Seatrium Stock Earnings Reports

Seatrium reported strong FY2025 results driven by disciplined execution and margin improvement following the merger. Revenue grew ~24% to $11.5bn and net profit more than doubled to $324m. Gross margin expanded to 7.4% (from 3.1% prior year) and operating cash flow and free cash flow improved materially (operating cash flow of $142m; excluding one-offs, OCF ~$440m and FCF $443m). Net order book stands at $17.8bn with >95% Series‑Build projects (lower execution risk) and management is pursuing a $32bn pipeline across oil & gas, offshore wind, and conversion opportunities. Key project highlights include FPSO P-78 (first oil) and Empire Wind (>97% complete). Management has completed cost‑saving and synergy targets, accelerated non‑core asset divestments (targeting >$330m cash proceeds and >$50m annualized cost savings), reduced gross debt to $2.5bn, lowered cost of debt to 3.4%, and maintained strong liquidity (~$3.1bn cash & undrawn facilities). Board proposes doubling the dividend to $0.03/share and continuation of a $100m buyback. Risks disclosed: provisions of ~$96.5m mainly for two U.S. projects (delivered) and NApAnt (legacy naval project delayed to 2027), plus ongoing sensitivity to FID timing and customer investment cycles (notably in Latin America). Management expects continued margin expansion toward mid‑teens project-level returns over time, improving mix of higher‑margin post‑merger contracts, and further benefits from divestments and productivity initiatives including digitalization/AI.