Luxembourg - 30 July 2026 - Subsea 7 S.A. (Oslo Børs: SUBC, ADR: SUBCY, ISIN: LU0075646355, the Company) announced today results of Subsea7 Group (the Group, Subsea7) for the second quarter and first half of 2026 which ended 30 June 2026.
Highlights
- Adjusted EBITDA of $471 million in the second quarter, an increase of 31% compared with the prior year period, equating to a margin of 24%, up from 21% in the second quarter last year
- Strong performances in both Subsea and Conventional and Renewables, with revenue growth of 9% and 14% respectively year-on-year and continued margin expansion
- Order intake of $2.1 billion, equating to a book to bill of 1.1x for the quarter and 0.9x for the first half
- High-quality backlog of $13.6 billion including $3.9 billion for execution in 2026, providing high revenue visibility. Backlog of $5.6 billion for execution in 2027, supporting confidence in the longer-term outlook
- The Company paid dividends equating to approximately $414 million in May. Nevertheless, net cash including lease liabilities was broadly unchanged from Q1 2026 at $190 million
- Guidance for full year 2026 Adjusted EBTIDA margin raised to approximately 24% (previously 23%)
| Second Quarter | Half Year | |||
| For the period (in $ millions, except Adjusted EBITDA margin and per share data) | Q2 2026 Unaudited | Q2 2025 Unaudited | 1H 2026 Unaudited | 1H 2025 Unaudited |
| Revenue | 1,927 | 1,756 | 3,717 | 3,285 |
| Adjusted EBITDA(a) | 471 | 360 | 856 | 596 |
| Adjusted EBITDA margin(a) | 24% | 21% | 23% | 18% |
| Net operating income | 317 | 186 | 527 | 263 |
| Net income | 254 | 131 | 351 | 148 |
| Earnings per share - in $ per share | ||||
| Basic | 0.86 | 0.45 | 1.20 | 0.52 |
| Diluted(b) | 0.85 | 0.45 | 1.19 | 0.51 |
| At (in $ millions) | 30 June 2026 Unaudited | 31 Mar 2026 Unaudited | ||
| Backlog(a) | 13,645 | 13,468 | ||
| Book-to-bill ratio(a) | 1.1x | 0.8x | ||
| Cash and cash equivalents | 1,046 | 1,074 | ||
| Borrowings | (493) | (538) | ||
| Net cash excluding lease liabilities(a) | 553 | 535 | ||
| Net cash including lease liabilities(a) | 190 | 198 | ||
(a) For explanations and reconciliations of Adjusted EBITDA, Adjusted EBITDA margin, Backlog, Book-to-bill ratio and Net cash refer to the 'Alternative Performance Measures' section of the Condensed Consolidated Financial Statements.
(b) For the explanation and a reconciliation of diluted earnings per share refer to Note 7 'Earnings per share' to the Condensed Consolidated Financial Statements.
Stuart Fitzgerald, Chief Executive Officer, said:
On 1 July, I stepped into my new role as CEO of Subsea7 with a clear vision: to continue executing our strategy in the subsea and renewable energy markets while progressing towards the creation of a strong and prominent global competitor in energy services through our proposed merger with Saipem.
Today, the success of our strategy is evident in another solid set of quarterly results. Underpinned by a combination of a favourable market environment, active risk management and a focus on excellence in project delivery, the Group delivered good margin expansion in the quarter enabling an increase to our Adjusted EBITDA margin guidance for full year 2026. Alongside a high level of project execution activity, we continued to replenish the backlog. Order intake reached $2.1 billion in the second quarter and our high-quality backlog of $13.6 billion provides strong visibility for both this year and next. Longer term, the outlook for the business remains positive. Tendering activity is high, reflecting the attractive economics and strategic importance of the prospects in our target markets. We remain focused on long-term value creation through a combination of operational excellence, effective utilisation of our modern fleet and continued capital discipline.
As we move towards completion of our proposed merger with Saipem, confidence in the opportunity ahead continues to grow. The proposed merger process remains on track. Integration planning is advancing well and continues to highlight the potential for the combined Group to deliver meaningful benefits for clients, strengthen its position as a strong and prominent global competitor in energy services, and create substantial value for shareholders.
Second quarter project review
In Subsea and Conventional, activity was high throughout the second quarter, with a vessel utilisation of 85%. In Norway Seven Vega- Seven Arctic- Seven Navica and Seven Oceanic worked on pipelay and umbilical installation at Yggdrasil, Irpa, Fenris, Bestla and Fram Sør. In Brazil, Seven Oceans was active on Búzios 8 and Mero 4, supported by Seven Merlin- Seven Seas transited to the US where it carried out flexible flowline installation at Laser Shark and began umbilical installation at Monument. Finally, Seven Pacific spent the quarter in Côte d'Ivoire working on the Baobab FPSO hookup.
In Renewables, following the seasonal low of the first quarter, vessels returned to work and utilisation was 92%. During the second quarter, Seaway Ventus installed 26 monopiles at East Anglia THREE in the UK, while Seaway Strashnov installed monopiles in France. Cable lay vessels Seaway Aimery and Seaway Phoenix completed class renewals before working on Hornsea 3 and East Anglia THREE in the UK, supported by Seaway Moxie- Seaway Alfa Lift installed transition pieces at Inch Cape in the UK.
Second quarter financial review
Revenue was $1.9 billion, growth of 10% when compared with the prior year period. Adjusted EBITDA was $471 million equating to a margin of 24.4%, up from 20.5% in Q2 2025.
Depreciation and amortisation fell to $154 million, from $175 million in the prior year period and $174 million in the first quarter of 2026, as a result of a reduction in the chartered fleet. After other gains and losses of $46 million, primarily driven by foreign exchange gains, net finance costs of $5 million and taxation of $104 million, net income was $254 million.
Net cash generated from operating activities in the second quarter was $570 million, including a $139 million favourable movement in net working capital. Net cash used in investing activities was $70 million mainly related to purchases of property, plant and equipment. Net cash used in financing activities was $528 million including dividend payments of $414 million and lease payments of $52 million. The Group entered into foreign exchange forward contracts to mitigate the foreign currency exposure of the dividend. The net cash impact of the dividend to the Group, after including the gain on foreign exchange forward contracts, was $403 million. During the quarter, cash and cash equivalents decreased by $28 million to $1,046 million and, at 30 June 2026, net cash was $190 million, including lease liabilities of $363 million.
Second quarter order intake was $2.1 billion comprising new awards of $1.8 billion and escalations of $0.3 billion resulting in a book-to-bill ratio of 1.1 times. Backlog at the end of June was $13.6 billion, of which $3.9 billion is expected to be executed in the remainder of 2026, $5.6 billion in 2027 and $4.1 billion in 2028 and beyond.
Guidance
Adjusted EBITDA margin is expected to be approximately 24% (from 23% previously) while we continue to anticipate revenue in the range between $7.4 and $7.8 billion.
Conference Call Information
Date: 30 July 2026
Time: 12:00 UK Time, 13:00 CET
Access the webcast at subsea7.com or https://edge.media-server.com/mmc/p/7wj2iis9/
Register for the conference call https://register-conf.media-server.com/register/BIa8f436a754af459f8ad60d5733ad1551
For further information- please contact
| Katherine Tonks | Email: ir@subsea7.com |
| Head of Investor Relations | Telephone: +44 20 8210 5568 |
Special Note Regarding Forward-Looking Statements
This document may contain 'forward-looking statements' (within the meaning of the safe harbour provisions of the U.S. Private Securities Litigation Reform Act of 1995). These statements relate to our current expectations, beliefs, intentions, assumptions or strategies regarding the future and are subject to known and unknown risks that could cause actual results, performance or events to differ materially from those expressed or implied in these statements. Forward-looking statements may be identified by the use of words such as 'anticipate', 'believe', 'estimate', 'expect', 'future', 'goal', 'intend', 'likely', 'may', 'plan', 'project', 'seek', 'should', 'strategy', 'will', and similar expressions. The principal risks which could affect future operations of the Group are described in the 'Risk Management' section of the Group's Annual Report. Factors that may cause actual and future results and trends to differ materially from our forward-looking statements include (but are not limited to): (i) our ability to deliver fixed-price projects in accordance with client expectations and within the parameters of our bids, and to avoid cost overruns; (ii) our ability to collect receivables, negotiate variation orders and collect the related revenue; (iii) our ability to recover costs on significant projects; (iv) capital expenditure by oil and gas companies, which is affected by fluctuations in the price of, and demand for, crude oil and natural gas; (v) unanticipated delays or cancellation of projects included in our backlog; (vi) competition and price fluctuations in the markets and businesses in which we operate; (vii) the loss of, or deterioration in our relationship with, any significant clients; (viii) the outcome of legal proceedings or governmental inquiries; (ix) uncertainties inherent in operating internationally, including economic, political and social instability, boycotts or embargoes, labour unrest, changes in foreign governmental regulations, corruption and currency fluctuations; (x) the effects of a pandemic or epidemic or a natural disaster; (xi) liability to third parties for the failure of our joint venture partners to fulfil their obligations; (xii) changes in, or our failure to comply with, applicable laws and regulations (including regulatory measures addressing climate change); (xiii) operating hazards, including spills, environmental damage, personal or property damage and business interruptions caused by adverse weather; (xiv) equipment or mechanical failures, which could increase costs, impair revenue and result in penalties for failure to meet project completion requirements; (xv) the timely delivery of vessels on order and the timely completion of ship conversion programmes; (xvi) our ability to keep pace with technological changes and the impact of potential information technology, cyber security or data security breaches; (xvii) global availability at scale and commercial viability of suitable alternative vessel fuels; and, (xviii) the effectiveness of our disclosure controls and procedures and internal control over financial reporting. Many of these factors are beyond our ability to control or predict. Given these uncertainties, you should not place undue reliance on the forward-looking statements. Each forward-looking statement speaks only as of the date of this document. We undertake no obligation to update publicly or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
This information is considered to be inside information pursuant to the EU Market Abuse Regulation and is subject to the disclosure requirements pursuant to Section 5-12 of the Norwegian Securities Trading Act. This stock exchange release was published by Katherine Tonks, Investor Relations, Subsea7, on 30 July 2026 at 08:00 CET.
