Subsea 7 (SUBC) Q3 2025 earnings summary

Executive summary

• Adjusted EBITDA for Q3 2025 was $407 million, up 27% year-on-year, with a 22% margin, driven by strong project execution and high-quality backlog.

• Q3 2025 revenue was $1.84 billion, flat year-on-year.

• Order intake reached $3.8 billion, with a book-to-bill ratio of 2.1x and a record backlog of $13.9 billion, including $6 billion for execution in 2026.

• Over 80% revenue visibility for 2026, with strong momentum expected into 2026.

• Guidance for 2025 was raised, with margin expansion and robust performance in both Subsea and Renewables.

Financial highlights

• Net income for Q3 2025 was $109 million after $175 million in D&A, $38 million FX losses, $12 million net finance costs, and $73 million tax.

• Free cash flow in Q3 2025 was $236 million, with a cash conversion ratio of 0.8x.

• Net debt including lease liabilities was $505 million at quarter-end, down from $857 million a year ago.

• Cash and equivalents rose to $546 million; liquidity at $1.1 billion as of September 30.

• Diluted EPS for Q3 2025 was $0.38, up from $0.31 in Q3 2024.

Outlook and guidance

• 2025 revenue guidance narrowed to $6.9–$7.1 billion; Adjusted EBITDA margin raised to 20–21%.

• 2026 revenue expected at $7–$7.4 billion, with Adjusted EBITDA margin of ~22%.

• 2025 capex guidance reduced to $300–$320 million; 2026 capex forecast at $350–$380 million.

• Over 80% of 2026 revenue is already visible in the backlog.

• Administrative expenses for 2025 expected at $290–310 million, excluding $30 million in merger-related costs.