TGS (TGS) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue reached $321 million, driven by high multi-client activity and 91% vessel utilization, with EBITDA margin at 62% and EBIT margin at 20%.

• Order inflow was $392 million, raising backlog to $779 million, the highest since 2019.

• Quarterly dividend maintained at $0.155 per share.

• Exploration activity is rebounding, with renewed focus on energy security and shifting investor sentiment.

• Strategic focus remains on multi-client projects and technology innovation.

Financial highlights

• Multi-client external revenues were $240 million; investments totaled $178 million.

• Marine data acquisition external revenues were $58 million; internal production $137 million.

• Imaging business external revenue was $15 million; internal production $17 million.

• Net operating expenses were $122 million, excluding an $8 million non-cash extraordinary item.

• Net interest-bearing debt reduced to $424 million; net cash position at quarter-end was $184 million.

Outlook and guidance

• Multi-client investments for 2026 guided at $500–$575 million; CapEx to remain at 2025 levels; gross operating cost guidance at ~$950 million.

• Streamer vessel utilization expected to increase significantly in 2026; OBN activity to match 2025.

• No changes to 2026 guidance; focus on maintaining strong vessel utilization and cost efficiency.

• Long-term net debt target range set at $250–$350 million.

• Long-term exploration spending outlook is positive, but 2026 spending expected to be broadly in line with 2025.