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 2024 revenue was $246 million, down 20% year-over-year; adjusted EBITDA for nine months rose 7% to $298 million, driven by Geoscience.

• Net cash flow for nine months improved to $34 million 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.

• The company is progressing on its financial roadmap, including a bond buyback program, and reaffirms its full-year targets.

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 cash flow was $10 million, down from $63 million last year; nine-month net cash flow improved to $34 million from -$15 million.

• Group net income for nine months was $21.2 million.

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

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.

• The company confirms its 2024–2025 financial roadmap.