Archer Limited (âArcherâ) provides a trading update for Q4 and full year 2025
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and presents its financial outlook for 2026.
During 2025, Archer delivered resilient performance in a more challenging
market, achieving EBITDA growth, expanded margins, and a strengthened financial
position through operational excellence, successful bond refinancing, improved
backlog, strategic M&A activity, and disciplined capital allocation.
Transition to IFRS Reporting
Effective from Q4 2025, Archer will transition from US GAAP to IFRS reporting
standards, The transition aligns the company with the majority of issuers on the
Oslo Stock Exchange.
2025 Operational and Strategic Highlights
Archer delivered a solid year in 2025, growing EBITDA by 12% YoY and achieving
an average annual EBITDA growth rate of approximately 21% since 2022. This
growth was driven by higher activity levels, improved margins, and continued
strategic focus on core markets. Notably, Archer achieved 2025 growth despite
muted market development in Argentina, the US and in the UKâŚ
Key milestones in 2025 include:
¡ EBITDA growth: EBITDA grew by 12% in 2025 versus the prior year reflecting
operational improvements and stronger profitability across key segments.
¡ Refinancing: Completed a USD 425m senior secured bond refinancing early in
2025, which extends our debt maturity to 2030, reduced our cost of debt, and
strengthens liquidity.
¡ Shareholder distribution initiated: Archerâs first shareholder return
program was launched with quarterly cash distributions from Q2 2025 at an
approximate 11% yield.
¡ Strategic acquisitions: Archerâs P&A capabilities and international reach
were strengthened through the USD 20 million acquisition of US-based Premium
Oilfield Services. A smaller bolt-on acquisition of WellConnection further
streamlined drill pipe inspection and repair services in Norway.
¡ Contract wins and strengthened P&A leadership: Several significant
long-term P&A and platform drilling contracts were secured, including major
awards with NEO Next and Equinor. These wins further elevate our position as a
leading P&A provider and underpin strong momentum and growth into 2026 and
beyond.
¡ Expanded drilling capacity in Vaca Muerta: Archerâs Land Drilling division
secured a 5-year, USD 600 million drilling services contract with YPF for 7 high
-spec rigs in Argentinaâs Vaca Muerta shale play. This significantly strengthens
our operational presence and market position in the region.
¡ Portfolio streamlining: Archer completed the sale of its Argentinian
workover business in January 2026, enabling strategic focus on the growing Vaca
Muerta business.
2025 Financial Highlights
¡ Full-year IFRS EBITDA: USD 166.5 million, up 12% year-over-year
¡ Full-year US GAAP EBITDA: USD 149 million, in line with mid-point guidance
¡ Q4 IFRS EBITDA: USD 44.5 million, up 14% year-over-year
¡ Backlog including options of USD 4.0 billion at year end
¡ Net interest-bearing debt: USD 426 million at year-end
Outlook for 2026
Archer enters 2026 with a solid backlog of approximately USD?4.0?billion
including options, giving strong visibility across all major business areas.
Activity is expected to build through the year, with a significantly stronger
second half as multiple new projects transition into full operations.
The divestment of the workover business in southern Argentina enables Archer to
sharpen its portfolio and focus capital on higher-return opportunities. In Vaca
Muerta, the newly awarded five-year, USD?600?million drilling contract with
YPF-supported by two high-spec rigs leased from Patterson-UTI-expands
operational scale and strengthens long-term revenue visibility.
Well Services remains a key growth engine, delivering around 20% annual EBITDA
growth since 2017. With new technologies, contract wins and continued market
momentum, the segment is well-positioned for further progress in 2026. Platform
Operations is expected to see somewhat lower activity following contract
roll-offs, but remains supported by stable demand for core services.
Several additional projects-including integrated P&A work in the North Sea, P&A
units and new rig mobilizations-are set to begin during 2026, contributing to a
more favourable revenue mix. Growth investments will be temporarily elevated as
Archer builds and deploys equipment for these multi-year contracts, with returns
expected to contribute meaningful, recurring cash flow in the following years.
Together with increased activity in the second half, this supports continued
earnings growth and higher shareholder distributions from late 2026.
2026 Guidance
¡ EBITDA growth: single digit growth over 2025.
¡ Capex: 6-7% of revenue
¡ Shareholder distributions: Earnings growth supports increased shareholder
distributions in second half of 2026
Conference call Monday February 2nd at 9:00 CET
Archer will host a conference call at 9:00 am CET on February 2nd, 2026. To
follow the presentation, the following options are available:
A. Webcast
To register for the webcast please go to
Events Platform - Q4
B. Conference call
To access the call, which is open to the public, please dial in at the
participant telephone numbers listed below. Please call in 10 minutes prior to
the scheduled start time and ask for the âArcher Q4 2025 Trading Update and 2026
Outlook Presentationâ.
Participants dial-in:
¡ United States +1 646 233 4753
¡ Germany +49 32 221098334
¡ All other locations: +44 20 3936 2999
Access code: 565036
The operator will ask for your name and company. Following the presentation
there will be a Q&A session. Information on how to ask questions will be given
at the beginning of the Q&A session.
For further information, please contact:
Espen Joranger, Chief Financial Officer, Mobile: +47 982 06 812, Email:
espen.joranger@archerwell.com
Joachim Houeland, Manager Treasury and Investor Relations, Mobile: +47 482 78
748, Email: Joachim.houeland@archerwell.com
This information is subject to the disclosure requirements according to Section
5-12 of the Norwegian Securities Trading Act.
Kilde
