Luxembourg - 20 November 2025 - Subsea 7 S.A. (Oslo BĂžrs: SUBC, ADR: SUBCY,
ISIN: LU0075646355, the Company) announced today results of Subsea7 Group (the
Group, Subsea7) for the third quarter which ended 30 September 2025.
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Highlights
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Third quarter Adjusted EBITDA of $407 million, up 27% on the prior year
period, equating to a margin of 22%
-
Solid operational and financial performance from both Subsea and
Conventional and Renewables, with Adjusted EBITDA margins of 24% and 17%,
respectively
-
Full year 2025 revenue is expected to be in a range between $6.9 and 7.1
billion while margins are expected to be between 20 and 21%
-
Record high, quality backlog of $13.9 billion including $6.0 billion for
execution in 2026 and $3.8 billion in 2027
-
Based on our firm backlog of contracts for execution in 2026, we expect
revenue within a range of $7.0 to 7.4 billion, while our Adjusted EBITDA
margin is expected to be approximately 22%
-
Strong balance sheet, with net debt including lease liabilities of $505
million, equating to 0.4 times the Adjusted EBITDA generated in the last
four quarters
Third Quarter Nine Months Ended
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For the period (in $ millions,
except Adjusted EBITDA margin Q3 2025 Q3 2024 30 Sep 2025 30 Sep 2024
and per share data) Unaudited Unaudited Unaudited Unaudited
Revenue 1,840 1,834 5,125 4,968
Adjusted EBITDA((a)) 407 321 1,003 775
Adjusted EBITDA margin((a)) 22% 18% 20% 16%
Net operating income 232 163 495 319
Net income 109 98 257 190
Earnings per share - in $ per
share
Basic 0.38 0.31 0.90 0.60
Diluted((b)) 0.38 0.31 0.89 0.60
30 Sep 2025 30 June 2025
At (in $ millions) Unaudited Unaudited
Backlog((a)) 13,911 11,823
Book-to-bill ratio((a)) 2.1x 1.4x
Cash and cash equivalents 546 413
Borrowings (629) (661)
Net debt excluding lease
liabilities((a)) (83) (247)
Net debt including lease
liabilities((a)) (505) (695)
(a) For explanations and reconciliations of Adjusted EBITDA, Adjusted EBITDA
margin, Backlog, Book-to-bill ratio and Net debt refer to the âAlternative
Performance Measuresâ section of the Condensed Consolidated Financial
Statements.
(b) For the explanation and a reconciliation of diluted earnings per share refer
to Note 7 âEarnings per shareâ to the Condensed Consolidated Financial
Statements.
John Evans, Chief Executive Officer, said:
Subsea7 delivered 27% growth in Adjusted EBITDA in the third quarter of 2025
driven by a strong performance in Subsea and Conventional and Renewables. Group
revenue remained at a high level while our Adjusted EBITDA margin increased by
more than
460 bps year-on-year. This was the result of both solid execution, particularly
in Subsea and Conventional, as well as the continued mix-shift of our backlog
towards contracts with a more favourable risk-reward balance.
The resilience of our strategy - focused on long-cycle energy projects with
advantaged economics - was demonstrated in the third quarter with order intake
of $3.8 billion representing a book-to-bill of over 2 times, equating to a book-
to-bill of 1.4 times for the first nine months of 2025. The award in August of a
third subsea scope for the Sakarya gas development in TĂŒrkiye was a strong
endorsement of the ability of our 3,000 engineers and project managers, as well
as our experienced offshore crews, to leverage our differentiated solutions to
create value for clients.
We expect the positive momentum in our business to continue supported by a
record backlog approaching $14 billion as well as active tendering on a strong
portfolio of future opportunities.
Third quarter project review
Within Subsea and Conventional, our vessels remained busy across the world,
achieving a high level of utilisation. Seven Vega spent the majority of the
quarter in Norway, installing pipe-in-pipe at Yggdrasil. Seven Oceans, Seven
Navica and Seven Arctic were also active in Norway, at Irpa and Ăst Frigg. In
addition, in September, Seven Navica worked at Murlach and Bittern-Belinda in
the UK. Seven Borealis and Seven Pacific continued working in Angola. In the
third quarter, the second of our four pipelay support vessels (PLSVs) in Brazil
- Seven Waves - commenced a new three-year contract for Petrobras, following the
award in 2024. The final two PLSVs have rolled onto new contracts during the
fourth quarter.
In Renewables, we delivered a robust financial result despite challenging market
conditions. Seaway Strashnov successfully completed the installation of all 87
monopiles at Dogger Bank C in the UK, while Seaway Alfa Lift made good progress
adding transition pieces. After a yard stay for a crane repair, Seaway Ventus
continued work at the East Anglia THREE project in the UK. In August, Seaway
Aimery transited to the US where, after 20 days on standby pending the lifting
of a stop-work order, it began laying cables at the Revolution project.
Third quarter financial review
Revenue was $1.8 billion, in line with the prior year period. Adjusted EBITDA of
$407 million equated to a margin of 22%, up from 18% in Q3 2024. After
depreciation and amortisation of $175 million, net operating income was $232
million, equating to a margin of 13%, up from 9% in the prior year period. After
net foreign exchange losses of $38 million, net finance costs of $12 million and
taxation of $73 million, net income was $109 million.
Net cash generated from operating activities in the third quarter was $283
million, including a $82 million unfavourable movement in net working capital.
Net cash used in investing activities was $34 million mainly related to
purchases of property, plant and equipment, while net cash used in financing
activities was $123 million including lease payments of $79 million. During the
quarter, cash and cash equivalents increased by $132 million to $546 million
and, at 30 September 2025, net debt was $505 million, including lease
liabilities of $421 million. This represents a significant improvement both
sequentially, from $695 million in Q2 2025, and year-on-year, from $857 million
in Q3 2024.
Third quarter order intake was $3.8 billion comprising new awards of $3.3
billion and escalations of $0.5 billion resulting in a book-to-bill ratio of
2.1 times. Backlog at the end of September was $13.9 billion, of which $2.0
billion is expected to be executed in the remainder of 2025, $6.0 billion in
2026 and $5.9 billion in 2027 and beyond.
Guidance
We anticipate that revenue in 2025 will be between $6.9 and 7.1 billion, while
our Adjusted EBITDA margin is expected to be within a range from 20 to 21%.
Based on our firm backlog of contracts for execution in 2026, we expect revenue
to be within a range of $7.0 to 7.4 billion, while our Adjusted EBITDA margin is
expected to be approximately 22%.
Conference Call Information
Date: 20 November 2025
Time: 12:00 UK Time, 13:00 CET
Access the webcast at subsea7.com (https://edge.media-server.com/mmc/p/sdhad4b2)
or https://edge.media-server.com/mmc/p/8qhn7ef3/
Register to dial-in https://register-conf.media-
server.com/register/BI0e0631b7e1de4c3eaf839db3bd00a6b6
For further information please contact:
Katherine Tonks
Head of Investor Relations
+44-20-8210-5568
ir@subsea7.com
Special Note Regarding Forward-Looking Statements
This document may contain âforward-looking statementsâ (within the meaning of
the safe harbour provisions of the U.S. Private Securities Litigation Reform Act
of 1995). These statements relate to our current expectations, beliefs,
intentions, assumptions or strategies regarding the future and are subject to
known and unknown risks that could cause actual results, performance or events
to differ materially from those expressed or implied in these statements.
Forward-looking statements may be identified by the use of words such as
âanticipateâ, âbelieveâ, âestimateâ, âexpectâ, âfutureâ, âgoalâ, âintendâ,
âlikelyâ, âmayâ, âplanâ, âprojectâ, âseekâ, âshouldâ, âstrategyâ, âwillâ, and
similar expressions. The principal risks which could affect future operations of
the Group are described in the âRisk Managementâ section of the Groupâs Annual
Report. Factors that may cause actual and future results and trends to differ
materially from our forward-looking statements include (but are not limited to):
(i) our ability to deliver fixed-price projects in accordance with client
expectations and within the parameters of our bids, and to avoid cost overruns;
(ii) our ability to collect receivables, negotiate variation orders and collect
the related revenue; (iii) our ability to recover costs on significant projects;
(iv) capital expenditure by oil and gas companies, which is affected by
fluctuations in the price of, and demand for, crude oil and natural gas; (v)
unanticipated delays or cancellation of projects included in our backlog; (vi)
competition and price fluctuations in the markets and businesses in which we
operate; (vii) the loss of, or deterioration in our relationship with, any
significant clients; (viii) the outcome of legal proceedings or governmental
inquiries; (ix) uncertainties inherent in operating internationally, including
economic, political and social instability, boycotts or embargoes, labour
unrest, changes in foreign governmental regulations, corruption and currency
fluctuations; (x) the effects of a pandemic or epidemic or a natural disaster;
(xi) liability to third parties for the failure of our joint venture partners to
fulfil their obligations; (xii) changes in, or our failure to comply with,
applicable laws and regulations (including regulatory measures addressing
climate change); (xiii) operating hazards, including spills, environmental
damage, personal or property damage and business interruptions caused by adverse
weather; (xiv) equipment or mechanical failures, which could increase costs,
impair revenue and result in penalties for failure to meet project completion
requirements; (xv) the timely delivery of vessels on order and the timely
completion of ship conversion programmes; (xvi) our ability to keep pace with
technological changes and the impact of potential information technology, cyber
security or data security breaches; (xvii) global availability at scale and
commercial viability of suitable alternative vessel fuels; and, (xviii) the
effectiveness of our disclosure controls and procedures and internal control
over financial reporting. Many of these factors are beyond our ability to
control or predict. Given these uncertainties, you should not place undue
reliance on the forward-looking statements. Each forward-looking statement
speaks only as of the date of this document. We undertake no obligation to
update publicly or revise any forward-looking statements, whether as a result of
new information, future events or otherwise.
This information is considered to be inside information pursuant to the EU
Market Abuse Regulation and is subject to the disclosure requirements pursuant
to Section 5-12 of the Norwegian Securities Trading Act. This stock exchange
release was published by Katherine Tonks, Investor Relations, Subsea7, on 20
November 2025 at 08:00 CET.
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