Saipem (SPM) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue was €3.53 billion, up 0.3% year-over-year, with adjusted EBITDA rising 23.6% to €434 million and margin at 12.3%; net result was €78 million, reflecting strong operational and financial performance.

• Net cash position (pre-lease/IFRS 16) improved to €1,217 million, with free cash flow (post lease repayments) at €199 million and operating cash flow at €392 million.

• Order intake reached €1.7 billion (book-to-bill 0.5x), with backlog at €29.6 billion, providing strong asset utilization visibility; order intake expected to accelerate in coming quarters.

• 2026 guidance confirmed, with resilient operations, limited disruption from Middle East conflict, and expectations for further acceleration in offshore upstream capex.

Financial highlights

• EBITDA margin improved to 12.3% from 10.0% year-over-year; net result for Q1 was €78 million, and operating cash flow was €392 million.

• D&A rose over 40% year-over-year due to fleet growth and lease accounting changes, with €1.1 billion expected for 2026.

• Liquidity at end of March was €3.6 billion, including €1.4 billion cash, €1.6 billion in JVs, and €600 million undrawn RCF; gross debt was €1.8 billion.

• Financial expenses declined to €41 million, mainly from lower net financing costs; average cost of debt at 5%.

• Effective tax rate increased to 37% from 34% year-over-year, expected to decrease to 33–38% for 2026.

Outlook and guidance

• 2026 guidance reaffirmed: revenue ~€15.5 billion, adjusted EBITDA ~€1.9 billion, operating cash flow (post-lease) ~€1.0 billion, capex ~€450 million, free cash flow (post-lease) ~€600 million, assuming no major disruptions in the Middle East or Strait of Hormuz.

• Low single-digit revenue growth and double-digit EBITDA and EBIT growth expected for 2026, with improved margins.

• Drilling offshore expected to see double-digit revenue and EBITDA decline in 2026 due to maintenance and lower day rates.

• Energy carriers segment expects slight revenue decline but improved EBITDA margin in 2026.

• Order intake expected to ramp up through the year, peaking in Q4, following client investment cycles.