Luxembourg - 30 July 2026 - Subsea 7 S.A. (Oslo BĂžrs: SUBC, ADR: SUBCY, ISIN:
LU0075646355, the Company) announced today results of Subsea7 Group (the Group,
Subsea7) for the second quarter and first half of 2026 which ended 30 June 2026.
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Highlights
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Adjusted EBITDA of $471 million in the second quarter, an increase of 31%
compared with the prior year period, equating to a margin of 24%, up from
21% in the second quarter last year
-
Strong performances in both Subsea and Conventional and Renewables, with
revenue growth of 9% and 14% respectively year-on-year and continued margin
expansion
-
Order intake of $2.1 billion, equating to a book to bill of 1.1x for the
quarter and 0.9x for the first half
-
High-quality backlog of $13.6 billion including $3.9 billion for execution
in 2026, providing high revenue visibility. Backlog of $5.6 billion for
execution in 2027, supporting confidence in the longer-term outlook
-
The Company paid dividends equating to approximately $414 million in May.
Nevertheless, net cash including lease liabilities was broadly unchanged
from Q1 2026 at $190 million
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Guidance for full year 2026 Adjusted EBTIDA margin raised to approximately
24% (previously 23%)
Second Quarter Half Year
---------------------------------------------
For the period (in $ millions,
except Adjusted EBITDA margin and Q2 2026 Q2 2025 1H 2026 1H 2025
per share data) Unaudited Unaudited Unaudited Unaudited
Revenue 1,927 1,756 3,717 3,285
Adjusted EBITDA((a)) 471 360 856 596
Adjusted EBITDA margin((a)) 24% 21% 23% 18%
Net operating income 317 186 527 263
Net income 254 131 351 148
Earnings per share - in $ per
share
Basic 0.86 0.45 1.20 0.52
Diluted((b)) 0.85 0.45 1.19 0.51
30 June 2026 31 Mar 2026
At (in $ millions) Unaudited Unaudited
Backlog((a)) 13,645 13,468
Book-to-bill ratio((a)) 1.1x 0.8x
Cash and cash equivalents 1,046 1,074
Borrowings (493) (538)
Net cash excluding lease
liabilities((a)) 553 535
Net cash including lease
liabilities((a)) 190 198
(a) For explanations and reconciliations of Adjusted EBITDA, Adjusted EBITDA
margin, Backlog, Book-to-bill ratio and Net cash 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.
Stuart Fitzgerald, Chief Executive Officer, said:
On 1 July, I stepped into my new role as CEO of Subsea7 with a clear vision: to
continue executing our strategy in the subsea and renewable energy markets while
progressing towards the creation of a strong and prominent global competitor in
energy services through our proposed merger with Saipem.
Today, the success of our strategy is evident in another solid set of quarterly
results. Underpinned by a combination of a favourable market environment, active
risk management and a focus on excellence in project delivery, the Group
delivered good margin expansion in the quarter enabling an increase to our
Adjusted EBITDA margin guidance for full year 2026. Alongside a high level of
project execution activity, we continued to replenish the backlog. Order intake
reached $2.1 billion in the second quarter and our high-quality backlog of $13.6
billion provides strong visibility for both this year and next. Longer term, the
outlook for the business remains positive. Tendering activity is high,
reflecting the attractive economics and strategic importance of the prospects in
our target markets. We remain focused on long-term value creation through a
combination of operational excellence, effective utilisation of our modern fleet
and continued capital discipline.
As we move towards completion of our proposed merger with Saipem, confidence in
the opportunity ahead continues to grow. The proposed merger process remains on
track. Integration planning is advancing well and continues to highlight the
potential for the combined Group to deliver meaningful benefits for clients,
strengthen its position as a strong and prominent global competitor in energy
services, and create substantial value for shareholders.
Second quarter project review
In Subsea and Conventional, activity was high throughout the second quarter,
with a vessel utilisation of 85%. In Norway Seven Vega, Seven Arctic, Seven
Navica and Seven Oceanic worked on pipelay and umbilical installation at
Yggdrasil, Irpa, Fenris, Bestla and Fram SĂžr. In Brazil, Seven Oceans was active
on BĂșzios 8 and Mero 4, supported by Seven Merlin. Seven Seas transited to the
US where it carried out flexible flowline installation at Laser Shark and began
umbilical installation at Monument. Finally, Seven Pacific spent the quarter in
CĂŽte dâIvoire working on the Baobab FPSO hookup.
In Renewables, following the seasonal low of the first quarter, vessels returned
to work and utilisation was 92%. During the second quarter, Seaway Ventus
installed 26 monopiles at East Anglia THREE in the UK, while Seaway Strashnov
installed monopiles in France. Cable lay vessels Seaway Aimery and Seaway
Phoenix completed class renewals before working on Hornsea 3 and East Anglia
THREE in the UK, supported by Seaway Moxie. Seaway Alfa Lift installed
transition pieces at Inch Cape in the UK.
Second quarter financial review
Revenue was $1.9 billion, growth of 10% when compared with the prior year
period. Adjusted EBITDA was $471 million equating to a margin of 24.4%, up from
20.5% in Q2 2025.
Depreciation and amortisation fell to $154 million, from $175 million in the
prior year period and $174 million in the first quarter of 2026, as a result of
a reduction in the chartered fleet. After other gains and losses of $46 million,
primarily driven by foreign exchange gains, net finance costs of $5 million and
taxation of $104 million, net income was $254 million.
Net cash generated from operating activities in the second quarter was $570
million, including a $139 million favourable movement in net working capital.
Net cash used in investing activities was $70 million mainly related to
purchases of property, plant and equipment. Net cash used in financing
activities was $528 million including dividend payments of $414 million and
lease payments of $52 million. The Group entered into foreign exchange forward
contracts to mitigate the foreign currency exposure of the dividend. The net
cash impact of the dividend to the Group, after including the gain on foreign
exchange forward contracts, was $403 million. During the quarter, cash and cash
equivalents decreased by $28 million to $1,046 million and, at 30 June 2026, net
cash was $190 million, including lease liabilities of $363 million.
Second quarter order intake was $2.1 billion comprising new awards of $1.8
billion and escalations of $0.3 billion resulting in a book-to-bill ratio of
1.1 times. Backlog at the end of June was $13.6 billion, of which $3.9 billion
is expected to be executed in the remainder of 2026, $5.6 billion in 2027 and
$4.1 billion in 2028 and beyond.
Guidance
Adjusted EBITDA margin is expected to be approximately 24% (from 23% previously)
while we continue to anticipate revenue in the range between $7.4 and $7.8
billion.
Conference Call Information
Date: 30 July 2026
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/7wj2iis9/
Register for the conference call https://register-conf.media-
server.com/register/BIa8f436a754af459f8ad60d5733ad1551
For further information, please contact:
Katherine Tonks Email: ir@subsea7.com (mailto:ir@subsea7.com)
Head of Investor Relations Telephone: +44 20 8210 5568
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 30
July 2026 at 08:00 CET.
Kilde
