Constellation Oil Services (COSH) Q1 2026 earnings summary

Executive summary

• Q1 2026 delivered strong operational and financial performance, with 99% fleet uptime, minimal idle time, and all rigs fully contracted at higher day rates, marking the end of a major transition cycle.

• Net operating revenue rose to $200.7 million, up 65% year-over-year, driven by new and extended offshore drilling contracts, primarily with Petrobras.

• Adjusted EBITDA increased 122.7% year-over-year to $97.1 million (48.4% margin), and net profit reached $33.1 million, reversing a prior net loss.

• Contract backlog stood at $2.7 billion as of March 31, 2026, following major contract wins and extensions, providing visibility through 2028-2030.

• Uplisting to Euronext Oslo Børs Main Market was completed, enhancing capital markets access and liquidity.

Financial highlights

• Net operating revenue reached $201 million, up $79 million year-over-year, driven by new contracts and managed fleet operations.

• Adjusted EBITDA was $97 million (48% margin), more than double Q1 2025's $44 million (36% margin).

• Net profit was $33.1 million, reversing a net loss of $23.6 million in Q1 2025.

• Operating cash flow was $29 million, with significant post-quarter cash collections improving the underlying figure.

• Cash and equivalents at quarter-end were $217.5 million, with net debt at $444 million.

Outlook and guidance

• 2026 revenue guidance is $740–$775 million, with adjusted EBITDA expected at $350–$385 million.

• Contract backlog of $2.7 billion provides strong revenue visibility through 2028-2030.

• Additional upside possible from new contracts, particularly for rigs like Atlantic and Lone Star.

• CapEx for 2026 projected at $95–$110 million, with focus on operational efficiency.