operating cost changes]. Depreciation and amortization decreased 5.7% to $53,241,000 from $56,431,000, and depreciation, depletion and amortization decreased 15.6% to $107,867,000 from $127,785,000. Interest expense increased 21.6% to $226,672,000 from $186,389,000 in the prior period, and further increases in borrowing costs could reduce cash available for operations. Other nonoperating items reflected a net expense of $1,236,000 in the current period, compared to net income of $59,024,000 in the prior period. We recognized an income tax benefit of $7,964,000 in the current period, compared to income tax expense of $10,400,000 in the prior-year period.
Our liquidity position changed significantly during the period. Cash and cash equivalents decreased 70.8% to $161,191,000 from $551,109,000, while restricted cash and equivalents increased 25.4% to $338,956,000 from $270,298,000. Total liabilities were $11,161,258,000, including debt of $8,858,351,000. This compares to prior-period long-term debt of $7,810,211,000 and current debt of $1,181,559,000. Accrued liabilities increased 264.9% to $1,032,745,000 from $283,009,000, and other accrued liabilities increased 159.3% to $145,361,000 from $56,055,000. Stockholders' equity declined from $1,259,266,000 in the prior period to a deficit of $553,650,000 in the current period, a decrease of 144.0%, and total equity stood at negative $432,438,000. Our substantial indebtedness and reduced liquidity expose us to significant financial risk, and if losses continue, our financial condition and our ability to fund operations and satisfy obligations as they come due could be materially and adversely affected. Management believes that [COMPLETE: management's conclusion as to whether existing cash and capital resources are sufficient to fund operations for at least the next twelve months].
Our primary market risk exposure is interest rate risk on our cash, cash equivalents, and short-term investments. As of June 30, 2026, we held cash and cash equivalents of $161,191,000, compared to $551,109,000 in the prior period, a decrease of 70.8%, and restricted cash and equivalents of $338,956,000, compared to $270,298,000 in the prior period, an increase of 25.4%. Changes in prevailing interest rates affect the interest income we earn on these balances, and a decline in market interest rates would reduce the interest income generated on our cash and cash equivalents. Given the composition of these holdings, we do not believe an immediate hypothetical change in interest rates would have a material effect on the fair value of our portfolio, although it could affect our future interest income. [COMPLETE: quantified sensitivity of interest income to a hypothetical change in interest rates]
We are also exposed to interest rate risk in connection with our indebtedness. Total liabilities were $11,161,258,000, including debt of $8,858,351,000. Interest expense increased 21.6% to $226,672,000 from $186,389,000 in the prior period, and further increases in borrowing costs could reduce cash available for operations. Our substantial indebtedness and reduced liquidity expose us to significant financial risk. To the extent we refinance existing obligations or incur additional borrowings, increases in market interest rates could further increase our cost of capital. [COMPLETE: breakdown of fixed-rate versus variable-rate debt and quantified sensitivity of interest expense to a hypothetical change in interest rates]
We do not have material foreign currency or commodity price exposure. Accordingly, we have not entered into hedging arrangements to manage foreign currency or commodity price risk, and we do not believe changes in foreign exchange rates or commodity prices would have a material effect on our financial condition or results of operations for the period presented. [COMPLETE: description of any derivative instruments or hedging activities, if applicable]
Under the supervision and with the participation of our management, including our principal executive officer and principal financial officer, we evaluated the effectiveness of our disclosure controls and procedures as of the end of the period covered by this report. Based on that evaluation, management concluded that our disclosure controls and procedures were effective at the reasonable assurance level as of June 30, 2026. Our disclosure controls and procedures are designed to provide reasonable assurance that information required to be disclosed in the reports we file or submit under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the Securities and Exchange Commission, and that such information is accumulated and communicated to management, including our principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure. [COMPLETE: names and titles of certifying officers participating in the evaluation]
There were no changes in our internal control over financial reporting during the quarter ended June 30, 2026 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. Management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving their objectives, and management necessarily applies its judgment in evaluating the cost-benefit relationship of possible controls and procedures.
[COMPLETE: management review: the conclusion language above must be reviewed and adopted by management before filing]
From time to time, we are involved in legal proceedings arising in the ordinary course of business. These matters may include commercial disputes, contractual claims, and other proceedings incidental to the operation of our business. Management does not currently believe that any pending matter is material to our financial statements, although an adverse outcome in one or more proceedings could result in unexpected costs or liabilities.
We assess our exposure related to legal matters on an ongoing basis and record accruals when appropriate. While we do not currently believe any pending legal proceeding will have a material effect on our financial statements, the outcome of litigation is inherently uncertain, and an unfavorable resolution could adversely affect our results of operations, financial condition, or cash flows.
Investing in our securities involves a high degree of risk, and the risks described below should be considered carefully together with the other information in this report. For the period ended June 30, 2026, we reported revenue of $312,502,000 and a net loss of $372,955,000, and continued losses of this magnitude could adversely affect our liquidity, our ability to fund operations and capital expenditures, and our ability to satisfy our obligations as they become due. Our stockholders' equity was negative $553,650,000 as of the period end, compared to positive stockholders' equity of $1,259,266,000 in the prior period, and a sustained equity deficit may limit our access to capital markets, impair our ability to comply with financial covenants, and negatively affect the perception of our financial condition by customers, suppliers, and lenders.
Our substantial indebtedness poses significant risks to our business and financial condition. As of the period end, our total liabilities were $11,161,258,000, including debt of $8,858,351,000. Our interest expense for the period was $226,672,000, an increase of 21.6% from $186,389,000 in the prior period, and higher debt service costs reduce cash available for operations and growth initiatives. In addition, our cash and cash equivalents declined 70.8% to $161,191,000 from $551,109,000, and our accrued liabilities increased 264.9% to $1,032,745,000 from $283,009,000, which together may constrain our financial flexibility. If we are unable to generate sufficient cash flow or refinance our obligations on acceptable terms, our business, results of operations, and financial condition could be materially and adversely affected.
We operate as a public reporting company classified under Natural Gas Distribution, and our results are subject to risks inherent in our industry, including [COMPLETE: description of industry-specific operational, regulatory, and competitive risks from prior filings]. Our primary market risk exposure is interest rate risk on cash, cash equivalents, and short-term investments, and changes in prevailing interest rates could adversely affect the returns on these balances and our overall financial results. We are also involved in legal proceedings arising in the ordinary course of business from time to time, and although management does not currently believe any pending matter is material to the financial statements, adverse developments in litigation could result in liabilities or costs that exceed our expectations. The risks described above are not the only risks we face, and additional risks not presently known to us or that we currently deem immaterial may also materially and adversely affect our business, financial condition, and results of operations.
The following disclosure is provided pursuant to Item 408(a) of Regulation S-K with respect to Rule 10b5-1 trading arrangements for the quarterly period ended June 30, 2026. [COMPLETE: Rule 10b5-1 trading arrangement adoptions and terminations from the D&O questionnaires]