Archer Limited

Q1 revenue was $278 million, down 7% year over year, with the decline attributed to the sale of the Argentina workover business; excluding that divestment, revenue increased about 15% year over year. EBITDA was $37.2 million, flat year over year reported, and up about 12% on a like-for-like basis excluding the divested business; EBITDA margin improved to 13.4% from 12.5%. Adjusted EBITDA was $41.1 million, EBITDA before exceptional items was $41 million, EBIT was $16 million versus $18.5 million last year, and net profit was $3.6 million versus a loss last year. For 2026, Archer reiterated guidance for single-digit EBITDA growth, margin expansion of 2 to 4 percentage points versus 2025, second-half EBITDA 10% to 20% above first-half levels, and CapEx at 6% to 7% of revenue, with maintenance CapEx around 3% of revenue.

Dag Skindlo emphasized that Q1 was a seasonally slow but solid quarter, with continued margin improvement across core operations and stronger underlying activity after adjusting for portfolio changes. He framed the Argentina workover divestment as a strategic simplification that sharpens Archer’s focus on core, higher-margin services, especially brownfield and P&A work. He also highlighted backlog growth, integrated contracts, and continued shareholder distributions as evidence of execution and capital discipline.

Espen Joranger said platform operations generated $107.1 million of revenue and $14.2 million of EBITDA at about a 13% margin, while Well Services posted $83 million of revenue, $16.2 million of EBITDA, and a 19.5% margin. He noted Land Drilling revenue of $48.4 million with an 18.2% margin and Renewable Services revenue of $39.8 million with $0.9 million of EBITDA, while companywide EBITDA before exceptional items was $41 million and reported EBITDA was $37 million after $3.9 million of exceptional items. On the balance sheet, Archer ended with $61 million of available liquidity and net interest-bearing debt of $469 million; he said Q1 cash flow is typically seasonally challenged by working capital buildup and semiannual interest payments.

There was no analyst Q&A because no questions were asked on the call. Management therefore did not address any specific analyst concerns beyond its prepared remarks on backlog, guidance, balance sheet, and project timing.