Shearwater GeoServices (SHEARWATER) Q2 2026 earnings summary

Executive summary

• Q2 2026 saw continued softness in marine seismic acquisition, but strong multi-client revenue of $23 million and 76% fleet utilization across 7.7 active vessels.

• Liquidity was strengthened through a $40 million equity injection, vessel sale, and amendments to bank facilities, resulting in a cash position of $132 million at quarter-end.

• Backlog increased to $401 million by mid-August, supported by major project awards in India and the North Sea, improving visibility into 2027.

• Cost reduction initiatives targeting $40 million in annual savings are on track, reinforcing resilience in a soft market.

Financial highlights

• Q2 2026 revenue was $149 million, up from $134 million year-over-year, driven by strong multi-client sales.

• EBITDA rose to $23 million (15% margin), with multi-client contributing $23 million and marine acquisition only $2 million.

• Net loss for Q2 2026 was $29.5 million, an improvement from $38.4 million a year earlier.

• CapEx for the quarter was $11 million, mainly for vessel maintenance, up from $4 million in Q2 2025.

• Cash position rose to $132 million from $94 million in Q1, reflecting recapitalization and vessel sale proceeds.

Outlook and guidance

• Multi-client revenues for 2026 are expected to exceed 2025 levels, with strong momentum and significant sales recorded in Q2.

• Q3 2026 activity is expected to remain soft, but higher activity and utilization are anticipated from Q4 into 2027 as new project awards are executed.

• Market fundamentals are strengthening, with increased tendering and improved project margins, though uncertainty remains around timing and conversion of opportunities.

• Long-term outlook is constructive, supported by energy security and reserve replacement needs.