Saipem S.p.A.

For the first half of 2025, Saipem reported revenue of EUR 7.2 billion, up 12% year on year, EBITDA of EUR 764 million, up 35%, EBITDA margin above 10% versus 8.8% last year, net profit of EUR 140 million, and operating cash flow of EUR 842 million. In Q2, revenue was EUR 3.7 billion, up 10% year on year and 5% sequentially, EBITDA was EUR 413 million, up 39% year on year and 18% sequentially, margin was 11.2%, and operating cash flow reached EUR 447 million. Net financial position improved to EUR 854 million on a pre-IFRS basis, after EUR 331 million of dividends and EUR 191 million of gross capex partly offset by EUR 115 million of disposals. Management confirmed 2025 guidance, expects order intake to accelerate in H2, and said H2 cash flow should be only marginally positive as working capital reverses and lease payments increase.

Alessandro Puliti emphasized that the quarter showed strong growth, better cash generation and a balance sheet that remains strong even after the company paid its largest dividend ever. He framed the business as increasingly derisked, pointing to growth in service activities, more CCUS work, and a commercial pipeline concentrated in gas upstream and other less oil-price-sensitive projects. His tone was confident and constructive, repeatedly stressing that 2025 guidance is confirmed and that order intake should step up in the second half.

Paolo Calcagnini said H1 EBITDA growth was helped by offshore E&C, a better business mix and lower incidence of legacy projects. He highlighted a pre-IFRS net cash position of EUR 854 million, liquidity of more than EUR 3 billion, and almost EUR 1.3 billion of available cash, while noting EUR 167 million of lease-liability repayments and EUR 399 million of lease-liability growth in H1. He also said H2 cash flow would be weaker because working capital should reverse negatively and lease payments should almost double versus H1, and he expects D&A to move to the top end of the prior EUR 20 million to EUR 40 million full-year range or slightly above due to chartered fleet growth.

Analysts pressed management on the strong H1 cash flow, and Paolo said the second half should see negative working-capital contribution, especially in Q3, plus higher lease payments and somewhat higher capex. Several questions focused on accounting provisions: management said Q2 net provisions were significant, were embedded in EBITDA, and reflected the whole portfolio rather than only Thaioil; they expect full detail in the H1 report. On Thaioil, Alessandro said the contract was terminated in April, the project is being handed over orderly, and arbitration is only in early stages; they also said Mozambique LNG remains close to restart, with backlog exposure around EUR 3 billion.