Subsea 7 S.A.

Q3 2025 revenue was $1.8 billion, in line with the high level from the prior-year quarter. Adjusted EBITDA was $407 million, up 27% year over year, and the margin expanded 460 basis points to 22%; net income was $109 million. In Subsea and Conventional, revenue was $1.5 billion, up 6% year over year, adjusted EBITDA was $368 million, and margin was 24% (up 680 basis points); in Renewables, revenue was $302 million, down 19% year over year, and adjusted EBITDA was $52 million with a 17% margin. For 2025, management now expects revenue of $6.9 billion-$7.1 billion, adjusted EBITDA margin of 20%-21%, and capex of $300 million-$320 million. For 2026, the company guided to revenue of $7.0 billion-$7.4 billion, adjusted EBITDA margin of approximately 22%, and capex of $350 million-$380 million.

John Evans emphasized that the quarter reflected strong execution and a higher-quality backlog, with the company shifting away from older pre-2022 work toward contracts with better risk/reward. He highlighted record backlog, high tendering activity, and over 80% visibility on 2026 revenue, and said the deepwater subsea market remains resilient. He also framed the company’s technology-led offerings, including 4insight and bundle pipeline technology, as differentiators that are creating productivity gains and supporting client engagement.

Mark Foley said Q3 revenue was $1.8 billion and adjusted EBITDA was $407 million, with margin at 22% and net income at $109 million. He walked through cash flow, noting $283 million of operating cash generation, $47 million of capex, $123 million of financing cash outflow, and quarter-end cash of $546 million; net debt was $505 million, or 0.4x last-12-month adjusted EBITDA, with liquidity of $1.1 billion. He also said 2025 capex guidance was reduced to $300 million-$320 million due to capital discipline and some phasing into 2026, and that 2026 capex would rise to $350 million-$380 million partly because of rephased spend and vessel dry-docking cycles.

Analysts focused on Renewables margins, AR7 timing, the merger/CADE process in Brazil, the gap between backlog growth and revenue growth, and capital spending/lease costs. Management said Renewables 2026 guidance of 14%-16% EBITDA margin remains intact, with AR7 submissions essentially complete and results expected around mid-January. On the merger, John Evans said the CADE process is proceeding as expected and still points to second-half 2026 completion; on capex and lease costs, Mark Foley said lease-related cash out should be notably lower in 2026 as some vessels leave the fleet.