Subsea 7 SA

Latest Results (06.01.2026):

Subsea 7 S.A. — Third Quarter 2025: revenue was steady at $1.84 billion while Adjusted EBITDA rose to $407 million (up 27% year‑on‑year) yielding a 22% Adjusted EBITDA margin; net income was $109 million (diluted EPS $0.38). The group reported a record backlog of $13.9 billion and reiterated full‑year 2025 revenue guidance of $6.9–7.1 billion (Adjusted EBITDA margin 20–21%) and gave 2026 revenue guidance of $7.0–7.4 billion with an expected ~22% Adjusted EBITDA margin based on the firm 2026 backlog.

Quarterly financials

Q3 2025 revenue $1,839.5m (flat vs Q3 2024); Adjusted EBITDA $407m (22% margin, +27% y/y); net operating income $232m; net income $108.8m; diluted EPS $0.38.

Margin drivers

Margin improvement (+460 bps y/y) driven largely by stronger execution and higher margins in Subsea and Conventional work and a favourable backlog mix; depreciation & amortisation was $175m in the quarter.

Backlog and orders

Record backlog of $13.9bn at 30 Sept 2025 (Q3 order intake $3.8bn: $3.3bn new awards + $0.5bn escalations; Q3 book‑to‑bill 2.1x, 9M book‑to‑bill 1.4x). Backlog execution profile: $2.0bn remaining in 2025, $6.0bn expected in 2026 and $5.9bn in 2027 and beyond.

Cash, debt and leverage

Cash and cash equivalents $546m. Net debt including lease liabilities $505m (improved from $695m in Q2 2025 and $857m in Q3 2024), equivalent to ~0.4x Adjusted EBITDA on a last‑four‑quarter basis. Undrawn RCF capacity $600m.

Cash flow and free cash flow

Q3 net cash from operations $283m (free cash flow Q3 $236m). Nine‑month net cash from operations $673m and nine‑month free cash flow $457m; capex (9M) $216m.

Segment performance

Subsea & Conventional: revenue ~$1.51bn in Q3, net operating income $228m — strong vessel utilisation and higher margins. Renewables: revenue ~$302m, net operating income $21m (down vs prior year); Corporate reported a $17m operating loss in Q3 largely from merger‑related professional fees.

Operations and fleet

Vessel utilisation 87% in Q3 (41 vessels in fleet, 12 chartered). Operational notes: strong activity in Norway, Angola, Brazil (PLSVs), and renewables work including completion of Dogger Bank C monopile installations and progress on East Anglia THREE and Revolution cable laying.

Guidance and outlook

2025 guidance: revenue $6.9–7.1bn, Adjusted EBITDA margin 20–21%. Based on firm 2026 backlog, expected 2026 revenue $7.0–7.4bn with Adjusted EBITDA margin ≈22%. Management cites strong tendering activity and backlog mix as supportive of momentum.

Shareholder returns & corporate actions

Dividend NOK 13.00 per share paid in two instalments in May and November 2025 (total ≈$376m). Extraordinary General Meeting approved the proposed combination with Saipem S.p.A. and conditional additional dividends (e.g., €450m conditional on merger completion) were approved.