Key Highlights

  • Diluted EPS of USD 0.54 compared with a consensus estimate of a USD 0.71 loss and a USD 0.42 loss.
  • An Interest Rate swap Fair Value gain of USD 851.2 million drove Net Income of USD 573.8 million.
  • Revenue remained nil as Rio Grande LNG is under construction, with Trains 1 and 2 at 79.7% complete.
  • Phase 1 refinancing included USD 3.5 billion of senior secured notes in July and USD 575.0 million more in September.

NextDecade Corporation (NASDAQ:NEXT) reported third quarter 2026 Diluted Earnings per Share of USD 0.54, against a consensus estimate of a loss of USD 0.71 and a loss of USD 0.42 in the prior year quarter. Net income attributable to common stockholders was USD 155.4 million, compared with a loss of USD 109.5 million. The company has no operating Revenue while it builds the Rio Grande LNG Facility, so the result reflects non operating items rather than sales.

Derivative Gains Reshape the Income Statement

Total net income of USD 573.8 million, before USD 418.5 million attributed to non-controlling interests, reflected a derivative gain of USD 851.2 million versus a USD 74.1 million loss a year earlier. The company attributed the swing to higher forward SOFR rates, which raised the fair value of the interest rate swap portfolio. Operating expenses rose to USD 82.9 million from USD 72.0 million, with Depreciation and amortization of USD 18.5 million tied to leased LNG vessels.

Offsetting items included a USD 136.5 million loss on Debt extinguishment from repaying Credit facilities and interest expense of USD 69.3 million, up from USD 40.3 million. For the nine months, net loss attributable to common stockholders was USD 46.5 million, or USD 0.17 per share, versus a loss of USD 259.2 million.

Construction, Financing and Permitting Status

Construction progress as of September 2026 stood at 79.7% for Trains 1 and 2, 55.2% for Train 3, 22.5% for Train 4 and 14.0% for Train 5. The company stated that Phase 1 is on budget and ahead of schedule, and projects first gas into the Facility before year end 2026. First LNG from Train 1 is targeted for the second quarter of 2027, with substantial completion in the third quarter of 2027, a quarter ahead of the contractual schedule.

On financing, Phase 1 LLC issued USD 3.5 billion of senior secured notes in four tranches with coupons from 5.25% to 6.15%, and a USD 575.0 million private Placement at 6.72%. A USD 1.0 billion term Loan at 7.05% was signed in June, and Train 5 issued its final USD 150.0 million installment of 6.56% notes in October. On the development side, FERC approved an uprate lifting authorized capacity of the first five trains to 30.15 million tonnes per annum, and the Army Corps of Engineers authorized Train 6 in September.

Milestones and Balance Sheet Markers

Several dated items frame the next stages. First gas into the facility before year end 2026 is the nearest. First LNG from Train 1 in the second quarter of 2027 and Train 1 substantial completion in the third quarter of 2027 come next, while the final Environmental Impact Statement for Train 6 is scheduled for June 2027.

Commercial and Liquidity figures matter as well. Early cargo sales of over 175 TBtu, about 33% of projected portfolio volumes from 2027 through early 2029, carry a targeted cargo Margin above USD 3.00 per MMBtu. Cash and cash equivalents were USD 129.9 million against USD 462.2 million of restricted cash that is not available to service the obligations of NextDecade, and the Phase 1 cost estimate stands at USD 18.0 billion.