SBM Offshore (SBMO) Q3 2025 TU earnings summary

Executive summary

• Directional revenue for Q3 2025 reached $3.6 billion, up 26% year-over-year, driven by strong turnkey project execution and new FPSOs joining the fleet.

• EBITDA guidance for 2025 was raised to around $1.65 billion, reflecting robust operational performance and project delivery.

• Three major FPSOs—Almirante Tamandaré, Alexandre de Gusmão, and One Guyana—achieved first oil in 2025, expanding the fleet to 17 FPSOs with 2.7 million barrels/day capacity.

• Strategic collaborations with Cognite and SLB aim to enhance digital asset management and operational efficiency.

• The company remains confident in its ability to deliver a minimum of $1.7 billion in cash returns to shareholders through 2030, with potential upside from backlog and new orders.

Financial highlights

• Directional revenue for the first nine months of 2025 was $3,571 million, a 26% increase compared to the same period in 2024.

• Turnkey segment revenue rose 90% year-over-year to $2 billion, driven by progress on FPSOs GranMorgu and Jaguar.

• Lease and Operate segment revenue declined 11% year-over-year to $1.6 billion, mainly due to asset sales, partially offset by new FPSOs.

• Net debt stood at $5.8 billion as of September 30, 2025, a 2% increase year-over-year, reflecting high activity and temporary financing needs.

• Early sale of FPSO One Guyana could reduce debt by $1.7 billion in 2026.

Outlook and guidance

• Full-year 2025 Directional revenue guidance maintained at above $5.0 billion.

• EBITDA guidance for 2025 increased to around $1.65 billion.

• Lease and Operate segment expected to contribute around $2.3 billion, Turnkey segment around $2.8 billion.

• Strong FPSO market outlook, with active tendering and new project opportunities in Brazil, Guyana, and Namibia.

• Debt levels expected to remain stable or decrease, with significant deleveraging anticipated through 2030.