Q2 2025 Archer Ltd Earnings Call Transcript
Key Points
- Archer Ltd (ARHVF) reported a 13% year-over-year increase in revenue, reaching $348.9 million for Q2 2025.
- EBITDA grew by 16% to $38 million, with adjusted EBITDA increasing by 30% year-over-year to $41.7 million.
- The company initiated a shareholder return program with a distribution of $5.5 million, representing a yield of approximately 11%.
- Archer Ltd (ARHVF) has a strong position in the geothermal and wind services market, with a total business volume of about $100 million in 2025.
- The company successfully completed a three-year P&A campaign in the UK ahead of schedule, showcasing operational efficiency.
- Land drilling revenue is expected to decrease by $100 million, with EBITDA lowered by $10 million to $12 million due to reduced activity in Argentina.
- The company experienced a $8.7 million loss on the sale of operations in Argentina, including the sale of two drilling rigs.
- Cash and cash equivalents decreased by $30.9 million compared to year-end 2024, reflecting ongoing investments and reduced drawing under credit facilities.
- There were delays in certain projects in the UK and a slowdown in the US, impacting overall business performance.
- The renewable segment, while showing improvement, still faces project delays, such as the offshore wind project in Norway.
Hello everybody and welcome to the Archer second quarter 2025 earnings release call. My name is Elliot and I'll be your coordinator today.
(Operator Instructions).
I would now like to hand over to Dag Skindlo, CEO. Please go ahead.
Thank you, Elliot. Good morning, ladies and gentlemen, and thank you for joining our second quarter earnings call. Archers Chief Financial Officer Espen Joranger is joining me on the call today.
In today's call, I will cover the key highlights, the business outlook and comments on recent acquisitions and investments.
While Espen thereafter summarize Archer's operations for the second quarter and walk us through the financial section.
Towards the end of the call we will open the line for questions.
Moving to slide 2.
As always, I'd like you to know the information provided in today's presentation includes forward-looking statements as well as non-US GAAP financial measures. Forward-looking statements do not guarantee
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