Electromagnetic Geoservices (EMGS) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue reached USD 10 million, with EBITDA at USD 2.7 million and net profit of USD 0.6 million, reversing a prior year loss.

• Completed first proprietary project in India and began mobilization for a second, expected to finish in early June.

• Established a new business platform in offshore subsea construction via the acquisition of the Siem Day/CM Day vessel for USD 108.9 million.

• Vessel is contracted at market rates through 2025, supporting expansion in the subsea sector.

Financial highlights

• Q1 2025 revenues were USD 10 million, with USD 9.9 million from contract work and USD 150,000 from multi-client sales.

• EBITDA was USD 2.7 million; adjusted EBITDA was USD 2.0 million, reflecting capitalized expenses.

• Free cash at quarter-end was USD 6 million, down USD 3.1 million from the previous quarter.

• Operational cost base rose to USD 8 million, mainly due to expensed transit costs.

• Trade receivables increased by USD 8.1 million, impacting cash flow.

Outlook and guidance

• Second proprietary survey in India expected to complete in H2 2025; new contract opportunities in West Africa under discussion.

• Subsea construction vessel market expected to remain strong, with high utilization and tight supply despite newbuilds.

• Subsea tree installation demand projected to rise 45% by 2027 compared to 2024.