Saipem (SPM) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenue reached €3.8 billion, up 1.6% year-on-year and 2.1% sequentially, with EBITDA at €437 million, a 28.5% year-on-year increase and 5.8% sequentially, marking the highest quarterly EBITDA since 2012.

• Revenue for the first nine months of 2025 totaled €10,982 million, up 8–8.4% year-on-year, with EBITDA up 32.7–33% to €1,201 million and net result rising 7–7.3% to €221 million.

• Backlog as of September 2025 stood at €30.6–31 billion, providing high revenue visibility for 2026, with the construction fleet fully booked for 2026 and strong bookings for 2027.

• Commercial pipeline remains robust at €54 billion, with €13 billion in bids awaiting feedback and 31% related to energy transition and low/zero carbon opportunities.

• Major contract wins in Turkey, Guyana, and Azerbaijan, and operational improvements across all business lines.

Financial highlights

• Q3 2025 EBITDA margin was 11.6%; nine-month EBITDA margin improved to 10.9% from 8.9% last year.

• Operating cash flow for the first nine months was €1.1 billion, with free cash flow at €591–908 million and cash conversion close to 90%.

• Net cash position pre-IFRS 16 at end of Q3 was €844 million, up €161 million from December 2024.

• Capital expenditure for the nine months was €256–260 million, a 4.1% increase year-on-year.

• Average cost of debt in 9M 2025 was 5%, with 99% of debt fixed-rate and euro-denominated.

Outlook and guidance

• Guidance for 2025 is confirmed, with management expecting to meet or slightly exceed targets, supported by strong execution and a fully booked construction fleet.

• Revenue for 2026 is almost entirely secured by existing contracts.

• Q4 2025 expected to be seasonally strong, with mid-to-high single-digit revenue growth in asset-based services and double-digit growth in energy carriers.

• Lease liabilities expected to plateau, with no further significant increases in 2026.

• 2025 guidance includes revenue of approximately €15 billion, EBITDA of €1.6 billion, operating cash flow of €900 million, capex of €500 million, and free cash flow of at least €500 million.