Constellation Oil Services (COSH) Q4 2025 earnings summary

Executive summary

• Adjusted EBITDA for 2025 reached $233 million, 37% above initial guidance, driven by strong operational execution, high fleet utilization, and disciplined cost control.

• Net operating revenue for 2025 was $597.2 million, up $34 million year-over-year, with managed fleet operations and new contracts as key contributors.

• Net loss for 2025 widened to $137.5 million, mainly due to a $127 million non-cash impairment charge.

• Contract backlog stood at $1.7 billion at year-end 2025, with strong coverage into 2026.

• Major recapitalization completed, including $650 million Senior Secured Notes issuance and $75 million equity raise, simplifying the capital structure and reducing debt.

Financial highlights

• Adjusted EBITDA: $233 million in 2025, up $53 million year-over-year, with a 39% margin.

• Operating revenues: $597.2 million, up from $563.5 million in 2024.

• Net loss: $137.5 million, mainly due to impairment charges.

• Operating cash flow: $278.3 million in 2025, up $54.1 million year-over-year.

• Net debt: $418.1 million at year-end 2025, down from 2024.

Outlook and guidance

• 2026 revenue guidance: $740–$775 million; adjusted EBITDA: $350–$385 million.

• CapEx for 2026 expected at $95–$110 million, with continued investment in fleet and maintenance.

• Quarterly shareholder distributions of up to $25 million planned, totaling up to $100 million for 2026, subject to leverage conditions.

• Planned uplisting to Oslo Børs main market in 2026 to broaden investor base and improve liquidity.

• New contract amendment post-2025 adds $266 million to backlog.