Shearwater GeoServices (SHEARWATER) Q3 2025 earnings summary

Executive summary

• Q3 2025 results were impacted by muted contract market conditions, with low acquisition activity and profitability, and fleet utilization at 68% across 7.8 active vessels, including two OBN crews.

• Cost reduction and efficiency programs are advancing to align with expected activity levels and enhance resilience, targeting up to $40 million in annual savings.

• Mobilisation for the third multi-client season in Brazil's Pelotas Basin is underway, with significant multi-client revenues expected in Q4.

• Backlog at quarter end was $413 million, now including committed multi-client projects.

Financial highlights

• Q3 2025 revenue was $146.5 million, down 18% year-over-year from $178.7 million.

• EBITDA was $5.2 million, with a margin of 4%, a sharp decline from $50.6 million and 28% in Q3 2024.

• EBIT was negative $24.5 million, compared to positive $13.6 million a year earlier.

• Net loss for the quarter was $40.4 million, versus a net loss of $1.3 million in Q3 2024.

• CapEx was $1.8 million, down from $11 million year-over-year, reflecting reduced non-critical investments.

• Cash position at quarter end was $80.5 million, up $34 million sequentially.

Outlook and guidance

• Q4 marine acquisition activity expected to remain broadly in line with Q3, with significant multi-client revenues anticipated to ease leverage ratio.

• Over $30 million in multi-client revenue already recognized in Q4, with potential for further sales before year-end.

• Backlog at end of November was $393 million, including multi-client commitments.

• Long-term outlook is positive, with industry majors signaling increased exploration needs, but no near-term market recovery is visible.