Saipem (SPM) Q1 2025 earnings summary

Executive summary

• Revenue reached €3.5B in Q1 2025, up 15.5% YoY, with EBITDA of €351M (+31% YoY) and a 10% margin, marking the strongest Q1 in a decade.

• Net profit was €77M (+35% YoY), with operating cash flow at €395M and free cash flow after lease repayments at €317M.

• Net debt reduced by €285M (pre-IFRS 16), resulting in a net cash position of €968M as of March 31, 2025.

• Order intake was €2.1B, with a backlog of €32.7B–€33B, providing strong visibility for 2025-2026.

• Revenue and EBITDA have nearly doubled and tripled, respectively, since Q1 2022, with EBITDA margin up 440bps over three years.

Financial highlights

• Revenue: €3,518M (+15.5% YoY); EBITDA margin at 10% (up from 8.8% YoY); EBIT at €157M (+27.6% YoY); net result at €77M (+35% YoY).

• Operating cash flow at €395M, driven by EBITDA growth and working capital improvements.

• D&A at €194M (+€49M YoY) due to fleet growth; financial expenses at €55M (+€15M YoY).

• Gross CapEx at €109M–€105M, offset by €101M in disposals (notably a 10% stake in KCA Deutag).

• Free cash flow after lease repayments was €317M; net capex was €109M.

Outlook and guidance

• 2025 guidance confirmed: revenue ~€15B, EBITDA ~€1.6B, with 90% of 2025 and 70% of 2026 revenues covered by backlog.

• Construction fleet fully booked for 2025-2026, with increasing visibility for 2027.

• Free cash flow after lease repayments guided at €500M for 2025; working capital expected to be neutral or slightly positive.

• No changes to outlook for depreciation, financial expenditure, taxes, or lease repayments from Q4 guidance.

• Operating cash flow (post-lease liabilities) expected at ~€900M; capex ~€500M.