Subsea 7 (SUBC) Q1 2026 earnings summary

Executive summary

• Adjusted EBITDA for Q1 2026 reached $385 million, up over 60% year-over-year, with a 21% margin, reflecting strong operational and financial performance in both subsea and offshore wind segments.

• Revenue increased 17% to $1.8 billion, driven by solid project progress in subsea and offshore wind portfolios.

• Order intake was $1.4 billion in Q1, with an additional $1.3 billion booked in early Q2, resulting in a robust backlog of $13.5 billion and high revenue visibility for the coming years.

• CEO transition announced: John Evans to retire at end of June, with Stuart Fitzgerald to assume the role July 1, supported by the existing leadership team.

• Guidance for full-year 2026 has been raised for both revenue and margins.

Financial highlights

• Adjusted EBITDA margin expanded by 6 percentage points to 21% in Q1, reflecting favorable project completions.

• Net income was $97 million, a six-fold increase year-over-year, with diluted EPS of $0.34.

• Free cash flow for Q1 2026 was $204 million, reversing a negative $25 million in Q1 2025.

• Cash and cash equivalents increased by $104 million to $1.1 billion, with net cash at $198 million and liquidity at $1.7 billion.

• Book-to-bill ratio was 0.8x, with order intake of $1.4 billion.

Outlook and guidance

• Full-year 2026 revenue guidance raised to $7.4–$7.8 billion (from $7.0–$7.4 billion), and adjusted EBITDA margin to ~23% (from ~22%).

• Depreciation and amortization guidance increased to $650–$670 million due to asset reclassification and a new lease vessel.

• Over 90% revenue visibility for the remainder of 2026, with strong vessel utilization expected through 2029.

• Capital expenditure plans unchanged at $350–$380 million.

• Dividend proposal of NOK 13 per share (~$400 million) to be paid in May 2026, subject to AGM approval.