Subsea 7 (SUBC) Q2 2026 earnings summary

Executive summary

• Adjusted EBITDA reached $471 million in Q2 2026, up over 30% year-on-year, with a 24% margin, driven by strong project execution and high vessel utilization across both Subsea and Conventional and Renewables segments.

• Revenue for Q2 was $1.9 billion, up 10% year-on-year; first half revenue was $3.7 billion, up 13% year-on-year.

• Backlog increased to $13.6 billion, with $2.1 billion in new orders during the quarter, providing high visibility for the remainder of 2026 and into 2027.

• Guidance for full-year adjusted EBITDA margin was raised to approximately 24%, up from 23%.

• Regulatory processes for the proposed merger with Saipem are on track, with integration planning well advanced.

Financial highlights

• Adjusted EBITDA for Q2 was $471 million (24.4% margin), up 31% year-on-year; H1 Adjusted EBITDA was $856 million (23% margin), up 44%.

• Net income was $254 million in Q2, nearly double the prior year quarter; H1 net income was $351 million, up from $148 million.

• Free cash flow in Q2 was $478 million; H1 free cash flow was $682 million.

• Cash and cash equivalents stood at just over $1 billion after dividend payments; net cash was $190 million including lease liabilities.

• Liquidity at quarter end: $1.6 billion, including $600 million in committed and utilized borrowing facilities.

Outlook and guidance

• Full-year 2026 adjusted EBITDA margin guidance raised to approximately 24%, up from 23%.

• Revenue guidance maintained at $7.4–$7.8 billion, with expectations toward the upper end of the range.

• Net finance cost guidance revised favorably to $30–$40 million, down from $40–$50 million.

• Working capital expected to unwind by around $200 million in H2 2026.

• Renewables market expected to remain subdued in 2028–2029, with limited awards in H2 2026; stronger flow anticipated in 2027.