Subsea 7 (SUBC) Q2 2024 earnings summary

Executive summary

• Q2 2024 Adjusted EBITDA rose 80% year-over-year to $292 million, with a margin of 16.8–17% on $1.7 billion revenue, driven by strong project execution and high-quality order intake.

• Record Q2 order intake of $4.0 billion drove backlog to $12.5 billion, with a book-to-bill ratio of 2.3x for the quarter and 1.7x for the first half.

• Full-year 2024 guidance raised for revenue ($6.5–$6.8 billion) and adjusted EBITDA ($1,000–$1,050 million), reflecting robust project progress and strong market demand.

• Strong tendering pipeline in both Subsea and wind, with over $21 billion in tenders in-house and continued focus on high-margin work.

• Increased full-year guidance by 5% and reported record order intake and backlog, supporting continued margin expansion.

Financial highlights

• Q2 2024 revenue increased 15% year-over-year to $1.7–$1.74 billion, mainly from Subsea and Conventional segments.

• Adjusted EBITDA margin improved to 16.8–17%, up from 10.7–11% in Q2 2023.

• Net income was $63 million, up from $14 million in the prior year period.

• Subsea and Conventional revenue rose 21% year-over-year to $1.4 billion, with a 17.2% adjusted EBITDA margin.

• Renewables revenue was $281 million, flat or down 9% year-over-year, with a 13.6% adjusted EBITDA margin and $8 million net operating income.

Outlook and guidance

• 2024 revenue guidance raised to $6.5–$6.8 billion; adjusted EBITDA expected between $1,000–$1,050 million.

• Targeting 18–20% margin in 2025 and over 20% in 2026.

• Net operating income forecasted at $400–$430 million; capex expected at $300–$320 million.

• Strong tendering pipeline and improved backlog quality support confidence in future order intake and margin expansion.

• Backlog for 2026 and beyond up 60% year-over-year, extending revenue visibility.