• FLEX LNG Ltd. has reported its fourth-quarter and full-year 2025 results, with Q4 net income of US$21.55 million and basic earnings per share of US$0.40, both lower than the same period a year earlier.
• For 2025 as a whole, net income fell to US$74.82 million and basic earnings per share to US$1.38, highlighting pressure on profitability despite the company’s long-term contract coverage and modern LNG carrier fleet.
• We’ll now examine how this weaker 2025 profitability, especially the drop in earnings per share, affects FLEX LNG’s existing investment narrative.

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FLEX LNG Investment Narrative Recap

To own FLEX LNG, you need to believe in the long term value of its modern LNG carrier fleet and contract coverage, while accepting exposure to shipping cycles and high shareholder payouts. The weaker 2025 results, with full year EPS at US$1.38, underline that earnings can fluctuate, but they do not materially change the near term focus on dividend sustainability as a key catalyst or on refinancing risk as a central concern.

The most relevant recent announcement is the continued pattern of quarterly dividends of US$0.75 per share through 2024 and 2025, despite net income dropping to US$74.82 million in 2025 from US$117.68 million. This highlights the tension between returning cash to shareholders and preserving balance sheet flexibility, which sits at the heart of the current debate around FLEX LNG’s risk profile and its ability to manage future fleet or refinancing needs.

Yet behind the attractive dividend stream, one issue investors should be aware of is the refinancing risk that could rise if...

FLEX LNG's narrative projects $369.5 million revenue and $145.9 million earnings by 2028. This requires 1.3% yearly revenue growth and a $46.8 million earnings increase from $99.1 million today.

Uncover how FLEX LNG's forecasts yield a $26.20 fair value, in line with its current price.

Exploring Other Perspectives

Four fair value estimates from the Simply Wall St Community range from US$22.50 to US$13,641.04, showing just how far apart individual views can be. When you set that beside FLEX LNG’s recent earnings drop and dependence on generous dividends, it underlines why many readers may want to compare several perspectives before forming an opinion on the company’s resilience.

Explore 4 other fair value estimates on FLEX LNG - why the stock might be a potential multi-bagger!

Build Your Own FLEX LNG Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your FLEX LNG research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.
• Our free FLEX LNG research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate FLEX LNG's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.