Earnings call transcript: SBM Offshore Q1 2026 sees revenue surge – Image for illustrative purposes only (Image credits: Unsplash)
SBM Offshore reported a sharp jump in first-quarter directional revenue, more than tripling the prior-year figure and prompting the company to lift its full-year outlook. The Amsterdam-listed offshore energy specialist recorded $3.49 billion in directional revenue for the three months ended March 31, compared with $1.10 billion a year earlier. The surge stemmed largely from its turnkey business, including the sale of the FPSO One Guyana to ExxonMobil.
Revenue Breakdown Shows Turnkey Strength
Directional revenue in the turnkey segment reached $2.88 billion, driven by project awards and the February sale of the floating production vessel. Lease-and-operate revenue rose 28 percent to $610 million, reflecting new FPSOs brought online in 2025. The company noted that its Fast4Ward program and strong execution helped secure additional scope on existing contracts.
Guidance Lifted Despite Steady Profit Target
SBM Offshore raised its 2026 directional revenue forecast to above $6.9 billion from around $6.5 billion. Full-year directional EBITDA guidance remained unchanged at approximately $1.8 billion. Management highlighted resilience in the business model and continued focus on operational excellence as reasons for the improved top-line view.
| Metric | Q1 2026 | Q1 2025 | Change |
|---|---|---|---|
| Directional Revenue | $3.49 billion | $1.10 billion | +216% |
| Turnkey Revenue | $2.88 billion | – | – |
| Lease & Operate Revenue | $610 million | $476 million | +28% |
Shareholder Returns Expanded
The company announced a $100 million cash dividend payable May 13 and initiated a $270 million share buyback program. These steps follow strong project momentum, including a front-end engineering and design contract for ExxonMobil’s Longtail development in Guyana and orders for two additional Fast4Ward hulls.
Outlook Remains Positive
SBM Offshore expects continued demand for its floating production solutions amid a robust offshore market. The updated revenue target reflects both one-time asset sales and recurring lease income, while the unchanged EBITDA guidance underscores disciplined cost control. Investors will watch upcoming project milestones for further confirmation of the stronger trajectory.
