Q4 2025 Subsea 7 SA Earnings Call Transcript
Key Points
- Subsea 7 SA (ACGYF) reported a significant increase in adjusted EBITDA for 2025, reaching $1.48 billion, up 36% year-on-year.
- The company achieved a strong order intake of $9 billion for the full year, with a book-to-bill ratio of 1.3 times, indicating robust demand.
- Subsea 7 SA (ACGYF) has a high visibility backlog of $13.8 billion, providing excellent visibility for 2026 and beyond.
- The board proposed a dividend of 13 krona per share, equivalent to approximately $400 million, reflecting confidence in the company's financial health.
- The company has maintained a strong financial position with net cash generated from operating activities amounting to $1.5 billion in 2025.
- Despite the strong financial performance, the company anticipates a seasonally lower activity in subsea and wind in the northern hemisphere for the first quarter of 2026.
- The effective tax rate is projected to be relatively high, between 30% and 35%, which could impact net income.
- Capital expenditure is expected to increase to between $350 and $380 million in 2026, which may affect free cash flow.
- There is a potential risk of volatility in commodity prices, which could impact future project awards and financial performance.
- The company faces challenges in securing vessel utilization for 2028, particularly outside the UK, indicating potential future capacity constraints.
Good day and thank you for standing by. Welcome to the sub C 7 Q4 2025 results conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press 1 and 1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press 1 and 1 again.
Please be advised today's conference is being recorded.
I'd now like to hand the conference over to your first speaker today, Catherine Tonks. Please go ahead.
Welcome everyone, and thank you for joining us. With me on the call today are John Evans, our CEO, Mark Foley, our CFO, and Stuart Fitzgerald, CEO of Seaway Seven. The press, the results press release is available to download on our website along with the slides that we'll be using during today's call. Please note that some of the information discussed on the call today will include forward
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