Reach Subsea's Q3 Stumble: Earnings Slide Amid Market Headwinds

PuzzledScholar · 2025-12-23T14:42:12+00:00

Reach Subsea ASA's third-quarter performance showed a significant decline, with net income dropping to NOK 38.96 million from NOK 92.05 million. Key metrics like earnings per share and EBITDA also fell, while revenue decreased by 17.7% to NOK 688.04 million. The order backlog reduced to NOK 1.05 billion, affecting market sentiment and leading to a 2.88% share decline on the Oslo Stock Exchange.

PuzzledScholar

2025-12-23 14:42:12

Abstract generation in progress

Norwegian offshore contractor Reach Subsea ASA disclosed a significant contraction in third-quarter performance, with profitability taking a hit across multiple metrics. The company’s net income plummeted to NOK 38.96 million, a steep fall from NOK 92.05 million in the year-ago period.

Financial Deterioration Across the Board

The downturn wasn’t isolated to the bottom line. Earnings per share tumbled to NOK 0.12 from NOK 0.30, signaling deeper operational challenges. On the operational front, EBITDA contracted to NOK 301.04 million versus NOK 363.16 million previously, while EBIT experienced a sharper decline, dropping from NOK 134.14 million to just NOK 50.63 million.

Revenue figures tell a similar story of contraction. Top-line sales retreated to NOK 688.04 million from NOK 835.55 million in the same quarter last year—a notable 17.7% year-over-year decline that underscores softer market demand.

Pipeline Concerns Weigh on Near-Term Outlook

Perhaps most concerning is the shrinkage in order backlog, which fell to NOK 1,050 million from NOK 1,500 million annually. Despite these headwinds, Reach Subsea management maintained optimism, pointing to a remaining backlog of NOK 1.05 billion coupled with a robust tender pipeline worth NOK 9 billion as anchors for future growth.

Market Reaction Reflects Investor Caution

The market took a cautious view of the results. On Monday, Reach Subsea shares declined 2.88% to close at NOK 6.75 on the Oslo Stock Exchange, reflecting investor concerns about near-term earnings trajectory amid the broader contraction in offshore services demand.

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