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Constellation Oil Services (COSH) investor relations material
Constellation Oil Services Q2 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
Executive summary
Achieved $55M adjusted EBITDA for Q2 2025 with a 40% margin, and $139M in revenue, maintaining strong operational uptime at 92% and a $2B contract backlog fully committed for 2025.
Net profit reached $0.2M in Q2 2025, reversing a prior year loss, with operating cash flow up $19M year-over-year for H1 2025.
Maintained focus on contract transitions, growing EBITDA, and preparing for dividend distribution as leverage targets are met.
Positive outlook for Brazil's offshore drilling, with robust client activity and new block awards.
Financial highlights
Q2 2025 revenue was $139M, down $5M year-over-year, mainly due to 9% BRL depreciation and lower fleet efficiency.
Adjusted EBITDA for Q2 2025 was $55M, with a margin of 40%, nearly flat year-over-year.
Net financial expenses dropped 47% year-over-year to $8M, aided by hedge gains and interest income.
Net debt reduced to $440M in Q2 2025 from $869M in Q2 2024; cash and equivalents up to $204M.
Operating cash flow for H1 2025 was $110M, up $19M year-over-year; CapEx for H1 was $64M.
Outlook and guidance
2025 guidance reaffirmed: revenue $550–570M, adjusted EBITDA $170–190M, with contract transitions critical for 2026 profitability.
Fleet is 100% contracted for 2025, with most units committed for 2026.
Dividend distributions anticipated once net leverage reaches 1.25x, expected by late 2025 or early 2026.
Commercial priority is to add backlog to Atlantic Star and Gold Star.
CapEx for 2025 projected at $150M.
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