SEACOR Marine Holdings Inc. (SMHI)·Q3 2025 Earnings Summary

Executive Summary

• Q3 2025 revenue was $59.2M and GAAP EPS was $0.35, driven by $30.2M in gains on asset sales and a $4.6M insurance settlement; net income was $9.0M . Versus S&P Global consensus, revenue missed $65.9M* while EPS beat -$0.59*, aided by the non-recurring gains (one estimate for each metric)* .
• Operating environment mixed: average day rates held at $19,490 while utilization slipped to 66% (vs. 68% in Q2 and 67% YoY); DVP margin was 19.4% (vs. 18.6% in Q2 and 23.2% YoY) .
• Strategic actions: closed the sale of two 335’ liftboats ($76.0M proceeds; $30.5M gain) and won multi-year contracts in Brazil for two hybrid PSVs starting Q1 2026—supporting a pivot away from high-volatility markets and the North Sea .
• Balance sheet/liquidity strengthened: cash rose to $90.953M and restricted cash to $17.255M, helped by $76.068M in asset sale proceeds in Q3 .
• Near-term stock catalysts: EPS beat vs. a negative consensus*, sequential DVP margin improvement, asset monetization cash inflow, and visibility from Brazil PSV awards; offsets include revenue miss vs. consensus*, lower utilization, and North Sea softness* .

What Went Well and What Went Wrong

What Went Well

• Turned to profit: Net income $9.0M ($0.35 EPS) versus a $6.7M loss in Q2 and $16.3M loss in Q3’24, supported by $30.2M gains on asset dispositions and a $4.6M insurance gain .
• PSV strength and forward wins: PSV segment delivered a 24.8% DVP margin; two large hybrid PSVs secured multi‑year Brazil contracts commencing Q1 2026, reducing North Sea exposure .
• FSV improvements and capital redeployment: FSV utilization/dayrates improved; two U.S. cold‑stacked FSVs reactivated (one redeployed internationally), and sale of two liftboats raised $76.0M at compelling values, reinforcing the shift away from volatile markets .

What Went Wrong

• Top-line pressure and utilization dip: Revenue fell 14.1% YoY and 2.7% QoQ; utilization declined to 66% (vs. 68% in Q2) amid lower premium liftboat utilization and soft North Sea conditions .
• Regional headwinds: The Middle East posted a DVP loss due to a premium liftboat off‑hire for repairs through the entire quarter; North Sea pricing/usage remained soft .
• Margin compression YoY: DVP margin slid to 19.4% from 23.2% a year ago, weighed by $9.9M of drydocking/major repairs (vs. $8.3M YoY; $9.2M in Q2), though sequential DVP margin improved .

Financial Results

Headline P&L and Vessel Economics (oldest → newest)

Notes: Operating income includes “Gains on Asset Dispositions and Impairments, Net” ($30.230M in Q3 2025) and a $4.581M insurance gain, which materially impacted GAAP profitability .

Key KPIs (oldest → newest)

Segment Breakdown (Q3 2025)

Guidance Changes

Earnings Call Themes & Trends

(Transcript unavailable; themes based on CEO prepared remarks and filings)

Management Commentary

• “The third quarter results reflect lower revenues driven by lower utilization in our premium liftboat fleet and soft market conditions in the North Sea.”
• “We completed the sale of our two 335’ class liftboats… Additionally, one of our premium liftboats in the Middle East remained off hire undergoing repairs during the entire quarter. This vessel has now completed its repairs and is mobilizing towards a contract.”
• “Our fast supply vessel fleet saw improved utilization and dayrate performance… The platform supply vessel fleet generated a 24.8% DVP margin… we were awarded multi‑year contracts in Brazil for two of our large hybrid‑powered PSVs… These contracts will reduce our presence in the North Sea to two PSVs.”
• “The successful execution of the liftboat sale… allows us to continue our strategic shift away from high volatility markets… fund our newbuild PSV program… explore opportunities to redeploy capital into more attractive assets or consolidation.”

Q&A Highlights

• Earnings call transcript not available on the company’s IR site as of this writing; Q&A details were not accessible to review .

Estimates Context

• Q3 2025 S&P Global consensus: Revenue $65.9M*, EPS $(0.59)* (1 estimate for each)*. Actuals: Revenue $59.2M, EPS $0.35—revenue missed while EPS beat materially, aided by non‑recurring gains .
• Implications: Models likely raise non‑operating items/other income (asset sale and insurance gains) while trimming core revenue/segment utilization assumptions near‑term; attention shifts to utilization recovery, Brazil startup in 2026, and reduced North Sea exposure .
  Values retrieved from S&P Global.*

Key Takeaways for Investors

• Core operations faced utilization headwinds and North Sea softness; revenue declined YoY and QoQ despite stable day rates .
• Reported profitability benefited from $30.2M asset sale gains and a $4.6M insurance gain; underlying run‑rate earnings remain sensitive to utilization and maintenance schedules .
• Sequential DVP margin improved to 19.4% vs. 18.6% in Q2, showing progress despite elevated drydocking/repairs; YoY margin still compressed versus 23.2% .
• Strategic sale of two liftboats for $76.0M and Brazil hybrid PSV contract wins de‑risk the portfolio, reduce North Sea exposure, and support liquidity/newbuild funding .
• Liquidity strengthened (cash $90.953M; restricted cash $17.255M), bolstered by $76.068M proceeds; leverage remains significant (long‑term debt ~$311.9M) .
• Near‑term focus: redeployment of repaired Middle East liftboat, continued FSV reactivations, execution on Brazil PSVs, and further cost structure streamlining .
• Trading frame: EPS beat vs. a negative consensus*, revenue miss*, and clear portfolio repositioning narrative; monitor utilization and North Sea pricing data points for next quarter’s setup .

Additional Detail

Non‑GAAP/Non‑recurring impact

• Gains on asset dispositions and impairments, net: $30.230M in Q3 2025 (vs. $1.821M in Q3 2024; $19.163M in Q2 2025) .
• Gains on insurance claim settlement: $4.581M in Q3 2025 .
• These items significantly increased operating income and net income in Q3 2025 .

Cash Flow and Balance Sheet (Q3 2025)

• Cash from investing activities: +$66.720M (driven by $76.068M proceeds from vessel dispositions; $9.348M capex) .
• Quarter‑end cash $90.953M; restricted cash $17.255M; long‑term debt $311.858M .

Vessel Class Highlights (Q3 2025)

• PSV revenue $25.877M; PSU DVP cost stack shows continued drydock/repair spend; segment benefited from Brazil awards for 2026 start .
• FSV revenue $19.697M; reactivation of U.S. units improved utilization and dayrates .
• Liftboats revenue $13.516M; utilization 58% with downtime around sales and repairs; two 335’ units sold end‑Q3 .

Regional Performance (Q3 2025)

• Africa & Europe: $23.090M revenue, $5.001M DVP; still facing North Sea softness but remained profitable .
• Latin America: $12.047M revenue, $6.061M DVP; solid contribution .
• Middle East & Asia: $12.925M revenue, $(0.847)M DVP; liftboat off‑hire drove the loss; repairs now completed .
• U.S. Gulf: $11.132M revenue, $1.295M DVP; improving liftboat dayrates; FSVs moving to international markets .

Estimates vs. Actuals (Q3 2025)

Sources: Q3 2025 8‑K and press release, segment/class details, and 10‑Q tables ; prior quarters Q2 2025 and Q1 2025 8‑Ks .