Subsea 7 (SUBCY)
OTHER OTC:SUBCY
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Subsea 7
(OTC:SUBCY)
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Rating:74Outperform
Price Target:
$41.00
â–²(88.85% Upside)
Action:Reiterated
Date:05/09/26
The score is driven primarily by improved financial performance—strong margin expansion and very strong recent free cash flow with improving leverage. Technicals are supportive with a solid longer-term uptrend and neutral momentum. Valuation is the main offset, with a ~22.7 P/E reducing the margin of safety despite a ~3.5% dividend yield.
Positive Factors
Free cash flow generation
Consistently strong operating cash flow and high free cash flow conversion indicate durable cash generation capacity. That supports reinvestment in vessels and capabilities, funds dividends or buybacks, and reduces reliance on external financing, improving long-term financial flexibility.
Negative Factors
Cyclicality and profit volatility
The business is exposed to industry cyclicality that can quickly reverse profitability and cash flow. Prior-year swings in profits and FCF highlight earnings unpredictability, complicating capital allocation and increasing downside risk if offshore spending or oil prices weaken over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Free cash flow generation
Consistently strong operating cash flow and high free cash flow conversion indicate durable cash generation capacity. That supports reinvestment in vessels and capabilities, funds dividends or buybacks, and reduces reliance on external financing, improving long-term financial flexibility.
Read all positive factors
Subsea 7 (SUBCY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$10.43B
Dividend Yield5.67%
Average Volume (3M)9.40K
Price to Earnings (P/E)20.3
Beta (1Y)0.63
Revenue Growth5.80%
EPS Growth156.91%
CountryUS
Employees14,876
SectorEnergy
Sector Strength52
IndustryOil & Gas Equipment & Services
Share Statistics
EPS (TTM)1.66
Shares Outstanding299,600,000
10 Day Avg. Volume7,160
30 Day Avg. Volume9,403
Financial Highlights & Ratios
PEG Ratio0.14
Price to Book (P/B)1.35
Price to Sales (P/S)0.84
P/FCF Ratio5.01
Enterprise Value/Market Cap1.02
Enterprise Value/Revenue1.45
Enterprise Value/Gross Profit8.72
Enterprise Value/Ebitda6.81
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)2.33
Revenue Forecast (FY)$7.64B
Subsea 7 Business Overview & Revenue Model
Company Description
Subsea 7 S.A. is a prominent provider of extensive offshore project solutions and specialized services for the evolving global energy industry. The company's core capabilities revolve around the comprehensive development of subsea fields, managing...
How the Company Makes Money
Subsea 7 primarily makes money by winning and executing contract-based projects for offshore and subsea developments. Revenue is generated from engineering, procurement, construction, and installation (EPCI) scopes, where the company is paid under...
Subsea 7 Earnings Call Summary
Earnings Call Date:Nov 20, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Jul 30, 2026
Earnings Call Sentiment Positive
The earnings call presented a positive outlook with record backlog and significant EBITDA growth, supported by strong project execution and improved financial guidance. However, the call also highlighted challenges in the Renewables segment and some financial setbacks, such as foreign exchange losses and working capital movement.Positive Updates
Record Backlog and Order Intake
Subsea 7 reported a record backlog close to $14 billion with an order intake of $3.8 billion in Q3, resulting in a book-to-bill ratio of 2.1x for the quarter.
Negative Updates
Renewables Revenue Decline
Renewables revenue in Q3 was $302 million, a reduction of 19% compared to the prior year, due to lower activity levels primarily in Taiwan.
Read all updates
Q3-2025 Updates
Positive
Negative
Record Backlog and Order Intake
Subsea 7 reported a record backlog close to $14 billion with an order intake of $3.8 billion in Q3, resulting in a book-to-bill ratio of 2.1x for the quarter.
Read all positive updates
Company Guidance
In the recent Subsea 7 Q3 2025 results conference call, the company reported a strong financial performance with an adjusted EBITDA of $407 million, marking a 27% increase year-on-year and a 22% margin. The order intake reached $3.8 billion, achieving a book-to-bill ratio of 2.1x for the quarter and 1.4x for the first nine months of the year, while the backlog hit a record high of nearly $14 billion. The revenue for the quarter stood at $1.8 billion, consistent with the prior year, and the net income was $109 million. Subsea and Conventional operations contributed significantly with a revenue of $1.5 billion, a 6% growth year-on-year, and an adjusted EBITDA margin of 24%. The company revised its 2025 guidance, narrowing the revenue forecast to $6.9 billion-$7.1 billion and increasing the adjusted EBITDA margin range to 20%-21%. Looking ahead to 2026, Subsea 7 anticipates revenue between $7 billion and $7.4 billion with an EBITDA margin of approximately 22%, supported by over 80% visibility on revenue and a robust tendering pipeline.Subsea 7 Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
74
Positive
Cash Flow
83
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 7.34B | 7.11B | 6.84B | 5.97B | 5.14B | 5.01B |
| Gross Profit | 1.22B | 1.06B | 704.70M | 362.80M | 397.00M | 295.80M |
| EBITDA | 1.56B | 1.45B | 1.09B | 689.20M | 631.20M | 564.60M |
| Net Income | 492.79M | 412.67M | 201.40M | 15.40M | 36.40M | 31.80M |
Balance Sheet | ||||||
| Total Assets | 8.42B | 8.03B | 7.68B | 8.10B | 6.94B | 6.99B |
| Cash, Cash Equivalents and Short-Term Investments | 1.07B | 975.70M | 556.40M | 726.20M | 610.40M | 553.10M |
| Total Debt | 875.40M | 933.50M | 1.18B | 1.30B | 613.00M | 652.80M |
| Total Liabilities | 3.87B | 3.59B | 3.39B | 3.74B | 2.49B | 2.50B |
| Stockholders Equity | 4.51B | 4.41B | 4.25B | 4.32B | 4.12B | 4.18B |
Cash Flow | ||||||
| Free Cash Flow | 1.42B | 1.19B | 582.70M | 78.20M | 254.80M | 126.50M |
| Operating Cash Flow | 1.68B | 1.47B | 931.40M | 660.00M | 485.80M | 293.00M |
| Investing Cash Flow | -227.45M | -278.46M | -413.60M | -710.20M | -220.10M | -183.70M |
| Financing Cash Flow | -855.07M | -810.00M | -680.20M | 151.10M | -211.20M | -22.80M |
Subsea 7 Technical Analysis
Neutral
21.71
Price Trends
33.73
Positive
29.94
Positive
24.47
Positive
Market Momentum
0.68
Negative
49.52
Neutral
49.28
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SUBCY, the sentiment is Neutral. The current price of 21.71 is below the 20-day moving average (MA) of 34.60, below the 50-day MA of 33.73, and below the 200-day MA of 24.47, indicating a neutral trend. The MACD of 0.68 indicates Negative momentum. The RSI at 49.52 is Neutral, neither overbought nor oversold. The STOCH value of 49.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SUBCY.
Subsea 7 Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $30.95B | 14.45 | 11.65% | 4.43% | 1.69% | 16.35% | |
78 Outperform | $57.95B | 18.56 | 16.84% | 2.04% | 0.20% | 6.96% | |
74 Outperform | $10.43B | 20.34 | 11.39% | 5.67% | 5.80% | 156.91% | |
74 Outperform | $25.98B | 24.09 | 32.54% | 0.44% | 9.44% | 36.97% | |
70 Outperform | $71.90B | 21.81 | 13.46% | 2.98% | -0.53% | -22.59% | |
68 Neutral | $29.18B | 18.98 | 14.67% | 2.41% | -1.72% | -23.60% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% |
* Energy Sector Average
SUBCY
Subsea 7
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17.54
103.36%
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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.