Gulf Marine Services (GMS) H2 2025 earnings summary

Executive summary

• Achieved fifth consecutive year of double-digit growth in revenue and adjusted EBITDA, with revenue up 12% to $188.1m and adjusted EBITDA up 12% to $112.9m year-over-year, exceeding upgraded guidance.

• Net leverage ratio improved to 1.39x from 2.0x, reflecting reduced net bank debt and strong cash generation.

• Ongoing geopolitical tensions in the Gulf since early 2026 have introduced operational disruptions and uncertainty, including force majeure by a customer.

• Board withheld dividend pending further assessment of geopolitical risks, reaffirming capital allocation policy.

Financial highlights

• Revenue increased 12% to $188.1m (2024: $167.5m), driven by an additional leased vessel and 11% higher average day rates, offsetting lower utilisation.

• Adjusted EBITDA rose 12% to $112.9m (2024: $100.4m), with margin steady at 60%.

• Adjusted net profit increased to $41.8m (2024: $32.2m); reported net profit was $19.5m (2024: $38.3m), impacted by a one-off tax charge and net impairment.

• Finance expenses fell 36% to $15.0m due to refinancing and lower debt.

• Net bank debt reduced to $156.6m (2024: $201.2m); net leverage at 1.39x.

• Basic EPS was 1.67 cents (2024: 3.61 cents).

Outlook and guidance

• 2026 adjusted EBITDA guidance of $105–115m under review due to Gulf region instability.

• Expect continued improvement in average day rates as legacy contracts renew at higher rates.

• Targeting 81% utilisation and higher secured day rates in 2026.

• Strategic goal to double 2024 adjusted EBITDA by 2030, supported by fleet expansion and renewables growth.