Flex LNG Ltd. (FLNG) released its unaudited financial results for the quarter ended December 31, 2025, reporting a Time Charter Equivalent (TCE) rate of $71,728 per day for the full year. The figure sits comfortably within management’s guidance of $71,000 to $72,000 per day and reflects a fleet that operated at near‑full utilization despite a softer spot market.
Adjusted EBITDA for 2025 rose to $251.1 million, slightly ahead of the $250 million guidance. The figure represents an 8% decline from the $273 million adjusted EBITDA reported for the full year 2024, a drop that the company attributes to lower spot rates and a modest increase in operating costs. The company’s management highlighted that the TCE rate was the highest in the fleet’s history, underscoring the firm’s pricing power even in a competitive environment.
Quarterly adjusted net income reached $23.3 million, translating to an adjusted earnings‑per‑share of $0.43. The figure beat the consensus estimate of $0.42 by $0.01, a margin that the company attributes to disciplined cost management, high vessel uptime, and a favorable mix of long‑term contracts that insulated it from spot‑rate volatility.
Flex LNG completed three refinancing transactions in 2025 that generated $137 million in net cash proceeds. The refinancings lowered interest expense to $92.6 million, a $13 million reduction from 2024, and extended debt maturities, thereby strengthening the company’s balance sheet and freeing cash for future investment.
Cash and cash equivalents stood at $447.6 million as of December 31, 2025, giving the company a robust liquidity position that supports its dividend policy and strategic initiatives.
The company will continue to pay its $0.75 quarterly dividend, its eighteenth consecutive dividend, a policy that signals management’s confidence in the firm’s cash‑flow generation and long‑term growth prospects.
The market reacted with a modest pre‑market dip of 1.25%, reflecting investor caution around the company’s 2026 guidance. Management noted that the guidance range for revenue ($310–$340 million), TCE ($65,000–$75,000 per day), and EBITDA ($225–$255 million) is wide to accommodate the expected volatility in the spot market and the increasing supply of LNG vessels.
Management emphasized that the spot‑market softness and the out‑pacing of new vessel deliveries relative to LNG volume growth are the primary headwinds. Conversely, a strong contract backlog, a solid balance sheet, and the long‑term LNG demand trajectory provide tailwinds that should support the company’s earnings in the medium term.
In summary, Flex LNG’s Q4 2025 results demonstrate resilience in a challenging market, with a solid balance sheet and a dividend that underscores management’s confidence. While near‑term earnings volatility is expected, the company’s strategic positioning and cash‑rich profile should enable it to navigate the current headwinds and capitalize on future opportunities.
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