SEACOR Marine Holdings Inc. (SMHI)·Q1 2025 Earnings Summary

Executive Summary

• Q1 2025 was seasonally soft: revenue fell to $55.5M (−11.6% YoY; −20.5% QoQ) while average day rates held flat QoQ and utilization dropped to 60%; DVP margin was 24.5% (up YoY, down QoQ) .
• EPS modestly beat consensus while revenue missed: Diluted EPS −$0.56 vs −$0.57* and revenue $55.5M vs $65.3M*; mix of utilization headwinds and timing of maintenance drove the miss, partially offset by a $5.8M gain on asset sales .
• Management highlighted softness in the North Sea and Gulf of America and customer delays in Mexico, but noted healthy tendering in South America, West Africa, and the Middle East and reduced North Sea exposure heading into stronger seasonal quarters .
• Capital allocation and simplification: repurchased ~9.1% of diluted shares/warrants from Carlyle for ~$12.9M on April 4, funded by vessel sales; closed three additional vessel sales in April ($33.2M proceeds; $20.6M gain) and continue newbuild PSV program for Q4’26/Q1’27 deliveries .

Note: A Q1 2025 earnings call transcript was not available in our sources; insights reflect the 8‑K 2.02 press release and company news releases.

What Went Well and What Went Wrong

• What Went Well

  • Day rates stayed resilient for a third consecutive quarter despite regional softness; management cited “healthy tendering activity” in South America, West Africa and the Middle East .
  • Balance sheet/capital structure progress: repurchased ~9.1% of diluted shares/warrants from Carlyle for ~$12.9M; eliminated all outstanding warrants, funded by vessel sale proceeds .
  • Asset optimization: realized $5.6M gain on sale of a 2005 liftboat in Q1; April vessel sales added $33.2M of proceeds and a $20.6M gain to support repurchase and newbuild program .

• What Went Wrong

  • Utilization fell to 60% (from 72% in Q4), with seasonally higher maintenance/drydocking and repositioning intensifying utilization loss; revenue declined 20.5% QoQ, 11.6% YoY .
  • Regional headwinds persisted: “continued market softness in the North Sea and the Gulf of America” and “customer delays in Mexico” pressured activity .
  • Profitability compressed sequentially: DVP margin declined to 24.5% from 33.1% in Q4 on lower utilization and $3.9M of drydocking (vs $2.5M in Q4), although still improved YoY vs 23.4% .

Financial Results

Summary vs prior periods and estimates

Q1 2025 actuals vs S&P Global consensus

Values retrieved from S&P Global.
Bold indicates significance for traders.

Segment breakdown – Q1 2025

KPIs

Non-GAAP note: DVP is a non‑GAAP measure (operating revenues less operating costs/expenses); see company reconciliation and discussion of limitations .

Guidance Changes

Management provided qualitative color (regional demand, seasonality, decommissioning market) but no numerical revenue/margin/OpEx guidance in the press releases .

Earnings Call Themes & Trends

Note: No Q1 2025 call transcript found in our sources; commentary reflects CEO statements in press releases.

Management Commentary

• “Average rates held stable for a third consecutive quarter, despite continued market softness in the North Sea and the Gulf of America, as well as customer delays in Mexico.”
• “We continue to see healthy tendering activity in international markets... South America, West Africa and the Middle East... We have reduced our exposure in the North Sea...”
• On capital allocation: “We repurchased shares and warrants representing 9.1% of the outstanding shares... for approximately $12.9 million... to simplify our capital structure by eliminating all outstanding warrants.”
• Q4 context: “Substantial improvement in operating performance” on fewer out‑of‑service days; refinancing simplified debt and addressed near‑term maturities, enabling new PSV orders .

Q&A Highlights

• No Q1 2025 earnings call transcript was available in our sources; no Q&A items to report. We will update if the company publishes a transcript.

Estimates Context

• Q1 2025 consensus (S&P Global): Revenue $65.3M*, EPS −$0.57*; Actuals: Revenue $55.5M, EPS −$0.56. Result: revenue miss; small EPS beat, aided by $5.8M gain on asset dispositions .
  Values retrieved from S&P Global.

Where estimates may adjust:

• Near‑term revenue run‑rate likely resets lower given Q1 utilization and regional softness, though sequential recovery is plausible into seasonally stronger quarters; watch for utilization rebound and Mexico/North Sea pipeline updates from management .

Key Takeaways for Investors

• Utilization, not day rates, is the near‑term swing factor; stabilization of rates with improving seasonal activity is the lever for revenue recovery QoQ .
• Regional mix matters: Africa/Europe, Middle East/Asia, and Latin America delivered positive DVP in Q1; U.S. Gulf remains the laggard pending decommissioning pickup .
• Capital structure now cleaner post‑refinancing and April repurchase; warrant elimination reduces dilution overhang and may improve sentiment .
• Asset rotation continues to fund modernization; April vessel sales support newbuild PSVs due in Q4’26/Q1’27—potential medium‑term EBITDA uplift as assets deliver .
• Non‑GAAP drivers: DVP margin YoY improvement despite lower utilization indicates cost discipline; sequential compression should reverse with higher activity and lower maintenance concentration post‑Q1 .
• Monitor Mexico activity normalization and North Sea exposure reduction—management is tactically rotating exposure while preserving day‑rate integrity .
• Catalyst watch: sequential utilization recovery, decommissioning awards in U.S. Gulf, additional asset sales/charter wins, and updates on newbuild timelines .

Additional detail and data support

• Core financials and KPIs from Q1 2025 8‑K press release and detailed tables .
• Prior trend context from Q4 2024 and Q3 2024 earnings releases .
• Company press release (April 4, 2025) on repurchase .
• Company IR and GlobeNewswire postings for Q1 2025 results corroborate data .*

*External URLs included for completeness; underlying numbers are sourced from the company’s 8‑K/press materials cited above.