Subsea 7 (SUBC) Q4 2024 earnings summary

Executive summary

• Q4 adjusted EBITDA was $315 million (up 29%), and full-year EBITDA reached $1.09 billion (up 53%), driven by 14% revenue growth and nearly 400 basis points margin expansion.

• Year-end backlog was $11.2 billion, providing over 80% revenue visibility for 2025.

• Board proposes a $350 million dividend for 2025, a 40% increase year-over-year, equating to a 7% yield.

• Net income for 2024 was $217 million, up from $10 million in 2023.

• Proposed merger with Saipem S.p.A. announced, with completion targeted for H2 2026.

Financial highlights

• Full-year revenue was $6.8 billion, up 14% year-over-year; Q4 revenue was $1.9 billion, up 15%.

• Adjusted EBITDA margin for 2024 was 16%; Q4 margin was 17%.

• Free cash flow for 2024 was $583 million; liquidity at year-end was $1.3 billion.

• Net debt at year-end was $602 million, including $455 million in lease liabilities.

• Dividend of $350 million proposed for 2025.

Outlook and guidance

• 2025 revenue expected between $6.8 and $7.2 billion, with adjusted EBITDA margin guidance of 18%-20%.

• Margins anticipated to exceed 20% in 2026, supported by strong backlog and tendering pipeline.

• Effective tax rate expected to moderate to 30%-35% in 2025.

• Capital expenditure for 2025 projected at $360-$380 million, with similar levels expected in 2026.

• Over 80% of 2025 revenue guidance already visible from backlog.