Hornbeck Offshore Services, Inc.: Q4 FY2025 earnings call

What management said about Q4 FY2025, from the documents filed with the SEC on 24 February 2026: press release. Guidance figures: 1 new. The quarter’s numbers.

Read the filing

Key takeaways

• Fourth quarter net income and EBITDA: Net income was $8.3 million, or $0.06 per diluted share, against $22.1 million, or $0.15, in the third quarter. Adjusted EBITDA was $73.9 million versus $103.7 million. Source
• Well Intervention revenue down year on year: Well Intervention revenue fell $45.2 million, or 20%, from the fourth quarter 2024, mainly on lower Q4000 and Seawell revenue. Vessel utilization was 72%, against 76% in the third quarter. Source
• Epic Hedron lifted shallow water revenue: Shallow Water Abandonment revenue rose $19.9 million, or 53%, from the fourth quarter 2024. Sequentially, revenue fell 23% on the Gulf of America seasonal slowdown. Source
• Thunder Hawk impairment recorded: A non-cash impairment of about $18.1 million, pre-tax, was recorded on oil and gas properties. The company tied it to lower oil prices and higher expected operating costs. Source
• UK North Sea P&A program secured: The sales effort secured a multi-year plug and abandonment program in the UK North Sea covering up to 34 subsea wells, according to management. Source
• Near-term market expected at current pace: Management expects the near-term offshore market to continue at its current pace, and cites building momentum for the later period. Source
• Fourth quarter free cash flow over $100 million: Free cash flow was $107.5 million in the fourth quarter, against $22.6 million in the third. The company cited higher operating cash flow, aided by working capital improvements. Source

“Our team delivered $74 million of EBITDA, our highest fourth quarter EBITDA since 2013.”

Owen Kratz, President and Chief Executive Officer

Guidance

What changed from last quarter

• New: A non-cash impairment of about $18.1 million (pre-tax) on certain oil and gas properties was recorded in the fourth quarter. No such charge appeared in the third quarter. Source
• New: The company reported securing a multi-year plug and abandonment program in the UK North Sea covering up to 34 subsea wells. Source
• New guidance: Timing for restarting Thunder Hawk production was given as early April. The third quarter release did not give a restart date. Source
• New guidance: Management gave a timing for improvement in the offshore market, which the third quarter release did not state. Source

Results and earnings

• Fourth quarter net income and EBITDA: Net income was $8.3 million, or $0.06 per diluted share, against $22.1 million, or $0.15, in the third quarter. Adjusted EBITDA was $73.9 million versus $103.7 million. Source
• Full-year net income and Adjusted EBITDA: Full-year 2025 net income was $30.8 million, or $0.21 per diluted share, against $55.6 million, or $0.36, in 2024. Adjusted EBITDA was $272.0 million, against $303.1 million. Source
• Filing is for Helix, not Hornbeck: The filing is for Helix Energy Solutions Group, Inc. (NYSE: HLX), not Hornbeck Offshore Services, Inc. (HOS) named in the request. This summary covers the Helix filing only. Source

Well Intervention and Robotics

• Well Intervention revenue down year on year: Well Intervention revenue fell $45.2 million, or 20%, from the fourth quarter 2024, mainly on lower Q4000 and Seawell revenue. Vessel utilization was 72%, against 76% in the third quarter. Source
• Sea Helix 1 and Well Enhancer utilization dipped: Sea Helix 1 utilization fell as the vessel moved between long-term Brazil contracts. Well Enhancer utilization fell during the North Sea winter seasonal slowdown. Source
• Full-year Well Intervention revenue down 12%: Full-year Well Intervention revenue fell $100.5 million, or 12%. Vessel utilization was 72%, against 90% in 2024, with Seawell stacking the main driver. Source
• Robotics full-year revenue higher: Robotics revenue rose $25.7 million, or 9%, in 2025, on third-party trenching and higher project rates. Robotics operating income fell $6.0 million on project mix. Source
• Robotics fourth quarter revenue up year on year: Robotics revenue rose 7% from the fourth quarter 2024 on higher rates and third-party trenching. It fell 12% from the third quarter on the North Sea winter slowdown. Source

“We have amassed a substantial cash balance, $445 million at year end, providing significant optionality for its deployment.”

Owen Kratz, President and Chief Executive Officer

Shallow Water and Production Facilities

• Epic Hedron lifted shallow water revenue: Shallow Water Abandonment revenue rose $19.9 million, or 53%, from the fourth quarter 2024. Sequentially, revenue fell 23% on the Gulf of America seasonal slowdown. Source
• Plug and abandonment system days higher: P&A and coiled tubing systems logged 621 days, or 26% utilization, in the fourth quarter, against 416 days, or 17%, a year earlier. Vessel utilization excluding heavy lift was 52%. Source
• Shallow water operating income higher for 2025: Shallow Water Abandonment operating income was $10.5 million in 2025, against a $9.3 million loss in 2024. Management attributed the change to higher revenues, lower operating expenses and higher margin contracting. Source
• Production Facilities revenue lower in quarter: Production Facilities revenue fell $1.2 million, or 6%, year on year. Lower Droshky oil and gas output and prices, and higher HFRS customer credits, drove the decline. Source
• Vessels stacked as cost measure: Two liftboats and three OSVs stayed stacked during the quarter as a cost reduction measure. The Epic Hedron heavy lift barge ran at 92% utilization. Source

Costs and impairment

• Thunder Hawk impairment recorded: A non-cash impairment of about $18.1 million, pre-tax, was recorded on oil and gas properties. The company tied it to lower oil prices and higher expected operating costs. Source
• Fourth quarter SG&A up on compensation: SG&A was $20.3 million, or 6.1% of revenue, up from $18.2 million in the third quarter on higher employee compensation. It was down from $27.6 million a year earlier. Source
• Full-year SG&A lower: Full-year SG&A was $75.9 million, or 5.9% of revenue, against $91.7 million, or 6.7%, in 2024. The company attributed the decrease mainly to lower employee compensation-related costs. Source

Demand and market view

• UK North Sea P&A program secured: The sales effort secured a multi-year plug and abandonment program in the UK North Sea covering up to 34 subsea wells, according to management. Source
• Near-term market expected at current pace: Management expects the near-term offshore market to continue at its current pace, and cites building momentum for the later period. Source
• Robotics vessel activity and utilization: Total Robotics vessel activity was 491 days, or 91% utilization, in the fourth quarter. ROV and trencher utilization was 58%, against 63% in the third quarter. Source

Cash flow and shareholder returns

• Fourth quarter free cash flow over $100 million: Free cash flow was $107.5 million in the fourth quarter, against $22.6 million in the third. The company cited higher operating cash flow, aided by working capital improvements. Source
• Full-year free cash flow lower: Full-year free cash flow was $120.4 million, against $163.2 million in 2024. Lower operating cash flow was partly offset by lower capital expenditure. Source
• Liquidity and net cash position: Cash was $445.2 million at December 31, 2025, and Net Debt was negative $137.2 million. ABL availability was $110.9 million. Source
• Regulatory certification costs rising: Regulatory certification costs, classed in operating cash flow, were $52.0 million in 2025, against $35.4 million in 2024. The company treats them as part of its capital spending program. Source
• Share repurchases in 2025: The company repurchased 4.6 million shares for about $30.2 million in 2025, against 2.9 million shares for about $29.6 million in 2024. Source

Figures management reported

Risks management discussed

• Demand: Management described the offshore market as volatile, with oil prices down nearly 20% year over year and a slower offshore market. Source
• External: Management said the company is finding pockets of market resilience despite macro and geopolitical headwinds. Source
• Financial: The Thunder Hawk impairment reflects lower oil prices and higher expected workover costs, which lowered the value of the field. Source
• Operational: Shallow Water Abandonment revenue fell in the quarter on seasonal slowdown in the Gulf of America shelf, with lower utilization on systems and vessels. Source

Earlier plans management reported on

• Not stated: The third quarter release raised full-year 2025 Adjusted EBITDA guidance to $240 to $270 million. The fourth quarter release does not state a status against that range.
• Not stated: The third quarter release estimated full-year 2025 Free Cash Flow between $100 and $140 million. The fourth quarter release reports $120.4 million without stating a status against the range.

Other quarters

• Q2 FY2026 earnings call
• Q1 FY2026 earnings call
• Q3 FY2025 results
• Q2 FY2025 results
• Q3 FY2026 earnings call

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.