Reach Subsea (REACH) Q4 2024 earnings summary

Executive summary

• Achieved record activity and operating results in 2024, with Q4 revenue up 44% year-over-year and full-year revenue nearing NOK 2.72 billion, driven by strong market conditions and successful project execution.

• Organic growth and offshore man-hours increased significantly, with nearly the entire fleet mobilized for value-driven projects and a disciplined expansion strategy.

• Focused on profitable growth, operational excellence, and technological innovation, with high demand for IMR, Construction, Survey, and Monitoring services.

• Realized the Reach Remote vision, with two uncrewed surface vessels (USVs) preparing for full-scale operations and successful sea trials.

• Board proposes a dividend of NOK 0.42 per share, consistent with dividend policy.

Financial highlights

• Q4 2024 revenue: NOK 685 million (up from NOK 474 million in Q4 2023); full-year revenue: NOK 2,717.7 million (up from NOK 1,995.9 million in 2023).

• Q4 EBIT: NOK 80 million, unchanged from Q4 2023; full-year EBIT: NOK 364 million, up from NOK 332 million in 2023 (2023 included a NOK 30 million sales gain).

• Q4 pre-tax profit: NOK 13 million, down from NOK 81 million last year; full-year pre-tax profit: NOK 230 million, down from NOK 290 million in 2023, impacted by unrealized currency loss.

• Cash and cash equivalents: NOK 278 million; net interest-bearing debt (excluding IFRS 16): negative NOK 133 million.

• Annual revenue has increased by more than 130% over the last two years.

Outlook and guidance

• Order backlog stands at NOK 1.2 billion with higher inherent margins than last year and a strong prospect list for 2025.

• No formal financial guidance provided, but capacity and organic growth position the company for further expansion in 2025.

• Full commercial launch of Reach Remote 1 and 2 expected in 2025, with scale-up decisions based on pilot results and market signals.

• Focus on scaling remote operations, expanding in new subsea sectors, and delivering integrated services.