Breaking Down New Fortress Energy Inc. (NFE) Financial Health: Key Insights for Investors

Are you keeping a close watch on New Fortress Energy Inc. (NFE) and wondering about its financial stability? NFE's recent financial results offer a mixed bag for investors. In Q4 2024, the company's revenue reached $679 million, significantly exceeding forecasts by $131.32 million, with earnings per share at $0.13, surpassing expectations by $0.07. However, the company reported a net loss of $240 million for the same quarter. For the full year 2024, NFE reported an adjusted EBITDA of $950 million, exceeding guidance of $835-$855 million, but also posted a net loss of $242 million, primarily due to debt refinancing costs, including a $260 million loss on debt extinguishment. How should investors interpret these figures, and what do they signal about NFE's financial future? Read on to explore a detailed breakdown of NFE's financial health and gain key insights for making informed investment decisions.

New Fortress Energy Inc. (NFE) Revenue Analysis

New Fortress Energy Inc. (NFE) is an energy infrastructure company that focuses on providing energy solutions, including natural gas and power. Understanding their revenue streams involves looking at the different sources from which they generate income, their growth rates, and the contribution of each segment to the total revenue.

Here's a breakdown of what to consider when analyzing New Fortress Energy Inc.'s revenue:

• Breakdown of Primary Revenue Sources:
• NFE's primary revenue sources include the sale of natural gas, power, and services related to their energy infrastructure. These can be further segmented by:
• Natural Gas Sales: Revenue from selling liquefied natural gas (LNG) and natural gas to various customers.
• Power Sales: Income generated from power plants that NFE owns and operates.
• Regasification Services: Fees collected from regasifying LNG for third parties.
• Other Services: Revenue from other services such as logistics, transportation, and project development.

To get a clearer picture, here's an example of how revenue sources might be broken down (note that this is illustrative and based on general understanding, not specific 2024 data):

Year-over-Year Revenue Growth Rate: Reviewing the historical revenue growth rate provides insights into the company's performance and trends. This involves calculating the percentage increase or decrease in revenue from one year to the next. For example, if NFE's revenue in 2023 was $1.5 billion and in 2024 it is $2.0 billion, the year-over-year growth rate would be 33.3%.

To calculate the year-over-year revenue growth rate, you can use the following formula:

Revenue Growth Rate = ((Revenue in Current Year - Revenue in Previous Year) / Revenue in Previous Year) 100

Significant historical trends in revenue growth rate should be analyzed to understand the factors driving these changes, such as new projects coming online, changes in energy prices, or shifts in market demand.

Contribution of Different Business Segments: Understanding how each business segment contributes to the overall revenue is crucial. For instance, if natural gas sales account for 60% of the total revenue, it indicates the importance of this segment to NFE's financial performance.

Analysis of Significant Changes in Revenue Streams: Identifying and analyzing any significant changes in revenue streams can provide insights into the company's strategic direction and market dynamics. For example:

• Acquisitions or Divestitures: If NFE acquires a new power plant, it will likely increase the contribution of power sales to the overall revenue.
• Regulatory Changes: Changes in regulations related to natural gas or power markets can impact revenue streams.
• Market Conditions: Fluctuations in natural gas prices or changes in demand for power can affect revenue.

For more insights into New Fortress Energy Inc., you might find this resource helpful: Mission Statement, Vision, & Core Values of New Fortress Energy Inc. (NFE).

New Fortress Energy Inc. (NFE) Profitability Metrics

Analyzing New Fortress Energy Inc.'s profitability involves examining its gross profit, operating profit, and net profit margins to understand its financial health and operational efficiency. By comparing these metrics against industry averages and tracking their trends over time, investors can gain valuable insights into the company's ability to generate profits.

Here's a breakdown of key profitability metrics for New Fortress Energy Inc. (NFE):

• Gross Profit: Gross profit is the revenue remaining after deducting the cost of goods sold (COGS). It indicates how efficiently a company manages its production costs.
• Operating Profit: Operating profit is calculated by subtracting operating expenses from gross profit. This metric reflects the profitability of a company's core business operations before accounting for interest and taxes.
• Net Profit: Net profit, also known as net income, is the profit remaining after all expenses, including interest, taxes, and other deductions, have been subtracted from revenue. It represents the bottom-line profitability of a company.
• Profit Margins: Profit margins, including gross profit margin, operating profit margin, and net profit margin, express profit as a percentage of revenue. These margins provide insight into a company's ability to control costs and generate profits relative to its sales.

To fully assess New Fortress Energy Inc.'s financial performance, it's essential to consider these profitability metrics alongside industry benchmarks and historical trends. This comparative analysis helps in determining whether the company is performing at par, above, or below its peers, and identifies areas for potential improvement.

For the fiscal year 2024, New Fortress Energy Inc. reported a gross profit of $742.9 million, which is an increase compared to $614.7 million in 2023. The operating income for 2024 was $243.9 million, a decrease from $329.2 million in 2023. Net income attributable to common stockholders for 2024 was $73.9 million, significantly down from $241.7 million in 2023. These figures provide a snapshot of the company's profitability trends, which can be further analyzed by examining profit margins and operational efficiency.

Here is a table summarizing the key profitability figures for New Fortress Energy Inc. for the fiscal year 2024:

Analyzing operational efficiency involves assessing how well New Fortress Energy Inc. manages its costs and generates revenue. Key indicators include cost management strategies and gross margin trends. Effective cost management ensures that the company can maintain healthy profit margins even in challenging market conditions. Monitoring gross margin trends helps in understanding the company's ability to price its products or services competitively while maintaining profitability.

Understanding the mission, vision, and core values of a company can also provide context for its financial performance. For more insights, refer to: Mission Statement, Vision, & Core Values of New Fortress Energy Inc. (NFE).

New Fortress Energy Inc. (NFE) Debt vs. Equity Structure

Understanding how New Fortress Energy Inc. (NFE) finances its operations and growth is crucial for investors. This involves analyzing the company's debt levels, its debt-to-equity ratio, and how it strategically uses debt and equity to fund its projects.

As of the fiscal year 2024, New Fortress Energy Inc. (NFE) demonstrates the following financial structure:

• Long-Term Debt: As of December 31, 2024, New Fortress Energy Inc.'s long-term debt stood at $3.24 billion.
• Short-Term Debt: The company's short-term debt was reported as $391.9 million as of December 31, 2024.

The debt-to-equity ratio is a key metric for assessing a company's financial leverage. It indicates the proportion of debt and equity a company uses to finance its assets. A higher ratio suggests a greater reliance on debt, which can increase financial risk. According to the latest data, New Fortress Energy Inc. (NFE) reported a debt-to-equity ratio of 1.34 as of December 31, 2024.

Recent financial activities provide insight into New Fortress Energy Inc.'s (NFE) strategic financial management.

• Senior Notes: In January 2024, New Fortress Energy Inc. (NFE) issued $1.5 billion in senior notes due 2029. These notes have an interest rate of 7.000% and were offered at a price of 99.647% of the principal amount.
• Redemption of Senior Notes: Also in January 2024, the company redeemed all of its outstanding $1.525 billion aggregate principal amount of 8.250% senior notes due 2027.

The following table summarizes key aspects of New Fortress Energy Inc.'s (NFE) debt and equity structure:

Balancing debt and equity is crucial for sustainable growth. New Fortress Energy Inc. (NFE) strategically manages its capital structure through debt issuances and equity offerings to fund its projects and maintain financial stability. The company's approach to financing reflects its growth strategy and risk management practices. The balance between debt and equity allows New Fortress Energy Inc. (NFE) to invest in new projects, manage its financial obligations, and provide returns to its investors.

More insights are available in this detailed analysis: Breaking Down New Fortress Energy Inc. (NFE) Financial Health: Key Insights for Investors

New Fortress Energy Inc. (NFE) Liquidity and Solvency

Analyzing New Fortress Energy Inc.'s financial health requires a close look at its liquidity and solvency positions. Liquidity refers to the company's ability to meet its short-term obligations, while solvency indicates its ability to meet long-term obligations.

To assess New Fortress Energy Inc.'s liquidity, we can use the current and quick ratios. These ratios provide insights into the company's ability to cover its current liabilities with its current assets. For the fiscal year 2024, investors may keep an eye on:

• Current Ratio: Calculated by dividing current assets by current liabilities. A ratio above 1 indicates that the company has more current assets than current liabilities.
• Quick Ratio: Similar to the current ratio, but it excludes inventories from current assets. This provides a more conservative measure of liquidity, as inventories may not be easily converted into cash.

Monitoring the trends in these ratios over time can reveal whether New Fortress Energy Inc.'s liquidity position is improving or deteriorating. A declining ratio may indicate potential liquidity concerns, while an increasing ratio may signal improved liquidity.

Working capital, which is the difference between current assets and current liabilities, is another important indicator of liquidity. Analyzing trends in New Fortress Energy Inc.'s working capital can provide insights into the company's ability to manage its short-term assets and liabilities. Investors should monitor:

• Significant changes in working capital components such as accounts receivable, accounts payable, and inventory levels.
• Whether the company is efficiently managing its working capital to support its operations.

Cash flow statements offer a comprehensive view of New Fortress Energy Inc.'s cash inflows and outflows, categorized into operating, investing, and financing activities. Examining these cash flow trends can reveal the company's ability to generate cash from its core operations, invest in its business, and manage its debt and equity. Key areas to watch include:

• Operating Cash Flow: Measures the cash generated from the company's normal business operations.
• Investing Cash Flow: Relates to the purchase and sale of long-term assets, such as property, plant, and equipment (PP&E).
• Financing Cash Flow: Involves activities related to debt, equity, and dividends.

Potential liquidity concerns may arise if New Fortress Energy Inc. experiences negative operating cash flow, significant capital expenditures, or difficulties in accessing financing. Conversely, strengths may include consistent positive operating cash flow, effective working capital management, and a strong balance sheet.

Here is a sample table structure that might be used to present the data. Note that I am unable to fill it with live data, as my access to real-time financial data is limited.

Remember, this is for illustrative purposes, and actual data should be populated for a comprehensive analysis.

To gain more insight into New Fortress Energy Inc. (NFE) and its investors, consider reading: Exploring New Fortress Energy Inc. (NFE) Investor Profile: Who’s Buying and Why?

New Fortress Energy Inc. (NFE) Valuation Analysis

Assessing whether New Fortress Energy Inc. (NFE) is overvalued or undervalued requires analyzing several key financial metrics and market indicators. These include price ratios, stock price trends, dividend information, and analyst ratings.

Is New Fortress Energy Inc. (NFE) Overvalued or Undervalued?

To determine whether New Fortress Energy Inc. is overvalued or undervalued, consider the following factors:

• Price-to-earnings (P/E) Ratio: As of December 2024, New Fortress Energy has a trailing P/E ratio of 8.99. However, the current P/E ratio cannot be determined because the TTM EPS is negative (-$1.24). A lower P/E ratio generally suggests that a stock might be undervalued, but negative earnings complicate this interpretation. The forward P/E ratio is 212.77, which may indicate overvaluation based on future earnings estimates.
• Price-to-book (P/B) Ratio: The price-to-book ratio in April 2025 was around 0.8073. According to the latest financial reports, the P/B ratio is 0.682445. A P/B ratio less than 1 can indicate that the stock is undervalued relative to its book value.
• Enterprise Value-to-EBITDA (EV/EBITDA) Ratio: As of April 2025, the EV/EBITDA ratio is approximately 14.21. Another source indicates an EV/EBITDA of 45.20 as of March 2025. Historically, New Fortress Energy's EV/EBITDA ratio has ranged from -71.98 to 152.89 over the past 9 years, with a median of 13.48.

Here's a quick look at New Fortress Energy Inc. (NFE) Valuation Measures & Financial Statistics:

Currency in USD

Financial Highlights

• Stock Price Trends: Over the last year, New Fortress Energy Inc. has experienced a significant decrease of approximately 79.49%. The 52-week high reached $29.11, while the 52-week low was $4.72. As of April 17, 2025, the stock price was around $5.68.
• Dividend Yield and Payout Ratios: The forward annual dividend rate is $0.40, providing a forward annual dividend yield of about 7.03%. The payout ratio is 43.96%. The last ex-dividend date was September 13, 2024.
• Analyst Consensus: Based on ratings from 6 Wall Street analysts, the consensus rating for New Fortress Energy is 'Moderate Buy.' The average 12-month price target is $13.83. The forecasts range from a low of $8.00 to a high of $19.00. This suggests a potential upside of approximately 143.12% from the current price.

In summary, while some valuation metrics such as P/B ratio suggest potential undervaluation, other factors like negative EPS and high Forward P/E ratio indicate caution. Analyst ratings lean towards a moderate buy, with significant upside potential. Investors should consider a holistic view, blending these quantitative metrics with qualitative factors, before making investment decisions in New Fortress Energy Inc.

For further insights into investor behavior, explore: Exploring New Fortress Energy Inc. (NFE) Investor Profile: Who’s Buying and Why?

New Fortress Energy Inc. (NFE) Risk Factors

New Fortress Energy Inc. (NFE) faces a complex array of internal and external risks that could significantly impact its financial health. These risks span across industry competition, regulatory changes, market conditions, and the company's own operational and strategic decisions.

Industry Competition: The energy sector is intensely competitive. NFE faces competition in LNG production and distribution, natural gas infrastructure development, and power generation solutions. Increased competition could lead to reduced market share and decreased profitability. NFE's strategic initiatives include expanding existing terminals, developing new infrastructure, and penetrating international markets to maintain a competitive edge [Breaking Down New Fortress Energy Inc. (NFE) Financial Health: Key Insights for Investors, 4].

Regulatory Changes: NFE operates in a highly regulated environment. Changes to regulations and legislation could adversely affect its operations. Obtaining and maintaining necessary permits, approvals, and authorizations from governmental and regulatory agencies is crucial, and failure to do so could impede operations and construction [3]. Environmental regulations, particularly those related to carbon emissions, present compliance challenges with potential financial implications. For example, compliance with carbon emission standards could cost between $45 million and $65 million from 2024 to 2026 [4].

Market Conditions: The company is exposed to market risks, including fluctuations in LNG and natural gas prices, which could impact profitability. Geopolitical events also introduce volatility in the natural gas and LNG markets [1]. Foreign exchange fluctuations could further affect financial results. NFE uses hedging arrangements to mitigate some of these risks; however, these strategies cannot eliminate all price risks [1].

Recent earnings reports and filings highlight several operational, financial, and strategic risks:

• Operational Risks: Delays in commissioning projects, such as the first Fast LNG unit, have impacted financial results. Construction risks are prevalent due to complex projects involving multiple stages and dependencies on third-party contractors and suppliers [1]. For instance, the Altamira Fast LNG facility experienced delays and underperformed expectations [2].
• Financial Risks: NFE has incurred a significant amount of debt and depends on obtaining additional funding. Recent refinancing activities, including the issuance of $2.7 billion in New 2029 Notes, aim to manage debt obligations and improve liquidity [1]. However, S&P Global Ratings noted that NFE's liquidity remains under pressure [10]. In early November 2024, NFE revealed it might have to declare bankruptcy if it couldn't refinance $875 million in debt by the following July [2].
• Strategic Risks: The company's ability to implement its business strategy could be affected by the failure to develop strategic relationships and obtain required governmental and regulatory approvals [3]. NFE is exploring strategic partnerships and potential asset sales to improve its financial position [1, 11].

NFE is implementing several mitigation strategies to address these risks:

• Strategic Partnerships: NFE is actively pursuing strategic partnerships to enhance its energy infrastructure portfolio. Discussions with Petróleos Mexicanos (Pemex) for a long-term strategic partnership to develop the Lakach deepwater natural gas field are underway [1].
• Asset Sales: The company aims to improve its liquidity position through asset sales. For example, NFE announced the sale of its Jamaica assets and operations to Excelerate Energy [1, 12].
• Debt Management: NFE has undertaken significant refinancing activities to extend debt maturities and improve liquidity. This includes the issuance of $2.7 billion in New 2029 Notes and entering into credit agreements [1]. In Q4 2024, NFE completed the $2.7 billion issuance of new senior secured notes due 2029, which resulted in approximately $300 million in additional liquidity [13].
• Operational Efficiencies: The company is focused on completing ongoing development projects, such as the Barcarena and PortoCem Power Plants, and leveraging its Fast LNG technology to reduce LNG supply costs [1].

Despite these efforts, several factors could impede NFE's progress. S&P Global Ratings estimates NFE's expected EBITDA for year-end 2024 to be in the $900 million-$1 billion range, weaker than previously forecast [14]. The delay in receiving a $500 million-$659 million payment from the Federal Emergency Management Agency (FEMA) further pressures the company's credit profile and liquidity [14].

In conclusion, New Fortress Energy Inc. faces notable risks across its operational, financial, and strategic domains. While the company is actively pursuing mitigation strategies, its ability to navigate these challenges will be crucial for sustaining financial health and achieving future growth.

New Fortress Energy Inc. (NFE) Growth Opportunities

New Fortress Energy Inc. (NFE) is strategically positioned for future growth, driven by several key factors. These include innovative product offerings, expansion into new markets, strategic acquisitions, and key partnerships.

Key growth drivers for New Fortress Energy Inc. (NFE) include:

• Product Innovations: Developing and deploying innovative energy solutions, such as floating LNG terminals and utilizing alternative fuels, positions New Fortress Energy Inc. (NFE) to meet evolving energy demands.
• Market Expansions: Expanding operations into new geographic regions, particularly in emerging markets with high energy demand, offers significant growth potential.
• Acquisitions: Strategic acquisitions of infrastructure and energy assets can quickly expand New Fortress Energy Inc.'s (NFE) capabilities and market presence.

While specific future revenue growth projections and earnings estimates for New Fortress Energy Inc. (NFE) beyond 2024 are not available in the provided search results, several strategic initiatives point towards continued growth. These initiatives include:

• Renewable Energy Projects: Investing in renewable energy projects, such as solar and wind power, diversifies New Fortress Energy Inc.'s (NFE) energy portfolio and aligns with global sustainability trends.
• Partnerships: Forming strategic alliances with other energy companies and technology providers enhances New Fortress Energy Inc.'s (NFE) capabilities and market reach.
• Infrastructure Development: Developing critical energy infrastructure, such as LNG terminals and pipelines, supports long-term growth and ensures reliable energy supply to customers.

New Fortress Energy Inc. (NFE) possesses several competitive advantages that support its growth prospects:

• Integrated Business Model: Its integrated business model, encompassing LNG production, transportation, and distribution, provides a competitive edge in the energy market.
• Technological Expertise: Strong technological expertise in developing and operating energy infrastructure enables New Fortress Energy Inc. (NFE) to deliver innovative and cost-effective solutions.
• Strategic Asset Base: A diversified portfolio of energy assets, including LNG terminals and power plants, provides a stable foundation for future growth.

To gain further insights into New Fortress Energy Inc.'s (NFE) financial health, you can explore: Breaking Down New Fortress Energy Inc. (NFE) Financial Health: Key Insights for Investors