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• Q4 Revenue: $355 million

• Q4 Gross Profit: $59 million

• Q4 Net Income: $20 million

• Q4 Adjusted EBITDA: $72 million

• Q4 Operating Cash Flow: $78 million

• Q4 Free Cash Flow: $65 million

• Full Year 2024 Revenue: $1.36 billion

• Full Year 2024 Gross Profit: $220 million

• Full Year 2024 Net Income: $56 million

• Full Year 2024 Adjusted EBITDA: $303 million

• Full Year 2024 Operating Cash Flow: $186 million

• Full Year 2024 Free Cash Flow: $163 million

• Cash and Cash Equivalents: $368 million

• Liquidity: $430 million

• Funded Debt: $324 million

• Negative Net Debt: $53 million

• Warning! GuruFocus has detected 4 Warning Signs with HLX.

Release Date: February 25, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Helix Energy Solutions Group Inc (NYSE:HLX) reported strong financial performance for Q4 2024 with revenues of $355 million, a gross profit of $59 million, and net income of $20 million.

• The company achieved an adjusted EBITDA of $72 million for the quarter and generated strong free cash flow of $65 million.

• Helix Energy Solutions Group Inc (NYSE:HLX) secured long-term contracts, including a 400-day contract with Shell in Brazil and a three-year contract with Petrobras, providing strong contract coverage for multiple years.

• The robotics segment performed exceptionally well, with high utilization and significant trenching activity, and the outlook for the global renewables market remains robust.

• The company plans to allocate a minimum of 25% of free cash flow to share repurchases, indicating confidence in its financial position and commitment to returning value to shareholders.

Negative Points

• The UK North Sea well intervention market is expected to be weaker in 2025 due to increased taxes and regulatory challenges, leading to lower utilization.

• The shallow water abandonment segment experienced a seasonal slowdown and a weak 2024 US Gulf Coast shelf market, with expectations of only marginal improvement in 2025.

• Helix Energy Solutions Group Inc (NYSE:HLX) faces macroeconomic challenges, including a softer rig market and uncertainty in the US wind farm market due to an announced moratorium.

• The company anticipates seasonal impacts on quarterly results, with the first and fourth quarters affected by winter weather, potentially impacting financial performance.

• Despite strong contract coverage, the company acknowledges the potential for operational disruptions and the need to manage project execution risks effectively.

Q & A Highlights

Q: Owen, with the expected free cash flow and potential M&A, what types of assets are you targeting, and is valuation the main issue preventing activity? A: Owen Kratz, CEO: We see high probability for M&A activity this year, focusing on geographic opportunities and the wind market, which has seen valuation pullbacks. Vessel prices are currently too high, but new orders may rationalize existing tonnage values, making it a future consideration.