Total Revenue

Down 6% (Q1 2025: $278.06M vs. Q1 2024: $296.21M)

Total revenue declined by approximately 6% YoY. This downturn is driven largely by lower revenues in major segments—Well Intervention fell by around 8–9% and Shallow Water Abandonment dropped by about 37%—which more than offset a modest 1% increase in Robotics revenue. " " "

Well Intervention

Down 8–9% (Q1 2025: $198.37M vs. Q1 2024: $216.46M)

Well Intervention revenue dropped significantly due to reduced operational activity, including lower utilization in key regions such as the North Sea and effects of warm-stacking of the Seawell. This contrasts with the previous period where stronger operational performance and higher utilization had driven revenues higher. " "

Robotics

+1% (Q1 2025: $51.04M vs. Q1 2024: $50.31M)

Robotics revenue experienced a slight uptick of about 1%, reflecting steady asset utilization. In the previous period, growth was supported by increased vessel and trenching days, but in Q1 2025 improvements were marginal, resulting in relatively flat performance. " "

Shallow Water Abandonment

Down 37% (Q1 2025: $16.82M vs. Q1 2024: $26.85M)

Shallow Water Abandonment revenues fell dramatically by approximately 37%, indicating a significant decline in utilization and demand—likely due to seasonal factors and market softness—that contrasts sharply with higher revenue performance in Q1 2024. " "

Intercompany Eliminations

Improved from –$21.56M to –$8.01M

Intercompany Eliminations became less negative, moving from a $21.56M drag in Q1 2024 to $8.01M in Q1 2025. This improvement reflects a reduction in internal offsetting transactions compared to the previous period, resulting in a less detrimental impact on consolidated revenue. " "

Net Income

Turned positive (Q1 2025: $3.072M vs. Q1 2024 loss of $26.287M)

Net income turned positive in Q1 2025, shifting from a loss of $26.287M in Q1 2024. Key contributors include eliminating or reducing large convertible note-related losses, lower cost of sales, and improved segment performance that boosted overall profitability relative to the prior period. " "

Operating Income

Shifted from loss to $8.172M

Operating income improved markedly from a loss in Q1 2024 to $8.172M in Q1 2025. This turnaround was driven by operational efficiencies such as higher gross profit and lower SG&A expenses, which contrasts with previous underperformance. "

Earnings Per Share (EPS)

Improved from –$0.17 to $0.02

EPS improved significantly, moving from a loss of $0.17 per share in Q1 2024 to a positive $0.02 per share in Q1 2025. This change reflects the cumulative effect of better net and operating income metrics compared to the prior period. " "

Operating Cash Flow

Q1 2025: $16.442M (improved trend)

Operating cash flow was reported at $16.442M in Q1 2025. This improvement is associated with the turnaround in operating income, although it was partially offset by higher regulatory recertification costs and reduced working capital inflows when compared to Q1 2024. "

Cash and Cash Equivalents

Increased by $1.96M ($369,987K vs. $368,030K)

Cash and cash equivalents increased slightly by approximately $1.96M. This modest rise is attributed to improved cash generation from operating and financing activities, as evidenced by the slight liquidity bump compared to the prior period. " "

Revenue

FY 2025

$1.36 billion to $1.5 billion "

Approximately $1.3 billion; range: $1.25 billion to $1.41 billion "

lowered

EBITDA

FY 2025

$320 million to $380 million "

Approximately $275 million, ±10% "

lowered

Free Cash Flow

FY 2025

$175 million to $225 million "

Approximately $130 million, ±$30 million "

lowered

Capital Expenditures

FY 2025

$70 million to $90 million "

$65 million to $75 million "

lowered

Long-term Contracts and Diversified Backlog

Previous calls (Q2–Q4 2024) repeatedly emphasized multi‐year agreements with Petrobras, Shell, and other examples; highlighted strong contract coverage, diversified revenue from both fossil and renewables projects, and significant backlog figures (e.g., $1.4B in Q1 2025 vs. robust backlog in Q4 2024 and Q3 2024). " " " " "

In Q1 2025, the discussion reaffirmed the strength of long-term contracts and the diversified backlog. Specific examples include multi-year contracts (3-year contracts with Petrobras), a significant backlog ($1.4B), and an extended trenching contract in renewable projects. " " "

Consistent presence. The sentiment remains positive with continuity in leveraging long-term contracts for stability; no new concerns emerged.

Well Intervention Contract Rate Improvements

Q2 through Q4 2024 calls detailed rate improvements driven by transitioning legacy contracts to market rates, negotiations for 2-3 year agreements at higher rates, and examples of 40% and 20% rate increases in Brazil and Gulf markets. " " " "

Q1 2025 reported continued improvement with higher rates confirmed in Brazil (new 3-year contracts and a rate extension) but with some geographic variations (downward pressure in shallow water abandonment due to competition). " "

Steady improvement. The rate upgrade momentum that started in previous periods is maintained in Q1 2025, with overall optimism tempered by minor regional challenges.

Robotics Segment Growth and Pipeline

Across Q2–Q4 2024, Robotics was noted for strong performance—robust utilization across multiple vessels in trenching, ROV support, site surveys, significant new trenching contracts (e.g., 300-day Hornsea 3), and a very long pipeline extending into 2027–2032. " " " "

Q1 2025 demonstrated a strong quarter for Robotics, with six vessels operating globally, high utilization in renewables and oil/gas, and continued pipeline strength into 2025 and beyond. "

Consistently robust and positive. Continued strength in bookings and pipeline with similar operational success despite seasonal conditions.

Financial Health and Proactive Cost Management

Prior periods (Q2–Q4 2024) stressed strong cash positions, positive free cash flow, negative net debt, disciplined CapEx management, rightsizing costs, and even share repurchase plans; details included strong liquidity figures and minimal debt maturities. " " " "

Q1 2025 confirmed a strong balance sheet (e.g., $370M in cash, negative net debt) alongside proactive measures such as vessel stacking and capital expenditure adjustments to adapt to market conditions. " " "

Steady and reassuring. Financial discipline and cost management strategies remain central, reinforcing stability amid market challenges.

Market and Regulatory Uncertainties

Q2–Q4 2024 discussions cited geopolitical risks, regulatory changes (e.g., windfall profits tax, permitting issues), seasonal weather impacts, and soft markets in segments like North Sea Well Intervention and U.S. wind farm developments. " " " "

Q1 2025 emphasized significant uncertainties: a challenging U.K. North Sea regulatory environment, global tariff and oil dynamics, and operational adjustments (e.g., stacking vessels) due to lower activity. The tone was cautious yet underscored resilience due to diversified contracts and strong backlog. " " "

Consistently cautious. While uncertainties persist across periods, Q1 2025 reaffirms an adaptation to these challenges, with proactive operational shifts.

Shallow Water Abandonment Performance and Rebound Potential

In Q2–Q4 2024, SWA was characterized by a soft market, seasonal delays, lower than expected utilization, and high volatility due to weather and bankruptcy-related delays; yet, long‐term rebound potential and cost realignment were identified. " " " " "

In Q1 2025, SWA activity was low seasonally with expected improvements in Q2/Q3; profitability is modestly up due to cost reductions and cautious optimism about a rebound driven by aging wells and renewed client activity. " " " "

Cautious optimism. The continuity of seasonality-related challenges is noted, but cost reduction efforts and long-term outlook provide a hopeful trend.

Deferred Revenue, Operational Disruptions, and Weather Impacts

Q2 and Q3 2024 extensively discussed deferred revenue issues due to mobilizations (e.g., Q4000 and Q7000), significant operational “noise” from mobilizations, and weather impacts (hurricanes causing $10M revenue loss). " " " "

Q1 2025 did not specifically mention deferred revenue and placed minimal emphasis on operational disruptions; only seasonal factors were noted, and operations were largely maintained with low disruption. "

Diminished emphasis. Whereas previous calls delved into technical accounting deferrals and weather-related disruptions, Q1 2025 shows a reduced focus on these issues, implying smoother operations this quarter.

Seasonality and Utilization Challenges

Throughout Q2–Q4 2024, seasonality was a recurring theme: winter slowdowns in the North Sea, seasonal weather impacting utilization in SWA and Well Intervention, and planned maintenance and transit impacts affecting revenue recognition. " " " " "

In Q1 2025, low seasonal utilization was anticipated (especially in North Sea and SWA), with expectations of recovery later in the year; Robotics maintained strong performance despite winter conditions. " " "

Consistent acknowledgment. Seasonality remains a predictable challenge. The narrative is consistent: low Q1 utilization with expected rebound in warmer periods.

International Contract and Market Risks

Q2–Q4 2024 highlighted mixed international market dynamics: successes in Brazil and Nigeria, challenges in the U.K. North Sea, and complexities from global mobilizations and transit delays due to international contract negotiations. " " " "

Q1 2025 focused on international risk by pointing to a severely weak U.K. North Sea market, contrasted with growth in Brazil and manageable risks in African and Gulf markets; overall risk was mitigated by strong contractual positions. " " " "

Balanced but evolving. The risks remain international in scope, with increasing emphasis in Q1 2025 on the U.K. market’s challenges balanced by success in other regions.

High Asset Prices Affecting M&A Activities

Q4 2024 discussed high asset prices limiting immediate M&A due to inflated vessel valuations, with anticipatory commentary on potential future opportunities; Q3 2024 noted market chatter while not commenting directly, and Q2 2024 had no mention. " " "

In Q1 2025, executives explicitly remarked that high asset prices and market uncertainty make closing M&A deals challenging, thus shifting focus towards share repurchases as the preferred capital allocation. "

Renewed focus. While mentioned intermittently in prior periods, this topic is reaffirmed in Q1 2025 with a clear strategic pivot away from M&A due to current valuation concerns.

Operational Flexibility and Quick Vessel Reactivation

No discussion of operational flexibility or rapid reactivation was mentioned in Q2–Q4 2024 earnings calls (these topics were not explicitly covered) [—].

Q1 2025 introduced operational flexibility with an emphasis on their ability to reactivate vessels within 2 to 3 weeks, showcasing enhanced agility in operations as part of their market responsiveness strategy. "

New topic. This is an emergent focus in Q1 2025, reflecting a shift towards highlighting rapid response capabilities that had not been previously emphasized.