Subsea 7 S.A. Announces Fourth Quarter and Full Year 2025 Results

26 Feb 2026 08:00 CET

Luxembourg - 26 February 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 fourth quarter and full year which ended 31 December
2025. Unless otherwise stated the comparative period is the full year which
ended 31 December 2024.

Highlights

* Fourth quarter Adjusted EBITDA of $477 million, up more than 50% on the
prior year period, equating to a margin of 24%. Strong performances in both
Subsea and Conventional and Renewables, with margins of 26% and 20%
respectively.
* Full year Adjusted EBITDA of $1,480 million, up 36% on the prior year,
equating to a margin of 21%.
* Free cash flow generation in 2025 of $1.2 billion resulting in net cash of
$21 million including lease liabilities of $365 million.
* Dividend of NOK 13.00 per share, equating to approximately $400 million and
payable in one instalment in May 2026.
* High-quality backlog of $13.8 billion including $6.9 billion for execution
in 2026, providing high revenue visibility on the next twelve months. A
backlog of $4.3 billion for execution in 2027, up 27% compared with the
prior year equivalent.

* Guidance for full year 2026 reaffirmed, with revenue expected to be
within a range of $7.0 to 7.4 billion, with Adjusted EBITDA margin of
approximately 22%.


Fourth Quarter Year Ended
------------------------------------


For the period (in $ millions, except Q4 2025 Q4 2024 2025 2024
Adjusted EBITDA margin and per share data) Unaudited Unaudited Audited Audited
-------------------------------------------------------------------------------
Revenue 1,962 1,869 7,086 6,837

Adjusted EBITDA((a)) 477 315 1,480 1,090

Adjusted EBITDA margin((a)) 24% 17% 21% 16%

Net operating income 276 126 771 446

Net income 148 26 404 217



Earnings per share - in $ per share

Basic 0.49 0.07 1.39 0.68

Diluted((b)) 0.49 0.07 1.38 0.67
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  2025 2024
At (in $ millions) 31 Dec 31 Dec
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Backlog((a))     13,769 11,175

Book-to-bill ratio((a))     1.3x 1.2x

Cash and cash equivalents     970 575

Borrowings     (584) (722)

Net cash/(debt) excluding lease
liabilities((a)) 386 (147)

Net cash/(debt) including lease
liabilities((a)) 21 (602)
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(a) For explanations and reconciliations of Adjusted EBITDA, Adjusted EBITDA
margin, Backlog, Book-to-bill ratio and Net cash/(debt) 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.

John Evans, Chief Executive Officer, said:

Subsea7 delivered a strong performance in the final quarter of 2025, resulting
in Adjusted EBITDA for the full year of $1.5 billion, up 36% on the prior year
and driving free cash flow generation of $1.2 billion. We ended the year with a
solid balance sheet, with net cash of $21 million, an improvement of $622
million from the prior year end.

Subsea and Conventional achieved its fifth consecutive year of growth with
revenue rising by 5% to $5.8 billion in 2025 and an Adjusted EBITDA margin of
23%, up from 16% in 2024. Our Renewables business also reported solid results
marking a third year of progress, with growth in Adjusted EBITDA of 9% and a
margin of 17%, up from 15% last year.

From the low levels of 2020 to the healthy state of the industry in 2025,
Subsea7 has benefited from an upcycle in the deepwater market, alongside growth
in offshore wind. Against this industry backdrop, our differentiated strategy
has enabled us to win high-quality work, achieve optimal execution, and
reinforce strong relationships with key clients. We closed the year with an
order book approaching $14 billion of high-quality projects, providing excellent
visibility on the years ahead and this, along with high tendering activity,
support our confidence in the outlook for the Group.

Fourth quarter 2025 vessel utilisation
In the fourth quarter, our fleet remained busy with 89% utilisation of the
Subsea and Conventional vessels and 84% utilisation of vessels within
Renewables. Seven Vega transited to Türkiye and began installation of pipeline
and production lines for the Sakarya Phase 2 project, while Seven Oceans
transited to Brazil for Mero 4. Seven Navica completed rigid pipeline
installation at Zephryus in the US, while Seven Arctic was active on the Cypre
project in Trinidad and Tobago. Seven Borealis and Seven Pacific worked in
Angola. Also during the quarter, the final two of four PLSVs commenced new
three-year contracts for Petrobras in Brazil.

In Renewables, Seaway Alfa Lift completed the installation of the last
transition pieces at Dogger Bank C in the UK, while Seaway Ventus continued
installing foundations at East Anglia THREE. In the US, Seaway Aimery completed
cable lay at the Revolution project, while in Taiwan Seaway Phoenix continued
cable lay at Hai Long and Seaway Strashnov underwent planned maintenance.

Fourth quarter 2025 financial review
Revenue was $2.0 billion, up 5% when compared with the prior year period.
Adjusted EBITDA of $477 million equated to a margin of 24%, up from 17% in Q4
2024. After depreciation, amortisation and impairment charges of $201 million,
net operating income was $276 million, equating to 14% of revenue, up from 7% in
the prior year period. After net foreign exchange losses of $50 million, net
finance costs of $20 million and an effective tax rate of 28%, net income was
$148 million.

Net cash generated from operating activities in the fourth quarter was $797
million, including a $420 million favourable movement in net working capital.
Net cash used in investing activities was $30 million mainly related to
purchases of property, plant and equipment, while net cash used in financing
activities was $339 million including dividend payments of $192 million and
lease payments of $77 million. During the quarter, cash and cash equivalents
increased by $424 million to $970 million and, at 31 December 2025, net cash was
$21 million, including lease liabilities of $365 million.

Fourth quarter order intake was $1.9 billion comprising new awards of $1.3
billion and escalations of $0.6 billion resulting in a book-to-bill ratio of
1.0 times. Backlog at the end of December was $13.8 billion, of which $6.9
billion is expected to be executed in 2026, $4.3 billion in 2027 and $2.6
billion in 2028 and beyond.

Full year 2025 financial review
Revenue was $7.1 billion, up 4% from 2024. Adjusted EBITDA of $1,480 million
equated to a margin of 21%, up from 16% in 2024. After depreciation,
amortisation and impairment charges of $710 million, net operating income was
$771 million, equating to 11% of revenue, up from 7% in 2024. After net foreign
exchange losses of $84 million, net finance costs of $65 million and an
effective tax rate of 35%, net income was $404 million.

Net cash generated from operating activities in the full year was $1,471
million, including a $234 million favourable movement in net working capital.
Net cash used in investing activities was $214 million, including $281 million
related to purchases of property, plant and equipment. Net cash used in
financing activities was $874 million including dividend payments of $376
million and lease payments of $292 million. During the year, cash and cash
equivalents increased by $394 million to $970 million.

At 31 December 2025, backlog was $13.8 billion. Full year order intake was $9.0
billion comprising new awards of $7.0 billion and escalations of $2.0 billion
resulting in a book-to-bill ratio of 1.3 times.

Commitment to shareholder returns
At the Annual General Meeting on 12 May 2026, the Board of Directors will
propose a dividend of NOK 13.00 per share, equating to approximately $400
million, payable in May 2026. This is equivalent to an approximate dividend
yield of 5%.

Guidance
While regulatory clearance for the proposed merger with Saipem S.p.A. is still
in progress, management remains firmly committed to delivering ongoing projects
to clients and continuing to secure new high-quality contracts.

With a robust backlog of nearly $14 billion, we have high visibility on
anticipated revenue this year of approximately $7.0 to 7.4 billion. We expect
our Adjusted EBITDA margin to continue to improve and reach approximately 22% in
2026. With a disciplined approach to reinvestment, we expect capital expenditure
of $350 to 380 million in 2026, yielding another year of significant cash
generation. Overall, we are confident that the resilience of the energy market,
combined with our differentiated offering and our strong track record of
delivery, continues to position Subsea7 for success.

Conference Call Information
Date: 26 February 2026

Time: 11:00 UK Time, 12:00 CET

Access the webcast at subsea7.com (https://edge.media-server.com/mmc/p/sdhad4b2)
or https://edge.media-server.com/mmc/p/vb9jzg9r/

Register to dial-in https://register-conf.media-
server.com/register/BI8af53d4dabbc4ad88582479f14519e6c

For further information, please contact:

Katherine Tonks

Head of Investor Relations

Email: ir@subsea7.com (mailto:ir@subsea7.com)

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.

More information:
Access the news on Oslo Bors NewsWeb site

666891_SUBC Earnings Release Q4 2025.pdf
666891_SUBC 4Q25 Presentation.pdf