Constellation Oil Services (COSH) Q2 2025 earnings summary

Executive summary

• Achieved $55 million adjusted EBITDA for Q2 2025 with a 40% margin, and $99 million for H1 2025, on track for full-year guidance.

• Q2 2025 revenues were $139 million, with contract backlog at $2.0 billion, up nearly 80% year-over-year; fleet fully committed for 2025.

• Operating cash flow increased by $19 million year-over-year for H1 2025.

• Industry fundamentals remain strong, with robust demand from Petrobras and international operators.

• Interim financials for H1 2025 reviewed with no material misstatements under IFRS.

Financial highlights

• Q2 2025 operating revenues were $139 million, down $5 million year-over-year, mainly due to BRL depreciation.

• Adjusted EBITDA for Q2 2025 was $55 million (40% margin); gross profit improved to $8 million; net financial expenses dropped 47% to $8 million.

• Operating cash flow in H1 2025 was $110 million, up $19 million year-over-year.

• CapEx totaled $64 million in H1, mainly for Alpha Star and Laguna Star contract preparations.

• Cash and equivalents rose to $204 million; net debt decreased to $440 million.

Outlook and guidance

• 2025 guidance: revenue $550–570 million, adjusted EBITDA $170–190 million; expectations for improved profitability and cash flow in 2026 as new contracts commence.

• Fleet is 100% contracted for 2025, with focus on executing contract transitions and dockings.

• Dividend distributions expected once net leverage falls below 1.25x, likely by late 2025 or early 2026.

• Upstream sanctioning activity and investments projected to increase in 2026 and 2027, peaking in 2028.

• Contract backlog remains stable at $2.0 billion as of June 30, 2025.