New Fortress Energy Inc.NFE
New Fortress Energy Inc. Segments Disclosure
31. Segments (As Restated)
As of December 31, 2025, the Company operates in two reportable segments: Terminals and Infrastructure and Ships:
•Terminals and Infrastructure includes the Company’s vertically integrated gas to power solutions, spanning the entire production and delivery chain from natural gas procurement and liquefaction to logistics, shipping, facilities and conversion or development of natural gas-fired power generation. Vessels that are utilized in the Company’s terminal, logistics or sub-charter operations are included in this segment.
•Ships includes vessels chartered under long-term arrangements that were part of a historical financing transaction. We exclude such vessels from this segment and include them in our Terminals and Infrastructure segment once we begin to use the vessels in our own operations. One vessel is currently included in this segment. The Company’s investment in Energos was also included in the Ships segment prior to the disposition of this investment in the first quarter of 2024. The Operating Margin of the Ships segment also included the Company’s effective share of revenue, expenses and operating margin attributable to ownership of the common units of Hilli LLC prior to the disposition of this investment in the first quarter of 2023.
The Company’s CEO, who is the CODM, uses Segment Operating Margin to evaluate the performance of the segments and allocate resources. Segment Operating Margin is defined as the segment’s revenue less cost of sales less operations and maintenance less vessel operating expenses, excluding unrealized gains or losses to financial instruments recognized at fair value. The CODM includes deferred earnings from contracted sales for which a prepayment was received in the segment measure.
The CODM considers Segment Operating Margin to be the appropriate metric to evaluate and compare the ongoing operating performance of the Company’s segments on a consistent basis across reporting periods as it eliminates the effect of items which management does not believe are indicative of each segment’s operating performance.
The table below presents segment information for the years ended December 31, 2025, 2024 and 2023:
Year Ended December 31, 2025 | ||||||||||||||||||||||||||||||||
| (in thousands of $) | Terminals and Infrastructure | Ships | Total Segment | Consolidation and Other(5) | Consolidated | |||||||||||||||||||||||||||
| Statement of operations: | ||||||||||||||||||||||||||||||||
| Total revenues | $ | 1,384,693 | $ | 119,344 | $ | 1,504,037 | $ | — | $ | 1,504,037 | ||||||||||||||||||||||
Less(1): | ||||||||||||||||||||||||||||||||
Cost of sales(2)(4) | 918,603 | — | 918,603 | — | 918,603 | |||||||||||||||||||||||||||
| Vessel operating expenses | 4,407 | 22,187 | 26,594 | — | 26,594 | |||||||||||||||||||||||||||
| Operations and maintenance | 218,511 | — | 218,511 | — | 218,511 | |||||||||||||||||||||||||||
| Segment Operating Margin | $ | 243,172 | $ | 97,157 | $ | 340,329 | $ | — | $ | 340,329 | ||||||||||||||||||||||
| Balance sheet: | ||||||||||||||||||||||||||||||||
| Total assets | $ | 10,467,502 | $ | 88,121 | $ | 10,555,623 | $ | — | $ | 10,555,623 | ||||||||||||||||||||||
| Other segmental financial information: | ||||||||||||||||||||||||||||||||
Capital expenditures(3) | $ | 990,724 | $ | 2,680 | $ | 993,404 | $ | — | $ | 993,404 | ||||||||||||||||||||||
| Year Ended December 31, 2024 (As Restated) | ||||||||||||||||||||||||||||||||
| (in thousands of $) | Terminals and Infrastructure | Ships | Total Segment | Consolidation and Other(5) | Consolidated | |||||||||||||||||||||||||||
| Statement of operations: | ||||||||||||||||||||||||||||||||
Total revenues(6) | $ | 2,041,580 | $ | 170,587 | $ | 2,212,167 | $ | 146,777 | $ | 2,358,944 | ||||||||||||||||||||||
Less(1): | ||||||||||||||||||||||||||||||||
Cost of sales(2)(4) | 1,065,181 | — | 1,065,181 | — | 1,065,181 | |||||||||||||||||||||||||||
| Vessel operating expenses | — | 33,372 | 33,372 | — | 33,372 | |||||||||||||||||||||||||||
| Operations and maintenance | 170,763 | — | 170,763 | — | 170,763 | |||||||||||||||||||||||||||
Deferred earnings from contracted sales(6) | 150,000 | — | 150,000 | (150,000) | — | |||||||||||||||||||||||||||
| Segment Operating Margin | $ | 955,636 | $ | 137,215 | $ | 1,092,851 | $ | (3,223) | $ | 1,089,628 | ||||||||||||||||||||||
| Balance sheet: | ||||||||||||||||||||||||||||||||
| Total assets | $ | 12,349,356 | $ | 573,869 | $ | 12,923,225 | $ | — | $ | 12,923,225 | ||||||||||||||||||||||
| Other segmental financial information: | ||||||||||||||||||||||||||||||||
Capital expenditures(3) | $ | 2,288,994 | $ | — | $ | 2,288,994 | $ | — | $ | 2,288,994 | ||||||||||||||||||||||
| Year Ended December 31, 2023 (As Restated) | ||||||||||||||||||||||||||||||||
| (in thousands of $) | Terminals and Infrastructure | Ships | Total Segment | Consolidation and Other(5) | Consolidated | |||||||||||||||||||||||||||
| Statement of operations: | ||||||||||||||||||||||||||||||||
Total revenues(6) | $ | 2,142,894 | $ | 293,605 | $ | 2,436,499 | $ | (45,894) | $ | 2,390,605 | ||||||||||||||||||||||
Less(1): | ||||||||||||||||||||||||||||||||
Cost of sales(2)(4) | 766,598 | — | 766,598 | 112,623 | 879,221 | |||||||||||||||||||||||||||
| Vessel operating expenses | — | 51,387 | 51,387 | (5,948) | 45,439 | |||||||||||||||||||||||||||
| Operations and maintenance | 175,559 | — | 175,559 | — | 175,559 | |||||||||||||||||||||||||||
| Segment Operating Margin | $ | 1,200,737 | $ | 242,218 | $ | 1,442,955 | $ | (152,569) | $ | 1,290,386 | ||||||||||||||||||||||
| Balance sheet: | ||||||||||||||||||||||||||||||||
| Total assets | $ | 9,677,170 | $ | 836,266 | $ | 10,513,437 | $ | — | $ | 10,513,437 | ||||||||||||||||||||||
| Other segmental financial information: | ||||||||||||||||||||||||||||||||
Capital expenditures(3) | $ | 3,455,738 | $ | 7,568 | $ | 3,463,306 | $ | — | $ | 3,463,306 | ||||||||||||||||||||||
(1)The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM.
(2)Cost of sales in the Company’s segment measure only includes realized gains and losses on derivative transactions that are an economic hedge of commodity purchases and sales, and a realized gain of $139,089 for the year ended December 31, 2023 was recognized as a reduction to Cost of sales in the segment measure. No realized gains or losses were recognized for the years ended December 31, 2025 and 2024.
The Company recognized unrealized losses of $106,393 on the mark-to-market value of derivative transactions for the year ended December 31, 2023, and these losses reconcile Cost of sales in the segment measure to Cost of sales in the Consolidated Statements of Operations and Comprehensive (Loss) Income. No unrealized gains or losses were recognized for the years ended December 31, 2025 and 2024.
The Company has excluded contract acquisition costs that do not meet the criteria for capitalization from the segment measure. Contract acquisition costs of $6,232 for the year ended December 31, 2023 reconcile Cost of sales in the segment measure to Cost of sales in the Consolidated Statements of Operations and Comprehensive (Loss) Income. The Company did not incur such costs in the years ended December 31, 2025 and 2024.
(3)Capital expenditures includes amounts capitalized to construction in progress and additions to property, plant and equipment during the period.
(4)Cost of sales is presented exclusive of costs included in Depreciation and amortization in the Consolidated Statements of Operations and Comprehensive (Loss) Income.
(5)For the year ended December 31, 2024, Consolidation and Other adjusts for the inclusion of deferred earnings from contracted sales of $150,000 (Note 8) which were recognized during the third and fourth quarters of 2024.
Deferred earnings from contracted sales represent forward sales transactions that were contracted in the second and third quarters of 2024 and prepayment for these sales was received. Revenue has been recognized in the Consolidated Statements of Operations and Comprehensive (Loss) Income during the third and fourth quarters of 2024.
In 2023, the effective share of revenues, expenses and operating margin attributable to the Company’s ownership of the common units of Hilli LLC was included in the segment measure prior to the disposition of these investments. Unrealized mark-to-market gains or losses on derivative instruments and the exclusion of non-capitalizable contract acquisition costs were also removed.
(6)For the years ended December 31, 2024 and 2023, Consolidation and Other adjusts for $3,223 and $24,500 amortization of intangible assets recognized from acquisition of certain vessels with in-place leases, which was
recorded in Vessel charter revenue; such amortization is excluded from Total Segment Operating Margin reviewed by the Company’s CODM.
Consolidated Segment Operating Margin is defined as net (loss) income, adjusted for selling, general and administrative expenses, transaction and integration costs, depreciation and amortization, asset and goodwill impairment expenses, (gain) loss on sale of assets, interest expense, other (income) expense, net, loss on extinguishment of debt, net, and tax (benefit) provision.
The following table reconciles Net income, the most comparable financial statement measure, to Consolidated Segment Operating Margin:
Year Ended December 31, | ||||||||||||||||||||
| (in thousands of $) | 2025 | 2024 (As Restated) | 2023 (As Restated) | |||||||||||||||||
| Net (loss) income | (1,831,953) | (244,537) | 548,224 | |||||||||||||||||
| Add: | ||||||||||||||||||||
| Selling, general and administrative | 307,442 | 293,378 | 203,385 | |||||||||||||||||
| Transaction and integration costs | 161,756 | 12,279 | 6,946 | |||||||||||||||||
| Depreciation and amortization | 203,508 | 158,791 | 161,424 | |||||||||||||||||
| Interest expense | 777,845 | 316,337 | 284,019 | |||||||||||||||||
| (Gain) loss on sale | (670,938) | 80,207 | (27,978) | |||||||||||||||||
| Other income (expense), net | (147,593) | 116,308 | 10,408 | |||||||||||||||||
| Tax provision | 61,350 | 70,308 | 102,972 | |||||||||||||||||
| Asset impairment expense | 860,865 | 16,494 | 10,958 | |||||||||||||||||
| Goodwill impairment expense | 598,110 | — | — | |||||||||||||||||
| Loss on extinguishment of debt, net | 19,937 | 270,063 | — | |||||||||||||||||
| (Income) on equity method investments | — | — | (9,972) | |||||||||||||||||
| Consolidated Segment Operating Margin | $ | 340,329 | $ | 1,089,628 | $ | 1,290,386 | ||||||||||||||
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Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Apr 13, 2026 | Showing above |
| 2024 | Mar 10, 2025 | |
| 2023 | Feb 29, 2024 | |
| 2022 | Mar 1, 2023 | |
| 2021 | Mar 1, 2022 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.