Shelf Drilling (SHLF) Q2 2025 earnings summary

Executive summary

• Achieved strong Q2 2025 performance with adjusted EBITDA of $94 million and a 39% margin, and net income of $11 million, reflecting stable operational results and a modest decline from Q1 2025.

• Secured multiple new contracts and extensions across Saudi Arabia, India, Italy, Egypt, Vietnam, UK, and the Mediterranean, supporting backlog growth and revenue visibility into 2026.

• Liquidity as of June 30, 2025, was $297 million, including $172 million in cash and $125 million undrawn credit facility.

• Net income for the first half of 2025 was $24.9 million, a turnaround from a net loss in 2024.

• Announced agreement for acquisition by ADES International Holding, with delisting from the Oslo Stock Exchange planned post-merger.

Financial highlights

• Q2 2025 adjusted revenue was $240 million, down slightly from Q1 due to contract completions; total revenues for H1 2025 were $486.9 million.

• Adjusted EBITDA for Q2 was $94 million with a 39% margin; H1 2025 adjusted EBITDA was $190.2 million, up from $151.5 million in 2024.

• Net income for Q2 2025 was $11 million; net income margin for H1 2025 was 5.1%.

• Capital expenditures and deferred costs were $18 million in Q2 2025, totaling $33.5 million for H1 2025.

• Cash and cash equivalents at June 30, 2025, stood at $171.5 million, down $35.1 million sequentially due to debt service payments.

Outlook and guidance

• Full-year 2025 adjusted EBITDA guidance raised to $320–$360 million, reflecting improved operational and financial performance.

• Revenues expected to decline 5–10% in Q3 2025 due to contract completions, then rise in Q4 as new contracts commence.

• Total capital spending guidance for 2025 remains $85–$115 million.

• Long-term outlook for jack-up supply and demand remains positive despite short-term headwinds and dayrate pressure.