Subsea 7 (SUBC) Q4 2025 earnings summary

Executive summary

• Q4 adjusted EBITDA reached $477 million, up over 50% year-over-year, with a margin of 24% versus 17% last year.

• Full-year adjusted EBITDA was $1.48 billion, up 36% year-over-year, with a margin of 21% compared to 16% in 2024.

• Year-end backlog grew to $13.8 billion with a book-to-bill of 1.3x, providing strong visibility into 2026 and beyond.

• Board proposes a NOK 13 per share dividend (~$400 million), reflecting confidence in long-term outlook.

• Net income rose to $404 million, up from $217 million in 2024, with diluted EPS of $1.38.

Financial highlights

• 2025 revenue was $7.1 billion, up 4% from 2024, with adjusted EBITDA of $1.48 billion (36% increase) and margin rising to 21% from 16%.

• Q4 2025 revenue was $2.0 billion, up 5% year-over-year; adjusted EBITDA margin improved to 24% from 17%.

• Net income reached $404 million, up from $217 million in 2024.

• Free cash flow for the year was nearly $1.2 billion, with net cash generated from operating activities at $1.5 billion.

• Year-end cash and equivalents stood at $970 million; liquidity at $1.6 billion including $600 million in unutilized facilities.

Outlook and guidance

• 2026 revenue expected between $7.0–7.4 billion, with adjusted EBITDA margin around 22%.

• Administrative expenses forecast stable at $340–$360 million; capital expenditure expected at $350–$380 million.

• Effective tax rate projected at 30–35%; capital expenditure expected at $350–$380 million.

• Q1 2026 expected to show seasonally lower activity in subsea and wind.

• High backlog and robust tendering activity support confidence in future performance.