Helix Energy Solutions Group concluded 2025 on a high note, surpassing financial forecasts for its fourth quarter and the entire fiscal year. The company's robust performance, particularly in its Robotics division and Brazilian operations, underpinned a period of significant growth and strategic advancement. Despite facing some market headwinds and typical seasonal slowdowns, Helix achieved impressive revenue and net income figures, reinforcing its strong market position and operational resilience. The leadership team also addressed a smooth transition plan for the retiring CEO, Owen Kratz, emphasizing business continuity and future growth opportunities through a strong balance sheet.
During the fourth quarter of 2025, Helix Energy Solutions Group posted revenues of $334 million, generating a gross profit of $51 million and a net income of $8 million. The adjusted EBITDA for the quarter stood at $74 million, accompanied by a positive operating cash flow of $113 million, leading to a free cash flow of $107 million. This strong quarterly performance contributed to an impressive full-year tally, with total revenues reaching $1.3 billion, a gross profit of $159 million, and a net income of $31 million. The annual adjusted EBITDA was $272 million, with operating cash flow at $137 million and free cash flow at $120 million.
Key operational highlights for the year included the successful transition of the C Helix 1 vessel to a three-year contract with Petrobras and securing a multi-year plug and abandonment (P&A) contract in the North Sea, which will reactivate the Seawell vessel. The Robotics segment demonstrated exceptional performance, operating six trenchers, seven vessels, and three boulder grabs globally, with significant involvement in renewable energy projects. In Brazil, three vessels, including the SH 1, SH 2, and Q7000, are on long-term contracts with Petrobras and Shell, operating at improved rates.
Looking ahead to 2026, Helix Energy Solutions Group anticipates revenues between $1.2 billion and $1.4 billion, aligning with 2025 figures. The projected EBITDA is set between $230 million and $290 million, influenced by a $16 million workover expense for the Thunder Hawk field in Q1 and a 10-year recertification for the C Helix 1, estimated at over $20 million, primarily impacting Q2. Capital expenditure for 2026 is forecasted to be between $70 million and $80 million, mainly allocated to regulatory maintenance and fleet renewal for Robotics ROVs. The company expects to generate free cash flow between $100 million and $160 million, further strengthening its cash reserves. Despite geopolitical and economic uncertainties, the company foresees improving market conditions in the latter half of 2026 and into 2027, with a particularly robust outlook for its Robotics fleet and a stable shallow-water abandonment segment.
The company's financial health remains robust, with cash and cash equivalents totaling $445 million and liquidity of $554 million at year-end 2025. Total funded debt was $315 million, resulting in a negative net debt of $137 million. This strong balance sheet positions Helix Energy Solutions Group favorably for future growth initiatives, including potential mergers and acquisitions, as well as strategic capital investments. The management team anticipates a cash balance approaching $600 million by the end of 2026, creating opportunities to enhance shareholder value. Owen Kratz's retirement and the search for a new CEO are progressing under a well-established succession plan, ensuring a seamless transition and continuity in leadership.
Overall, Helix Energy Solutions Group showcased an impressive year, strategically managing market challenges and optimizing operational efficiency. The company's proactive approach to securing long-term contracts, investing in fleet maintenance, and expanding its robotics capabilities has positioned it for sustained growth. With a strong financial foundation and clear strategic direction, Helix is well-prepared to navigate future market dynamics and capitalize on emerging opportunities in both traditional and renewable energy sectors, solidifying its leadership in well intervention, decommissioning, and robotics services.
