Archer (ARCH) Q3 2025 TU earnings summary

Executive summary

• Q3 revenue was $339.3 million, up 1% year-over-year, with EBITDA at $38.4 million (up 10%) and adjusted EBITDA at $40.2 million (up 11%).

• Acquisition of Premium Oilfield Services in the U.S. for $20 million expands Gulf of America presence, adds $4 million in annual synergies, and is expected to boost EBITDA by 5% and cash contribution by 8–10%.

• Shareholder distributions totaled $6.1 million in Q3, with an annualized yield of up to 11%, and an additional $6.1 million approved for Q4.

• Raised $20 million in private placement to fund the acquisition, increasing free float and main shareholder commitment.

• Maintains a robust backlog of $4 billion, providing visibility for future activity and earnings.

Financial highlights

• Q3 revenue: $339.3 million, up 1% year-over-year.

• Q3 EBITDA: $38.4 million, up 10% year-over-year; adjusted EBITDA: $40.2 million, up 11%.

• LTM adjusted EBITDA reached $163.6 million, up 13% year-over-year.

• Cash distribution to shareholders in Q3: $6.1 million; NOK 0.62 per share.

• Shareholder return program yields up to 11% at current share price.

Outlook and guidance

• Midpoint 2025 guidance implies 21% annual EBITDA growth since 2022, with 2025 EBITDA guidance of $145–155 million.

• Revenue guidance for 2025 is $1,300–1,350 million, representing an 11% CAGR since 2022.

• Guidance reaffirmed for 8–15% EBITDA growth in 2025.

• Drilling activity in Argentina expected to remain flat for the rest of 2025, with an increase anticipated in 2026.

• Targeting increased cash distributions to shareholders in line with earnings growth.