Viridien (VIRI) Q3 2024 earnings summary

Executive summary

• Nine-month revenue was $778 million, nearly flat year-over-year, with strong Geoscience and Earth Data growth, while Sensing & Monitoring (SMO) declined; Q3 revenue was $246 million, down 20% year-over-year.

• Segment-adjusted EBITDA rose 7% year-to-date to $298 million, driven by Geoscience and Earth Data, partially offset by SMO's decline.

• Net cash flow improved to $34 million for the nine months, up from a negative $15 million last year, reflecting cost control and working capital management.

• Strategic focus remains on technology leadership, new business growth, and cash flow generation, with full-year financial targets reaffirmed.

• Geoscience delivered record order intake and revenue growth, while SMO faced a revenue drop due to the absence of mega crew deliveries.

Financial highlights

• Q3 group revenue was $246 million, down 20% year-over-year; nine-month revenue was $778 million, down 3% year-over-year.

• Q3 adjusted EBITDA was $98 million (down 9%); nine-month adjusted EBITDA rose 7% to $298 million.

• Q3 net income was a loss of $10 million, compared to a profit of $8 million last year; nine-month net income was $21.2 million.

• Liquidity stood at $442 million, including $100 million undrawn RCF.

• Earth Data Capex for the first nine months was $180 million, up $38 million year-over-year, mainly due to Laconia investments.

Outlook and guidance

• 2024 revenue expected to be in line with 2023, with confidence in meeting full-year financial objectives.

• EBITDA anticipated to benefit from favorable business mix; Earth Data cash Capex projected at $230–250 million.

• Net cash flow for 2024 expected to match 2023, with last year of negative impact from vessel contractual commitments.

• Q4 SMO revenue expected to be higher than the first three quarters, driven by delayed orders.

• Positive impact on EBITDA and cash flow anticipated from the expiration of a vessel commitment contract in January 2025.