SBM Offshore NV (SBMO) AI Stock Analysis

• Market Cap: €5.25B
• Dividend Yield: 3.46%
• Average Volume (3M): 248.57K
• Price to Earnings (P/E): 5.2
• Beta (1Y): 0.79
• Revenue Growth: 13.52%
• EPS Growth: -15.28%
• Country: NL
• Employees: 6,301
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): 2.20
• Shares Outstanding: 171,361,360
• 10 Day Avg. Volume: 260,435
• 30 Day Avg. Volume: 248,572
• PEG Ratio: <0.01
• Price to Book (P/B): 1.13
• Price to Sales (P/S): 0.81
• P/FCF Ratio: 5.86
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €35.17
• Price Target Upside: 12.15% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 4.48
• Revenue Forecast (FY): €6.56B

• Rating: 71 Outperform
• Price Target: €36.00 ▲(14.80% Upside)
• Action: Reiterated Date: 03/01/26
• Date: Action: Reiterated 03/01/26

The score is driven primarily by strong 2025 profitability improvements but tempered by high leverage and uneven cash-flow conversion. Technicals are supportive given the sustained uptrend, though overbought signals add near-term risk. Valuation is a key positive due to the low P/E and moderate dividend yield.

Positive Factors

2025 Profitability & Margins

Material margin expansion and sharply higher 2025 net income reflect delivered operating leverage and improved project economics. Sustained higher gross and net margins provide a stronger earnings base and greater ability to fund capex, dividends and debt service over the medium term if execution holds.

Lease-and-Operate Recurring Revenue

SBM’s core lease-and-operate model creates multi-year, relatively stable revenue and recurring O&M services. This structural contract profile smooths cash flows versus pure EPC work, enhances visibility of future revenues, and supports long-term asset utilization and predictable service income.

Deleveraging via FPSO ONE GUYANA sale

The FPSO ONE GUYANA sale generated significant cash used to retire project debt, materially reducing net leverage. Lower structural debt improves financial flexibility, reduces refinancing risk, and preserves capacity to pursue new contracts or fund operations while continuing to operate the unit through 2035.

Negative Factors

Elevated Leverage

Persistently high leverage constrains financial flexibility and increases interest and refinancing exposure during downturns. Even with recent improvements, a debt-to-equity ratio above 2x leaves less cushion for project delays, cost overruns or weaker commodity-driven demand, raising long-term risk.

Volatile Cash Conversion

Although cash generation returned to positive in 2024–2025, cash conversion remains uneven and FCF fell sharply. Low coverage of debt by operating cash and volatile FCF highlight exposure to working-capital swings and project timing, which can stress liquidity and hinder predictable deleveraging.

Earnings Sensitivity to Project Mix

SBM’s profitability has large swings driven by project mix and timing; similar revenue can produce very different margins. This structural earnings volatility raises forecasting uncertainty and could lead to episodic earnings and cash-flow deterioration if projects are delayed or face cost overruns.

SBM Offshore NV Business Overview & Revenue Model

Company Description

SBM Offshore N.V. provides floating production solutions to the offshore energy industry worldwide. The company operates in two segments, Lease and Operate, and Turnkey. It engages in the design, supply, installation, operation, lease, and life extension of floating production storage and offloading (FPSO) vessels, as well as semi-submersibles, tension leg platforms, liquefied natural gas (LNG) FPSOs, turret mooring systems, LNG regasification to power vessels, floating offshore wind, and brownfield and offshore loading terminals. The company also provides catenary anchor leg mooring (CALM) or single point mooring (SPM) terminal; as well as provides solutions for floating unit mooring, flexible flowline, and subsea structure installation works. As of December 31, 2021, it operated a fleet of 14 FPSOs and 1 semi-submersible unit. The company was formerly known as IHC Caland and changed its name to SBM Offshore N.V. in 2005. SBM Offshore N.V. was founded in 1862 and is headquartered in Schiphol, the Netherlands.

How the Company Makes Money

SBM Offshore generates revenue primarily through long-term contracts for the leasing and operation of its FPSOs, which are often secured for 10 to 25 years. The company also earns income from engineering and project management services provided during the development phase of offshore projects. Key revenue streams include the leasing fees from FPSO units, which are typically linked to production volumes, and additional services such as maintenance and operational support. Significant partnerships with major oil companies and participation in high-value projects in regions like Brazil, West Africa, and the Gulf of Mexico further enhance its earnings potential. Additionally, the company benefits from a strong backlog of projects, which provides visibility into future revenues.

SBM Offshore NV Financial Statement Overview

Summary

Income statement strength in 2025 (higher revenue, sharply improved net income and margins) is offset by balance-sheet risk (persistently high leverage) and cash-flow volatility (weaker cash conversion and a sharp free-cash-flow decline year-over-year).

Income Statement

Profitability strengthened materially in 2025, with revenue up ~13.7% and net income rising sharply versus 2024, alongside much higher gross and operating margins. Margins in 2025 (gross ~34%, net ~16%) are strong relative to the company’s own history and show good operating leverage. The main weakness is volatility: 2024 saw very low net profitability (~3% net margin) despite similar revenue levels, highlighting earnings sensitivity to project mix/timing and costs.

Balance Sheet

The balance sheet is asset-heavy with meaningful leverage: debt-to-equity remains elevated (about 2.1x in 2025, after ~2.5–3.0x in prior years). A positive is improving equity base and a strong rebound in shareholder returns in 2025 (return on equity ~22%) versus a weak 2024 (~4%). Key risk remains the consistently high leverage level, which can pressure flexibility if cash flows soften or project execution requires higher working capital.

Cash Flow

Cash generation improved versus the negative operating and free cash flow periods seen in 2021–2023, with solid positive free cash flow in 2024 and 2025. However, 2025 cash flow quality weakened relative to earnings: operating cash flow covered a low portion of debt (coverage ~0.19x) and free cash flow fell sharply year-over-year (about -56.7%), suggesting heavier investment/working-capital needs. Overall, cash flow is positive but still somewhat volatile and not consistently scaling with profitability.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	6.14B	4.78B	4.96B	4.91B	3.75B
Gross Profit	2.10B	1.13B	1.42B	1.18B	922.00M
EBITDA	1.91B	1.20B	1.39B	1.13B	959.00M
Net Income	959.59M	150.00M	491.00M	450.00M	400.00M
Balance Sheet
Total Assets	18.10B	17.16B	17.18B	15.89B	13.21B
Cash, Cash Equivalents and Short-Term Investments	1.09B	806.00M	543.00M	682.00M	1.02B
Total Debt	9.25B	8.94B	9.29B	8.56B	7.70B
Total Liabilities	11.62B	11.31B	11.65B	10.97B	9.68B
Stockholders Equity	4.41B	3.62B	3.73B	3.40B	2.58B
Cash Flow
Free Cash Flow	850.31M	1.37B	-342.00M	-1.13B	-818.00M
Operating Cash Flow	885.70M	1.48B	-169.00M	-1.05B	-757.00M
Investing Cash Flow	82.22M	92.00M	-142.00M	67.00M	5.00M
Financing Cash Flow	-665.05M	-1.31B	170.00M	646.00M	1.36B

SBM Offshore NV Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 31.36
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NL:SBMO, the sentiment is Positive. The current price of 31.36 is above the 20-day moving average (MA) of 30.69, above the 50-day MA of 28.70, and above the 200-day MA of 24.09, indicating a bullish trend. The MACD of 0.91 indicates Positive momentum. The RSI at 60.10 is Neutral, neither overbought nor oversold. The STOCH value of 57.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NL:SBMO.

SBM Offshore NV Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SBMO	71 Outperform	€5.25B	5.19	9.56%	3.46%	13.52%	-15.28%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
FUR	55 Neutral	€1.17B	-47.40	9.91%	8.99%	-7.57%	-51.86%