Reach Subsea (REACH) Q3 2025 earnings summary

Executive summary

• Q3 2025 results were weaker than expected due to lower vessel and asset utilization and extraordinary costs from Reach Remote implementation and certification.

• Despite market turbulence and project delays, project execution remained strong, and the long-term subsea industry outlook is positive.

• Major milestone achieved with the commercial launch and trading permit for Reach Remote 1, the first unmanned vessel operating fully remotely in Norwegian oil and gas fields.

• Early adoption of remote solutions by major energy companies is driving broader industry acceptance and future growth.

• The company is accelerating the scale-up of remote operations, with Reach Remote 2 preparing for Australia and orders placed for Reach Remote 3 and 4.

Financial highlights

• Q3 2025 revenue was NOK 688 million, down from NOK 834–834.6 million in Q3 2024; EBIT margin was 7.3%, with EBIT at NOK 50.6–51 million.

• Q3 2025 profit was NOK 34.8–40.4 million, down from NOK 91.4–92 million in Q3 2024.

• Operational cash flow in Q3 was NOK 335.3–340.6 million, with cash and cash equivalents at NOK 616.8–617 million.

• Year-to-date revenue reached NOK 2.07 billion, slightly higher than last year; EBITDA for the first nine months was NOK 914.5 million (margin 44.2%).

• Equity ratio improved to 34.8–35% at Q3 2025, up from ~30% last year.

Outlook and guidance

• The order backlog stands at NOK 1.05 billion, with a tender volume of NOK 9 billion, supporting a robust pipeline and positive outlook.

• The company expects improved utilization in Q4 2025 and is focused on optimizing fleet use and expanding remote operations.

• No formal quarterly or annual guidance provided, but management sees ample global opportunities and is exploring options to accelerate Reach Remote scale-up.

• Reach Remote 3 and 4 are expected to be operational by mid-2027.

• Strategic priorities include scaling remote capabilities, growing in offshore wind and carbon storage, and strengthening core data and monitoring services.