Gulf Marine Services (GMS) H2 2025 earnings summary

Executive summary

• Revenue grew 12% year-over-year to $188.1m, driven by higher day rates and a new leased vessel, offsetting lower fleet utilisation.

• Adjusted EBITDA rose 12% to $112.9m, maintaining a 60% margin, and exceeded upgraded guidance.

• Net profit fell to $19.5m from $38.3m due to higher tax expense and net impairment charges.

• Backlog increased to $606m at year-end, with further growth to $660m by April 2026.

• No dividend declared due to ongoing geopolitical risks in the Gulf region.

Financial highlights

• Revenue: $188.1m (+12% YoY); Adjusted EBITDA: $112.9m (+12% YoY); Adjusted net profit: $41.8m (+30% YoY).

• Net profit: $19.5m (down from $38.3m YoY); Basic EPS: 1.67 cents (down from 3.61 cents YoY).

• Net leverage ratio improved to 1.39x (from 2.0x); Net bank debt reduced to $156.6m.

• Finance expenses decreased 36% to $15.0m due to refinancing and lower interest rates.

• Capital expenditure rose to $30.0m, mainly for drydocking and vessel upgrades.

Outlook and guidance

• 2026 adjusted EBITDA guidance of $105–115m under review due to Gulf geopolitical instability.

• Average secured day rates for 2026 are 8% higher than 2025 actuals.

• Strategic goal to double 2024 adjusted EBITDA by 2030, supported by new vessel acquisitions.

• Ongoing focus on geographic diversification, including expansion into European renewables.