Helix Energy Solutions Group, Inc. Q4 FY2025 earnings call

• Brent Arriaga started the call, Ken Neikirk discussed forward-looking statements. Scott Sparks reviewed fourth quarter and full year 2025 results, financial performance, operations, and market view. Highlights included strong fourth quarter earnings, improved segments like Robotics and Brazil, strong cash and liquidity. Mentioned Owen Kratz's intent to retire and Board's succession plan. Brent Arriaga discussed balance sheet metrics. Erik Staffeldt provided 2026 outlook, guidance on financial metrics, and segment-specific details. Owen Kratz discussed 2025 performance and 2026 outlook, noting macro uncertainties and expected market improvements

In the fourth quarter, revenues were $334 million, gross profit $51 million, net income $8 million, adjusted EBITDA $74 million, operating cash flow $113 million, free cash flow $107 million. For the year, revenues were $1.3 billion, gross profit $159 million, net income $31 million, adjusted EBITDA $272 million, operating cash flow $137 million, free cash flow $120 million. Cash and liquidity strong with $445 million cash and cash equivalents and $554 million liquidity at year-end. Well Intervention segment: Gulf of America Q5000 had high utilization, Q4000 had gaps; North Sea Well Enhancer 70% utilization, Seawell on warm stack; Q7000 100% utilization in Brazil, SH1 61% utilization, SH2 100% utilization. Robotics business: Strong quarter, operated 6 vessels, worked on renewables and oil and gas projects, renewables and trenching outlook robust. Shallow water abandonment: Q4 Hedron 92% utilization, dive boats 54%, lift boats 53%, P&A spreads 538 days, coil tubing systems 83 days

• Revenue $1.2 billion to $1.4 billion, in line with 2025. EBITDA $230 million to $290 million, impacted by Thunder Hawk workover and Sea Helix 1 docking. CapEx $70 million to $80 million. Free cash flow $100 million to $160 million. Key drivers include second half utilization on Q4000 and Q7000, recovery of North Sea well intervention market, strong robotics fleet markets, and stable shallow water abandonment segment

Q: Connor Jensen asked about preference of using cash for repurchases vs M&A and M&A market outlook.

A: Owen Kratz said there are actionable opportunities being assessed.

Q: Connor Jensen asked about North Sea market after weaker activity.

A: Scott Sparks said 2026 North Sea market better, swing towards decommissioning.

Q: James Schumm asked about robotics revenue guidance components.

A: Scott Sparks said oil and gas side flat, trenching increasing with rate improvement.

Q: James Schumm asked about Q1 expectations.

A: Erik Staffeldt said Thunder Hawk workover is Q1 event, S Helix 1 is Q2 or Q3 event.

Q: Joshua Jayne asked about Q7000 back half of year and Brazil intervention market.

A: Scott Sparks said Q7000 has opportunities in Brazil and West Africa.

Q: Joshua Jayne asked about Well Intervention segment competition.

A: Owen Kratz and Scott Sparks discussed competition in shallow water market and rig white space.

Q: John Basler asked about gaps in portfolio for M&A.

A: Owen Kratz and Erik Staffeldt discussed strategic growth directions.

Q: James Schumm asked about dry docks out of service days.

A: Erik Staffeldt and Scott Sparks discussed dry dock schedules.

Q: Benjamin Sommers asked about well intervention work pricing and market improvement.

A: Scott Sparks said improved rates expected in U.S. Gulf of Mexico and North Sea.

Q: Benjamin Sommers asked about Gulf near-term utilization.

A: Scott Sparks said Q5000 and Q4000 have certain utilization patterns