Business
Archer : Q4 2025 Trading Update and 2026 Outlook
Archer : Q4 2025 Trading Update and 2026
About this update from Archer Limited
2 nd February 2026 Q4 2025 Trading Update 1 Q4 and 2025 highlights 2 Business segment update 3 Outlook and guidance 4 Appendix Agenda $1.2bn Revenue 1 $167m EBITDA 1 $4bn Land Drilling Well Services Renewable Services Platform Operations Our products & services Backlog 2 50+ years Operational experience 40 Locations globally 4,500 Global personnel 3 1 IFRS reporting, 2025. Financials are unaudited. 2 Backlog value is as of year-end 2025 and include options 3 As of year-end 2025 Key milestones for Archer in 2025 2025 highlights Refinancing of $425m senior secured bond Quarterly dividends initiated, at ~11% yield Acquired Premium Oilfield Services in the US and raised $20 million of equity in private placement Acquired WellConnection in Norway Strengthened backlog to a total of $4bn by year-end 2025, through multiple P&A projects and major drilling contract in Vaca Muerta Solid financial performance, with continued EBITDA growth of 12% Sold workover business in the south of Argentina (2026) Revenue ($m) IFRS 1 CAGR +14% 818 973 1,118 1,209 '22 '23 '24 '25 EBITDA ($m) IFRS 1 CAGR +21% 149 167 94 131 '22 '23 '24 '25 1 Archer has converted from US GAAP to IFRS reporting. All reported financials are presented using IFRS accounting standards, unless otherwise stated. Financials are unaudited. Q4 Revenue ($m) Q4 EBITDA ($m) Q4 Highlights - continued growth IFRS 2 IFRS 2 Q4 revenue of $309 million, up 3% YOY Q4 EBITDA of $44.5 million, up 14% YoY 2025 revenue of $1,209 million, up by 8% 2025 EBITDA of $166.5 million, up by 12% 2025 year-end NIBD at $426 million Distribution to shareholders of $6.1 million in Q4 1 Archer has started to report financials using IFRS accounting standards 2 $600m five-year contract with YPF for the provision of 7 high-spec drilling rigs Contract with NEO NEXT Energy for the deployment of P&A unit to the UK 400 300 200 100 0 Q4-24 Q4-25 50 +3% 301 309 +14% 44.5 39.2 40 30 20 10 0 Q4-24 Q4-25 Extension of platform drilling contracts, both in the UK and in Norway '25 Revenue($m) '25 EBITDA ($m) IFRS 2 IFRS 2 Subsequent events Approved $6.4m distribution to be paid to shareholders in Q1 2026 1 Awarded integrated P&A contracts in Norway and deepwater Gulf of America Sold workover business in the south of Argentina 1 500 1 000 500 200 +12% 166.5 149.3 +8% 1 209 1 118 150 100 50 0 0 Conversion to IFRS reporting From US GAAP to IFRS We have converted from US GAAP to IFRS accounting policy from and including Q4 2025 The reason for the conversion is to align with the majority of the companies reporting at the Oslo Stock Exchange All financial reports and presentations, including this trading update, will from now on present financials using IFRS accounting standards, unless otherwise stated Q4 Revenue ($m) 1 352 309 400 300 200 100 0 US GAAP IFRS Q4 EBITDA ($m) 1 44.5 38.9 50 40 30 20 10 0 US GAAP IFRS '25 Revenue ($m) 1 '25 EBITDA ($m) 1 Main changes to reported financials Reimbursables will no longer be reported as revenue, meaning that only operational revenue will be reported Operating lease costs are reclassified below EBITDA, together with D&A R&D and intangible assets more likely to capitalized and amortized 1 500 1 000 500 200 166.5 149.0 1 383 1 209 150 100 50 0 0 Added significant backlog with key strategic awards Key backlog additions in 2025 and contract values 1 Platform Operations Well Services Land Drilling Major late life and P&A contract with NEO Next 5-year service contract covering NEO's UK platform portfolio Integrated P&A in the Gulf of America P&A unit and integrated services with SLB P&A unit for NEO Next 5-year contract for compact P&A unit in the UK Platform Drilling extension in UK ($110m) 5-year extension of current PD service contract Workover services for PAE in the South ($210m) 3 3-year contract renewal for 9 pulling and 8 workover units Fishing services for US Gulf operator ($50m) 3-year frame agreement renewal for fishing services in the GoA P&A execution for Equinor ($140m 2 ) P&A planning and execution of 30 subsea wells Subsea P&A for Equinor ($150m) 7-year frame agreement, for engineering and planning of P&A Drilling services for PAE in Vaca Muerta ($60m) 2-year contract renewal, for 2 rigs Drilling services for YPF in Vaca Muerta ($600m) 5-year contract, covering 7 high spec rigs and MPD sets in VM Platform Drilling extension with Aker BP 3-year extension of current PD service contract 1 Estimated contract values including options, per announced. Includes announced contract additions YTD 2026. 2 Value of P&A execution of 30 subsea wells. 50% of value relates to services delivered by Archer's alliance partners. Outlook for Archer backed by backlog of $3.6bn Revenue backlog ($bn) Comments Excluding the workover business in south Argentina 1 ~1.4 Firm backlog of $2.3bn, with an additional $1.3bn in contract options Close to half of backlog coming from long-term platform operation contracts with blue-chip E&P operators, with Equinor being the largest Well services revenue usually based on framework agreements that are not included in the order backlog Land Drilling backlog increases materially through $600 million contract with YPF Backlog by divisions Firm Option ~1.0 ~0.8 ~0.7 ~0.6 ~$550m EBITDA implied from current backlog 2 Land Drilling 19% 2% Renewable Services Platform Well 26% $3.6bn 52% Operations '25 Operational rev. '26 '27 '28 Thereafter Services 1 Year-end 2025 backlog: about $4bn (including the discontinued workover business in south Argentina) 9 2 Based on backlog and estimated EBITDA margin per division (~15% average EBITDA margin for total backlog) Strengthened capital structure and dividend program initiated Bond refinancing Shareholder distribution program Q1 2025 Q2 2025 1 9.5% fixed $425m Bond issue Coupon Senior secured bond issue of $425m Reduced cost of debt Five-year term, pushing maturity to 2030 $6.1m $6.4m $5.5m $5.5m Q2 '25 Q3 '25 Q4' 25 Q1 '26E Initiation of quarterly dividends from Q2 2025 NOK 0.62/share (10-11% yield) 1 Free float Free float Paratus 69.4% 54.7% 23.8% 30.6% Hemen Hemen 21.5% Archer shareholdings before and after transaction Private placement and secondary sale $20m $49m Q3 2025 Private placement Secondary sale (Paratus) $69m Total transaction $20m equity raise to fund Premium acquisition Paratus exit with main shareholders acquiring shares in Archer directly Increase in Hemen ownership and in free float 1 Stable distribution of ~0.62 NOK/share. USD amount varying due to issue of shares in Q3 2025 and from USD/NOK currency fluctuations 10 Attention : This is an excerpt of the original content. To continue reading it, access the original document here .