Subsea 7 S.A. Reports Strong Third Quarter 2025 Results
Luxembourg – Subsea 7 S.A. (Oslo Børs: SUBC, ADR: SUBCY, ISIN: LU0075646355) has shared its financial results for the third quarter of 2025, showcasing notable growth and resilience in a competitive market.
Financial Highlights
This quarter marks substantial achievements for Subsea 7 with an Adjusted EBITDA of $407 million, reflecting a robust 27% increase from the previous year. This increase also results in a promising EBITDA margin of 22%. Both the Subsea and Conventional segments contributed solid operational results, achieving Adjusted EBITDA margins of 24% and 17% respectively.
Looking ahead, the company anticipates full-year revenue for 2025 to fall within a range of $6.9 to $7.1 billion, with margins estimated between 20% and 21%. Furthermore, Subsea 7 is proud to report a record backlog totaling $13.9 billion, which includes contracts poised for execution in 2026 and 2027. In fact, based on the existing backlog, expected revenue ranges between $7.0 to $7.4 billion, aligning with projections of a stable Adjusted EBITDA margin around 22%.
Operational Performance and Growth Strategy
John Evans, Chief Executive Officer, emphasizes the continuous growth of Subsea 7, stating that the strategies focusing on long-cycle energy projects with advantageous economics are proving effective. The order intake this quarter reached $3.8 billion, yielding an impressive book-to-bill ratio of over 2.0, and a book-to-bill of 1.4 times for the first nine months of 2025.
Operational Highlights
The company’s fleet has been fully operational across multiple projects globally. Vessels such as Seven Vega and Seven Navica have made significant advancements in various regions, contributing to efficient project execution. In the renewable sector, Seaway Strashnov has successfully completed installations for major offshore wind projects.
Subsea 7 remains committed to meeting current market demands while preparing for future opportunities, indicated by their active tendering processes which leverage cutting-edge engineering and project management capabilities. This resilience leads to a consistently favorable risk-reward balance in new contracts.
Quarterly Financial Review
In financial terms, total revenue remained steady at $1.8 billion, consistent with the same period last year. Adjusted EBITDA of $407 million represents a significant increase from $321 million in Q3 2024, reflecting strong profitability growth.
Despite various market challenges, net operating income increased to $232 million, allowing the company to improve its bottom line significantly. The net income for the quarter tallied up to $109 million which is an increase compared to the previous year's results. It's noteworthy to mention substantial improvements in net debt, reducing it to $505 million compared to $695 million in the preceding quarter.
Looking Ahead
With a promising guidance for the remainder of 2025, Subsea 7 is positioned strategically to maximize profitability while navigating the competitive landscape. The company anticipates revenue expectations to remain robust, backed by a high-quality backlog.
Conference Call Information
The management will host a conference call to discuss these results further, scheduled for a later date. Investors and analysts are encouraged to participate and gain deeper insights into the company's future strategies and performance forecasts.
Frequently Asked Questions
What were the key financial highlights for Q3 2025?
In Q3 2025, Subsea 7 achieved an Adjusted EBITDA of $407 million, representing a 27% increase year-on-year with a margin of 22%.
How does Subsea 7 assess its backlog?
The company reported a record backlog of $13.9 billion, indicating strong demand for its services and solid future revenue expectations.
What strategy is Subsea 7 focusing on?
Subsea 7 is emphasizing long-cycle energy projects that offer favorable economic prospects, showcasing their resilience and strategic planning capabilities.
When is the next conference call?
The details of the next conference call will be announced shortly; stakeholders are encouraged to participate for further insights.
How can investors reach out for more information?
For more inquiries, investors can contact Katherine Tonks, Head of Investor Relations, via phone or email for detailed information.
