Subsea 7 (SUBC) Q4 2025 earnings summary

Executive summary

• Q4 adjusted EBITDA reached $477 million, marking over 50% year-on-year growth with a margin of 24%, and full-year adjusted EBITDA was $1.48 billion, up 36% year-over-year with a 21% margin, driven by revenue growth and margin expansion in both Subsea and Conventional and Renewables.

• Revenue increased 4% to $7.1 billion in 2025, with high activity in Subsea and Conventional and stable performance in Renewables.

• Net income rose to $404 million, up from $217 million in 2024, with diluted EPS of $1.38.

• Year-end backlog grew to $13.8 billion, with a book-to-bill ratio of 1.3x and strong visibility into 2026 and beyond.

• The board proposes a NOK 13 per share dividend (~$400 million), reflecting confidence in long-term outlook and robust financials.

Financial highlights

• 2025 revenue was $7.1 billion, up 4% year-over-year, with adjusted EBITDA of $1.5 billion, up 36%.

• Q4 2025 revenue was $2.0 billion, up 5% year-over-year; adjusted EBITDA margin improved to 24% from 17%.

• Net income rose to $404 million from $217 million in 2024; full-year net operating income was $771 million, up from $446 million in 2024.

• Free cash flow generation reached $1.2 billion, supporting a net cash position of $21 million at year-end.

• Net cash from operating activities was $1.5 billion; year-end liquidity stood at $1.6 billion.

Outlook and guidance

• 2026 revenue guidance is $7.0–$7.4 billion, with adjusted EBITDA margin around 22%.

• Administrative expenses expected to remain stable; depreciation and amortization to decrease due to fewer leased vessels.

• Capital expenditure for 2026 forecast at $350–$380 million, including amounts displaced from 2025.

• Dividend of NOK 13 per share proposed for 2026, representing a ~5% yield.

• High backlog and robust tendering activity support confidence in future performance.