Viridien

Viridien reported H1 segment revenue of $446 million, down 22% year over year, and Q2 segment revenue of $232 million versus $274 million in Q2 2025. H1 segment adjusted EBITDA was $168 million versus $250 million last year, and Q2 segment adjusted EBITDA was $92 million versus $107 million last year. DDE maintained a 59% margin in H1, while SMO was negative for the first half but returned to breakeven in Q2. On the IFRS basis, H1 revenue was $536 million and IFRS EBITDA was $249 million, with the company saying the difference versus segment reporting was mainly due to completion of Laconia and IFRS 15 timing. Net cash flow was $32 million in H1 versus $10 million last year, gross debt excluding IFRS 16 was $864 million, and net debt excluding IFRS 16 / IFRS 15 was $692 million at June 30. Management maintained its full-year 2026 objective of generating $100 million of net cash flow, assuming normalized working capital, collection of outstanding PEMEX receivables, and the planned Phase 1 expansion of the U.S. HPC infrastructure.

Henning Berg emphasized that Viridien has a strong technology base, leading positions in two of three businesses, and an asset-light model that has already improved the balance sheet and cash generation. He said the quarter was affected by Middle East conflict and geopolitical uncertainty, but he highlighted improving commercial momentum, stronger GEO bookings, and early signs of exploration recovery. His tone was constructive but measured: he repeatedly said it was still early in his tenure, that a broader strategy will come later, and that the company should focus now on disciplined execution and cash generation.

Jerome Serve focused on the financial drag from lower activity and the offsetting cash benefits from working capital and capex. He said H1 net cash flow rose to $32 million despite an $82 million reduction in segment adjusted EBITDA, helped by a $67 million working capital improvement and a $34 million reduction in capex, partly offset by higher industrial capex for the U.S. HPC data center. He also said gross debt fell to $864 million from $908 million at year-end 2025 and $1.18 billion a year ago, and that the company redeemed $41 million of USD notes at 103% of par; net debt dropped to $692 million from $735 million at year-end 2025.

Analysts pressed management on why GEO external revenue was down despite rising backlog, and management said Q2 revenue reflected earlier-quarter booking softness and client wait-and-see behavior, while the stronger backlog and tender activity came late in the quarter and should support Q3 and Q4. They also asked whether the exploration cycle was really starting; management pointed to more than 50% higher GEO tender activity, more MOU activity with governments, and a shift toward frontier reprocessing as early signs. On SMO, management said Middle East weakness is likely temporary, that most new tender revenue from mega-crews would land in 2027 and beyond, and that cost cuts remain a continuous process but they want to preserve capacity for a recovery.