Solstad Offshore (SOFF) Q4 2025 earnings summary

Executive summary

• Adjusted EBITDA for 2025 exceeded October guidance, driven by improved results and strong order intake, enhancing earnings visibility for 2026 and beyond.

• Market conditions in offshore energy services remain positive, with balanced supply and demand expected in 2026 despite oil price volatility.

• New long-term contracts and extensions increased the order backlog, supporting future revenue stability.

• Fourth quarter saw lower utilization and EBITDA due to two vessels being between contracts, but new contracts will improve utilization in 2026.

• Order intake in Q4 was $84 million, with full-year contract value signed exceeding $700 million.

Financial highlights

• Q4 2025 revenue was USD 70 million, up from USD 65 million in Q4 2024; full-year 2025 revenue reached USD 290 million, up from USD 262 million in 2024.

• Adjusted EBITDA for 2025 was USD 126 million (2024: USD 132 million), within the guided range of USD 120–150 million.

• Net result for 2025 was USD 141 million, up from USD 118 million last year.

• Year-end cash position was USD 74 million, up from USD 34 million; book equity at year-end was USD 425 million, equity ratio nearly 50%.

• Proposed Q4 2025 dividend of USD 0.05/share, totaling USD ~4 million; full-year 2025 dividends distributed totaled USD ~8 million.

Outlook and guidance

• 2026 operational adjusted EBITDA guidance is USD 50–70 million, excluding results from associates and JVs, with the lower end if a major vessel class renewal occurs.

• Nearly all 2026 capacity is sold out; focus is on building backlog for 2027 and beyond.

• Continued focus on preserving cash for strategic vessel purchase options.

• Market demand remains strong, with increased project activity and positive supply-demand balance.