Constellation Oil Services (COSH) Q2 2026 earnings summary

Executive summary

• Offshore floater market utilization at 87%, with contracting activity double last year's level; market expected to tighten further despite near-term softening.

• Achieved strong operational performance with 99% fleet uptime and industry-leading contract coverage, supported by a $2.5 billion backlog as of July 2026.

• Brazil remains a key offshore region, with Petrobras and private operators driving robust demand and new discoveries in the Equatorial margin.

• Entered the second half of 2026 in a position of strength, with repriced contracts, major extensions, and shareholder distributions underway.

• Major contract extensions and new awards secured with Petrobras, Brava Energia, and Karoon, strengthening backlog and revenue visibility.

Financial highlights

• Q2 2026 net operating revenue was $252 million, up $113 million or 81% year-over-year, driven by new contracts, managed fleet operations, and FX gains.

• Adjusted EBITDA reached $126 million (50% margin) in Q2 2026, up 130% year-over-year; H1 2026 adjusted EBITDA was $223.5 million (49% margin).

• Net profit was $1 million in Q2 2026, impacted by a $50 million non-cash warrant provision; adjusted net profit was $51 million.

• Net operating revenue for H1 2026 was $452.5 million, up 74% year-over-year.

• Cash and short-term investments at $226 million as of June 30, 2026; total debt at $647 million; net debt at $422 million.

Outlook and guidance

• Full-year 2026 revenue guidance is $740–$775 million, with adjusted EBITDA expected between $350–$385 million.

• Contracted backlog of approximately $2.5 billion provides strong revenue visibility.

• Atlantic Star expected to remain stacked for the rest of 2026; commercial opportunities being pursued for 2027.

• Step-up in shareholder distributions expected later in 2026, pending board review.

• Ongoing monitoring of Brazilian tax reform and regulatory changes.