Archer (ARCH) Pareto Securities' 33rd Annual Energy Conference presentation summary

Financial performance and growth

• Achieved record Q2 2026 EBITDA of $45m on $263m revenue, with a 17.1% margin and $6.5m in quarterly dividends distributed.

• 2025 revenue reached $1.2bn with $167m EBITDA, and year-end 2025 backlog stood at $4bn.

• EBITDA grew at a 21% CAGR from 2022-2025 and 13% CAGR from 2017-2025, with margin expansion and resilience through market cycles.

• 2026 EBITDA is guided for single-digit growth, with 2-4 percentage points margin improvement expected from a favorable revenue mix.

• Capex is projected at 6-7% of revenue, focused on growth investments and maintaining stable maintenance capex at 3%.

Backlog and earnings visibility

• Backlog at Q2 2026 is $3.9bn, providing strong earnings visibility and covering 80-90% of 2027 revenue.

• Platform Operations and Well Services together represent nearly $3bn in backlog, with integrated P&A contracts totaling $800m.

• Land Drilling backlog of $800m supports 4-5 years of revenue run-rate, with long-term contracts in Argentina.

• Backlog distribution: Platform Operations 45-50%, Well Services 30%, Land Drilling 20%, Renewable Services 2%.

Business segments and market positioning

• Well Services: Broad portfolio, 20% EBITDA CAGR since 2017, $1.1bn backlog, and new P&A technologies launching 2026-2027.

• Platform Operations: Market leader in North Sea platform drilling, $1.8bn backlog, resilient EBITDA, and new lighter P&A units for growth.

• Land Drilling: Leading provider in Argentina’s Vaca Muerta, cash positive, $800m backlog, and high rig utilization.

• Renewable Services: Leading geothermal drilling provider, positioned for long-term growth.