Floatel International (FLOAT) Q2 2026 earnings summary

Executive summary

• Achieved 100% fleet utilization in Q2 2026, with all vessels on contract or transitioning between projects across Norway, Australia, and Brazil, marking the highest utilization since 2018 and reflecting strong market momentum.

• Major contract extensions secured, including 12-month firm periods for Floatel Endurance and Floatel Superior, and new assignments in Brazil and Australia.

• Strategic review initiated with major shareholder and external advisor to evaluate future direction and ownership; outcome yet to be determined.

• Backlog at end of June 2026 was $294 million, with $137 million in optional work, and robust tendering activity for future assignments.

• All vessels achieved 100% utilization during the quarter, supporting strong demand for offshore accommodation services.

Financial highlights

• Q2 2026 revenue was $79.2 million, up from $70.4 million in Q2 2025; recurring EBITDA reached $37 million (46% margin), with net income after taxes of $15.1 million.

• Cash balance at period end was $49 million; net interest-bearing debt reduced to $257 million, with $25 million undrawn RCF.

• Earnings per share (basic) for Q2 2026 was $0.14, compared to $0.11 in Q2 2025.

• $4 million in CapEx during the quarter, mainly for vessel maintenance and upgrades.

• All financial covenants met with ample headroom; April 2024 bond issuance of $350 million matures in April 2029.

Outlook and guidance

• Full-year 2026 EBITDA guidance revised downward to mid to high $70 million range due to unexercised options and increased maintenance costs.

• Market outlook remains positive, with high utilization expected for 2026 and 2027, supported by strong tender activity and limited vessel supply in key regions.

• Backlog distribution: 42% in 2027, 29% in 2026, 17% in 2029, 9% in 2028, and 3% in 2030.

• Maintenance and modification work expected to dominate future contracts, with lead times of 8-16 months.

• Oil price volatility and geopolitical uncertainties remain risk factors, but direct operational impact has been limited.