TGS (TGS) Q4 2025 earnings summary

Executive summary

• Q4 2025 revenues reached $363 million, driven by strong multi-client performance and a 63% EBITDA margin, while EBIT margin stood at 20%.

• Net debt reduced to $427 million, supported by net cash flow of $206 million for 2025.

• Order inflow hit $598 million, the highest since pre-COVID, with a year-end backlog of $706 million.

• Dividend increased by 11% in 2025, now at $0.155 per share, maintained for Q1 2026.

• Net cash flow before dividends exceeded $200 million for the year.

Financial highlights

• Segment revenues declined from $492 million in Q4 2024 to $363 million in Q4 2025.

• Multi-client sales rose to $270 million in Q4, up from $259 million year-over-year.

• Data acquisition revenues dropped significantly, with OBN contract revenues falling from $132 million to $47 million and streamer contract revenues from $131 million to $110 million.

• IFRS net income for Q4 2025 was $6.8 million, down 82% year-over-year.

• Gross operating expenses reduced to $189 million in Q4, aided by a $15 million release of accruals.

Outlook and guidance

• Multi-client investments for 2026 guided at $500–$575 million, with higher vessel utilization expected.

• Gross operating costs for 2026 guided at $950 million, activity-driven.

• Vessel utilization targeted at 85% in Q1 2026; OBN crew count expected to remain flat at 2–2.5 for 2026.

• Long-term net debt target remains $250–$350 million; further shareholder returns planned upon reaching this range.

• Market expected to remain challenging in H1 2026, with potential improvement in H2.