Q2 2026 Subsea 7 SA Earnings Call Transcript
Key Points
- Adjusted EBITDA of $471 million in Q2 2026, representing over 30% year-on-year growth and a margin of 24%.
- Record backlog of $13.6 billion, providing high visibility for the second half of 2026 and 2027.
- Raised full-year 2026 adjusted EBITDA margin guidance to approximately 24% from approximately 23%.
- Strong project execution in both Subsea and Conventional and Renewables business units, with Renewables EBITDA margin improving to 20%.
- Robust tendering pipeline of approximately $20 billion, supported by fundamental drivers like global energy demand and energy security.
- Working capital expected to unwind by approximately $200 million in the second half of 2026.
- Renewables market in a lull with limited project awards expected in the second half of the year.
- Middle East exposure, though small, includes projects like CRPO-148 with offshore operations extending into 2028.
- Net finance cost guidance revised favorably but still represents a cost of $30 million to $40 million.
- Regulatory processes for the proposed merger with Saipem are ongoing, with 8 of 16 jurisdictions cleared but no completion timeline provided.
Good day, and thank you for standing by. Welcome to the Subsea 7 second quarter 2026 results conference call. (Operator Instructions)
Please be advised that this conference is being recorded. I would now like to hand the conference over to your speaker today, Katherine Tonks, Investor Relations. Please go ahead.
Welcome, everyone, and thank you for joining us. With me on the call today are Stuart Fitzgerald, our CEO; and Mark Foley, our CFO. 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-looking statements that reflect our current views. These statements involve risks and uncertainties that may cause actual results or trends to differ materially from our forecast. For more information, please refer to the risk factors discussed in the Subsea 7 annual report or in today's quarterly press release.
I'll now turn the
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