Akastor (AKAST) Q4 2025 earnings summary

Executive summary

• Approved a NOK 0.40 per share cash dividend, marking the third consecutive quarterly payout and reflecting a commitment to returning excess capital to shareholders, supported by the sale of Skandi Atlantic.

• Maintained a solid financial position with a positive net cash position, no draw on corporate RCF, and robust cash generation across portfolio companies.

• HMH delivered strong financial performance with USD 58 million adjusted EBITDA (28% margin) and USD 66 million free cash flow, driven by cost efficiencies and inventory optimization.

• AKOFS Offshore secured a new four-year contract with Petrobras, Aker Wayfarer was nominated for a similar contract, and high vessel utilization was achieved.

• DDW Offshore completed refinancing, sold Skandi Atlantic for USD 22.75 million above book value, and reported strong operational performance.

Financial highlights

• HMH reported USD 206 million in revenue for 4Q 2025, with adjusted EBITDA of USD 58 million (28% margin), up 23% year-on-year and 39% quarter-on-quarter.

• Free cash flow for HMH was USD 66 million in 4Q 2025, with FY2025 free cash flow at USD 106 million.

• DDW Offshore delivered revenues of NOK 105 million and EBITDA of NOK 18 million for the quarter.

• Group equity ratio was 89% at year-end 2025, with net capital employed at NOK 5,335 million.

• Liquidity reserve stood at NOK 621 million, including NOK 276 million in a liquidity fund investment.

Outlook and guidance

• Market recovery in offshore drilling is expected mid-2026, with increasing backlog for drillers and operational outperformance despite a soft 2025.

• HMH maintains IPO readiness, with S-1 filing updated; timing depends on market conditions.

• NES Fircroft is exit-ready, with alternatives being explored for a sale or listing.

• AKOFS contracts provide long-term earnings visibility, but cash flow is limited until late 2027 due to CapEx and lease payments.

• Portfolio strengthened by contract wins and refinancing, supporting long-term value creation ambitions.