Archer (ARCH) Q2 2026 earnings summary

Executive summary

• Achieved record Q2 2026 EBITDA of $44.9 million (17.1% margin), with revenue at $263 million, reflecting strong operational execution and margin expansion year-over-year.

• Backlog increased to $3.9 billion, driven by major contract wins, providing strong earnings visibility through 2027 and beyond.

• Significant operational momentum from new integrated P&A contracts, contract extensions, and the acquisition of Isol8 to enhance technology offerings.

• Shareholder return program maintained with NOK 0.62 per share distribution for Q2 and Q3, totaling approximately $6.5 million per quarter.

• Revenue for Q2 2026 declined 11.5% year-over-year to $262.6 million, mainly due to the divestment of the workover business in Q1 2026.

Financial highlights

• Q2 2026 revenue was $262.6 million, with year-to-date revenue at $541.1 million.

• EBITDA before exceptional items reached $47.7 million (18.2% margin), up from $45.4 million (15.3%) in Q2 2025.

• Reported EBITDA was $44.9 million (17.1% margin), up from $41.7 million (14.1%) year-over-year.

• Operating profit rose to $23.7 million from $15.3 million in Q2 2025.

• Adjusted net profit was $8.2 million for the quarter, $14.5 million year-to-date; reported net profit was $0.2 million.

Outlook and guidance

• 2026 revenue expected between $1 billion and $1.1 billion, with 80%-90% already contracted for 2027.

• Backlog provides multi-year earnings visibility, with $500 million for remainder of 2026, $900 million for 2027, $800 million for 2028, and $1.8 billion thereafter (including options).

• Continued growth expected in Well Services and Land Drilling, with strong demand in Vaca Muerta and expanding subsea P&A opportunities.

• Several new P&A technologies expected to move toward commercialization in 2026 and 2027.

• Long-term demand for services expected to remain resilient, supported by energy transition and maximizing production from existing assets.