SED Energy Holdings (ENH) Q4 2025 earnings summary

Executive summary

• Achieved strong operational performance in Q4 2025, with all rigs and vessels fully contracted and high technical utilization rates, marking a transformational year following the successful merger of Energy Drilling and SeaBird Exploration.

• Revenue increased to $61.2 million in Q4 2025, driven by higher day rates and more units in service, with adjusted EBITDA rising to $30.1 million.

• Board proposed a $22.5 million Q4 distribution, bringing total 2025 distributions to $82.5 million, over 20% of market capitalization at merger.

• Amended debt facility reduced annual repayments by nearly 60%, enhancing liquidity and financial flexibility.

• Entering 2026 with robust backlog, high earnings visibility, and a disciplined approach to growth and capital allocation.

Financial highlights

• Q4 2025 revenue reached $61.2 million (up 19–48% YoY); full-year revenue was $225.4 million (up 33–59%).

• Q4 2025 adjusted EBITDA was $30.1 million (up 11–32% YoY); full-year adjusted EBITDA was $110.6–150 million (up 37–61%).

• Q4 2025 net profit was $12.6 million (up 2–19% YoY); full-year net profit was $27.9–49 million, impacted by merger costs and tax settlement.

• Cash balance at year-end was $36–36.3 million, with $25 million in free liquidity.

• Revenue backlog at year-end was $451–466 million.

Outlook and guidance

• Expecting a substantial increase in shareholder distributions in 2026, supported by strong backlog and operational performance.

• 2026 CapEx guidance is $18 million, slightly above normalized levels due to low 2025 CapEx.

• Market fundamentals remain supportive, with robust offshore energy demand and a solid pipeline of projects in Asia-Pacific.

• Drilling activity in Malaysia projected to grow 15% YoY in 2026; shallow-water rig market expected to tighten.

• OBN seismic segment remains strong, with SeaBird positioned for high utilization.