Viridien (VIRI) Q1 2025 earnings summary

Executive summary

• 2024 revenue was $1,117M, nearly flat year-over-year, with adjusted EBITDA up 14% to $455M and net cash flow up 73% to $56M, exceeding targets due to strong Geoscience and Earth Data performance and operational efficiency in Sensing & Monitoring.

• Achieved major milestones: termination of vessel capacity agreement (shift to asset-light model) and successful bond refinancing, enhancing cost flexibility and cash generation.

• Record Geoscience order intake and backlog growth of 89% and 90% year-over-year, with new business in carbon sequestration and mining.

• Sensing & Monitoring segment underwent restructuring, showing initial benefits in Q4.

• 2025 targets include ~$100M net cash flow and further deleveraging, supported by a record Geoscience backlog and restructuring progress.

Financial highlights

• FY 2024 revenue was $1,117M, down 1% year-over-year; Q4 revenue was $339M, up 6% year-over-year.

• Adjusted EBITDA for FY 2024 reached $455M, up 14% year-over-year, despite $54M in penalty fees; Q4 adjusted EBITDA was $157M, up 30% year-over-year.

• Net cash flow for FY 2024 was $56M, up 71% year-over-year, after $75M in contractual fees.

• Net debt reduced to $921M from $974M, with liquidity at $392M (including $90M undrawn RCF).

• Basic EPS increased to $6.97 from $1.81 year-over-year.

Outlook and guidance

• 2025 net cash flow target set at ~$100M, with focus on cash generation and balance sheet deleveraging.

• Geoscience growth expected from strong backlog; Earth Data to benefit from end of vessel penalty fees; Sensing & Monitoring to realize further restructuring savings.

• Bond refinancing could occur in 2025, ahead of previous Q1 2026 guidance.

• Assumes moderate oil market fluctuations and stable E&P CapEx.

• Activity expected to remain stable as long as Brent crude stays within $65-$85 per barrel.