Viridien (VIRI) Q4 2025 earnings summary

Executive summary

• 2025 marked a pivotal year with the full implementation of an asset-light, technology-focused strategy, driving strong operational performance, significant cash generation, and continued deleveraging, with net cash flow of $107m, exceeding guidance and allocated fully to debt reduction.

• Segment revenue rose 4% year-over-year to $1,165m, with Geoscience up 10% and Earth Data up 6%, driven by high-end data demand and sector consolidation.

• Profitability improved, with segment adjusted EBITDAs up 21% to $551m (47% margin), and IFRS net income up 40% to $71m.

• Successful bond refinancing extended maturity to 2030, reduced gross debt by $213m year-on-year, and SMO restructuring was fully implemented.

• The asset-light strategy and focus on high-performance computing and digital expertise underpinned results.

Financial highlights

• Segment adjusted EBITDAs reached $551m, up 21% year-over-year, with a margin of 47%; DDE margin nearly 65%, up 640 basis points.

• IFRS net income was $71m, up 40% compared to 2024, despite significant negative IFRS 15/16 impacts.

• Net cash flow for FY 2025 was $107m, up 92% from the prior year, exceeding $100m guidance, driven by lower capex and improved working capital.

• Net leverage ratio improved to 1.6x at year-end 2025, down from 2.5x in 2024.

• Total capex decreased 27% year-over-year to $207m; liquidity at year-end was $273m, with $173m in cash.

Outlook and guidance

• FY 2026 guidance targets $100m net cash flow, including US HPC data center expansion and working capital normalization, with full allocation to further deleveraging.

• Softer activity expected in H1 2026 due to energy price volatility, with recovery anticipated in H2 for steady full-year performance.

• Medium- and long-term outlook remains robust, supported by structural market fundamentals, global energy supply dynamics, and exploration upcycle.