Reach Subsea (REACH) Q1 2025 earnings summary

Executive summary

• Achieved record first quarter revenue and profitability, driven by strong market conditions, high project activity, and successful project execution.

• Order backlog stands at NOK 1.3 billion, with a tender volume of NOK 10 billion, supporting future growth.

• Zero lost time incidents reported, reflecting a strong safety culture.

• Strategic focus on technology innovation and leadership in marine robotisation and remote operations, including the launch of Reach Remote 1.

• High vessel utilization and global operations, with significant contributions from all business segments.

Financial highlights

• Revenue for Q1 2025 reached NOK 698.7 million, up 22% year-over-year from NOK 575.3 million.

• EBIT rose 130% year-over-year to NOK 68.2 million, marking the best winter season result.

• Pre-tax profit improved to NOK 67.2 million from a loss of NOK -8.9 million in Q1 2024.

• Cash and cash equivalents stood at NOK 327 million at quarter end, with available liquidity of NOK 356.8 million.

• Net interest-bearing debt (excluding IFRS 16) was negative NOK 117 million; including IFRS 16, it was NOK 1,092.6 million.

Outlook and guidance

• Backlog and tender volume remain strong, with most backlog for 2025 and high utilization expected.

• Focus on scaling remote operations, expanding fleet, and entering high-growth subsea sectors.

• No specific margin or revenue guidance provided; Q1 margins benefited from project timing.

• Dividend policy targets distribution of around 50% of adjusted net profit, with a dividend proposed for 2024.

• Positioned for sustainable growth with increasing demand for remote, sustainable solutions.