Sequential and Regional Revenue Growth
Q4 2025 revenue grew 5% sequentially, driven by Latin America (+16% sequential, led by Mexico and Brazil) and Middle East, North Africa & Asia (+4% sequential, led by Kuwait, Oman, UAE and Indonesia); North America grew modestly driven by Canada and U.S. offshore.
Strong Margin Expansion
Q4 adjusted EBITDA margin was 22.6%, a sequential improvement of 74 basis points, demonstrating operational focus and margin resilience despite a soft market.
Robust Free Cash Flow Generation
Q4 adjusted free cash flow was $222 million with a 76.3% adjusted free cash flow conversion for the quarter; full year adjusted free cash flow totaled $466 million with a 43.7% conversion, an improvement of 576 basis points versus 2024.
Significant Balance Sheet Strengthening
Net leverage improved to ~0.42x after executing debt restructuring and reducing gross debt by $161 million; cash and restricted cash approximately $1.0 billion and total liquidity $1.6 billion, providing financial flexibility.
Shareholder Returns and Dividend Increase
Returned $173 million in 2025 via $72 million of dividends and $101 million in share repurchases (about 37% of adjusted free cash flow for the year); increased dividend by 10%.
Product-Line and Contract Wins
Notable contract wins and operational milestones: wireline award in Romania, completions wins in Kuwait, 25+ plug-and-play liner installations in Norway, and 70 Modus MPD jobs globally in the first full commercial year.
CapEx Discipline and Reinvestment in Infrastructure
Full year 2025 CapEx was $226 million (4.6% of revenues). 2026 CapEx guidance of $190–$230 million indicates a lower midpoint and a shift toward higher IT/ERP spend while maintaining a 3–5% of revenue target.
Operational Cost Reduction and Productivity Initiatives
Achieved over $150 million of personnel expense reductions in 2025 (~2,000 headcount reduction) and implemented continuous improvement, shared services, digital and AI initiatives to drive productivity and margin gains.