-
Performance was driven by the widespread adoption of the company’s differentiated offerings, with the combination of direct awards, iEPCI, and Subsea Services accounting for more than 80% of total Subsea inbound in 2025.
-
Management attributed commercial success to a fundamental shift in customer behavior from single-project focus to a ‘portfolio approach,’ where operators develop multiple greenfield assets in parallel to achieve industrialization.
-
The transition away from legacy projects is nearly complete, with legacy work now representing less than 10% of the Subsea backlog, significantly derisking project execution and margin profiles.
-
Operational momentum is supported by a record-high Subsea Opportunity list of approximately $29 billion, reflecting six consecutive quarters of value growth despite high award activity.
-
Strategic positioning as both ‘architect and builder’ allows the company to engage with clients earlier in the cycle, shifting the conversation from pricing to the reduction of cycle time and improved project returns.
-
Surface Technologies’ margin expansion was driven by a strategic pivot toward high-grading the portfolio, focusing on international markets like Saudi Arabia and Abu Dhabi while reducing exposure to volatile North American activity.
-
The 2026 outlook assumes continued Subsea inbound strength of approximately $10 billion, with expectations for further order growth in 2027 and beyond as the opportunity list accelerates.
-
Management expects to deliver $2.1 billion in total company adjusted EBITDA at the midpoint for 2026, representing 15% growth over 2025 when excluding foreign exchange impacts.
-
Strategic focus is expanding from the seabed to the ‘water column’ (SURF), aiming to apply configure-to-order efficiencies to the entire subsea environment to drive further margin upside.
-
Guidance for 2026 includes a commitment to return at least 70% of free cash flow to shareholders, supported by a disciplined asset-light model with capital expenditures capped at approximately 3% of revenue.
-
Restructuring actions initiated in late 2025 are expected to deliver sustainable operating efficiency improvements starting in 2026 and increasing in subsequent years.
-
The company recorded $52 million in restructuring and impairment charges in Q4 2025, specifically tied to simplification and industrialization actions aimed at 2026 efficiency gains.
-
Subsea margins in Q4 were impacted by seasonally lower vessel-based activity and higher scheduled fleet maintenance, which reduced overall availability.
-
Management highlighted that while the North American Surface Technologies market remains difficult, the segment’s 65% international revenue mix provides a structural hedge against domestic volatility.
-
The shift toward gas-directed subsea projects is noted as a complexity driver, as gas equipment typically requires higher unit costs and more differentiated technology due to corrosive environments.
