Subsea 7 (SUBC) Q3 2025 earnings summary

Executive summary

• Adjusted EBITDA for Q3 2025 reached $407 million, up 27% year-over-year, with a margin of 22%, expanding by 460 basis points year-over-year.

• Order intake was $3.8 billion in Q3, driving a record backlog of $13.9 billion, with $6.0 billion for execution in 2026 and $3.8 billion in 2027.

• Guidance for 2025 and 2026 was raised, reflecting strong execution, high-quality backlog, and continued momentum.

• Over 80% revenue visibility for 2026, with a $6 billion backlog for execution next year.

• Profitability improved due to strong project execution and high-grading of the backlog.

Financial highlights

• Q3 2025 revenue was $1.84 billion, flat year-over-year; Adjusted EBITDA margin improved to 22%.

• Net income for Q3 2025 was $109 million; net cash from operations was $283 million.

• Free cash flow in Q3 2025 was $236 million, up from $138 million in Q3 2024.

• Net debt including lease liabilities decreased to $505 million at quarter-end, with liquidity of $1.1 billion.

• Dividend payments totaled $376 million for the year, paid in two instalments in 2025.

Outlook and guidance

• 2025 revenue guidance narrowed to $6.9–$7.1 billion; Adjusted EBITDA margin raised to 20–21%.

• 2026 revenue expected at $7–$7.4 billion, with Adjusted EBITDA margin of ~22%.

• Capital expenditure guidance for 2025 is $300–$320 million; 2026 CapEx forecast at $350–$380 million.

• Over 80% of 2026 revenue is already secured in backlog.