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Helix Energy Solutions Group (HLX)
NYSE:HLX
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Helix Energy
(NYSE:HLX)
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Rating:68Neutral
Price Target:
$7.00
▲(0.57% Upside)
Helix Energy's overall stock score reflects its improving financial performance and strong cash position, which are offset by valuation concerns and operational challenges. The earnings call provided a mixed outlook with both positive developments and notable risks. Technical indicators suggest a neutral market sentiment.
Positive Factors
Strong Cash Position
A strong cash position enhances financial flexibility, allowing the company to invest in growth opportunities and weather industry downturns.
Robust Robotics Segment
The robust performance and new contracts in the Robotics segment indicate a competitive edge and potential for sustained revenue growth.
Successful Operations in Brazil
Successful long-term contracts in Brazil enhance revenue stability and demonstrate operational efficiency in key markets.
Negative Factors
Negative Free Cash Flow
Negative free cash flow can limit the company's ability to invest in growth and may indicate operational inefficiencies that need addressing.
Regulatory and Market Impact
Regulatory impacts and market challenges can disrupt operations and lead to financial losses, affecting long-term profitability.
Challenges in U.K. North Sea Market
Market standstill in the U.K. North Sea due to policy uncertainty poses risks to revenue and operational stability in the region.
Helix Energy (HLX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.02B
Dividend YieldN/A
Average Volume (3M)1.35M
Price to Earnings (P/E)21.5
Beta (1Y)0.95
Revenue Growth-8.19%
EPS GrowthN/A
CountryUS
Employees2,313
SectorEnergy
Sector Strength52
IndustryOil & Gas Equipment & Services
Share Statistics
EPS (TTM)-0.02
Shares Outstanding146,985,580
10 Day Avg. Volume1,577,100
30 Day Avg. Volume1,345,286
Financial Highlights & Ratios
PEG Ratio-0.04
Price to Book (P/B)0.93
Price to Sales (P/S)1.04
P/FCF Ratio8.71
Enterprise Value/Market Cap1.22
Enterprise Value/Revenue0.98
Enterprise Value/Gross Profit7.49
Enterprise Value/Ebitda5.82
Forecast
1Y Price Target
$10.00Price Target Upside43.68% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
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 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 Earnings Call Summary
Earnings Call Date:Jul 23, 2025
(Q2-2025)
| Next Earnings Date:Oct 22, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted a strong cash position, successful operations in Brazil, and a robust Robotics segment, but faced challenges with negative cash flow, regulatory impacts, and market uncertainties in the U.K. North Sea.Q2-2025 Updates
Positive Updates
Strong Cash and Liquidity Position
Helix Energy Solutions Group reported cash and cash equivalents of $320 million and liquidity of $375 million at the end of Q2 2025.
Successful Operations in Brazil
The company operated three vessels on longer-term contracts in Brazil, completing operations for the Q4000 in Nigeria and ensuring a safe passage back to the Gulf of America.
Robust Robotics Segment Performance
The Robotics segment had a strong quarter, operating seven vessels and securing a multiyear 800-day minimum trenching contract in the North Sea, commencing in 2027.
Shallow Water Abandonment 3-year Agreement with Exxon
Helix executed a 3-year framework agreement with Exxon for shallow water decommissioning in the Gulf of America.
Negative Updates
Regulatory and Market Impact on Q2 Results
Q2 results were negatively impacted by the regulatory docking of the Q5000, demobilization of the Q4000 from Nigeria, and warm stacking of the Seawell, resulting in a net loss of $3 million.
Negative Free Cash Flow
The company reported a negative free cash flow of $22 million due to negative operating cash flow of $17 million.
Challenges in the U.K. North Sea Market
The U.K. North Sea market is described as having come to a temporary standstill due to government policy uncertainty and other factors, impacting the company's performance.
Deferred Mobilization Days
A high number of deferred mobilization days at the end of Q2 for the Q5000, Q4000, and Well Enhancer shifted revenues into the next quarter.
Company Guidance
During the Q2 2025 earnings call for Helix Energy Solutions Group, Inc., the company provided updated guidance for the fiscal year. They reported second quarter revenues of $302 million, a gross profit of $15 million, and a net loss of $3 million, contrasting with the first quarter's $278 million in revenue and $28 million in gross profit. Adjusted EBITDA for the quarter was $42 million, with a negative free cash flow of $22 million. The company updated its 2025 guidance, projecting revenues between $1.2 billion and $1.3 billion, and EBITDA ranging from $225 million to $265 million. The free cash flow outlook was adjusted to $90 million to $140 million. They also anticipated capital expenditures of $70 million to $80 million due to the accelerated regulatory maintenance on the Q4000 vessel. Helix expects a strong third quarter with improvements in their Robotics and Brazil segments, despite challenges in the U.K. and the Gulf of America markets.Helix Energy Financial Statement Overview
Summary
Helix Energy's financial performance shows improving profitability and stable financial health. The company has a strong operating cash flow and a balanced debt-to-equity ratio. However, there is room for improvement in operational efficiency and managing debt levels.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.75
Positive
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.70
Positive
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.78
Positive
| 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
Positive
6.96
Price Trends
6.23
Positive
6.40
Positive
7.27
Negative
Market Momentum
0.13
Negative
65.31
Neutral
88.18
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 6.96 is above the 20-day moving average (MA) of 6.44, above the 50-day MA of 6.23, and below the 200-day MA of 7.27, indicating a neutral trend. The MACD of 0.13 indicates Negative momentum. The RSI at 65.31 is Neutral, neither overbought nor oversold. The STOCH value of 88.18 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
Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | 785.02M | 6.80 | 39.56% | ― | -3.23% | 1031.00% | |
79 Outperform | 2.57B | 12.94 | 23.84% | ― | 8.14% | 62.72% | |
77 Outperform | 1.02B | 13.90 | 8.40% | ― | ― | ― | |
69 Neutral | 1.07B | 19.25 | 4.93% | 3.29% | -2.74% | -54.52% | |
68 Neutral | $1.02B | 21.52 | 3.27% | ― | -8.19% | ― | |
61 Neutral | 1.24B | -61.22 | -0.56% | ― | -9.81% | -124.43% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% |
* Energy Sector Average
Performance Comparison
HLX
Helix Energy
6.96
-4.14
-37.30%
MRC
MRC Global
14.62
1.88
14.76%
OII
Oceaneering International
25.66
0.79
3.18%
RES
RPC
4.87
-1.30
-21.07%
TTI
Tetra Technologies
5.89
2.79
90.00%
NESR
National Energy Services Reunited
10.53
1.27
13.71%
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.
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.