Helix Energy Solutions Group (NYSE:HLX) reported a stronger-than-expected finish to 2025, with management highlighting solid execution across offshore and onshore operations despite seasonal headwinds and pockets of softer market conditions.
Fourth-quarter and full-year results
Chief Operating Officer Scotty Sparks said the fourth quarter was the company’s strongest fourth quarter since 2013, even as winter seasonality typically pressures utilization. Helix posted fourth-quarter revenue of $334 million, gross profit of $51 million, and net income of $8 million. Adjusted EBITDA was $74 million, and the company generated operating cash flow of $113 million and free cash flow of $107 million.
Sparks cited several operational milestones during the quarter and year, including improved late-season activity on the Gulf of America shelf, the transition of the Siem Helix 1 into a three-year Petrobras contract, and the securing of a multi-year PNA contract in the North Sea that is expected to support utilization in 2026 and bring the Seawell out of stacking.
Balance sheet and capital allocation
Vice President of Finance and Accounting Brent Arriaga said Helix ended 2025 with $445 million in cash and cash equivalents and total liquidity of $554 million, including availability under its ABL facility. Funded debt totaled $315 million, resulting in negative net debt of $137 million at year-end. Arriaga added that Helix expects to continue building cash in 2026, with “minimal debt repayment obligations” through 2029.
On capital returns, CFO Erik Staffeldt said the company expects funded debt to decline by about $10 million in 2026 based on scheduled principal payments and that Helix plans to continue its share repurchase program, targeting repurchases of 25% of free cash flow. During the Q&A, CEO Owen Kratz said there are “actionable” M&A opportunities, but that potential transactions are being assessed in collaboration with the board and management, noting that CEO succession will be a consideration in decision-making.
Segment performance and operational update
In well intervention, management described mixed dynamics by region. In the Gulf of America, the Q5000 posted high utilization in the fourth quarter, completing a multi-well campaign for Shell and starting work on a BP program. The Q4000 experienced schedule gaps in the quarter, including lower-rate ROV decommissioning work for Murphy, before returning to contracted work at well intervention rates in early 2026. Management said Q4000 utilization is a key area of focus in 2026, with contracted work into the second quarter and “white space” in the second half.
In the North Sea, the Well Enhancer had 70% utilization in the quarter, while the Seawell was warm-stacked but reactivated in January and began working in February. In Brazil, the Q7000 recorded 100% utilization in the quarter on Shell’s 400-day decommissioning campaign. The Siem Helix 2 also had 100% utilization for Petrobras. The Siem Helix 1 had 61% utilization as it transitioned into its Petrobras contract.
Robotics delivered what Sparks called another strong quarter and “a very good year,” operating six vessels during the quarter across trenching, ROV support, and site survey work for renewables and oil and gas projects. The company returned the Glomar Wave to its owners after its charter expired and replaced it with the Patriot in January. Management also highlighted trenching system activity, including the T1402 contract extension in the Mediterranean through the end of the first quarter of 2027. Staffeldt said the trenching market, particularly in Europe, remains a “bright spot,” with active bidding and improving rates.
In shallow water abandonment, Sparks noted the fourth quarter is typically seasonally weak, but the EPIC Hedron worked into December with 92% utilization. The company reported 538 days of PNA spread utilization during the quarter and 83 days of coiled tubing utilization.
2026 guidance and notable headwinds
Staffeldt said Helix enters 2026 with strong backlog and a supportive base level of activity, but also described a market “that lacks conviction or direction” amid geopolitical and macroeconomic crosscurrents. Management nonetheless said momentum appears to be building, with producers signaling expanded activity in late 2026 or early 2027.
Helix provided 2026 guidance ranges as follows:
- Revenue: $1.2 billion to $1.4 billion
- EBITDA: $230 million to $290 million
- CapEx: $70 million to $80 million
- Free cash flow: $100 million to $160 million
Management said two distinct items are expected to reduce year-over-year EBITDA by roughly $40 million. Staffeldt said Helix completed a Thunderhawk field workover earlier in February at an estimated cost of $16 million, impacting first-quarter results. He also said the Siem Helix 1 is scheduled for a 10-year recertification mid-year 2026, expected to impact results by more than $20 million.
In response to analyst questions about first-quarter expectations, Staffeldt emphasized the Thunderhawk expense is a first-quarter event and that the Siem Helix 1 docking is expected to be a second-quarter event (with potential to slip into the third quarter), while also noting first-quarter results are typically seasonally the lowest.
Market outlook, succession, and longer-term view
Kratz said 2025 was softer than 2024, with revenue down 5% and EBITDA down 10%, but he characterized results as better than expected and better than Helix’s revised guidance after what he called an “unexpected collapse” of U.K. work. He also said Helix pulled the Q4000 dry dock forward from 2026 into 2025 to take advantage of what could be a stronger market in 2026 compared with the softer second half of 2025.
On production facilities, management discussed Thunderhawk and Drosky. Kratz said Drosky continued to perform better than expected and that the Thunderhawk intervention was completed in February with successful results. However, he said the host facility is experiencing issues that prevent immediate restart, with production expected to begin in early April.
Looking ahead, management discussed improving conditions in the North Sea, led by decommissioning work, and described the U.S. well intervention market as potentially “marginally” improving. Sparks told analysts Helix is seeing a better activity level in 2026 than in 2025, when oil company mergers put projects on hold, and he said both the Seawell and Well Enhancer are expected to have active seasons.
Kratz also reiterated that Helix’s board is working through a long-established succession plan following his announced intent to retire, emphasizing continuity through the transition. He said Helix’s financial strength could support capital investments or M&A, adding that the company expects another year of strong free cash flow generation and that a stronger 2027 is anticipated “all around.”
About Helix Energy Solutions Group (NYSE:HLX)
Helix Energy Solutions Group, Inc (NYSE: HLX) is a Houston-based provider of offshore well intervention and robotics services to the global energy industry. The company specializes in extending the productive life of subsea wells through hydraulic workover systems, coiled tubing operations and riser-based wireline services. In addition, Helix offers remotely operated vehicle (ROV) support, inspection, maintenance and repair for subsea infrastructure.
Operating through three core business segments—Well Intervention, Robotics & Subsea Services and Production Facilities—Helix deploys purpose-built vessels, specialized equipment and engineering expertise to execute complex offshore projects.
