Viridien

Q2 2026 segment revenue was $232 million versus $274 million in Q2 2025. Q2 segment adjusted EBITDA was $92 million versus $107 million last year. H1 segment revenue was $446 million, down 22% year on year, and H1 segment adjusted EBITDA was $168 million versus $250 million last year. DDE held a 59% margin in H1. Earth Data revenue rose to $76 million in Q2 from $66 million in Q2 2025 and $54 million in Q1 2026. Sensing and Monitoring Q2 revenue was $61 million, with land revenue down to $22 million from $52 million a year earlier. H1 net cash flow was $32 million versus $10 million last year. Gross debt excluding IFRS 16 declined to $864 million at the end of June from $908 million at year-end 2025, and net debt excluding IFRS 16 was $692 million versus $735 million at year-end 2025. Management reaffirmed full-year 2026 net cash flow guidance of $100 million, assuming normalized working capital and collection of outstanding PEMEX receivables, and said most SMO revenue from current tendering should land in 2027 and beyond.

Henning Berg struck an upbeat but cautious tone, saying he sees a high-quality company with strong technology, customer relationships, and market leadership in two of three businesses. He said AI, high-performance computing, and data-driven subsurface imaging are aligned with Viridien’s capabilities and may open adjacent growth opportunities, but he was not ready to announce a new strategy yet. He emphasized a strategic review is ongoing and said a broader roadmap will come at the 2027 Capital Markets Day.

Jerome Serve focused on the numbers behind the quarter: H1 segment revenue of $446 million, H1 adjusted EBITDA of $168 million, and H1 net cash flow of $32 million despite lower activity. He pointed to $67 million of working-capital improvement, a $34 million reduction in CapEx, and approximately $10 million of foreign exchange headwinds in Sensing and Monitoring. He also highlighted deleveraging, with gross debt down to $864 million and net debt down to $692 million, and said further deleveraging remains the top capital allocation priority.

Analysts pressed management on whether GEO’s stronger backlog and rising tender activity would turn into revenue soon, and management said Q2 revenue reflected earlier backlog, while Q3 and especially Q4 should improve, with the business “not broken.” Questions on Sensing and Monitoring focused on whether breakeven EBITDA was structural and whether more cost cuts were coming; management said the near-term weakness is tied to temporary Middle East disruption, but it is also simplifying the portfolio and may take further action depending on tender outcomes. On PEMEX, Jerome said the outstanding amount is roughly $30 million to $35 million, that about half has already been collected, and that management expects to collect the full balance before year-end and has restarted work with PEMEX.