Total Revenue

+9% (from $2,042.0m to $2,233.6m)

Total revenue improvement was driven by stronger service revenue (+12%) and product revenue (+7%), mainly powered by robust international performance — notably Europe (+29%), Asia Pacific (+139%), and the Middle East (+69%) — which helped offset declines in North America, Latin America, and Africa. " " "

Service Revenue

+12% (from $1,165.8m to $1,304.0m)

Service revenue increased due to enhanced demand for services such as iEPCI™ and related activities, reflecting higher project volumes and improved execution in high-growth international markets, as compared to previous periods. " "

Product Revenue

+7% (from $? to $868.2m)

Product revenue saw a modest rise, indicating steady performance of product lines despite regional variances; this suggests a balanced product mix that supported growth even as some regions experienced offsetting headwinds. " "

Lease Revenue

Flat at $61.4m

Lease revenue remained stable, pointing to unchanged underlying lease contracts and minimal impact from market cyclicality, consistent with previous period trends. " "

Europe & Central Asia Revenue

+29% (from $395.6m to $510.0m)

Strong growth in Europe & Central Asia resulted from improved project execution and a higher activity mix in these markets, helping push revenue significantly above last year’s levels. " "

Asia Pacific Revenue

+139% (from $114.2m to $273.2m)

Asia Pacific revenue surged as a result of rapid expansion and excellent backlog conversion in high-growth markets, indicating a strong pickup in project initiation and execution compared to the previous period. " "

Middle East Revenue

+69% (from $79.5m to $134.4m)

Middle East performance improved due to increased long-term contracts and higher equipment deliveries, reflecting a strategic focus on this region that was not as pronounced in the prior period. " "

North America Revenue

-8% (from $442.1m to $407.6m)

North America revenue declined by 8%, likely due to lower local project activity and market conditions, contrasting with the strong international gains seen in other regions. " "

Latin America Revenue

-8% (from $702.1m to $648.9m)

A decrease in Latin America revenue suggests a slowdown in project execution and possibly lower regional demand relative to prior performance. " "

Africa Revenue

-16% (from $308.5m to $259.5m)

Africa experienced a sharper decline (16%), which may be attributed to slower project activity and reduced demand in the region compared to the previous period. " "

Net Income

-11% (from $160.9m to $142.0m)

Net income fell by 11% despite revenue growth, likely due to increased operating costs, higher tax expenses, and the absence of favorable one-off items (e.g., prior gains), highlighting a tougher profitability environment this period. " "

Operating Cash Flow

Rebounded from –$126.7m to $441.7m

Operating cash flow turnaround was driven by strong cash collections from increased project volumes and advance payments, coupled with improved working capital management — a marked improvement from the cash outflow seen in the previous period. " "

Liquidity (Cash & Equivalents)

+70%+ (from $696.8m to $1,186.8m)

Liquidity strengthened significantly as a result of robust operating cash flows, lower investing outflows, and better working capital management, leading to over a 70% increase in cash and cash equivalents compared to Q1 2024. " "

Basic & Diluted EPS

Slight decline (Basic: from $0.36 to $0.34; Diluted: from $0.35 to $0.33)

EPS edged lower primarily due to the drop in net income, though partially cushioned by a reduction in the weighted average shares from share repurchases; this indicates that profitability was sensitive to cost pressures despite a favorable revenue mix in Q1 2025 compared to the previous period. " "

Subsea Revenue

Q2 2025

no prior guidance

Expected to grow low double digits sequentially "

no prior guidance

Subsea Adjusted EBITDA Margin

Q2 2025

no prior guidance

Anticipated increase of approximately 400 basis points "

no prior guidance

Surface Technologies Revenue

Q2 2025

no prior guidance

Expected to increase approximately 5% sequentially "

no prior guidance

Surface Technologies Adjusted EBITDA Margin

Q2 2025

no prior guidance

Anticipated to be approximately 15.5% "

no prior guidance

Adjusted EBITDA

FY 2025

Approximately $1.76 billion "

Approximately $1.76 billion " "

no change

Free Cash Flow

FY 2025

$850 million to $1 billion "

$1 billion to $1.15 billion "

raised

Shareholder Distributions

FY 2025

At least 70% of free cash flow "

At least 70% of free cash flow " "

no change

Subsea Inbound Orders

FY 2025

no prior guidance

More than $10 billion "

no prior guidance

Subsea Technology Advancements and Adoption

Discussed extensively in Q2 2024 (ramp-up of Subsea 2.0 orders, integration with iEPCI, and gradual conversion of bids " " ), in Q3 2024 (integration of Subsea 2.0 with flexible pipe technology and growing repeat awards " " " ), and in Q4 2024 (strong adoption with orders exceeding 50% and efficiency gains " " " " )

Emphasized in Q1 2025 with widespread adoption by major clients (e.g. Exxon, Shell, Total), significant efficiency improvements, and solid project delivery performance " " "

Consistent focus over periods. Continued emphasis on the benefits and market differentiation driven by Subsea 2.0 and iEPCI indicates a steady ramp-up and improved operational performance.

Strong Order Backlog and Long-Term Pipeline Growth

Q2 2024 reported a record backlog (~$13.9B) with clear long-term pipeline metrics " " " ; Q3 2024 highlighted a record backlog of $14.7B and diversified opportunities " " " ; Q4 2024 detailed robust backlog figures ($14.4B) and multi-year tendering activity " " "

Q1 2025 reported an increased total backlog of $15.8B and an expanding pipeline (e.g. >$26B in Subsea opportunities), reinforcing growth through deepwater and emerging markets " " "

Increasing backlog size and enhanced pipeline clarity over time, with continued confidence in sustainable multi-year revenue generation.

Direct Awards Track Record and Expanding Customer Base

Q2 2024 highlighted strong direct awards driven by proprietary offerings like Subsea 2.0 and iEPCI with long-term client commitments " " ; Q3 2024 emphasized 100% direct awards on iEPCI projects and diversification of the client base " " ; Q4 2024 noted a shift from an average 12 clients to an expanded base of 30–40 clients " "

Q1 2025 reaffirmed more than 80% of inbound orders coming as direct awards, supported by strategic alliances (e.g. with Cairn Oil & Gas) and continued growth in integrated execution models "

A consistent and strengthening record of securing direct awards while broadening the customer base, underscoring competitive benefits of the integrated models.

Global Revenue Exposure and Emerging Market Expansion

Q2 2024 demonstrated strong activity in emerging markets such as Guyana, Mozambique, Suriname, and Namibia " " ; Q3 2024 discussed active engagements in Guyana, Brazil, and expansion in the Middle East " " " ; Q4 2024 reiterated emerging market opportunities in Suriname, Namibia, and tendering activity in Mozambique " "

Q1 2025 emphasized that 95% of revenue is generated outside the U.S. and showcased robust expansion into emerging markets (Guyana, Suriname, Namibia, Mozambique) with growing Subsea Opportunities List exceeding $26B " " "

A sustained global strategy with a clear shift toward increasing exposure to diverse and emerging markets, reducing reliance on any single region.

Competitive Risks in Subsea Markets

Q4 2024 provided detailed commentary on rival design preferences (e.g. Petrobras’s standard tree) and discussed Saipem merger implications as a non–transformative industry consolidation " " " ; Q2 and Q3 had minimal or no commentary on this topic

Q1 2025 focused on competitive risks by highlighting Petrobras’s continued use of its own standard tree design versus Subsea 2.0 and noted adoption by other major operators, while omitting discussion of Saipem merger implications "

The discussion has shifted from merger implications in Q4 to a more technology‐centred competitive differentiation in Q1, indicating a refined focus on product advantages.

Reliance on FID Timing and Order Realization Uncertainties

Not specifically discussed in Q2–Q4 earnings calls

Q1 2025 included explicit discussion on the reliance on FID timing, emphasizing that order flow in 2026 depends on FID timing with a rich opportunity set despite inherent uncertainties "

An emerging focus in the current period that highlights the acknowledged uncertainty in order realization tied to FID timing.

U.S. Market Exposure and Tariff/Commodity Volatility Risks

These topics were not addressed in Q2, Q3, or Q4 earnings calls

Q1 2025 introduced these considerations, noting that 95% of revenue is international and that tariff impacts are expected to be minor (<$20M effect), while also addressing commodity volatility as a factor in offshore investments " "

A new focus in the current period showing strategic emphasis on managing U.S.-specific risks and market volatility through global diversification.

Execution Risks and Capacity Constraints

Q2 2024 discussed potential capacity constraints and the operational shift to Subsea 2.0 to mitigate risks " ; Q3 2024 addressed tight vessel market challenges by building a vessel ecosystem and noted strong execution via integrated models " " ; Q4 2024 stressed execution excellence and capacity planning for projects beyond 2026 " "

Q1 2025 underscored effective backlog management and manufacturing efficiency gains that support robust execution, although without explicit mention of capacity constraints, building on prior improvements " " "

Consistent concerns over execution and capacity are being mitigated by strategic operations, with detailed discussions in Q3 and continuing confidence in Q1.

Capital Expenditure Increases and Free Cash Flow/Margin Guidance Challenges

Q2 2024 reported modest capital expenditures ($51M) with improved free cash flow guidance ($425M–$575M full-year) " ; Q3 2024 noted disciplined CapEx ($53M) and strong free cash flow generation while setting margin guidance; Q4 2024 provided detailed outlook on an ERP upgrade–driven temporary CapEx increase and improved free cash flow/margin outlook " " "

Q1 2025 reported $62M in CapEx with strong free cash flow generation (e.g. $380M in free cash flow in Q1) and maintained margin targets (15.9% overall, with subsea margins up by 80bps) " " "

A steady improvement in free cash flow conversion and margin guidance is observed despite temporary increases in CapEx, with management’s confidence consistently communicated.

Delayed Realization of Benefits from New Technology Rollouts

Q2 2024 discussed early-stage realization for Subsea 2.0 with only 25% of orders running through facilities, pointing to a gradual ramp-up " "

Q1 2025 did not highlight delays; no significant mention indicates that benefits may now be coming to fruition

The topic has diminished in prominence, suggesting that earlier delay concerns are being resolved and benefits are beginning to materialize as expected.

Geopolitical and Operational Risks in Emerging Basins

Q2–Q4 earnings calls focused on opportunities in emerging basins such as Suriname, Namibia, and Mozambique with little explicit discussion on associated risks " " "

Q1 2025 made no explicit mention of geopolitical or operational risks, instead emphasizing the opportunity set and long-term growth potential in emerging markets " "

Risk commentary remains minimal, with previous discussions focusing more on opportunity expansion; the current period continues this trend with an emphasis on growth rather than risk.