Helix Energy (HLX) AI Stock Analysis

• Market Cap: $980.40M
• Dividend Yield: N/A
• Average Volume (3M): 1.31M
• Price to Earnings (P/E): 11.8
• Beta (1Y): 0.94
• Revenue Growth: 0.34%
• EPS Growth: N/A
• Country: US
• Employees: 2,313
• Sector: Energy
• Sector Strength: 54
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): 0.02
• Shares Outstanding: 151,530,330
• 10 Day Avg. Volume: 1,986,036
• 30 Day Avg. Volume: 1,312,002
• PEG Ratio: -0.31
• Price to Book (P/B): 0.74
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 63.42
• Enterprise Value/Market Cap: 1.43
• Enterprise Value/Revenue: 0.26
• Enterprise Value/Gross Profit: 6.15
• Enterprise Value/Ebitda: 1.40
• 1Y Price Target: $11.50
• Price Target Upside: 77.74% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 71 Outperform
• Price Target: $7.50 ▲(15.92%Upside)

Helix Energy's strong financial performance and reasonable valuation are overshadowed by technical resistance and geopolitical challenges highlighted in the earnings call. The company is positioned for growth but faces significant near-term uncertainties.

Positive Factors

Financial Performance

The stock is trading at 3.5x 2025 EBITDA, which is considered undervalued for a company with significant EBITDA growth from $121MM in 2021 to $303MM in 2024.

Future Growth

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

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.

Tax and 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.

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 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 Financial Statement Overview

Summary

Helix Energy demonstrates a strong recovery with improved profitability and robust revenue growth. The income statement shows significant improvements in margins and revenue, while the balance sheet remains stable with manageable leverage. Strong cash flow generation supports financial flexibility, although increasing liabilities require monitoring.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.34B	1.36B	1.29B	873.10M	674.73M	733.55M
Gross Profit	227.55M	219.56M	200.36M	50.62M	15.39M	79.91M
EBITDA	271.03M	253.17M	192.99M	87.68M	94.36M	164.45M
Net Income	85.00M	55.64M	-10.84M	-87.78M	-61.68M	22.17M
Balance Sheet
Total Assets	2.64B	2.60B	2.56B	2.39B	2.33B	2.50B
Cash, Cash Equivalents and Short-Term Investments	369.99M	368.03M	332.19M	186.60M	253.51M	291.32M
Total Debt	655.80M	661.12M	540.57M	469.68M	410.95M	502.17M
Total Liabilities	1.09B	1.08B	1.06B	872.63M	678.56M	757.78M
Stockholders Equity	1.55B	1.52B	1.50B	1.52B	1.65B	1.74B
Cash Flow
Free Cash Flow	113.69M	162.72M	132.87M	17.60M	131.79M	78.56M
Operating Cash Flow	137.88M	186.03M	152.46M	51.11M	140.12M	98.80M
Investing Cash Flow	-24.09M	-22.84M	-18.66M	-138.29M	-8.27M	-19.28M
Financing Cash Flow	-66.97M	-125.31M	25.11M	-44.84M	-96.00M	-52.58M

Helix Energy Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6.47
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 6.47 is below the 20-day moving average (MA) of 6.72, below the 50-day MA of 6.55, and below the 200-day MA of 8.46, indicating a bearish trend. The MACD of -0.07 indicates Positive momentum. The RSI at 46.04 is Neutral, neither overbought nor oversold. The STOCH value of 34.97 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RES	76 Outperform	$1.14B	14.71	7.06%	3.11%	-9.78%	-49.45%
XPRO	75 Outperform	$1.04B	15.40	4.91%	―	10.48%	―
OII	72 Outperform	$2.14B	11.91	26.17%	―	10.04%	68.14%
HLX	71 Outperform	$980.40M	11.79	5.64%	―	0.34%	―
WTTR	70 Neutral	$1.09B	26.23	4.51%	3.10%	-4.91%	-46.51%
MRC	67 Neutral	$1.13B	41.18	8.29%	―	-9.84%	-111.71%
Sector *	44 Neutral	AU$1.39B	-6.73	-23.02%	6.50%	5.33%	-26.92%

Helix Energy Corporate Events

Helix Energy Holds Annual Shareholders Meeting

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.

Helix Energy Reports Q1 2025 Financial Results

On April 23, 2025, Helix Energy Solutions Group reported its financial results for the first quarter of 2025, showing a net income of $3.1 million, a decrease from the previous quarter’s $20.1 million. The company faced challenges from a seasonal slowdown in the North Sea and Gulf of America, as well as market disruptions from OPEC+ production increases and U.S. tariffs. Despite these challenges, Helix maintained a strong balance sheet and expects to generate meaningful free cash flow in 2025.