Reach Subsea (REACH) Q1 2026 earnings summary

Executive summary

• Q1 2026 results were significantly weaker year-over-year due to low vessel and asset utilization, higher depreciation, and operational challenges, particularly in remote operations.

• Strategic progress included the commercial rollout and validation of Reach Remote, which is now established as a standalone company, securing key contracts, regulatory approvals, and positioned for rapid scale-up.

• A landmark 2+1 year IMR and Light Construction Letter of Intent was awarded post-quarter, expected to significantly boost backlog and financial predictability.

• Over 600 remote operational days were achieved, with Reach Remote 1 and 2 in commercial service and regulatory approvals in Norway, Australia, and the UK.

• The company is transitioning towards unmanned marine operations, robotics-as-a-service, and digital subsea solutions by 2030.

Financial highlights

• Revenue for Q1 2026 was NOK 551.4 million, down from NOK 698.7 million in Q1 2025, mainly due to lower utilization, unfavorable currency movements, and compressed project margins.

• EBIT was NOK -192.1 million, compared to NOK 68.2 million in Q1 2025, reflecting negative operational leverage and high fixed costs.

• Profit after tax was NOK -191.2 million, versus NOK 54 million in Q1 2025.

• Equity as of March 31, 2026, was NOK 1,031.8 million (31.6% equity ratio), down from NOK 1,291.9 million (39.8%) a year earlier.

• Cash and cash equivalents stood at NOK 335.6 million, slightly up from NOK 326.8 million a year earlier.

Outlook and guidance

• Strong utilization for Reach Remote is expected in coming quarters, supporting scaling ambitions.

• Corrective actions on capacity planning and asset positioning are underway to address utilization pressure.

• The order book will increase substantially once the new LOI is converted to a firm contract.

• The company is preparing for a structural transition into unmanned operations, robotics-as-a-service, and digital subsea solutions towards 2030.

• Focus areas include improving fleet utilization, scaling remote operations, and advancing digital workflows.