Helix Energy (HLX) AI Stock Analysis

• Market Cap: $959.82M
• Dividend Yield: N/A
• Average Volume (3M): 1.72M
• Price to Earnings (P/E): 20.0
• Beta (1Y): 0.94
• Revenue Growth: -8.19%
• EPS Growth: N/A
• Country: US
• Employees: 2,313
• Sector: Energy
• Sector Strength: 66
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): -0.02
• Shares Outstanding: 146,985,580
• 10 Day Avg. Volume: 1,260,470
• 30 Day Avg. Volume: 1,718,225
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.30
• Enterprise Value/Revenue: 0.98
• Enterprise Value/Gross Profit: 7.49
• Enterprise Value/Ebitda: 5.82
• 1Y Price Target: $10.00
• Price Target Upside: 51.52% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 64 Neutral
• Price Target: $6.50 ▼(-1.52% Downside)

Helix Energy's overall score reflects its improving financial performance and strong cash position, tempered by bearish technical indicators and challenges highlighted in the earnings call. The company's valuation is moderate, but ongoing market challenges and negative cash flow impact its attractiveness.

Positive Factors

Financial Health

The company has zero net debt and is expected to take advantage of the share price weakness.

Free Cash Flow

HLX is still expected to generate strong levels of FCF under its reduced guidance — with a continued plan to allocate at least 25% to share repurchases.

Market Opportunities

Despite the recent bad news there were new awards in the UK North Sea and Shallow Water markets while Robotics continues to build on a strong outlook.

Negative Factors

Guidance Revision

The 2Q miss and 2nd negative FY guidance revision was disappointing but the risk/reward here is very favorable & patient investors will be vindicated.

Market Conditions

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 Reduction

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 Business Overview & Revenue Model

Company Description

Helix 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 Money

Helix Energy generates revenue primarily through its Well Intervention and Robotics services. The company's Well Intervention segment offers various solutions that enhance oil and gas production, including well access, well maintenance, and decommissioning services. These services are often contracted on a project basis or through long-term agreements with major oil companies. The Robotics segment contributes to revenue through the provision of ROV services for inspection, maintenance, and construction tasks in offshore environments. Additionally, Helix benefits from partnerships with other major players in the energy sector, which can lead to joint ventures and collaborative projects. Overall, the company's earnings are influenced by the demand for offshore energy services, oil prices, and the overall health of the oil and gas industry.

Helix Energy Financial Statement Overview

Summary

Helix Energy shows improving profitability with a positive net profit margin and strong cash flow generation. However, moderate EBIT margins and increasing debt levels require attention.

Income Statement

Helix Energy shows a consistent improvement in profitability, with a TTM net profit margin of 3.92%, recovering from losses in previous years. Revenue growth has been steady with a notable increase since 2022. Gross profit margins have also improved, indicating better cost management. However, the EBIT margin is moderate, showing room for efficiency improvements.

Balance Sheet

The company's debt-to-equity ratio stands at 0.41, reflecting a balanced leverage position. The equity ratio of 58.68% suggests a stable financial structure. However, slight increases in total debt over time could pose a risk if not managed carefully. Return on equity has improved to 3.2% in TTM, indicating better profitability from shareholders' equity.

Cash Flow

Operating cash flow remains strong and exceeds net income, with a TTM operating cash flow to net income ratio of 2.65, highlighting effective cash generation. Free cash flow remains positive, supporting financial flexibility. The free cash flow growth rate shows a decline compared to the previous year, which may need attention.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.28B	1.36B	1.29B	873.10M	674.73M	733.55M
Gross Profit	167.01M	219.56M	200.36M	50.62M	15.39M	79.91M
EBITDA	214.81M	253.17M	192.99M	87.68M	94.36M	164.45M
Net Income	50.11M	55.64M	-10.84M	-87.78M	-61.68M	22.17M
Balance Sheet
Total Assets	2.67B	2.60B	2.56B	2.39B	2.33B	2.50B
Cash, Cash Equivalents and Short-Term Investments	319.74M	368.03M	332.19M	186.60M	253.51M	291.32M
Total Debt	643.26M	661.12M	540.57M	469.68M	410.95M	502.17M
Total Liabilities	1.10B	1.08B	1.06B	872.63M	678.56M	757.78M
Stockholders Equity	1.57B	1.52B	1.50B	1.52B	1.65B	1.74B
Cash Flow
Free Cash Flow	112.82M	162.72M	132.87M	17.60M	131.79M	78.56M
Operating Cash Flow	133.02M	186.03M	152.46M	51.11M	140.12M	98.80M
Investing Cash Flow	-24.57M	-22.84M	-18.66M	-138.29M	-8.27M	-19.28M
Financing Cash Flow	-64.56M	-125.31M	25.11M	-44.84M	-96.00M	-52.58M

Helix Energy Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HLX, the sentiment is Positive. The current price of 6.6 is above the 20-day moving average (MA) of 6.11, above the 50-day MA of 6.24, and below the 200-day MA of 7.61, indicating a neutral trend. The MACD of 0.11 indicates Negative momentum. The RSI at 61.54 is Neutral, neither overbought nor oversold. The STOCH value of 86.68 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HLX.

Helix Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OII	79 Outperform	$2.44B	11.95	27.08%	―	8.14%	62.72%
XPRO	78 Outperform	$1.42B	19.75	4.78%	―	2.67%	―
RES	72 Outperform	$1.05B	19.21	4.92%	3.46%	-2.74%	-54.52%
MRC	67 Neutral	$1.27B	41.18	5.66%	―	-9.81%	-124.43%
Sector *	66 Neutral	$15.26B	7.30	3.22%	5.27%	4.16%	-60.82%
HLX	64 Neutral	$959.82M	20.04	3.27%	―	-8.19%	―
WTTR	59 Neutral	$1.01B	25.99	4.18%	3.22%	-2.46%	-44.11%

Helix Energy Corporate Events

Helix Energy Reports Q2 2025 Net Loss

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.