OMS Energy Technologies (OMSE) Q4 2026 earnings summary

Executive summary

• Delivered resilient performance in FY 2026 amid a complex macro environment, with solid profitability and record cash flow despite a year-over-year revenue decline to $155.9 million, mainly due to timing of Saudi Aramco call-off orders.

• Maintained a debt-free balance sheet and ended the year with $154.3 million in cash, the strongest financial position in company history.

• Diversification efforts led to growth in markets outside Saudi Arabia, including the U.A.E., Pakistan, Indonesia, Thailand, Brunei, and Angola, with new certifications in Saudi Arabia and Indonesia.

• Revenue decline attributed to timing of call-off orders under a long-term Saudi Aramco contract, not to structural demand weakness.

Financial highlights

• Full-year revenue was $155.9 million, down from $203.6 million in FY 2025, mainly due to prior year base effects and Saudi Aramco order timing.

• Gross profit reached $47.2 million (gross margin 30.3%), adjusted EBITDA was $41.2 million (26.4% margin), operating profit $34.9 million (operating margin 22.4%), and net profit $33.9 million.

• Net cash from operating activities was $54.1 million; adjusted free cash flow was $52.5 million, up 39.4% year-over-year.

• Year-end cash and restricted cash stood at $154.3 million, with no debt.

• Backlog at year-end was $60.7 million, down from $102 million, reflecting timing of call-offs, not demand loss.

Outlook and guidance

• Backlog expected to rebuild as Aramco procurement activity recovers in FY 2027.

• Regional oil and gas capital spending forecast to grow 4% in 2026 and accelerate to 6%-7% in 2027-2028.

• Anticipates modestly better top-line performance in FY 2027, supported by Aramco call-offs and diversification markets.

• Normalized operating margin expected to settle modestly below FY 2026's elevated level due to revenue mix and full-year public company costs.

• Strong cash position provides flexibility for organic growth and selective strategic expansion.