Helix Energy Solutions Group, Inc. Q1 FY2026 earnings call

Helix's team had a well-executed quarter with safe and efficient service. Highlights included strong utilization, Thunderhawk field workover, return to two-vessel market in North Sea. Combination of Helix and Hornbeck brings together market leaders, diversified fleet, expanded service offerings, strategic and financial synergies expected, global presence alignment, complementary business offerings, and combined customer base with cross-selling opportunities.

Helix's first quarter 2026 revenues were $288 million, with a gross profit of $9 million, resulting in a net loss of $13 million. Adjusted EBITDA for the quarter was $32 million, operating cash flow was $62 million, and free cash flow was $59 million. Cash position was $501 million and liquidity was $612 million at the end of the quarter. Revenue contribution details for segments like well intervention, robotics, shallow water abandonment, etc., were mentioned in the context of seasonal impacts in North Sea and Gulf of America shelf.

Maintaining guidance for 2026: revenue 1.2 billion to 1.4 billion, EBITDA 230 to $290 million, CAPEX 70 million to $80 million, pre-cash flow 100 to $160 million. Key drivers include second half utilization, late season North Sea intervention, strong robotic fleets, stable shallow water abandonment.

Q: Could you bucket the $75 million of synergies a little bit better and initial capture?

A: Majority likely from revenue synergies and cost efficiencies, companies don't overlap much, can offer bundled services.

Q: On $2 billion backlog, duration and makeup?

A: Helix and Hornbeck each about a billion, includes long-term contracts with military and specialty vessels.

Q: On $75 million synergies split between revenue and cost?

A: Not specified yet, majority likely revenue and cost efficiencies.

Q: On capital intensity of OSV business?

A: Strictly deep water, ultra deep water, market equilibrium with potential growth.

Q: On demand in different regions?

A: North Sea has improved utilization and rates, America has production enhancement activity, Brazil has high activity, Mexico has potential growth.

Q: On ROV market tightness and capital spending?

A: ROV market tight, can scale up ROV business quickly, lead time for new ROV is six months.

Q: On Hornbeck net debt?

A: Gross debt around 440 million, net debt around 380 million.

Q: Why good deal for Helix shareholders?

A: Combination creates scale, reduces cost of capital, grows business for significant shareholder value