Total Revenue

Declined to $278.06M in Q1 2025 from $296.21M in Q1 2024 (–6% YoY)

Reduced overall activity in Q1 2025, with the steep ~37% drop in Shallow Water Abandonment revenue and a modest ~8% decline in Well Intervention revenue, while Robotics remained flat, contributed to the overall decrease. " " This contrasts with the previous period when higher vessel utilization and contract removals supported stronger top‐line figures.

Net Income

Rebounded to $3,072k in Q1 2025 from a loss of $26,287k in Q1 2024

The dramatic turnaround is attributed to cost reductions and operational efficiencies, including lower expenses related to convertible note losses and improved gross margins, resulting in a strong recovery from the prior period’s significant losses. " "

Operating Income

Improved to $8,172k in Q1 2025 from –$1,276k in Q1 2024

Enhanced operating performance, driven by better segment profitability (notably from improved gross profit) and more efficient cost management, reversed the previous quarter's losses, reflecting a clear recovery in operating leverage compared to Q1 2024. " "

Gross Profit

Increased approximately 41% YoY to $27,538k in Q1 2025 from $19,554k in Q1 2024

Gross margin expansion was primarily due to improved revenue mix and better cost control in key segments such as Well Intervention and Production Facilities, leading to a significant jump in gross profit over the prior period. " "

Segment Performance

Shallow Water Abandonment: –37% drop to $16.82M; Well Intervention: ~8% decline to $198.37M; Robotics: flat at $51.04M

Divergent segment results impacted overall performance. A sharp decline in Shallow Water Abandonment due to lower vessel/system utilization weighed down total revenue, whereas Well Intervention experienced a modest decline and Robotics held steady. In Q1 2024, better market conditions and utilization rates supported stronger segment performance. " "

Net Cash Provided by Operating Activities

Dropped by over 70% YoY to $16,442k in Q1 2025 from $64,484k in Q1 2024

The steep decline is due to higher regulatory recertification costs and reduced working capital inflows in Q1 2025, contrasting with the prior quarter where operating cash flows were bolstered by more favorable working capital and lower non-operational outflows. " "

Shareholders’ Equity

Increased about 5.3% YoY to $1,545,265k in Q1 2025

A net income recovery and improved operational performance positively impacted retained earnings, which helped boost shareholders’ equity in Q1 2025 compared to previous periods where losses and other adjustments had suppressed equity levels. " "

Total Liabilities

Decreased roughly 7% YoY to $323,395k in Q1 2025

The decline in liabilities reflects improved balance sheet management with lower short-term borrowings and reduced current liabilities, a trend that contrasts with earlier periods when higher operating lease liabilities and current maturities had pushed total liabilities upward. " "

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.