SED Energy Holdings (ENH) Q2 2026 earnings summary

Executive summary

• Achieved record Q2 and H1 2026 earnings, driven by high utilization, strong operational performance, and full fleet activity across both segments.

• Maintained a conservative capital structure, robust backlog, and industry-leading low leverage, supporting continued shareholder distributions.

• Sixth consecutive quarterly shareholder distribution proposed, with $25 million for Q2 2026 and full-year guidance of $90–110 million.

• Total distributions since inception reached $132.5 million, about 30–32% of initial market capitalization.

• Robust cash generation and high contract coverage support ongoing shareholder returns.

Financial highlights

• Q2 2026 revenue: $72 million; adjusted EBITDA: $43 million; EBITDA margin for Energy Drilling: 65%; Q2 revenue up 50% year-over-year.

• Net profit for Q2: $25.6 million; H1 2026 net profit: $47.4 million, up 525% year-over-year.

• Net debt as of June 30, 2026: $17.6–18 million; debt-to-EBITDA ratio: 0.1x.

• Operating cash flow before working capital for H1: $72.7 million; total cash generated from operations: $80.6 million.

• CapEx for H1: $8.1 million; full-year CapEx guidance: $18 million.

Outlook and guidance

• Full-year 2026 distribution guidance reiterated at $90–110 million.

• Strong backlog ($342 million group, $318 million Energy Drilling, $24 million SeaBird) ensures earnings visibility into 2027.

• Optimistic outlook despite geopolitical volatility and measured customer decision-making in the Middle East.