By Thomas Kerr, CFA
NASDAQ: UFG
READ THE FULL UFG RESEARCH REPORT
Audited 2025 Financial Results
Uni-Fuels (NASDAQ: UFG) reported full audited 2025 financial results on April 22, 2026, which showed revenue growth that significantly exceeded our expectations. Total revenues increased 70.0%, to $263.9 million for the 2025 full year, from $155.2 million in 2024. This was primarily driven by global expansion of its core marine fuels business.
Cost of revenues increased 71.0% to approximately $259.2 million from approximately $152.0 million in the prior year period. This was largely in line with expectations as the growth reflected higher volumes of fuel procured to meet increased customer demand, as well as the costs of securing supply across an expanded global supply network.
Gross profit increased to $4.7 million for the year, an increase of 47% compared to the previous year. Gross margin decreased slightly to approximately 1.8% from approximately 2.1%, which reflects competitive market conditions and the company's continued focus on expanding global market share. The growth in absolute gross profit dollars demonstrates the scalability of the business and the ability to grow earnings alongside revenue expansion.
Selling and marketing expenses rose to $1.3 million from $0.7 million, which was primarily due to additional sales and marketing hires, increased business travel, as well as various customer engagement initiatives. G&A expenses increased to $5.0 million compared to $2.3 million in 2024. This was driven by higher personnel costs, the establishment of new offices, and increased professional fees related to capital markets activities and public company compliance obligations. We expected combined SG&A expenses to fall under $6.0 million in 2026.
The company a pre-tax loss of ($1.6) million, compared to pre-tax income of $0.3 million in 2024. Net loss for the year was ($1.8) million, compared to net income of $0.2 million for the year ended December 31, 2024.
CEO Koh Kuan Hua commented, “2025 marked a year of strong growth for Uni-Fuels, with revenue increasing 70% year over year, driven by higher marine fuel volumes, an expanded global footprint, and a growing customer base. We continued to scale our operations, strengthen our international presence, and enhance our capabilities, alongside strengthening our ability to offer sustainable marine fuel solutions. Gross profit increased year over year, although gross profit margins were impacted due to competitive market conditions, market share expansion, and higher operating costs associated with our growth and transition as a listed company. We remain focused on improving operating efficiency and maintaining financial discipline as we continue to scale to deliver sustainable value to our shareholders.”
Performance indicators
During 2025, the company supplied 758 vessels through 1,179 transactions and served 266 customers globally. Total fuel volume was approximately 535,000 metric tons, and company operations spanned 156 ports worldwide.
In 2024, the company supplied 393 vessels through 641 transactions and served 156 customers globally. Total fuel volume was approximately 253,000 metric tons and company operations spanned 87 ports worldwide.
Uni-Fuels customers are mainly shipping companies operating in market sectors such as bulk, tanker, offshore, container, general cargo, tug and barge, car carrier, cruise, yacht, and dredging. Customers also include other marine fuel suppliers operating in a similar capacity to Uni-Fuels.
Balance Sheet and Efficiency Metrics
The company’s cash position as of 12/31/25 was $12.5 million, and total debt was $4.2 million, which was comprised of commercial paper and short-term trade financing. The current ratio improved to 1.35x at the end of 2025 compared to 1.30x at the end of 2024. Net working capital was $10.1 million as of 12/31/25.
New Expansion Plan
On January 5, 2026, the company announced the next phase of its global expansion strategy, which focuses on scaling its global operations through organic growth across major maritime markets. As part of this approach, the company is evaluating potential strategic opportunities that may include acquisitions if these opportunities align with its long-term growth strategy.
This announcement builds on Uni-Fuels’ expansion to Dubai, Shanghai, and Limassol in 2025 and provides the strategic framework for additional office openings and operational initiatives designed to support long-term corporate development.
As part of this expansion plan, Uni-Fuels’ strategy is driven by the following priorities:
- Supporting shipowners and operators across global shipping routes, including both major trade corridors and niche ports, with consistent service and execution standards.
- Maintaining strong operational discipline, including counterparty risk management and regulatory compliance, as the company scales its activities.
- Addressing increasing market and regulatory complexity, including the implementation of decarbonization-related measures such as the EU Emissions Trading System (EU ETS), which directly affect voyage economics, fuel selection, and emissions compliance obligations.
- Supporting a growing diversity of marine fuel requirements, including conventional, transitional, and emerging fuels, as customers adapt fuel strategies in response to emissions-related cost considerations and fuel-intensity regulations such as FuelEU Maritime.
- Strengthening scale, operational capability, and broadening geographic reachto meet customer needs in an evolving global bunker and regulatory landscape.
Valuation
We believe Uni-Fuels has the potential to deliver strong revenue growth and positive earnings over the next 10 years as it continues to expand into additional markets and executes on its sales and marketing efforts. We believe the company can generate strong double-digit annual revenue growth over the next 10 years. In the near term, we expect revenue growth in the 20%-30% range. The company should be able to maintain industry gross margins in the range of 1.5%-2.0%. As the company expands into higher margin ancillary services, we believe gross margins could exceed 2.0% depending on market conditions and industry dynamics.
Our primary valuation tool utilizes a Discounted Cash Flow process. Due to higher than expected SG&A expenses going forward, we are adjusting our price target to $5.00 per share. This stock price level has been achieved as recently as October 2025.
The company provided 2026 revenue guidance of between $310 million and $330 million. At the midpoint, that would imply 21.3% revenue growth. Our 2026 full year revenue estimate is $321.9 million, and our 2026 EPS is $0.02 due to elevated investments in the company’s strategic growth plans. For 2027, our revenue estimate is $379.9 million, and our EPS estimate is $0.05.
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