Helix Energy Solutions (HLX)
NYSE:HLX
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Helix Energy
(NYSE:HLX)
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Rating:68Neutral
Price Target:
$11.00
▲(17.02% Upside)
Action:Downgraded
Date:05/14/26
HLX scores highest on improving financial trajectory and cash generation with manageable leverage, supported by a constructive price trend. The score is held back by thin/volatile profitability (including a recent quarterly net loss) and weaker valuation optics from a negative P/E, with additional execution risk tied to the Hornbeck combination despite reiterated guidance, strong liquidity, and backlog visibility.
Positive Factors
Strong cash generation and FCF
Consistent positive operating cash flow and meaningful free cash flow provide durable financial flexibility to fund fleet maintenance, organic growth, and integration costs. Strong cash profiles reduce refinancing risk and support capital allocation through offshore cycle troughs and multi-year projects.
Negative Factors
Thin and volatile profitability
Low gross and net margins signal limited earnings power and high sensitivity to project costs, seasonality, and working-capital swings. Even with rising revenue, modest margins constrain returns on equity and make sustained profit growth reliant on structural margin improvement or successful cost synergies.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation and FCF
Consistent positive operating cash flow and meaningful free cash flow provide durable financial flexibility to fund fleet maintenance, organic growth, and integration costs. Strong cash profiles reduce refinancing risk and support capital allocation through offshore cycle troughs and multi-year projects.
Read all positive factors
Helix Energy (HLX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.48B
Dividend YieldN/A
Average Volume (3M)2.04M
Price to Earnings (P/E)―
Beta (1Y)0.76
Revenue Growth-2.91%
EPS Growth-82.51%
CountryUS
Employees2,313
SectorEnergy
Sector Strength52
IndustryOil & Gas Equipment & Services
Share Statistics
EPS (TTM)0.10
Shares Outstanding147,296,100
10 Day Avg. Volume1,658,469
30 Day Avg. Volume2,041,760
Financial Highlights & Ratios
PEG Ratio-0.70
Price to Book (P/B)0.59
Price to Sales (P/S)0.72
P/FCF Ratio7.73
Enterprise Value/Market Cap1.08
Enterprise Value/Revenue1.24
Enterprise Value/Gross Profit11.46
Enterprise Value/Ebitda9.01
Forecast
1Y Price Target
$14.00Price Target Upside48.94% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.28
Revenue Forecast (FY)$1.30B
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 operate...
How the Company Makes Money
Helix primarily makes money by contracting its vessels, crews, and subsea equipment to offshore oil and gas operators for specific scopes of work, earning revenue based on service rates and project execution. Key revenue streams include: (1) Subse...
Helix Energy Earnings Call Summary
Earnings Call Date:Apr 22, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 29, 2026
Earnings Call Sentiment Positive
The call communicated solid commercial and financial foundations (strong cash, significant backlog, fleet scale, and clear synergy targets) and positive operational momentum in key businesses (Q4000 utilization, trenching, robotics). These positives were tempered by a Q1 net loss and low gross profit, seasonal headwinds, one-time costs (Thunder Hawk workover) and integration/approval risks related to the proposed all-stock Hornbeck transaction. On balance, the strategic combination and strong liquidity coupled with multi-year backlog and synergy potential outweigh the near-term profitability and execution risks.Positive Updates
Q1 2026 Revenue and Cash Generation
Q1 revenues of $288 million, operating cash flow of $62 million, and free cash flow of $59 million. Cash balance of $501 million and total liquidity of $612 million at quarter end, supporting strong near-term liquidity.
Negative Updates
Quarterly Profitability Pressures
Q1 gross profit was only $9 million and the company reported a net loss of $13 million for the quarter, indicating near-term profitability pressure despite positive cash flow.
Read all updates
Q1-2026 Updates
Positive
Negative
Q1 2026 Revenue and Cash Generation
Q1 revenues of $288 million, operating cash flow of $62 million, and free cash flow of $59 million. Cash balance of $501 million and total liquidity of $612 million at quarter end, supporting strong near-term liquidity.
Read all positive updates
Company Guidance
Management reiterated 2026 guidance of revenue $1.2–$1.4 billion (in line with 2025’s $1.3B), adjusted EBITDA $230–$290 million (2025: $272M), CapEx $70–$80 million, and free cash flow $100–$160 million (noting variability from working capital); Q1 results were revenue $288M, gross profit $9M, net loss $13M, adjusted EBITDA $32M, operating cash flow $62M and free cash flow $59M. Balance sheet metrics at quarter‑end included $501M cash, $612M liquidity and $10M funded debt, and combined backlog was described at roughly $2B (Helix ~$1B; Hornbeck ~$1B). Key forecast drivers cited to achieve guidance are second‑half utilization of the Q4000 and Q7000, a late‑season North Sea intervention market, strong Robotics demand, a stable Shallow Water Abandonment segment, and expected annual revenue/cost synergies of $75M+ within three years post‑close.Helix Energy Financial Statement Overview
Summary
Income Statement
66
Positive
Balance Sheet
72
Positive
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.30B | 1.29B | 1.36B | 1.29B | 873.10M | 674.73M |
| Gross Profit | 140.43M | 159.14M | 219.56M | 200.36M | 50.62M | 15.39M |
| EBITDA | 178.55M | 252.64M | 253.17M | 192.99M | 87.68M | 94.36M |
| Net Income | 14.35M | 30.83M | 55.64M | -10.84M | -87.78M | -61.68M |
Balance Sheet | ||||||
| Total Assets | 2.57B | 2.70B | 2.60B | 2.56B | 2.39B | 2.33B |
| Cash, Cash Equivalents and Short-Term Investments | 501.27M | 445.20M | 368.03M | 332.19M | 186.60M | 253.51M |
| Total Debt | 625.76M | 629.75M | 661.12M | 540.57M | 469.68M | 410.95M |
| Total Liabilities | 1.01B | 1.12B | 1.08B | 1.06B | 872.63M | 678.56M |
| Stockholders Equity | 1.56B | 1.58B | 1.52B | 1.50B | 1.52B | 1.65B |
Cash Flow | ||||||
| Free Cash Flow | 167.43M | 120.41M | 162.72M | 132.87M | 17.60M | 131.79M |
| Operating Cash Flow | 182.09M | 136.75M | 186.03M | 152.46M | 51.11M | 140.12M |
| Investing Cash Flow | -14.66M | -16.34M | -22.84M | -18.66M | -138.29M | -8.27M |
| Financing Cash Flow | -38.33M | -45.06M | -125.31M | 25.11M | -44.84M | -96.00M |
Helix Energy Technical Analysis
Positive
9.40
Price Trends
9.79
Positive
8.96
Positive
7.73
Positive
Market Momentum
0.12
Positive
52.93
Neutral
42.98
Neutral
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 9.4 is below the 20-day moving average (MA) of 10.09, below the 50-day MA of 9.79, and above the 200-day MA of 7.73, indicating a neutral trend. The MACD of 0.12 indicates Positive momentum. The RSI at 52.93 is Neutral, neither overbought nor oversold. The STOCH value of 42.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HLX.
Helix Energy Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $2.60B | 22.71 | 6.70% | ― | 8.99% | -19.14% | |
73 Outperform | $3.87B | 24.44 | 34.53% | ― | 2.39% | 88.22% | |
68 Neutral | $1.48B | ― | 0.91% | ― | -2.91% | -82.51% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
62 Neutral | $1.41B | 34.44 | 2.51% | ― | 4.09% | -93.54% | |
58 Neutral | $1.56B | 458.19 | 1.91% | 2.94% | 27.62% | -73.36% |
* Energy Sector Average
HLX
Helix Energy
10.08
3.94
64.17%
OII
Oceaneering International
38.77
19.78
104.16%
RES
RPC
7.06
2.67
60.82%
TTI
Tetra Technologies
10.41
7.67
279.93%
NESR
National Energy Services Reunited
25.76
19.39
304.40%
Helix Energy Corporate Events
Executive/Board ChangesShareholder Meetings
Helix Energy Shareholders Back Directors, Auditor and Pay Practices
Positive
May 13, 2026
Helix Energy Solutions Group, Inc. reported the results of its Annual Meeting of Shareholders held on May 13, 2026, at which shareholders elected three Class III directors — Paula Harris, Amy H. Nelson and William L. Transier — to thre...
Business Operations and StrategyM&A Transactions
Helix Energy Divests Shallow Water Asset to Refocus Deepwater
Positive
May 5, 2026
On May 1, 2026, Helix’s subsidiary Helix Alliance Decom sold all equity interests in its Gulf of America-focused Shallow Water Abandonment business, known collectively as Alliance, to C-Dive, a Chouest group company, for $107.5 million in ca...
Business Operations and StrategyM&A TransactionsRegulatory Filings and Compliance
Helix Energy Announces Merger with Hornbeck Offshore Services
Positive
Apr 24, 2026
On April 22, 2026, Helix Energy Solutions Group agreed to merge with Hornbeck Offshore Services through a two-step structure that will ultimately combine Hornbeck into a wholly owned Helix LLC subsidiary, with Helix first converting from a Minneso...
Business Operations and StrategyExecutive/Board ChangesDelistings and Listing ChangesM&A Transactions
Helix Energy to Merge with Hornbeck Offshore Services
Positive
Apr 23, 2026
On April 23, 2026, Helix Energy Solutions Group and Hornbeck Offshore Services announced a definitive all-stock agreement to combine, creating a premier integrated offshore services company with Hornbeck shareholders owning about 55% and Helix sha...
Business Operations and StrategyFinancial Disclosures
Helix Energy Posts Q1 Loss Amid Margin Pressure
Negative
Apr 23, 2026
Helix reported on April 22, 2026 that it swung to a first-quarter 2026 net loss of $13.4 million, or $0.09 per diluted share, from net income of $8.3 million in the fourth quarter of 2025 and $3.1 million a year earlier, as gross margin compressed...
Business Operations and StrategyFinancial Disclosures
Helix Energy Posts Lower Q4 Profit But Strong Cash
Neutral
Feb 24, 2026
On February 23, 2026, Helix reported fourth-quarter 2025 net income of $8.3 million, or $0.06 per diluted share, down from both the prior quarter and year-ago period, reflecting an $18.1 million non-cash impairment on certain oil and gas propertie...
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.