Dividend, Buyback, and Guidance Moves Might Change the Case For Investing in FLEX LNG (FLNG)

• On August 20, 2025, FLEX LNG announced its second quarter financial results, confirmed a US$0.75 per share dividend for Q2 2025, reaffirmed full-year 2025 revenue guidance, and authorized a new share repurchase program of up to 900,000 shares for US$15 million ending November 27, 2025.
• While earnings declined compared to the prior year, the simultaneous maintenance of dividends, share buybacks, and revenue targets highlights the company's ongoing commitment to shareholder returns and operational stability in a changing market.
• Next, we examine how FLEX LNG's new share repurchase program and reaffirmed guidance influence its future investment narrative.

Trump has pledged to "unleash" American oil and gas and these 22 US stocks have developments that are poised to benefit.

FLEX LNG Investment Narrative Recap

To be a FLEX LNG shareholder, you have to believe in the long-term resilience of LNG shipping, supported by strong multi-year contract coverage and stable demand from global decarbonization trends. The recent earnings result, which saw a year-over-year decline but guidance reaffirmation and the announcement of a share buyback, is not material to the biggest short-term catalyst, a tight supply of modern LNG carriers under long-term charters, nor to the main risk, which is industry oversupply from new vessel deliveries in the coming years.

The newly authorized share repurchase program, set to end in late November 2025, stands out as the most relevant announcement. While this move supports shareholder returns, it does little to address the ongoing constraint posed by the company’s limited, fully contracted fleet, given high barriers to rapid fleet expansion, which remains a key catalyst for future revenue growth and capital deployment.

Yet, despite these strengths, investors should be mindful that the new LNG vessel buildout could shift the supply-demand balance in ways that ...

Read the full narrative on FLEX LNG (it's free!)

FLEX LNG's narrative projects $365.0 million revenue and $134.7 million earnings by 2028. This requires a 1.0% yearly revenue decline and a $31.5 million increase in earnings from $103.2 million.

Uncover how FLEX LNG's forecasts yield a $24.00 fair value, a 12% downside to its current price.

Exploring Other Perspectives

Fair value estimates from four Simply Wall St Community members range from US$22.50 to an outlier above US$13,600. While the majority see potential value, risks from projected industry oversupply remain central to your investment outlook.

Explore 4 other fair value estimates on FLEX LNG - why the stock might be worth 18% less than the current price!

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 2 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.

Looking For Alternative Opportunities?

Markets shift fast. These stocks won't stay hidden for long. Get the list while it matters:

• The latest GPUs need a type of rare earth metal called Terbium and there are only 27 companies in the world exploring or producing it. Find the list for free.
• The end of cancer? These 26 emerging AI stocks are developing tech that will allow early identification of life changing diseases like cancer and Alzheimer's.
• These 13 companies survived and thrived after COVID and have the right ingredients to survive Trump's tariffs. Discover why before your portfolio feels the trade war pinch.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com