Shearwater GeoServices (SHEARWATER) investor relations material

Executive summary

• Q4 2025 saw a 63% year-over-year revenue increase to $168.9M, driven by strong multi-client revenues and improved fleet utilization at 67%, with 8.8 active vessels and two OBN crews.

• EBITDA rose to $58.1M (31% margin), up from $44.1M (26%) in Q4 2024, while EBIT improved to -$15.1M from -$23.9M.

• Cost reduction and efficiency programs, including a 20% headcount reduction, reduced the annual cost base by up to $40M and enhanced resilience.

• Multi-client data acquisition in Brazil's Pelotas Basin entered its third season with robust industry funding, and new projects were launched in Nigeria.

• Market remains challenging and competitive, but long-term outlook is positive due to increased focus on reserve replacement and exploration.

Financial highlights

• Q4 revenue was $168.9M, up from $103.5M in Q4 2024; full-year revenue reached $638.6M.

• Q4 EBITDA was $58.1M (31% margin); marine acquisition EBITDA was negative, while multi-client EBITDA was $48.8M.

• CapEx was $2.7M in Q4, down from $19.1M in Q4 2024; free cash flow for Q4 was $45M, with cash at quarter-end of $64.7M.

• Net interest-bearing debt stood at $553.7M; equity ratio at year-end was 42%.

• Net loss for Q4 was $36.7M, compared to $39.3M in Q4 2024.

Outlook and guidance

• Marine acquisition and seismic activity expected to remain muted into 2026, with competitive streamer and OBN markets impacting margins.

• Backlog at mid-February 2026 stands at $335M, including multi-client commitments and minimum commitments from TotalEnergies.

• Multi-client activity to continue in Pelotas, Nigeria, and West Africa, with strict return requirements.

• Focus remains on resilience, liquidity, and cost discipline to navigate market softness.

• Long-term outlook remains positive, supported by industry focus on reserve replacement and renewed exploration interest.