Subsea7 reported its fourth-quarter 2025 financial results, with revenues aligning with analyst expectations but net income falling short of forecasts. The company's quarterly revenue reached over $1.96 billion, exceeding the $1.87 billion from the same period in 2024 and slightly above the analyst consensus of $1.95 billion. However, net income was $148 million, which, while a significant increase from $26 million in Q4 2024, was below the average analyst anticipation of approximately $174 million.

Strong EBITDA and Annual Performance

A key highlight was the performance in adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA). This metric rose by 51% year-on-year to $477 million for the quarter, substantially surpassing the analyst consensus of $431 million. For the full year 2025, adjusted EBITDA reached $1.5 billion, a 36% increase from the prior year, which drove a free cash flow generation of $1.2 billion. The company ended the year with a strengthened balance sheet, reporting net cash of $21 million—an improvement of $622 million from the end of the previous year.

Order Book and Future Outlook

Subsea7 closed 2025 with a robust order book approaching $14 billion, which provides strong visibility for future operations. This substantial backlog, coupled with high levels of tendering activity, supports the company's confidence in its outlook. In line with this positive trajectory, Subsea7 reaffirmed its financial guidance for the full year 2026. The company expects annual revenue to be within a range of $7 billion to $7.4 billion, with an adjusted EBITDA margin of approximately 22%.

Pending Merger with Saipem

The financial guidance for 2026 coincides with the anticipated completion of Subsea7's planned merger with Italy's Saipem. The merger, which is awaiting regulatory approvals, is expected to be finalized in the second half of 2026. This timeline was reiterated by Saipem's chief executive, who confirmed the expectation despite objections raised with Brazil's antitrust regulator, Cade. Upon completion, the merged entity will be owned equally (50:50) by the shareholders of both companies. It will combine Saipem's global onshore and offshore construction capabilities with Subsea7's offshore business.