Aqualis (AQUA) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue was USD 82.4 million, down 7% sequentially from Q4 2025, mainly due to seasonal weakness in AGR's North Sea marine operations and project delays in Longitude.

• Adjusted EBIT was USD 3.1 million (3.7% margin), stable versus Q4, reflecting early benefits from cost reductions and aided by a USD 1.1 million non-cash provision release.

• Net profit after tax was USD 1.7 million, a turnaround from a USD 9.1 million loss in Q4 2025.

• Net debt increased to USD 12.0 million due to negative cash flow from restructuring, seasonal working capital movements, and cash collection issues in the Middle East.

• A semi-annual dividend of NOK 0.45 per share (USD 6.4 million) is proposed, representing an 11.3% increase over H1 2025.

Financial highlights

• Revenue for Q1 2026 was USD 82.4 million, down from USD 88.7 million in Q4 2025; operating costs decreased 9% QoQ, aided by a USD 1.1 million one-off provision release.

• Adjusted EBIT margin was 3.7%, with adjusted EBITDA at USD 4.4 million.

• Net cash outflow from operations was NOK 4.5 million, mainly due to working capital buildup and restructuring costs.

• Net debt increased to USD 12.0 million, with a closing cash balance of USD 12.1 million.

• Working capital ratio rose to 49% from 39% in Q4 2025.

Outlook and guidance

• Positive outlook for 2026 and 2027, expecting improved performance from cost and efficiency initiatives and new contract awards.

• Ongoing and new conflicts maintain energy market volatility, delaying client decisions and offshore activity.

• Targeting 20% ROCE by 2027, with a phased roadmap including local market agility and efficiency investments.

• Group aims for a through-cycle EBIT margin of 6.5% as markets recover.