TGS (TGS) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenues reached $400 million, up 30% year-over-year, with EBITDA of $244 million (61% margin) and EBIT of $120 million (30% margin), driven by strong multi-client demand and record streamer utilization at 94%.

• Order inflow was $377 million, boosting the order backlog to $756 million, positioning for future growth.

• The North American Well Data business was divested post-quarter for $100 million upfront plus $15 million in earn-outs, sharpening focus on offshore technology.

• Quarterly dividend maintained at $0.155 per share.

• Technology portfolio strengthened through the acquisition of Apparition Geoservices and strategic collaborations.

Financial highlights

• Multi-client external revenues more than doubled year-over-year to $284 million; investments in multi-client projects rose to $168 million.

• Marine Data Acquisition external revenues declined to $98 million, but internal production increased, resulting in total segment revenues of $240 million.

• Imaging business external revenues fell to $14 million, with internal production up to $18 million; EBITDA margin dropped to 24% due to internal focus.

• Net income for Q2 2026 was $39.6 million, compared to a loss of $60 million in Q2 2025.

• Net cash flow was negative $56 million, mainly due to working capital outflows and high multi-client investments.

Outlook and guidance

• Multi-client investments for 2026 guided at approximately $550 million, with lower investments expected in H2.

• Gross operating expenses expected to align with the $950 million annual run rate for the remainder of the year.

• Strong cash flow anticipated in H2 2026 as investments taper and working capital is collected.

• Net debt expected to fall within the $250 million-$350 million target range by year-end, enabling potential increases in shareholder distributions.

• Vessel utilization expected to remain high in Q3, with efforts underway to secure winter season backlog.