Archer (ARCH) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue was $278–278.4 million, down 7% year-on-year due to the divestment of the Argentina workover business, but up 15% when excluding divested operations.

• Adjusted EBITDA for Q1 2026 was $41.1 million, up 12% year-on-year excluding divestments; reported EBITDA was $37.2 million.

• Net profit for Q1 2026 was $3.6 million, a turnaround from a loss last year; adjusted net income was $6.7 million.

• Major contract wins and extensions with Equinor and ConocoPhillips, and a geothermal drilling contract in Nevis.

• Shareholder distributions totaled $6.4 million in Q1, with $6.6 million approved for Q2.

Financial highlights

• Q1 2026 revenue: $278–278.4 million, down 7% YoY; underlying revenue up 15% excluding divestments.

• Adjusted EBITDA: $41.1 million; reported EBITDA: $37.2 million; margin improved to 13.4% from 12.5% last year.

• EBIT: $16 million, down from $18.5 million last year due to higher depreciation and one-offs.

• Net profit: $3.6 million; adjusted net income: $6.7 million.

• Available liquidity: $61 million; net interest-bearing debt: $469 million.

Outlook and guidance

• 2026 guidance reiterated: single-digit EBITDA growth expected, with 2–4 percentage points margin expansion from 2025.

• H2 2026 EBITDA expected to be 10–20% higher than H1 due to project timing.

• CapEx for 2026 projected at 6–7% of revenue, with maintenance CapEx stable at 3%.

• Revenue backlog of $3.4 billion supports multi-year visibility.

• Focus on expanding drilling operations in unconventional markets, especially Vaca Muerta.