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Subsea 7 (SUBCY)
OTHER OTC:SUBCY
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Subsea 7
(OTC:SUBCY)
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Rating:74Outperform
Price Target:
$20.50
â–²(7.78% Upside)
Subsea 7's overall stock score reflects strong financial performance and a positive earnings call, highlighting significant EBITDA growth and a robust backlog. However, technical indicators suggest a bearish trend, and valuation metrics indicate the stock is fairly valued. The attractive dividend yield adds to the stock's appeal, but challenges in the Renewables segment and financial setbacks temper the outlook.
Positive Factors
Record Backlog
A record backlog indicates strong future revenue visibility and demand for services, supporting long-term growth and stability in the competitive offshore energy sector.
EBITDA Growth
Significant EBITDA growth reflects improved operational efficiency and profitability, enhancing the company's financial health and ability to invest in future projects.
Technological Advancements
Technological advancements enhance operational efficiency and competitiveness, allowing Subsea 7 to deliver projects more effectively and maintain its market leadership.
Negative Factors
Renewables Revenue Decline
A decline in renewables revenue suggests challenges in diversifying income streams, potentially impacting long-term growth if not addressed.
Net Foreign Exchange Losses
Foreign exchange losses can erode profitability and indicate exposure to currency volatility, affecting financial stability and predictability.
Working Capital Movement
Negative working capital movement can strain liquidity and operational flexibility, potentially impacting the company's ability to finance ongoing projects.
Subsea 7 (SUBCY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.68B
Dividend Yield6.12%
Average Volume (3M)9.40K
Price to Earnings (P/E)19.7
Beta (1Y)0.77
Revenue Growth6.18%
EPS Growth79.84%
CountryUS
Employees14,876
SectorEnergy
Sector Strength52
IndustryOil & Gas Equipment & Services
Share Statistics
EPS (TTM)0.38
Shares Outstanding299,600,000
10 Day Avg. Volume7,160
30 Day Avg. Volume9,403
Financial Highlights & Ratios
PEG Ratio0.02
Price to Book (P/B)1.11
Price to Sales (P/S)0.69
P/FCF Ratio8.08
Enterprise Value/Market Cap1.16
Enterprise Value/Revenue0.94
Enterprise Value/Gross Profit7.83
Enterprise Value/Ebitda5.58
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Subsea 7 Business Overview & Revenue Model
Company DescriptionSubsea 7 S.A. delivers offshore projects and services for the evolving energy industry worldwide. It provides subsea field development products and services, including project management, design and engineering, procurement, fabrication, survey, installation, and commissioning of production facilities on the seabed and the tie-back of its facilities to fixed or floating platforms or to the shore. The company also offers engineering, procurement, commissioning, and installation of subsea umbilicals, risers, and flowlines; inspection, repair, maintenance, remote intervention, and integrity management of subsea infrastructure services; conventional services comprising fabrication, installation, extension, and refurbishment of fixed and floating platforms and associated pipelines in shallow water; and hook-up services. In addition, it operates heavy lifting operations and heavy transportation services for renewables structures; and installs offshore wind turbine foundations and inter-array cables, as well as engages in the decommissioning of redundant offshore structures. Further, the company provides remotely operated vehicles (ROVs) and tooling services to support exploration and production activities, as well as engineering and advisory services for customers in the oil and gas, renewables, and utilities industries. As of December 31, 2021, it has a fleet of 38 vessels. Subsea 7 S.A. was incorporated in 1993 and is based in Luxembourg.
How the Company Makes MoneySubsea 7 generates revenue through a combination of contract-based project work and service agreements with major oil and gas operators. The company's revenue model primarily hinges on the execution of large-scale engineering and construction contracts, which involve designing and installing subsea infrastructure. Key revenue streams include the provision of subsea installation services, project management for offshore developments, and maintenance services through IRM contracts. Subsea 7 also benefits from strategic partnerships with oil and gas companies, enhancing its market positioning and allowing it to secure long-term contracts. Additionally, the company capitalizes on technological innovations and efficiencies to reduce costs and enhance service delivery, further contributing to its earnings.
Subsea 7 Earnings Call Summary
Earnings Call Date:Nov 20, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 26, 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.Q3-2025 Updates
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.
Significant EBITDA Growth
Adjusted EBITDA reached $407 million, marking a 27% increase year-on-year, with an expanded margin of 22%, reflecting strong project execution and high vessel utilization.
Positive Financial Guidance
Subsea 7 refined its guidance for 2025, anticipating revenue between $6.9 billion and $7.1 billion and an increased EBITDA margin of 20% to 21%. For 2026, revenue is expected to be between $7 billion and $7.4 billion with an EBITDA margin of approximately 22%.
Technological Advancements
The deployment of 4insight software added 35 days of operation to Seven Vega, improving project delivery efficiency by over 10%.
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.
Net Foreign Exchange Losses
Subsea 7 experienced net foreign exchange losses of $38 million, attributed to noncash embedded derivatives.
Working Capital Movement
There was an unfavorable movement in working capital of $82 million during Q3.
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
Subsea 7 demonstrates strong financial health with robust revenue growth, improved profitability, and solid cash flow generation. The balance sheet is stable with manageable debt levels, but maintaining margins and managing leverage remain crucial in a competitive industry.Income Statement
Subsea 7 has demonstrated strong revenue growth with a 24.2% increase in TTM, supported by improving margins. The gross profit margin increased to 12.06%, and the net profit margin rose to 3.84%, indicating enhanced profitability. However, the industry remains competitive, and maintaining these margins will be crucial.78
Positive
Balance Sheet
The company's debt-to-equity ratio is relatively low at 0.26, suggesting a conservative leverage strategy. Return on equity improved to 6.31%, reflecting better utilization of equity. The equity ratio stands at 51.98%, indicating a strong equity base. Continued focus on managing debt levels will be important for financial stability.72
Positive
Cash Flow
Subsea 7's cash flow performance is robust, with a significant 21.29% growth in free cash flow. The operating cash flow to net income ratio is strong at 4.28, indicating efficient cash generation. The free cash flow to net income ratio of 0.67 suggests healthy cash conversion, supporting future investments and debt servicing.80
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 6.99B | 6.84B | 5.97B | 5.14B | 5.01B | 3.47B |
| Gross Profit | 843.00M | 704.70M | 362.80M | 397.00M | 295.80M | -186.50M |
| EBITDA | 1.18B | 1.09B | 689.20M | 631.20M | 564.60M | -605.00M |
| Net Income | 268.30M | 201.40M | 15.40M | 36.40M | 31.80M | -1.11B |
Balance Sheet | ||||||
| Total Assets | 7.96B | 7.68B | 8.10B | 6.94B | 6.99B | 6.30B |
| Cash, Cash Equivalents and Short-Term Investments | 413.30M | 556.40M | 726.20M | 610.40M | 553.10M | 480.20M |
| Total Debt | 1.09B | 1.18B | 1.30B | 613.00M | 652.80M | 463.00M |
| Total Liabilities | 3.78B | 3.39B | 3.74B | 2.49B | 2.50B | 2.04B |
| Stockholders Equity | 4.14B | 4.25B | 4.32B | 4.12B | 4.18B | 4.23B |
Cash Flow | ||||||
| Free Cash Flow | 768.00M | 582.70M | 78.20M | 254.80M | 126.50M | 264.20M |
| Operating Cash Flow | 1.15B | 931.40M | 660.00M | 485.80M | 293.00M | 446.80M |
| Investing Cash Flow | -344.00M | -413.60M | -710.20M | -220.10M | -183.70M | -164.60M |
| Financing Cash Flow | -761.50M | -680.20M | 151.10M | -211.20M | -22.80M | -157.60M |
Subsea 7 Technical Analysis
Positive
19.02
Price Trends
19.06
Negative
19.16
Negative
17.32
Positive
Market Momentum
0.06
Negative
52.76
Neutral
52.97
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SUBCY, the sentiment is Positive. The current price of 19.02 is above the 20-day moving average (MA) of 18.71, below the 50-day MA of 19.06, and above the 200-day MA of 17.32, indicating a neutral trend. The MACD of 0.06 indicates Negative momentum. The RSI at 52.76 is Neutral, neither overbought nor oversold. The STOCH value of 52.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 | $18.33B | 20.32 | 28.72% | 0.43% | 11.73% | 45.70% | |
78 Outperform | $48.83B | 17.04 | 16.83% | 1.82% | 1.51% | 30.09% | |
75 Outperform | $54.32B | 14.05 | 15.46% | 3.04% | -2.13% | -16.76% | |
75 Outperform | $21.33B | 10.67 | 11.69% | 4.13% | -9.76% | -18.94% | |
74 Outperform | $5.68B | 19.71 | 6.76% | 6.12% | 6.18% | 79.84% | |
72 Outperform | $22.65B | 17.82 | 12.77% | 2.48% | -4.06% | -47.41% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% |
* Energy Sector Average
SUBCY
Subsea 7
19.02
3.86
25.46%
BKR
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FTI
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-6.00%
SLB
Schlumberger
37.55
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TS
Tenaris SA
41.16
3.95
10.62%
Subsea 7 Corporate Events
Subsea 7 S.A. Reports Strong Q3 2025 Performance
Nov 21, 2025
Subsea 7 S.A. is a Luxembourg-based company specializing in the delivery of offshore projects and services for the energy industry, with a focus on subsea engineering and construction, as well as renewable energy solutions.
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.