Koil Energy Ltd. reported a 78% year-over-year increase in second-quarter revenue to more than $9 million, marking the company’s strongest quarter on record. The growth, entirely organic, follows a period of recovery after a 2025 trough attributed to broader economic and trade headwinds. The subsea services provider, which has operated for 28 years, also posted EBITDA of $1.1 million, up nearly $1 million from the prior quarter.
Sequential revenue growth has averaged 13% over the past four quarters, pushing the annualized revenue run rate above $36 million, compared with less than $20 million in 2023. For the 12 months ended June 30, 2026, Koil reported revenue of $31.02 million, a 43.64% increase from the prior year. The company has no long-term debt and maintains a $5 million asset-based lending facility.
Executives highlighted a series of contract wins this year that underpinned the momentum. In January 2026, Koil secured its first integrated subsea distribution control system contract. A major carousel fabrication and upgrade project was announced in the first quarter, and in July, the company announced its first significant contract in Brazil. Koil is targeting 10 new clients in 2026, an increase from four new clients in 2025, as it seeks to expand its global footprint.
Koil operates in the subsea segment of offshore oil and gas, providing connection systems, cables, and related services at depths up to 10,000 feet, typically serviced by remotely operated vehicles. The company’s portfolio includes roughly 20 product lines and 20 services for installing, testing, and maintaining subsea equipment. Average employee tenure exceeds 10 years, and insider ownership stands at 22%. The stock has returned 74.71% over the past year, with a market capitalization of about $36 million and a P/E ratio of 143.62.
Chief Financial Officer Kurt Keller emphasized the company’s organic growth trajectory, noting that all revenue gains were achieved without acquisitions. President and CEO Erik Wiik described Koil’s vertical supply chain and collaborative approach as key differentiators, enabling rapid deployment of specialized assets. The company’s rental strategy for high-value equipment, such as a 50-mile umbilical cable carousel weighing 2,400 metric tons, typically achieves payback within one to two years.
Looking ahead, Koil aims to become a global subsea provider by 2030, targeting double-digit growth despite single-digit expansion reported by larger peers. The company’s long-term view is supported by an estimated global reservoir depletion rate of 5% to 7% annually, which it views as a structural tailwind for subsea services demand.
