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.

• Segment revenue rose 4% year-on-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.

• Net cash flow nearly doubled year-over-year to $107m, exceeding guidance and allocated fully to debt reduction.

• SMO restructuring was fully implemented, reducing cost base and releasing $60m working capital.

Financial highlights

• Segment adjusted EBITDAs reached $551m, up 21% year-on-year, with a margin of 47%; DDE segment margin was 65%, up 640 bps.

• IFRS net income rose 40% to $71m despite significant negative IFRS 15/16 adjustments.

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

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

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

Outlook and guidance

• FY 2026 guidance targets $100m net cash flow, including US HPC data center expansion and working capital normalization.

• 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, driven by field depletion, reserve replacement pressures, and global energy supply dynamics.