SBM Offshore (SBMO) Q1 2026 TU earnings summary

Executive summary

• Directional revenue for Q1 2026 reached $3.5 billion, up 216% year-over-year, driven by the Longtail FEED contract, Turnkey segment growth, and the sale of FPSO ONE GUYANA.

• Revenue guidance for 2026 was raised from $6.5 billion to above $6.9 billion, reflecting strong project execution, new awards, and additional scope.

• Shareholder returns increased 57% year-over-year, including a $100 million cash dividend and a $270 million share buyback program.

• Net debt reduced by 43% to $3.2 billion as of March 31, 2026, mainly due to asset sales.

• Fleet uptime was around 98% at the end of Q1, with zero fatalities or permanent impairment injuries.

Financial highlights

• Q1 2026 directional revenue: $3,489 million, up from $1,103 million in Q1 2025, a 216% increase.

• Turnkey revenue: $2,879 million, driven by project awards and the sale of FPSO ONE GUYANA.

• Lease and Operate revenue: $610 million, up 28% year-over-year, reflecting new FPSOs delivered in 2025.

• Directional net debt: $3.2 billion at March 31, 2026, down from $5.7 billion at year-end 2025.

• Hedge ratio of floating-rate debt above 90%.

Outlook and guidance

• 2026 revenue guidance increased to above $6.9 billion, with $2.3 billion from Lease and Operate and over $4.6 billion from Turnkey.

• Directional EBITDA baseline guidance for 2026 remains at $1.8 billion.

• Continued balance sheet deleveraging expected, with leverage ratio to remain below 3x.

• At least $2.1 billion in shareholder returns targeted through 2031, with upside potential.

• Guidance increase driven by Longtail FEED award and additional scope; excludes potential future FPSO awards.