Subsea 7 S.A announced results of Subsea7 Group (the Group, Subsea7) for the first quarter which ended 31 March 2026.
Highlights
• First quarter Adjusted EBITDA of $ 385 million, up more than 60% on the prior year period, equating to a margin of 2 1%.
• Strong performances in both Subsea and Conventional and Renewables, with margins of 2 4% and 12%, respectively.
• High-quality backlog of $13.5 billion including $5.5 billion for execution in 2026 , providing high revenue visibility. A backlog of $5.0 billion for execution in 2027, up 17% since year end.
• Balance sheet remains strong with net cash including lease liabilities of $198 million, compared with net cash including lease liabilities of $21 million at year end 2025 .
• Guidance for full year 2026 raised, with revenue now expected to be within a range of $7.4 to 7.8 billion, with Adjusted EBITDA margin of approximately 23%.
John Evans, Chief Executive Officer, said: “In my final quarterly report as CEO, I am pleased to share another strong financial and operational performance that serves as a solid foundation for growth in the year ahead. Adjusted EBITDA in the first quarter of 2026 was $385 million, up more than 60% year-on-year and equating to a margin of 2 1%, from 15% in the prior year period. Both our Subsea and Conventional and Renewables business units delivered robust results. The Group remained focused on optimising cash generation, resulting in an increase in net cash to $198 million, including lease liabilities of $337 million. During my six-year tenure, the Group has executed a differentiated strategy across the energy landscape – one that has driven our backlog to all‑time highs, strengthened returns and enabled significant capital distributions to shareholders. Despite the geopolitical and macroeconomic uncertainty facing the world today, the outlook for Subsea7 – and, in future, Saipem7 – remains positive, supported by the attractive attributes of offshore energy. As I transition from my role as CEO and join the Board of Directors of Subsea 7 S.A., I do so with great confidence in the leadership team and in the Group’s ability to seize the opportunities that lie ahead”.
First quarter 2026 operational review
In the first quarter, our fleet achieved 78% utilisation of Subsea and Conventional vessels and 8 1% utilisation of vessels within Renewables. Seven Vega and Seven Seas were active in Türkiye installing pipelines and umbilicals at the Sakarya Phase 2 project , while Seven Oceans worked in Brazil at Mero 4 and Búzios 8. Seven Arctic , Seven Atlantic and Seven Falcon were active on the Yggdrasil project in Norway, while Seven Navica prepared for pipelay at Bestla. Seven Borealis and Seven Pegasus completed the Vito waterflood project. In Renewables, Seaway Ventus installed foundations at East Anglia THREE , while Seaway Aimery and Seaway Moxie continued cable pull in work. Seaway Strashnov , Seaway Phoenix and Seaway Alfa Lift underwent planned maintenance. Elsewhere, at Búzios 9 in Brazil, progress was made in the fabrication of rigid pipelines, while procurement continued for Búzios 11. In Türkiye, work started on engineering and procurement for the Goktepe extension to Sakarya Phase 3.
First quarter 2026 financial review
Revenue was $ 1.8 billion, up 17% when compared with the prior year period. Adjusted EBITDA of $ 385 million equated to a margin of 21%, up from 15% in Q1 2025 . After depreciation and amortisation of $174 million, net operating income was $ 210 million, equating to 12% of revenue, up from 5% in the prior year period. After net foreign exchange losses of $67 million, net finance costs of $ 7 million and an effective tax rate of 28% , net income was $97 million. Three Months Ended For the period (in $ millions, except Adjusted EBITDA margin and per share data) 31 Mar 2026 Unaudited 31 Mar 2025 Unaudited Revenue 1,789 1,529 Adjusted EBITDA (a) 385 236 Adjusted EBITDA margin (a) 21% 15% Net operating income 210 77 Net income 97 17 Earnings per share – in $ per share Basic 0.34 0.06 Diluted(b) 0.34 0.06 At (in $ millions) 31 Mar 2026 Unaudited 31 Dec 2025 Unaudited Backlog (a) 13,468 13,769 Book-to-bill ratio(a) 0.8x 1.0x Cash and cash equivalents 1,074 970 Borrowings (538) (584) Net cash excluding lease liabilities (a) 535 386 Net cash including lease liabilities(a)(c) 198 21 2 Subsea 7 S.A. First Quarter 2026 Results Net cash generated from operating activities was $256 million, including an expected $54 million unfavourable movement in net working capital. Net cash used in investing activities w as $31 million and mainly related to purchases of property, plant and equipment , while net cash used in financing activities was $128 million including lease payments of $64 million. Cash and cash equivalents increased by $104 million to $1,074 million and, at 31 March 2026, net cash was $198 million, including lease liabilities of $337 million.
First quarter order intake was $1.4 billion comprising new awards of $ 0.9 billion (including Aseng) and escalations of $0. 5 billion (including Goktepe) resulting in a book-to-bill ratio of 0.8 times. Backlog at the end of March was $13. 5 billion, of which $5.5 billion is expected to be executed in the remainder of 2026, $5.0 billion in 2027 and $3.0 billion in 2028 and beyond.