Subsea 7 (SUBC) Q1 2026 earnings summary

Executive summary

• Adjusted EBITDA for Q1 2026 reached $385 million, up over 60% year-over-year, with a margin of 21% versus 15% last year.

• Revenue increased 17% to $1.8 billion, driven by strong project execution in both Subsea and Conventional and Renewables segments.

• Backlog stood at $13.5 billion, with $5.5 billion scheduled for execution in 2026 and $5.0 billion in 2027.

• Order intake totaled $1.4 billion, including a major $1.3 billion Sepia 2 award in April.

• CEO transition announced, with John Evans stepping down and Stuart Fitzgerald to become CEO from July 1, 2026.

Financial highlights

• Group revenue for Q1 2026 was $1.8 billion, up from $1.6 billion in Q1 2025.

• Adjusted EBITDA for Q1 2026 was $385 million, up from $236 million in Q1 2025.

• Free cash flow for Q1 2026 was $204 million, reversing a negative $25 million in Q1 2025.

• Net cash including lease liabilities increased to $198 million from $21 million at year-end 2025.

• Book-to-bill ratio was 0.8x, with order intake of $1.4 billion.

Outlook and guidance

• 2026 revenue guidance increased to $7.4–7.8 billion, up from previous $7.0–7.4 billion.

• Adjusted EBITDA margin guidance raised to approximately 23% from 22%.

• Capital expenditure plans unchanged at $350–380 million.

• Dividend proposal of NOK 13.00 per share (~$400 million) to be paid in May 2026.

• Subsea tendering pipeline remains robust at around $20 billion.