Archer LimitedOSL: ARCH

Q3 2025 Presentation

Nov 4, 2025 at 7:43 AM UTC · MarketScreener

Watch Archer explain itArcher Limited (ARHVF) Q2 2026 Earnings Call · Replay · Aug 13

Archer

Q3 2025 Trading Update

4 November 2025

Revenue EBITDA

CAGR +11%

Land Drilling

Well Services

Renewable Services

Platform Operations

Our products & services

$m $m

1,169

1,301 1,300-1,350

970

CAGR +21%

135

145-155

117

'22 '23 '24 '25G '22 '23 '24 '25G

Cash contribution Leverage ratio

CAGR +20% 90-110

5.3x

2.9x

2.6x 2.2x-2.5x

'22 '23 '24 '25G '22 '23 '24 '25G

EBITDA - Capex

Reported NIBD/adj. EBITDA

Revenue ($m) EBITDA ($m)

Q3 Highlights - continued growth

Revenue of $339.3 million, up 1% YOY
Adjusted EBITDA of $40.2 million, up 11% YOY
EBITDA of $38.4 million, up 10% YOY
Distribution to shareholders of $5.5 million in Q3
Acquired Premium Oilfield Services
350
300
250
200
150
100
50
0
+1%
335
339
283
294

Q3-24 Q3-25
40
+10%
38.4
34.9
35
30
25
20
15
10
5
0
Q3-24 Q3-25
Raised $20m in private placement to fund acquisition
Reimbursable
Operational revenue

LTM Adj. EBITDA ($m) LTM EBITDA ($m)
Subsequent events
Approved $6.1m distribution to be paid to shareholders in Q41
180
160
140
120
100
80
60
40
20
0
Q3-24 Q3-25
180
+21%
163.6
134.9
160
140
120
100
80
60
40
20
0
+13%
146.3
129.5

Q3-24 Q3-25

Archer's EBITDA remains resilient throughout the market cycles
Robust historical EBITDA Strong YoY-growth relative to peers1
+10%
+11%
-14%
EBITDA YTD
('25 vs. '24)
-16%
EBITDA Q3
(Q3 '25 vs. Q3 '24)
Peers

Peers

EBITDA

Margin

135

10%

117

11%

10% 10%

145-155

'17

'18 '19 '20 '21 '22

'23

'24

'25G

1 Average reported adj. EBITDA of Halliburton, Weatherford, Baker Hughes OFSE segment, SLB, Expro.

Archer to distribute $6.1 million to shareholders in Q4 (~11% yield)

Q4 cash distribution Archer with industry leading direct yield

Shareholder program yields in industry1

Payout per share: NOK 0.62 per share

Total distribution: Approx. $6.1 million

Payment date: On or around 14th of November

~11%

Share buybacks

~9%

~7%

~4%

~3%

Dividends and cash distribution

Planned frequency: Quarterly

Archer's announced shareholder return program initiated
with distributions of about $5.5million in Q2 and Q3
$6.1 million approved for shareholders distribution in Q4
Target to increase cash distribution to shareholders over time, in line with growth in earnings
Archer Peer 1 Peer 2 Peer 3 Peer 5 Peer 4 Peer 7 Peer 6
1 Per 31.10.25. Yield of US-based peers based on forward annual dividend yield plus share buyback yield, as reported by Morningstar. Peer sample include Odfjell Technology, SLB, Halliburton, Weatherford, H&P, Baker Hughes, Expro.

Acquired a complimentary well services business in the growing Gulf of America
Premium Oilfield Services description Growing P&A market in the Gulf of America
- Well-established service company within fishing and P&A related services, focused on the Gulf of America
- Solid reputation and long customer relations with major operators,
  complimentary to Archer client base
- Experienced team of about 80 employees
- Large and well-maintained equipment portfolio
- Material cost and capex synergies to be realized post-acquisition
Offshore decom expenditures in deepwater Gulf of America ($bn)1
>3x
5.0
3.5
2.6
1.5

2020-24 2025-29 2030-34 2035-39
Midland (TX)
operating facility
New Iberia (LA) headquarters
and operating facility
Permian
Basin
Winnie (TX)
operating facility
Gulf of America
Gulf Coast
onshore
Shelf
Deepwater
Offshore decom commitments by operator, in deepwater Gulf of America (2025-39)1
22%
21%
15%
12% 8% 7% 2% 13%
Archer and Premium clients together account for more than 80% of the ~$15bn decom and P&A commitments in the deepwater Gulf of America to 2039

Archer or Premium client

1 Deepwater and ultra-deepwater in the Gulf of America as defined by Rystad (water depth > 125m). Decommissioning expenditures are the actual expected expenditures of decommissioning a project within a specified year,

Accretive acquisition to strengthen Archer's EBITDA and cash flow
Key investment attributes1 Impact on pro forma key metrics1
EBITDA and cash contribution to increase by about
5% and 8-10% respectively
I

EBITDA PF '25E

Accretive acquisition of ~2.5x EV/EBITDA

+5%

Payback period of around ~2 years

III

Archer 'as-is' With Premium

Equipment purchased at discount compared to estimated

replacement value of $35-40m

Cash Contribution PF '25E

Acquisition supports increased shareholder distribution and deleveraging over time

+8-10%

Archer 'as-is' With Premium

Strong demand in recent equity transaction

Private placement and secondary sale Share ownership before and after transaction

Free float

Paratus

69.4%

23.8%

54.7%

30.6%

Hemen

21.5%

Post-transaction

Pre-transaction

$69m

$20m

$49m

Private placement

Secondary sale (Paratus)

Total transaction

Successful transaction
Strong commitment from main shareholders
Broader investor base
Enhanced free float and liquidity

Legacy shareholder Paratus exited through the secondary sale process, with its main shareholders Hemen Holding and Lodbrok Capital subscribing for Archer shares directly
Hemen Holding increased direct ownership from 21.5% to 30.6%, continuing the long-term support to Archer
Strong commitment from existing investors
Free float increased from 55% to 69%

Financials

Total revenue flat from previous quarter, operational revenue up $17 million related to high activity for platform drilling
EBITDA of $17.6 million is $0.9 million down from previous quarter, and up $1.3 million from the same quarter last year.
The strong EBITDA results in Q2 and Q3 is linked to the modular drilling rigs activity
Operations
Platform Drilling had a quarter of high activity and strong performance
Successful start up of P&A operations for
our lighter P&A unit in Norway
10
Equinor's pending sale to Prio of the Peregrino field could impact our drilling contract for two platforms in Brazil in 2026
Platform Operations
Revenues ($m)
EBITDA ($m)
180
160
140
120
100
80
60
40
20
0
25
155
158
158
137
131
20
+14%
15
123
105
104
119
136
10
5
0
Q3-24 Q4-24 Q1-25 Q2-25 Q3-25
Reimbursable revenue EBITDA (right axis) Operational revenue
Platform Drilling contracted rigs [# of rigs]
40
35
30
25
20
15
10
5
0
33
31
31
31
31
1
1
1
1
1
11
Q3-24 Q4-24 Q1-25 Q2-25 Q3-25
Maintenance mode rigs
Active P&A units
Active drilling rigs
11

Financials

Revenue of $89.1 million, is 11% higher than Q3 2024, and a 7% increase from previous quarter on the back of higher reimbursable revenue
EBITDA of $14.0 million represents a 19% increase compared to same period last year and a $1.1 million reduction from previous quarter.
EBITDA margin excl. reimbursable revenue of 20.5 % vs 19.2% same quarter last year
Operations
High activity across service lines in Norway
UK recorded weaker results on the back of historic low drilling and intervention activity
11
Q3-21 Q4-21 Q1-22
Q2-22
Q3-22 Q4-22 Q1-23 Q2-23
Q3-23
Q4-23 Q1-24 Q2-24 Q3-24
Q4-24
Q1-25
Q2-25
Q3-25
US activity remain muted
Well Services
Revenues ($m)
EBITDA ($m)
105
100
95
+11%
16
95
15
90
85
89
14
86
86
83
83
13
80
75
70
80
76
75
12
69
71
11
65
60
55
50
45
40
35
30
25
20
15
10
5
0
65
65
62
63
10
59
9
52
8
7
6
69
61
63
62
68 66 68 68
5
60
61
51
49
51
4
43
41 41
45
3
2
1
0
Reimbursable revenue
Operational revenue
EBITDA

Financials
Revenue in the quarter of $62.7 million reflects the reduced activity in the south of Argentina
EBITDA of $4.9m reflects activity after right-sizing of the organization following the reduced operations in the south of Argentina
Adjusted EBITDA of $5.7 million, is down from $9.9 million last year, based on reduction in drilling activity
Operations
Overall rig count in Argentina is down by 27% since January 20251. We expect drilling activity to be flat throughout 2025 and to increase in 2026
PAE renewed two drilling contracts in Vaca Muerta for an additional period of two years

1 Baker Hughes rig count per October report

Land Drilling

Revenues ($m)

120

EBITDA ($m)

102.5

100

99.2

100.8

73.0

62.7

Q3-24 Q4-24 Q1-25 Q2-25 Q3-25

Operational revenue

EBITDA (right axis)

Number of active Archer rigs

Q3-24 Q4-24 Q1-25 Q2-25

Q3-25

Workover & Pulling units

Drilling rigs

Renewable Services

Revenues ($m)

EBITDA ($m)

Financials

Revenue in the quarter of $33.4 million is in-line with previous quarter
35
30
25
20
15 14.0
10
5
0
22.5
33.9 33.4 5
4
3
2
1
0
- EBITDA in the quarter of $4.5 million, up
  from $3.0 million reported last quarter
- Strong results in geothermal partly offset by losses incurred in floating offshore wind segment
  Q4-24 Q1-25 Q2-25 Q3-25
  Operational revenue EBITDA (right axis)
  
  Operations
  - High activity and utilization of rigs in
    geothermal segment
  - High seasonal activity for wind and offshore services in Vertikal
    13
  - Fabrication of floating substructure for Total is delayed and will likely be finalized in H1 2026

Key takeaways

Continued strong EBITDA growth
Acquired Premium Oilfield Services in the US
Raising $20m in private placement
Cash distribution to shareholders at ~11% yield
14

Appendix

Strong rationale to acquire Premium Oilfield Services
1. Becoming the clear market leader in fishing in the GoA
2. Strong customer coverage with major operators, complimentary to Archer client base
  Strategic
  rationale
3. Material cost and capex synergy savings
4. Well-maintained excess fishing equipment purchased at a discount
5. Expanding offering to deepwater pipe recovery services and proprietary whipstocks

Accretive transaction in line with prior acquisitions

Successful track record of

accretive acquisitions

Premium acquisition to contribute

strongly for further value creation

Archer maintain focus on

value-creative M&A initiatives

Acquisitions last years1

Premium acquisition

M&A focus areas

~3.0x

EV / EBITDA

(avg.)2

~$90m

~$30m

Total

investments

LTM EBITDA

~2.5x

EV / EBITDA

(incl.synergies)

$20m

Deferred payment

~$8m

Cost synergies

EBITDA

Premium EV

PF '25E EBITDA

(incl.synergies)

Continued growth in EBITDA and cash flow

Synergetic bolt-on acquisitions

Accretive and value creative M&A

Further strengthen well service offering

1 Includes acquisitions of Iceland Drilling (60%), Romar-Abrado, Baker Hughes Coiled Tubing (UK), ADA Argentina, Vertikal Service (65%), Archer Wind, and WFR.

Key financials

Reimbursable

Operational revenue

350

300

250

200

Revenue [$m] EBITDA [$m]

349

335

343

349

339

284

289

295

294

38.1

38.4

36.2

34.9

33.5

Q3 24 Q4 24 Q1 25 Q2 25 Q3 25 Q3 24 Q4 24 Q1 25 Q2 25 Q3 25

NIBD [$m] CAPEX [$m]

Prepaid debt fees

NIBD

18.2

18.1

15.1

13.2

10.7

443

433*

433

385

382

426

435

425

366

364

450

400

350

* Increase in NIBD driven by make-whole fee on old bond and fees related to refinancing

300

Q3 24 Q4 24 Q1 25* Q2 25 Q3 25

Q3 24 Q4 24 Q1 25 Q2 25 Q3 25

Archer's capital allocation strategy

Balance sheet

Capex

M&A

Shareholder returns

Strong balance sheet and healthy debt levels

Capex maintained at

moderate levels

Selective accretive

bolt-on acquisitions

Shareholder

returns

Target a long-term leverage ratio of 1.5-2.0x
Maintain solid liquidity at all times
Aim to reduce overall cost of
capital in the long-term
Targeting total capex of 3-4% of revenue over time
Focus on growth investments with high financial returns
(30-50%)
Self-funded capex program in Argentina
Disciplined strategy, with selective accretive M&A
Targeting synergetic and cash generating bolt-on acquisitions with high financial returns (30-50%)
Regular and sustainable shareholder return program
Quarterly cash distributions of
$5.5m in Q2 and Q3 '25
Target to increase cash distributions over time, in line with growth in earnings

Attention: This is an excerpt of the original content. To continue reading it, access the original document here.