Reach Subsea (REACH) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue increased to NOK 684.2 million, up 10% year-over-year, driven by high project activity, growth in renewables, and solutions, though EBIT declined to NOK 91.1 million due to lower vessel utilization and market delays.

• Year-to-date revenue and EBIT reached all-time highs, supported by a strong first quarter and ongoing strategic investments in remote operations.

• The company remains focused on global expansion, flexible fleet management, and scaling remote operations.

• Order backlog stands at NOK 1.15 billion with a NOK 8 billion tender pipeline, supporting a positive long-term outlook.

• Successful NOK 500 million bond placement post-quarter end strengthens capital for fleet expansion and strategic investments.

Financial highlights

• Q2 2025 revenue: NOK 684.2 million (Q2 2024: NOK 623.1 million); 6M 2025 revenue: NOK 1,382.9 million (6M 2024: NOK 1,198.3 million).

• Q2 2025 EBIT: NOK 91.1 million (Q2 2024: NOK 121.1 million); 6M 2025 EBIT: NOK 159.3 million (6M 2024: NOK 149.8 million).

• Pre-tax profit for Q2 2025: NOK 88 million (Q2 2024: NOK 111 million); net income for Q2 2025: NOK 72.6 million (Q2 2024: NOK 87.3 million).

• Cash and cash equivalents at quarter end: NOK 169.7 million (Q2 2024: NOK 221.5 million); net interest-bearing debt (excl. IFRS 16): NOK 122 million.

• Equity share at 39.4% of the balance sheet; net working capital: NOK 277.5 million.

Outlook and guidance

• Order backlog and tender volume are slightly down, reflecting market caution and project postponements, but long-term demand for remote and sustainable subsea solutions remains robust.

• CapEx outlook for 2026 and beyond remains strong, with continued and increasing OpEx activities in offshore infrastructure.

• Focus on scaling remote operations, expanding into new regions and high-growth subsea sectors, and delivering integrated services.