Viridien reports lower Q3 revenue but continues to reduce debt - Markets and investing

Viridien’s third-quarter 2026 segment revenue fell 24% year over year to $237 million, while nine-month net cash flow rose 8% to $67 million. The company reaffirmed its $100 million full-year cash flow target and highlighted improving momentum in Geoscience.

Viridien reported lower revenue and adjusted EBITDAS for the third quarter of 2026, but said cash generation and ongoing debt reduction remained strong. Segment revenue was $237 million, down 24% from the same quarter a year earlier, while adjusted EBITDAS fell 40% to $100 million.

For the first nine months of the year, segment revenue declined 23% to $683 million and adjusted EBITDAS was down 36% to $268 million. Net cash flow, however, increased 8% year over year to $67 million. Net debt excluding IFRS 16 stood at $656 million at September 30, compared with $735 million at the end of 2025.

Geoscience was the quarter’s strongest area. External revenue reached $112 million, up 17% from the second quarter but 4% below the year-earlier period. Its backlog grew to $267 million from $256 million at the end of 2025, and productivity rose 9% year over year to $409,000 per employee on a nine-month basis. Viridien said pending bids had increased by a high double-digit percentage compared with a year earlier.

Earth Data revenue was $69 million, compared with $136 million in Q3 2025. Viridien said the prior-year quarter included significant transfer fees, making the comparison difficult. Multi-client capital expenditure declined 20% year over year to $36 million. The company expects Earth Data spending for 2026 to reach about $150 million or slightly less, with investment projected to rise toward $200 million in 2027 as new projects ramp up.

Sensing & Monitoring revenue fell 19% to $56 million, and the segment recorded negative adjusted EBITDAS of $5 million. Viridien cited lower revenue and foreign-exchange pressure. It said optimization measures were under review while it continued to pursue longer-term opportunities, including Saudi mega-crew tenders that are expected to be awarded in 2027.

The company attributed its cash generation in part to a $104 million positive working-capital swing, supported by Earth Data collections and the receipt of outstanding PEMEX receivables. Improved net capital expenditure and lease cash flows contributed a further $44 million. Viridien also announced a partial early redemption of about €48 million equivalent of euro-denominated notes, scheduled for November 16, 2026.

Viridien reaffirmed its full-year 2026 objective of generating $100 million in net cash flow. It expects stronger fourth-quarter performance, supported by seasonal late sales in Earth Data and improved Sensing & Monitoring revenue. The company also said its Geoscience backlog had risen to $283 million by the end of October, with more than 60% of pending proposals focused on frontier and emerging areas.

Sources: Investing.com News.