TGS (TGS) Q3 2026 earnings summary

Executive summary

• Produced Q3 revenue was $396.5 million, up 2% YoY; produced EBITDA was $222 million, including a $40.6 million gain on the Well Data sale, and $181.5 million excluding extraordinary items.

• Contract activity drove the highest contract revenue since Q4 2024, while operational challenges and low contract pricing pressured margins.

• Order inflow was $357 million and backlog reached $679 million, up 52% YoY; the streamer fleet was fully booked for Q4, and 2026 Multi-Client investment guidance fell to ~$510 million.

Financial highlights

• Produced revenue was $396.5 million (+2% YoY), EBITDA $222 million, and EBIT $86.1 million; excluding the Well Data sale gain, EBIT was $45.6 million.

• IFRS revenue was $428.3 million (+1% YoY), EBITDA $253.8 million, operating result $93.1 million, net income $52.3 million, and diluted EPS $0.26.

• IFRS contract revenue rose to $211.2 million from $171.4 million, while Multi-Client revenue fell to $217.1 million from $253.0 million.

• Operating cash flow was $124.8 million versus $242.0 million; net cash flow was negative $13.8 million, and quarter-end cash was $148.4 million.

• Produced YTD revenue was $1,117.3 million (-3% YoY), EBITDA $656.5 million (+1%), and EBIT $242 million (+103%); IFRS YTD net income was $65.9 million versus a loss of $11.4 million.

Outlook and guidance

• Q4 guidance: Multi-Client investment close to $100 million, gross operating costs ~$250 million, and CapEx ~$30 million; investment upside depends on ongoing discussions.

• Q4 streamer utilization is expected above 80%; all six vessels were booked through at least February 2027, with some March and summer capacity available.

• 2026 Multi-Client investment guidance was reduced from ~$550 million to ~$510 million as some projects were deferred for increased contract work.

• E&P spending is forecast to decline ~1% in 2026 and rise ~6% in 2027; contract pricing is expected to improve from 2027.

• Management expects strong order inflow in Q4 and Q1, backlog near $700 million, and material cash-flow improvement in Q4 and Q1, excluding the Well Data sale.