Viridien (VIRI) Q1 2026 earnings summary

Executive summary

• Q1 2026 began with softer market conditions and cautious client spending due to geopolitical uncertainty, especially from the Middle East conflict, but solid cash generation of $26 million was achieved, reversing a negative $20 million in Q1 2025.

• Segment revenue reached $214 million, down 29% year-over-year, reflecting a slow start and project delays, but profitability remained aligned with revenues.

• The asset-light, technology-driven business model demonstrated resilience, supporting ongoing deleveraging, with net debt reduced to ~$700 million after $41 million bond repayment.

• Leadership transition announced: CEO Sophie Zurquiyah to become Chair, with Henning taking over as CEO in June.

• S&P upgraded the corporate rating to B, and bonds now trade above par.

Financial highlights

• Segment revenue was $214 million in Q1 2026, down 29% year-over-year, with adjusted EBITDA at $76 million, down 47% from Q1 2025.

• Net cash flow improved to $26 million from -$20 million in Q1 2025, driven by working capital improvements and receivables collection.

• IFRS 15 adjustment negatively impacted revenue by $13 million in Q1 2026.

• Group net loss narrowed to $10 million from $28 million year-over-year; basic and diluted EPS at -$1.27, improved from -$3.88.

• Total capex was $40 million, down 34% year-over-year.

Outlook and guidance

• FY 2026 net cash flow guidance of $100 million is reiterated, with performance expected to be backend-loaded and a seasonal profile similar to 2025.

• Activity and revenue are expected to ramp up from Q2 onwards, with structural tailwinds from energy security, supply diversification, and reserve replacement.

• Project delays and deliveries are mainly timing-related, not due to underlying demand.

• Continued focus on deleveraging and maintaining strong financial discipline.