Subsea 7 (SUBC) Q3 2024 earnings summary

Executive summary

• Q3 2024 Adjusted EBITDA reached $321 million, up 59% year-over-year, with an 18% margin and robust free cash flow of $138 million.

• Q3 revenue was $1.8 billion, a 16% increase year-over-year, and nine-month revenue rose 14%.

• Backlog stands at $11.3 billion, providing strong visibility for future years and supporting margin expansion targets.

• At least $1 billion is committed to shareholder returns from 2024 to 2027, with $250 million already returned in 2024.

• Nine-month Adjusted EBITDA reached $775 million, already surpassing the prior full year.

Financial highlights

• Q3 Adjusted EBITDA was $321 million, up 59% year-over-year, with a margin of 18%.

• Q3 net income was $98 million, up from $36 million in the prior year.

• Free cash flow for Q3 was $138 million; cash and cash equivalents at quarter-end were $440 million.

• Net debt at quarter-end was $857 million; gross liquidity was $1.1 billion.

• Q3 order intake was $0.6 billion; nine-month order intake was $5.9 billion.

Outlook and guidance

• 2024 revenue expected at the upper end of $6.5–$6.8 billion, with Adjusted EBITDA of $1,025–$1,075 million.

• 2025 revenue guidance is $6.8–$7.2 billion, with an Adjusted EBITDA margin of 18–20%.

• Renewables segment EBITDA margin expected at 14–16% in 2025 and beyond.

• 2026 guidance reaffirms Adjusted EBITDA margin above 20%.

• Free cash flow expected to increase significantly in 2025 and beyond.