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Helix Energy Solutions (HLX)
:HLX
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Helix Energy (HLX) AI Stock Analysis

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HLX

Helix Energy

(NYSE:HLX)

Rating:59Neutral
Price Target:
$6.50
▲(8.51%Upside)
Helix Energy's overall score reflects a blend of strong financial recovery and operational challenges. While financial performance shows robust improvement, technical indicators and recent earnings events suggest caution. The valuation is reasonable but lacks a dividend appeal. Corporate events, including a recent net loss, also weigh on the score.
Positive Factors
Financial Performance
The company has zero net debt and is expected to take advantage of the share price weakness.
Future Growth Potential
The company is positioned for future growth with potential upside from the UK North Sea, strong offshore wind demand growth, and pricing in Subsea Robotics.
Operational Strength
Strong contract coverage and rising earnings suggest continued operational strength despite recent stock performance.
Negative Factors
Guidance Reduction
Helix underperformed the OIH by ~340 bps after reporting a strong 1Q beat but slashed 2025 EBITDA guidance by 21% mainly owing to weakness in the UK North Sea well intervention market.
Market Uncertainty
An increasingly punitive tax regime in the UK, recent operator consolidation and the sharp drop in oil prices led to a perfect storm in the UK North Sea and it tanked Helix's guidance.
Revenue Impact
Recent M&A activity and softer oil prices/market uncertainty appear to have piled on to cause activity to shift to the right - leading to a $70 million reduction in revenues.

Helix Energy (HLX) vs. SPDR S&P 500 ETF (SPY)

Helix Energy Business Overview & Revenue Model

Company DescriptionHelix Energy Solutions Group, Inc., an offshore energy services company, provides specialty services to the offshore energy industry primarily in Brazil, the Gulf of Mexico, North Sea, the Asia Pacific, and West Africa regions. The company operates through three segments: Well Intervention, Robotics, and Production Facilities. It engages in the installation of flowlines, control umbilicals, and manifold assemblies and risers; trenching and burial of pipelines; installation and tie-in of riser and manifold assembly; commissioning, testing, and inspection activities; and provision of cable and umbilical lay, and connection services. The company also provides well intervention, intervention engineering, and production enhancement services; inspection, repair, and maintenance of production structures, trees, jumpers, risers, pipelines, and subsea equipment; and related support services. In addition, it offers reclamation and remediation services; well plug and abandonment services; pipeline abandonment services; and site inspections. Additionally, the company offers oil and natural gas processing facilities and services; and fast response system, as well as site clearance and subsea support services. It serves independent oil and gas producers and suppliers, pipeline transmission companies, renewable energy companies, and offshore engineering and construction firms. The company was formerly known as Cal Dive International, Inc. and changed its name to Helix Energy Solutions Group, Inc. in March 2006. Helix Energy Solutions Group, Inc. was incorporated in 1979 and is headquartered in Houston, Texas.
How the Company Makes MoneyHelix Energy Solutions generates revenue through its two main segments: Well Intervention and Robotics. The Well Intervention segment provides services such as subsea intervention, well decommissioning, and well abandonment, which are essential for maintaining and enhancing the production of oil and gas wells. This segment's revenues are primarily driven by contracts with oil and gas operators for these specialized services. The Robotics segment offers remotely operated vehicles (ROVs), trenching, and cable laying services, which support subsea construction and maintenance activities. Helix's revenue streams are significantly influenced by its long-term contracts with major energy companies, market demand for offshore well services, and the company's technological advancements, which enhance operational efficiency and effectiveness.

Helix Energy Earnings Call Summary

Earnings Call Date:Jul 23, 2025
(Q2-2025)
|
% Change Since: -13.94%|
Next Earnings Date:Oct 22, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a mixed outlook for Helix Energy Solutions Group, highlighting strong performance in the Robotics and Brazil segments, alongside significant financial and operational challenges, particularly in the Well Intervention and Shallow Water Abandonment segments. The company remains financially strong but faces uncertainty and market softness in key areas.
Q2-2025 Updates
Positive Updates
Strong Robotics Business and Renewables Outlook
Robotics had a strong quarter with 7 vessels operating on trenching, ROV support, and site survey work globally. A multiyear 800-day minimum trenching spread contract in the North Sea was secured, commencing in 2027, with a strong long-term outlook into 2032.
Brazil Operations and Long-term Contracts
Helix operated 3 vessels in Brazil on longer-term contracts, including a 3-year contract with Petrobras for the Siem Helix 1, and successfully completed a 400-day decommissioning campaign with Shell.
Solid Balance Sheet and Liquidity Position
Helix maintained strong cash and liquidity with $320 million in cash and cash equivalents and $375 million in liquidity at quarter end. The company anticipates generating meaningful free cash flow in the second half of 2025.
Exxon Framework Agreement
Executed a 3-year framework agreement with Exxon for shallow water decommissioning in the Gulf of America, providing roughly 1,000 days of utilization in the P&A spreads over the 3-year period.
Negative Updates
Negative Financial Performance
The company reported a net loss of $3 million in Q2, compared to a net income of $3 million in Q1. Adjusted EBITDA was $42 million, with negative operating cash flow of $17 million and negative free cash flow of $22 million.
Regulatory and Market Challenges
The regulatory docking of the Q5000, demobilization of the Q4000, and market conditions in the U.K. led to the continued warm stacking of the Seawell, negatively impacting results.
Reduced 2025 Guidance
Revenue guidance was adjusted to $1.2 billion to $1.3 billion and EBITDA to $225 million to $265 million, both decreasing due to the softer Gulf of America Well Intervention market and deferred projects.
Shallow Water Abandonment and Well Intervention Market Weakness
The Shallow Water Abandonment segment and the Gulf of America Well Intervention market experienced significant declines, with competitive pressures, lower margins, and higher labor costs.
Company Guidance
During the Q2 2025 earnings call, Helix Energy Solutions Group updated their guidance for the remainder of the year. They adjusted their revenue outlook to a range of $1.2 billion to $1.3 billion and expected EBITDA to be between $225 million to $265 million, reflecting softer markets in the Gulf of America and the U.K. North Sea. Free cash flow is projected in the range of $90 million to $140 million, with capital expenditures anticipated to be between $70 million and $80 million, slightly increasing due to the accelerated regulatory maintenance on the Q4000. The company reported Q2 revenues of $302 million, a gross profit of $15 million, and a net loss of $3 million, compared to Q1 revenues of $278 million, gross profit of $28 million, and net income of $3 million. Adjusted EBITDA was $42 million, with a negative operating cash flow of $17 million, resulting in negative free cash flow of $22 million. Helix anticipates generating significant free cash flow in the second half of 2025, supported by strong cash and liquidity positions, with cash and cash equivalents at $320 million and liquidity at $375 million as of the quarter's end.

Helix Energy Financial Statement Overview

Summary
Helix Energy shows a strong recovery with improved profitability and cost management, as evidenced by a significant increase in gross and net profit margins. Although liabilities have increased, the overall balance sheet remains stable with manageable leverage.
Income Statement
78
Positive
Helix Energy's income statement shows a strong recovery trajectory with increasing revenue and profitability. The gross profit margin has improved significantly, reaching approximately 16.98% in TTM, up from 5.80% in 2022, indicating better cost management. Net profit margin improved markedly from negative figures in previous years to 6.34% in TTM, showcasing substantial profitability enhancement. The EBIT and EBITDA margins have also shown a positive trend, reflecting operational efficiency. Revenue growth has been robust, with a 54.33% increase from 2022 to 2023, and continued improvement into 2024 and 2025. Overall, the income statement reflects a positive growth trajectory and improved profitability.
Balance Sheet
70
Positive
The balance sheet of Helix Energy demonstrates a stable financial position with a solid equity base. The debt-to-equity ratio remains reasonable at approximately 0.42 in TTM, indicating manageable leverage levels. Although stockholders' equity has remained relatively stable, the equity ratio of about 58.64% in TTM reflects a solid capital structure. Return on equity (ROE) has improved significantly, from negative in prior years to around 5.50% in TTM, aligning with the company's profit recovery. However, the total liabilities have shown a gradual increase, which could be a potential risk if not managed carefully.
Cash Flow
82
Very Positive
Helix Energy's cash flow statements highlight strong cash generation capabilities. The operating cash flow to net income ratio stands at approximately 1.62 in TTM, indicating efficient conversion of income into cash. The free cash flow to net income ratio of about 1.34 suggests solid free cash flow generation, supporting financial flexibility. Notably, the free cash flow growth rate from 2023 to 2024 was 22.48%, reflecting successful cash management. The company has maintained positive free cash flow, which supports strategic investments and debt servicing. Overall, the cash flow position is strong, underpinning financial stability.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.36B1.29B873.10M674.73M733.55M
Gross Profit219.56M200.36M50.62M15.39M79.91M
EBITDA253.17M192.99M87.68M94.36M164.45M
Net Income55.64M-10.84M-87.78M-61.68M22.17M
Balance Sheet
Total Assets2.60B2.56B2.39B2.33B2.50B
Cash, Cash Equivalents and Short-Term Investments368.03M332.19M186.60M253.51M291.32M
Total Debt661.12M540.57M469.68M410.95M502.17M
Total Liabilities1.08B1.06B872.63M678.56M757.78M
Stockholders Equity1.52B1.50B1.52B1.65B1.74B
Cash Flow
Free Cash Flow162.72M132.87M17.60M131.79M78.56M
Operating Cash Flow186.03M152.46M51.11M140.12M98.80M
Investing Cash Flow-22.84M-18.66M-138.29M-8.27M-19.28M
Financing Cash Flow-125.31M25.11M-44.84M-96.00M-52.58M

Helix Energy Technical Analysis

Technical Analysis Sentiment
Negative
Last Price5.99
Price Trends
50DMA
6.55
Negative
100DMA
6.93
Negative
200DMA
8.18
Negative
Market Momentum
MACD
-0.06
Positive
RSI
40.97
Neutral
STOCH
63.22
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HLX, the sentiment is Negative. The current price of 5.99 is below the 20-day moving average (MA) of 6.44, below the 50-day MA of 6.55, and below the 200-day MA of 8.18, indicating a bearish trend. The MACD of -0.06 indicates Positive momentum. The RSI at 40.97 is Neutral, neither overbought nor oversold. The STOCH value of 63.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HLX.

Helix Energy Peers Comparison

Overall Rating
UnderperformOutperform
Sector (67)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
$1.03B15.234.91%10.48%
73
Outperform
$2.26B11.3126.97%8.14%
72
Outperform
$1.19B28.384.51%2.74%-4.91%-46.51%
72
Outperform
$1.10B14.204.92%3.33%-2.74%-54.83%
67
Neutral
$1.24B41.188.29%-9.84%-111.71%
67
Neutral
$15.28B9.736.25%5.18%4.49%-71.88%
59
Neutral
$907.67M18.523.27%-8.19%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HLX
Helix Energy
5.99
-6.45
-51.85%
MRC
MRC Global
14.61
-0.24
-1.62%
OII
Oceaneering International
23.95
-5.80
-19.50%
RES
RPC
4.81
-1.96
-28.95%
XPRO
Expro Group Holdings
8.91
-13.79
-60.75%
WTTR
Select Energy Services
9.87
-1.36
-12.11%

Helix Energy Corporate Events

Business Operations and StrategyFinancial Disclosures
Helix Energy Reports Q2 2025 Net Loss
Negative
Jul 24, 2025

Helix Energy Solutions Group reported a net loss of $2.6 million for the second quarter of 2025, a significant decline from the net income of $32.3 million in the same quarter of 2024. The company attributed the downturn to macroeconomic and geopolitical volatility, which led to customers delaying projects into 2026, impacting their financial performance. Despite these challenges, Helix is optimistic about generating meaningful free cash flow in 2025 and has secured new contracts, including a multi-year agreement with Exxon and a trenching contract in the North Sea.

The most recent analyst rating on (HLX) stock is a Buy with a $14.00 price target. To see the full list of analyst forecasts on Helix Energy stock, see the HLX Stock Forecast page.

Executive/Board ChangesShareholder MeetingsStock Buyback
Helix Energy Holds Annual Shareholders Meeting
Neutral
May 14, 2025

On May 14, 2025, Helix Energy Solutions Group, Inc. held its Annual Meeting of Shareholders, where three proposals were voted upon. T. Mitch Little and John V. Lovoi were elected as Class I directors, KPMG LLP was ratified as the independent accounting firm for 2025, and the 2024 executive compensation was approved. Additionally, the company completed a $30 million share repurchase during the second quarter of 2025 as part of its ongoing repurchase program initiated in February 2023.

The most recent analyst rating on (HLX) stock is a Buy with a $14.00 price target. To see the full list of analyst forecasts on Helix Energy stock, see the HLX Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 25, 2025