NextDecade (NASDAQ:NEXT) Releases Quarterly Earnings Results, Beats Estimates By $1.25 EPS

NextDecade (NASDAQ:NEXT) released its quarterly earnings data on Thursday. The company reported $0.54 EPS for the quarter, topping the consensus estimate of ($0.71) by $1.25, FiscalAI reports.

Here are the key takeaways from NextDecade’s conference call:

• Rio Grande LNG remains ahead of schedule: Train 1 first LNG guidance was narrowed to the second quarter of 2027, with hydrocarbons expected into the facility before year-end and substantial completion projected in the third quarter of 2027—one quarter ahead of Bechtel’s guaranteed date. Trains 2 and 3 are also expected to complete ahead of schedule.
• Strong LNG pricing and supply disruptions have improved the outlook for uncontracted volumes. Management estimates implied margins above $6 per MMBtu and more than $2.4 billion of NextDecade’s share of project-level distributable cash flow through Train 5’s scheduled completion, over 20% above its $2 billion base case.
• The company reported robust demand for long-term LNG, driven by energy-security and supply-diversification priorities. NextDecade is targeting sufficient Train 6 contracting to support a final investment decision in the second half of 2027 and expects Train 6 returns to be at least as strong as those of Trains 4 and 5.
• NextDecade refinanced approximately $4.1 billion of project-level debt during the quarter and has now refinanced about 60% of its initial Phase 1 bank capacity, freeing capacity for Train 6 and future expansions. However, the company is still evaluating the most accretive mix of FinCo debt, equity or convertible financing, and potential strategic joint-venture capital for its Train 6 equity commitment.
• The company selected the western portion of the site for a combined Trains 7 and 8 project and expects to pre-file with FERC before year-end. These expansions are planned to follow Train 6 by roughly one year, with potential further development reserved on the eastern side of the site.

NextDecade Trading Up 1.7%

Shares of NASDAQ:NEXT traded up $0.12 during midday trading on Friday, hitting $7.38. 4,343,796 shares of the stock traded hands, compared to its average volume of 3,056,056. The company has a quick ratio of 0.37, a current ratio of 0.37 and a debt-to-equity ratio of 3.70. The business’s 50 day moving average is $6.86 and its two-hundred day moving average is $6.94. The stock has a market capitalization of $1.96 billion, a PE ratio of -18.45 and a beta of 1.53. NextDecade has a one year low of $4.75 and a one year high of $9.24.

Analysts Set New Price Targets

Several equities analysts recently issued reports on NEXT shares. UBS Group restated a “neutral” rating on shares of NextDecade in a research report on Friday. Wall Street Zen downgraded NextDecade from a “sell” rating to a “strong sell” rating in a research report on Saturday, October 24th. The Goldman Sachs Group reissued a “neutral” rating on shares of NextDecade in a research note on Friday. Weiss Ratings restated a “sell (d-)” rating on shares of NextDecade in a report on Thursday, October 22nd. Finally, Zacks Research upgraded shares of NextDecade from a “hold” rating to a “strong-buy” rating in a report on Thursday. Two analysts have rated the stock with a Strong Buy rating, one has issued a Buy rating, four have issued a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat, the company has an average rating of “Moderate Buy” and an average target price of $8.10.

Key Stories Impacting NextDecade

Here are the key news stories impacting NextDecade this week:

• Positive Sentiment: Rio Grande LNG is reportedly ahead of schedule. NextDecade said it expects first LNG production from Train 1 in the second quarter of 2027, with project progress described as approximately one quarter ahead of schedule. Earlier production would improve the company’s path toward revenue generation and support investor confidence. NextDecade expects first LNG from Train 1 in Q2 2027 and targets Train 6 FID in second half of next year
• Positive Sentiment: Management is targeting additional expansion. NextDecade plans to make a final investment decision on Train 6 in the second half of 2027. The company also outlined a regulatory timeline for later Rio Grande LNG trains, potentially strengthening its long-term growth outlook. NextDecade offers regulatory timeline for latest Rio Grande LNG trains
• Positive Sentiment: Third-quarter results exceeded expectations. NextDecade reported earnings of $0.54 per share versus the consensus estimate of a $0.71 per-share loss, marking a significant swing to profitability and helping drive the positive market reaction. NextDecade Provides Third Quarter 2026 Business Update
• Neutral Sentiment: Options activity indicated increased bullish speculation. Traders purchased 2,936 call options, about 16% above typical volume. This may reflect expectations for further gains, but it does not necessarily represent long-term investment conviction.
• Negative Sentiment: Execution and financing remain important risks. NextDecade still faces the usual construction, regulatory and commissioning risks associated with a large LNG project. Its elevated leverage and weak liquidity metrics also leave the stock sensitive to cost overruns, delays or additional funding requirements.

About NextDecade

NextDecade Corporation is an energy company focused on developing liquefied natural gas (LNG) infrastructure and related carbon-management solutions. The company’s principal project is Rio Grande LNG, an LNG export facility located near Brownsville, Texas, on the U.S. Gulf Coast.

Rio Grande LNG is designed to receive natural gas, process it into LNG, and export the product by ship to customers in international markets. The project is being developed in multiple phases and is intended to serve energy markets in Europe, Asia and other regions seeking access to U.S.