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Aug 6, 2026, 8:05 AM ETEnergy

Helix Energy Solutions Group, Inc. — Second Quarter 2026 Earnings Summary

HLXHELIX ENERGY SOLUTIONS GROUP INC
Source

Financial Performance

  • Reported net income of $22.7 million ($0.15 per diluted share) for Q2 2026, compared to a net loss of $13.4 million ($0.09 per share) in Q1 2026 and a net loss of $2.6 million ($0.02 per share) in Q2 2025.
  • Reported Adjusted EBITDA of $69.9 million for Q2 2026, up from $32.3 million in Q1 2026 and $42.4 million in Q2 2025.
  • For the six months ended June 30, 2026, net income was $9.3 million ($0.06 per share), compared to $0.5 million ($0.00 per share) for the same period in 2025.
  • Six-month Adjusted EBITDA was $102.1 million, up from $94.4 million in the prior year period.
  • Revenues for Q2 2026 were $304.0 million, an increase from $251.7 million in Q2 2025 and $266.7 million in Q1 2026.
  • Gross profit for Q2 2026 was $56.2 million (18% margin), compared to $13.5 million (5% margin) in Q2 2025 and $17.7 million (7% margin) in Q1 2026.
  • Operating cash flows were $53.9 million in Q2 2026, compared to $(17.1) million in Q2 2025 and $61.8 million in Q1 2026.
  • Free cash flow was $46.7 million in Q2 2026, compared to $(21.6) million in Q2 2025 and $59.0 million in Q1 2026.
  • Cash and cash equivalents totaled $652.2 million at June 30, 2026, compared to $319.7 million at June 30, 2025.
  • Consolidated long-term debt was $304.3 million at June 30, 2026, resulting in negative net debt of $347.9 million.

Guidance and Future Outlook

  • Withdrew previously issued annual guidance in light of the pending merger with Hornbeck.
  • Expects the merger with Hornbeck to be completed promptly following the shareholder meeting scheduled for August 31, 2026, subject to customary closing conditions.
  • Anticipates the merger transaction to be completed on September 1, 2026.

Business Segments and Product Lines

  • Well Intervention: Revenues were $208.1 million in Q2 2026, a 1% decrease from Q1 2026 but a 33% increase from Q2 2025. Vessel utilization increased to 91% in Q2 2026 from 82% in Q1 2026 and 72% in Q2 2025. The Q7000 completed a Shell project in Brazil and is transiting to West Africa; the Q4000 underwent an annual out-of-service period; the Sea Helix 1 commenced a five-year docking; the Q5000 saw improved utilization following maintenance.
  • Robotics: Revenues were $76.4 million in Q2 2026, a 23% increase from Q1 2026 but an 11% decrease from Q2 2025. ROV and trencher utilization increased to 67% in Q2 2026 from 56% in Q1 2026 and 62% in Q2 2025. Integrated vessel trenching increased to 171 days from 122 days in the prior quarter.
  • Production Facilities: Revenues were $29.7 million in Q2 2026, a 59% increase from Q1 2026 and a 74% increase from Q2 2025. The increase was driven by the recommencement of production at the Thunder Hawk field in early April 2026 following a workover. Operating income turned positive at $15.8 million in Q2 2026 compared to a loss of $7.9 million in Q1 2026.

Market and Competitive Landscape

  • Positive international activity is offsetting weaker domestic output.
  • The Q7000 is mobilizing to West Africa.
  • The Q5000 experienced improved utilization in the North Sea.

Risks and Challenges

  • The Q7000 incurred deferred revenues and mobilization costs while transiting to West Africa.
  • The Q4000 experienced gaps in its schedule and an annual out-of-service period.
  • The Sea Helix 1 commenced a five-year regulatory docking mid-June.
  • The Grand Canyon II transitioned to the North Sea, reducing overall vessel activity in the Robotics segment.
  • The Thunder Hawk field had been shut in since 2024 prior to recommencing production in April 2026.

Management Commentary and Tone

  • CEO Owen Kratz stated the company generated significant cash flows from operations and is positioned with $652 million in cash and $717 million in liquidity.
  • Management noted business performance is progressing as previously outlined.
  • The company is making progress toward the consummation of the merger with Hornbeck.
  • No conference call or webcast will be hosted due to the pending merger; details are available on the Investor Relations website.

Other Key Points

  • Sold Helix Alliance (entire Shallow Water Abandonment segment) on May 1, 2026, resulting in a gain on sale of $12.7 million (net of $3.4 million tax expense).
  • Helix Alliance operations are classified as discontinued operations, generating $7.5 million net income for the three months ended June 30, 2026.
  • Transaction-related costs for the Hornbeck merger totaled $8.3 million in Q2 2026, primarily legal and professional fees.
  • Filing a Registration Statement on Form S-4 on June 4, 2026, which was declared effective July 31, 2026.
  • Investing cash flows from discontinued operations included approximately $104.2 million in proceeds from the sale of Helix Alliance.
  • Selling, general, and administrative expenses were $21.1 million in Q2 2026 (7.0% of revenue), up from $20.4 million in Q1 2026, primarily due to higher employee compensation.
  • Regulatory certification costs for vessels and systems in continuing operations were $4.6 million in Q2 2026, down from $14.1 million in Q2 2025.