Subsea 7 (SUBC) Q2 2025 earnings summary

Executive summary

• Adjusted EBITDA for Q2 2025 reached $360 million, up 23% year-on-year, with a margin of 20.5%–21%, reflecting strong operational performance across both business units.

• Robust order intake of $2.5 billion in Q2, with a book-to-bill ratio of 1.4x, supporting a strong backlog of $11.8 billion and over 90% revenue visibility for 2025.

• Strong margin expansion in both Subsea and Conventional and Renewables segments, with respective Q2 margins of 21% and 17%.

• Announced a definitive merger agreement with Saipem, with integration planning to begin in September and completion targeted for H2 2026.

• High activity in key regions, including Brazil, Norway, Türkiye, the US, and major renewables projects in the UK.

Financial highlights

• Q2 2025 revenue was $1.8 billion, up 1% year-on-year, with net income of $131 million and diluted EPS of $0.45.

• Free cash flow for Q2 2025 was $246 million, with net cash from operating activities at $339 million and a $59 million working capital improvement.

• Capital expenditure for Q2 was $93 million; cash and equivalents at quarter end were $413 million.

• Net debt at quarter end was $695 million, including $448 million in lease liabilities; liquidity stood at $1.2 billion.

• Book-to-bill ratio for Q2 2025 was 1.4x, with order intake of $2.5 billion.

Outlook and guidance

• Full-year 2025 revenue expected between $6.8 billion and $7.2 billion, with adjusted EBITDA margin guidance reiterated at 18%–20%.

• Over 90% of 2025 revenue is already visible from backlog.

• Margins are expected to exceed 20% in 2026 based on firm backlog and pipeline prospects.

• Administrative expenses projected at $290–310 million; capital expenditure at $360–380 million.

• Effective tax rate expected to decrease to 30–35% from 41% in 2024.