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, up 28.5% year-on-year and 5.8% sequentially, and an EBITDA margin of 11.6%.

• Nine-month 2025 revenue totaled €10,982 million, up 8–8.4% year-on-year, with EBITDA at €1,201 million (+32.7–33%) and net result €221 million (+7–7.3%).

• Order intake for Q3 2025 was €3.2 billion (book-to-bill 0.9), with backlog above €30 billion as of September 2025, providing strong revenue visibility for 2026.

• Strong cash conversion (~90%) and operating cash flow nearly matching full-year 2024, with free cash flow for nine months at €591–908 million.

• Guidance for 2025 is confirmed, supported by a fully booked construction fleet and improved drilling fleet utilization.

Financial highlights

• Net cash position pre-IFRS 16 at €844 million, up €161 million from December 2024; post-IFRS 16 net debt at €411 million.

• Lease liabilities increased by ~€600 million in nine months due to vessel charters and lease extensions.

• D&A rose to €737 million (+€249 million year-on-year), mainly from fleet expansion and lease accounting.

• Financial expenses increased to €141 million (+€37 million), mainly from lease interest and FX effects.

• Free cash flow for the nine months was €591–908 million after lease repayments.

Outlook and guidance

• Q4 expected to be seasonally strong, with mid-to-high single-digit revenue growth and margin improvement in asset-based services.

• 2025 guidance confirmed: 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.

• Commercial pipeline robust at €54 billion, with €13 billion in bids awaiting feedback and €21 billion more to be submitted by Q1 2026.

• Offshore drilling day rates stable for deepwater, expected to pick up in H2 2026; shallow water rates declining but may recover.

• Construction fleet fully booked for 2025, with offshore E&C fleet utilization above 70–75% considered full capacity.