Archer (ARCH) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue reached $348.9 million, up 13% year-over-year, with EBITDA of $38 million, up 16%, and adjusted EBITDA up 30% to $41.7 million; net profit was $1.4 million, with adjusted net income of $12.8 million.

• Growth was driven by strong performance in Well Services, Customer Operations, Platform Operations, and Renewables, while Land Drilling was impacted by reduced activity in Argentina.

• Quarterly shareholder distributions of $5.5 million were maintained, representing an 11% yield, with plans to continue and grow distributions.

• Strategic investments included lighter P&A units, acquisition of WellConnection, and expansion into inspection and repair services in Norway.

• Major contract renewals and new awards included a $210 million contract with PAE and a $150 million project for Repsol UK.

Financial highlights

• Q2 2025 revenue: $348.9 million, up from $309 million in Q2 2024; EBITDA before exceptional items: $41.7 million (margin 11.9%), up from 10.4% last year.

• Exceptional items of $3.7 million, mainly from Argentina restructuring; reported EBITDA: $38 million; loss on sale of business: $8.7 million.

• EBIT: $22.1 million; net profit: $1.4 million; adjusted net income: $12.8 million.

• Cash and cash equivalents at quarter-end: $45.9 million; available liquidity exceeds $95 million; net interest-bearing debt: $435 million.

• Total equity: $192.7 million.

Outlook and guidance

• 2025 revenue guidance set at $1,300–$1,350 million, with low single-digit growth expected; EBITDA for 2025 estimated at $145–$155 million, up 8–15% from 2024.

• Second half of 2025 expected to be stronger due to project commencements and seasonal activity.

• Leverage ratio targeted between 2.2x and 2.5x by year-end, with a long-term goal of 1.5x–2.2x.

• Capex expected at 4% of revenue, with focus on lighter P&A units and reduced maintenance capex in Land Drilling.

• Commitment to quarterly cash distributions remains unchanged.