KNOT Offshore Partners (KNOP) Q4 2025 earnings summary

Executive summary

• Q4 2025 delivered total revenues of $96.5 million, operating income of $8.4 million ($28.6 million excluding a $20.3 million non-cash impairment on Bodil Knutsen), and a net loss of $6.2 million (adjusted net income of $14.0 million).

• Adjusted EBITDA for Q4 2025 was $59.3 million, with fleet utilization at 99.5% for scheduled operations and 96.4% overall.

• Available liquidity at year-end was $137 million, up $11.8 million from Q3, with $89 million in cash and $48 million in undrawn credit.

• The $10/unit buyout offer from the sponsor was terminated after negotiations failed, with no transaction recommended.

• Charter coverage secured for 98% of H1 2026 and 88% of H2 2026, reflecting strong forward visibility.

Financial highlights

• Q4 2025 revenues were $96.5 million, nearly flat from Q3 2025; adjusted EBITDA was $59.3 million, and adjusted operating income was $28.6 million.

• Net loss was $6.2 million, or net income of $14.0 million excluding the impairment.

• Year-end liquidity was $137 million (cash $89 million, undrawn credit $48 million), up from $125.2 million at September 30, 2025.

• Total interest-bearing obligations stood at $959.6 million as of December 31, 2025, with $99 million due within 12 months.

• Balance sheet at year-end: total assets $1.68 billion, total liabilities $1.06 billion, partners' capital $537 million.

Outlook and guidance

• Market tightening is expected in both Brazil and the North Sea, driven by FPSO deployments and production increases.

• Backlog at year-end was $929.8 million, averaging 2.6 years of fixed contracts, with higher coverage if options are exercised.

• 93% of vessel time in 2026 and 69% in 2027 are covered by fixed contracts; rises to 98% and 88% if all options are exercised.

• The company aims to maintain high charter coverage, build liquidity, and pursue accretive fleet investments.

• Debt repayments continue at over $90 million per year, with major refinancings due in September and October 2026.