Subsea 7 has raised its revenue and adjusted EBITDA guidance for 2026 following a strong first-quarter financial performance, even as its CEO prepares to depart. The Oslo-listed contractor, currently being acquired by Saipem, reported a net income of $97.3 million for the quarter, a sharp increase from $16.7 million in the same period last year. Revenues rose to $1.79 billion, up from $1.53 billion in the first quarter of 2025.

Adjusted EBITDA reached $385 million, a more than 60% increase year-over-year, with a margin of 21%, compared to 15% in early 2025. Both the subsea-conventional and renewables business segments delivered strong performances, with margins of 24% and 12%, respectively. The company’s backlog remained stable at approximately $13.5 billion, including $11.4 billion in subsea-conventional work, with $5.5 billion scheduled for execution in 2026 and $5 billion in 2027—the latter representing a 17% increase since the end of the previous year.

Subsea 7’s balance sheet remains robust, with net cash (including lease liabilities) of $198 million, up from $21 million at the end of 2025. The subsea tendering opportunity pipeline continues to stand at about $20 billion. In a bullish quarterly statement, the company increased its 2026 revenue guidance to between $7.4 billion and $7.8 billion, up from the prior range of $7.0 billion to $7.4 billion. The adjusted EBITDA margin guidance for this year was also raised to approximately 23%, compared to the previously guided 22%.

Outgoing CEO John Evans highlighted that during his six-year tenure, the group executed a differentiated strategy that drove backlog to all-time highs, strengthened returns, and enabled significant capital distributions to shareholders. Despite geopolitical and macroeconomic uncertainties, he expressed a positive outlook for Subsea 7—and future Saipem7—supported by the attractive attributes of offshore energy. Evans will join Saipem7’s board on July 1, with Stuart Fitzgerald succeeding him as CEO. The company noted that its near-term exposure to regional disruption is low, with less than 10% of its backlog in the Middle East, where current activities are primarily focused on engineering and procurement.