Subsea 7 (SUBC) Q4 2024 earnings summary

Executive summary

• Delivered Q4 adjusted EBITDA of $315 million (up 29%) and full-year EBITDA of $1.09 billion (up 53%), driven by 14% revenue growth and ~390 basis points margin expansion.

• Year-end backlog reached $11.2 billion, providing over 80% revenue visibility for 2025, with $5.8 billion scheduled for execution.

• Board proposes a $350 million dividend for 2025, up 40% year-over-year, equating to a 7% yield and NOK 13 per share.

• Proposed merger with Saipem S.p.A. announced, with completion targeted for H2 2026.

Financial highlights

• Full-year revenue reached $6.8 billion, up 14% from 2023; Q4 revenue was $1.9 billion, up 15%.

• Adjusted EBITDA margin rose to 16% for the year and 17% in Q4.

• Net income was $217 million, up from $10 million in the prior year, after $645 million in depreciation/amortization/impairments and a 41% effective tax rate.

• Free cash flow for 2024 was $583 million; liquidity at year-end stood at $1.3 billion.

• Net debt at year-end was $602 million, including $455 million in lease liabilities.

Outlook and guidance

• 2025 revenue expected between $6.8 and $7.2 billion, with adjusted EBITDA margin of 18%-20%.

• Effective tax rate anticipated to moderate to 30%-35% in 2025.

• Capital expenditure guidance for 2025 is $360-$380 million, with similar levels expected in 2026.

• Over 80% of 2025 revenue guidance already visible from backlog.

• 2026 EBITDA margin expected to exceed 20%.