Company Overview - Helix Energy Solutions is an international offshore energy services company focused on well intervention, robotics, and full-field decommissioning operations[9] - The company operates through four business segments: Well Intervention, Robotics, Shallow Water Abandonment, and Production Facilities[11] - Helix's services support the global energy transition by maximizing existing oil and gas reserves, decommissioning end-of-life fields, and supporting renewable energy developments[9] Financial Performance and Outlook - Helix reported revenue of $129 billion in 2023, compared to $873 million in 2022[13] - Adjusted EBITDA for 2023 was $273 million[58] - Free cash flow for 2023 was $134 million[58] - The company forecasts revenue between $12 billion and $14 billion for 2024[68] - Adjusted EBITDA is projected to be between $270 million and $330 million in 2024[68] - Free cash flow is forecasted between $65 million and $115 million for 2024, including $58 million related to the Alliance acquisition earnout[68] Market Trends and Opportunities - The global offshore deepwater oil and gas operating expenditure is projected to increase from $71 billion in 2022 to $98 billion in 2027[95] - The decommissioning market presents a $403 billion opportunity globally from 2024-2028[109] - North America's decommissioning commitments are estimated at $73 billion for 2024-2028[106] - Cumulative offshore wind cable installations are expected to reach 997 kilometers by 2030[112]

Company Overview - Helix Energy Solutions Group is a specialized offshore services company focused on well intervention, subsea robotics, and decommissioning [1] Investment Thesis - The share price of Helix Energy Solutions is significantly below its fair value, indicating a potential buying opportunity [1] - The company is positioned to benefit from its specialized services in the offshore sector, which may lead to future growth [1] Analyst Perspective - The investment strategy emphasizes value investing, aiming to acquire assets at a discount, which aligns with the current valuation of Helix Energy Solutions [1]

Core Viewpoint - The first batch of 16 new floating rate funds has been launched, with significant expectations from the management for these innovative products [2][5]. Group 1: Fund Manager Selection - The fund managers for these new funds are primarily mid-career professionals, with 10 out of 17 having 5-10 years of experience [2][3]. - There is a notable absence of previously popular star managers or those heavily invested in trending stocks, indicating a focus on experienced managers [2][3]. Group 2: Fund Manager Performance - Among the 17 fund managers, 5 have achieved an annualized return exceeding 10%, while only 1 has a negative performance [5][6]. - The overall performance of these fund managers has outperformed the annualized return of the CSI 300 index, with specific returns of 13.33% for Wang Mingxu from GF Fund and 13.04% for Wang Junzheng from Huaxia Fund [6][7]. Group 3: Fund Management Scale - The current management scale of these fund managers varies, with 3 managing over 10 billion yuan, while 4 manage less than 1 billion yuan [4][6]. - The majority of fund managers have a management scale between 2 billion and 10 billion yuan, indicating a balanced distribution [4]. Group 4: Investment Style - The fund managers exhibit diverse investment styles, with 10 favoring value investing and 7 specializing in growth stocks [9][11]. - Different fund companies offer various styles, allowing investors to choose funds that align with their investment preferences [12].

Group 1 - The focus has shifted towards offshore drilling, supply industry, and shipping, including tankers, containers, and dry bulk [1] - The fuel cell industry is being monitored as it is still in its early stages of development [1] Group 2 - The individual has extensive experience in navigating significant market events such as the dotcom bubble, the aftermath of the World Trade Center attacks, and the subprime crisis [2] - The individual has a background in auditing with PricewaterhouseCoopers before transitioning to day trading [2]

PART I. FINANCIAL INFORMATION [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) Helix Energy Solutions reported a **$3.1 million net income** in Q1 2025, a significant turnaround from a **$26.3 million net loss** in Q1 2024 [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2025, total assets were **$2.635 billion**, a slight increase from **$2.597 billion** at year-end 2024, with shareholders' equity growing to **$1.545 billion** Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $369,987 | $368,030 | | Total current assets | $736,207 | $709,682 | | Property and equipment, net | $1,434,365 | $1,437,853 | | **Total assets** | **$2,635,023** | **$2,597,080** | | **Liabilities & Equity** | | | | Total current liabilities | $323,395 | $304,416 | | Long-term debt | $301,697 | $305,971 | | **Total liabilities** | **$1,089,758** | **$1,077,315** | | **Total shareholders' equity** | **$1,545,265** | **$1,519,765** | [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For Q1 2025, net revenues decreased **6%** to **$278.1 million**, yet gross profit increased **41%** to **$27.5 million**, resulting in a net income of **$3.1 million** compared to a **$26.3 million net loss** in Q1 2024 Q1 2025 vs Q1 2024 Statement of Operations (in thousands, except per share amounts) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net revenues | $278,064 | $296,211 | | Gross profit | $27,538 | $19,554 | | Income (loss) from operations | $8,172 | $(1,276) | | Losses related to convertible senior notes | $0 | $(20,922) | | **Net income (loss)** | **$3,072** | **$(26,287)** | | Diluted EPS | $0.02 | $(0.17) | [Condensed Consolidated Statements of Comprehensive Income (Loss)](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income%20(Loss)) Comprehensive income for Q1 2025 was **$30.3 million**, driven by **$3.1 million** net income and a **$27.2 million** foreign currency translation gain, contrasting with a **$33.0 million** comprehensive loss in Q1 2024 Comprehensive Income (Loss) (in thousands) | Component | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net income (loss) | $3,072 | $(26,287) | | Foreign currency translation gain (loss) | $27,185 | $(6,683) | | **Comprehensive income (loss)** | **$30,257** | **$(32,970)** | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash provided by operating activities significantly decreased to **$16.4 million** in Q1 2025 from **$64.5 million** in Q1 2024, primarily due to higher recertification costs and working capital changes Cash Flow Summary (in thousands) | Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $16,442 | $64,484 | | Net cash used in investing activities | $(4,488) | $(3,242) | | Net cash used in financing activities | $(11,075) | $(69,304) | | **Net increase (decrease) in cash** | **$1,957** | **$(8,342)** | [Notes to Condensed Consolidated Financial Statements (Unaudited)](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) The notes detail accounting policies, business segments, debt structure, and revenue recognition, highlighting **$311.1 million** in total debt and a **$1.4 billion** contract backlog as of March 31, 2025 - The company operates through four reportable business segments: Well Intervention, Robotics, Shallow Water Abandonment, and Production Facilities, providing services to oil and gas and renewable energy markets[22](index=22&type=chunk) - As of March 31, 2025, total long-term debt, including current maturities, was **$311.1 million**, primarily consisting of MARAD Debt and 9.75% Senior Notes due 2029[33](index=33&type=chunk) - As of March 31, 2025, the company had **$1.4 billion** in unsatisfied performance obligations (backlog), with **$592.1 million** expected to be recognized as revenue in the remainder of 2025[60](index=60&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=27&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2025 performance, highlighting a **6% revenue decline**, **41% gross profit increase**, and return to profitability [Executive Summary](index=30&type=section&id=Executive%20Summary) The company provides specialty services in a volatile market influenced by commodity prices and tariffs, supported by a strong **$1.4 billion** backlog as of March 31, 2025 - The current market environment is characterized by **volatile commodity prices**, influenced by OPEC+ production increases and U.S. tariffs, which is expected to create a more challenging spot market in 2025[101](index=101&type=chunk)[102](index=102&type=chunk)[104](index=104&type=chunk) - Consolidated backlog totaled approximately **$1.4 billion** as of March 31, 2025, with **$592 million** expected to be performed in the remainder of 2025[105](index=105&type=chunk) - The international wind market remains robust, but U.S. windfarm activity is expected to decline following the 2025 Wind Energy Ban memorandum[103](index=103&type=chunk) [Results of Operations](index=32&type=section&id=Results%20of%20Operations) Consolidated net revenues for Q1 2025 decreased **6%** to **$278.1 million**, while gross profit increased **41%** to **$27.5 million**, with varied segment performance and Adjusted EBITDA reaching **$52.0 million** Segment Revenue and Gross Profit (in thousands) | Segment | Q1 2025 Revenue | Q1 2024 Revenue | Q1 2025 Gross Profit | Q1 2024 Gross Profit | | :--- | :--- | :--- | :--- | :--- | | Well Intervention | $198,374 | $211,300 | $24,322 | $23,144 | | Robotics | $51,042 | $50,309 | $8,016 | $8,183 | | Shallow Water Abandonment | $16,818 | $26,853 | $(11,582) | $(9,763) | | Production Facilities | $19,837 | $24,152 | $7,460 | $(1,306) | Vessel/Asset Utilization | Asset Category | Q1 2025 Utilization | Q1 2024 Utilization | | :--- | :--- | :--- | | Well Intervention vessels | 67% | 90% | | Robotics assets | 51% | 58% | | Chartered Robotics vessels | 67% | 74% | | Shallow Water Abandonment vessels | 30% | 41% | Non-GAAP Reconciliation: Adjusted EBITDA (in thousands) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net income (loss) | $3,072 | $(26,287) | | EBITDA | $52,070 | $26,061 | | **Adjusted EBITDA** | **$51,985** | **$46,990** | [Liquidity and Capital Resources](index=37&type=section&id=Liquidity%20and%20Capital%20Resources) As of March 31, 2025, the company's liquidity was **$404.7 million**, a decrease from year-end 2024, with operating cash flow down to **$16.4 million** Financial Condition (in thousands) | Metric | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Net working capital | $412,812 | $405,266 | | Long-term debt (excluding current) | $301,697 | $305,971 | | Liquidity | $404,673 | $429,586 | - The decrease in operating cash flow in Q1 2025 compared to Q1 2024 was primarily due to higher regulatory recertification spending (**$17.9 million** vs. **$9.6 million**) and lower working capital inflows[134](index=134&type=chunk) - Total material cash requirements, including debt, interest, and operating leases, amount to **$1.288 billion**, with **$212.2 million** due in the short-term (less than one year)[139](index=139&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=40&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces market risks from foreign currency exchange rates, interest rates, and volatile commodity prices, recording a **$27.2 million** foreign currency translation gain in Q1 2025 - The company is exposed to foreign currency exchange rate risk. For Q1 2025, it recorded a foreign currency translation gain of **$27.2 million** in other comprehensive income and a net foreign currency loss of **$0.4 million** in the statement of operations[147](index=147&type=chunk)[148](index=148&type=chunk) - Interest rate risk is managed by primarily borrowing at fixed rates. The company currently has no outstanding amounts under its variable-rate Amended ABL Facility[149](index=149&type=chunk) - The company faces commodity price risk related to oil and natural gas production in its Production Facilities business, with prices being volatile and unpredictable[150](index=150&type=chunk) [Controls and Procedures](index=41&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of March 31, 2025, with no material changes in internal control over financial reporting during Q1 2025 - Based on an evaluation as of March 31, 2025, the principal executive officer and principal financial officer concluded that the company's disclosure controls and procedures were effective[151](index=151&type=chunk) - No changes occurred during Q1 2025 that have materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[152](index=152&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=41&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal proceedings but does not currently expect them to have a material adverse impact on its financial statements - The company is involved in various legal proceedings but does not currently expect them to have a material adverse impact on its financial statements[82](index=82&type=chunk)[154](index=154&type=chunk) [Risk Factors](index=41&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the company's risk factors as disclosed in its Annual Report on Form 10-K for the year ended December 31, 2024 - There were no material changes in the company's risk factors during the period ended March 31, 2025[155](index=155&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=41&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During Q1 2025, the company acquired **779,519 shares** at an average price of **$9.32** per share for tax obligations, with **$158.4 million** remaining authorized for repurchase Issuer Purchases of Equity Securities (Q1 2025) | Period | Total Shares Purchased | Average Price Paid | Value Remaining in Program | | :--- | :--- | :--- | :--- | | Jan 2025 | 394,215 | $9.32 | $158,392,000 | | Feb 2025 | 385,304 | $9.32 | $158,392,000 | | Mar 2025 | 0 | - | $158,392,000 | | **Total** | **779,519** | **$9.32** | | - The shares purchased were forfeited to satisfy tax obligations from share-based awards and were not part of the publicly announced repurchase plan[157](index=157&type=chunk) [Other Information](index=42&type=section&id=Item%205.%20Other%20Information) During the first quarter of 2025, no director or officer of Helix adopted or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement - No director or officer adopted or terminated a Rule 10b5-1 trading arrangement during Q1 2025[161](index=161&type=chunk) [Exhibits](index=42&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including amended articles of incorporation, bylaws, an amendment to a strategic alliance agreement, and certifications by the CEO and CFO

Financial Data and Key Metrics Changes - Revenues for Q1 2025 were reported at $278 million, with a gross profit of $28 million and a net income of $3 million [10] - Adjusted EBITDA was $52 million for the quarter, with positive operating cash flow of $16 million, resulting in free cash flow of $12 million [10] - Cash and cash equivalents stood at $370 million, with total liquidity of $405 million, indicating a strong balance sheet [11][29] Business Line Data and Key Metrics Changes - The well intervention segment showed strong utilization in West Africa, the Gulf of America, and Brazil, while North Sea vessels faced lower utilization due to seasonal factors [21][22] - Robotics had a strong quarter, operating six vessels with good seasonal vessel utilization across trenching and ROV support projects [25] - The shallow water abandonment business is expected to see improved utilization in Q2 and Q3 as seasonal activity levels increase [27] Market Data and Key Metrics Changes - The company reported a backlog of approximately $1.4 billion at the end of the quarter [13] - The UK North Sea market is facing significant challenges due to regulatory issues, low oil prices, and M&A activity, leading to a pause in operator work [31][55] - The overall market environment is described as dynamic and uncertain, with oil prices dropping to the low $60s due to tariff hikes and increased OPEC production [12][32] Company Strategy and Development Direction - The company is taking steps to lower costs by stacking several vessels and adjusting capital spending in response to market conditions [14] - Helix aims to maintain resilience in its operations, focusing on long-term contracts and the value proposition provided to customers [15][54] - The company is open to M&A opportunities but is prioritizing share repurchases in the current market environment [70] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the uncertainty in the sector and the impact of geopolitical factors on the energy market [31][32] - The outlook for 2025 has been adjusted, with revenue expectations set at approximately $1.3 billion, reflecting the challenges in the North Sea market [33][34] - The company anticipates generating $100 million to $160 million in free cash flow for 2025 despite current market challenges [13][34] Other Important Information - The company has a strong balance sheet with negative net debt and no significant maturities until 2029 [13][29] - Seasonal factors historically impact quarterly results, with expectations for a more active summer and slower winter months [36] Q&A Session Summary Question: Confirmation of revenue change in well intervention - The revenue change in well intervention is primarily attributed to the North Sea market [63][64] Question: Long-term outlook for North Sea market - There are large P&A project tenders expected to start in 2026, but the timeline may shift [66] Question: Impact of market uncertainty on free cash flow - The focus is on share repurchases rather than M&A due to market uncertainty [70] Question: Breakdown of lowered EBITDA guidance - The primary driver for the guidance change is the North Sea market, particularly the stacking of the Seawell [72][75] Question: Outlook for UK North Sea operations - The work has been paused due to various factors, but significant tenders are still expected [84] Question: Pricing pressure in the U.S. Gulf market - Currently, there is no pricing pressure observed in the U.S. Gulf heavy well intervention market [105]

Financial Data and Key Metrics Changes - Revenues for Q1 2025 were $278 million, with a gross profit of $28 million and a net income of $3 million. Adjusted EBITDA was $52 million, and free cash flow was $12 million [6][8][18] - The company reported strong cash and liquidity with cash and cash equivalents of $370 million and total liquidity of $405 million [6][18] Business Line Data and Key Metrics Changes - The Well Intervention segment saw strong utilization in West Africa, the Gulf of America, and Brazil, while North Sea vessels experienced lower utilization due to seasonal factors [11][12] - Robotics had a strong quarter with high operational standards, working on trenching, ROV support, and site survey projects globally [15][16] - The shallow water abandonment business is expected to improve in Q2 and Q3 as seasonal activity levels increase [17] Market Data and Key Metrics Changes - The company faced challenges due to geopolitical factors, including tariff hikes and OPEC production increases, leading to oil prices dropping to the low $60s [7][20] - The UK North Sea market is experiencing a downturn due to regulatory issues, low oil prices, and M&A activity, impacting the company's outlook [20][36] Company Strategy and Development Direction - The company is focusing on cost reduction measures, including stacking several vessels and adjusting capital spending in response to market conditions [8][30] - Long-term demand for services remains strong, with multi-year contracts in place providing resilience against near-term volatility [35][39] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the current dynamic and uncertain market environment but expressed confidence in the company's ability to navigate these challenges [7][9] - The outlook for 2025 has been adjusted, with expected revenues of approximately $1.3 billion, reflecting a decrease due to the stacking of the Seawell and overall negative market conditions [21][37] Other Important Information - The company has a backlog of approximately $1.4 billion and a strong balance sheet with negative net debt [8][18] - The capital expenditure forecast for 2025 is between $65 million and $75 million, primarily for regulatory maintenance and fleet renewal [22][31] Q&A Session Summary Question: Confirmation on revenue change in Well Intervention - The revenue change in Well Intervention is primarily attributed to the North Sea market [42][43] Question: Long-term view on North Sea market - There are large P&A project tenders expected to start in 2026, with ongoing engineering and tendering processes [43] Question: Free cash flow options - The priority is on share repurchase due to market uncertainty, with M&A opportunities being more challenging to close [45] Question: Breakdown of lowered EBITDA guidance - The primary driver for the guidance reduction is the North Sea market, particularly the stacking of the Seawell [50][52] Question: Outlook for North Sea operations - The work has been paused rather than lost, with significant tenders expected in the future [59] Question: Opportunities for North Sea vessels in other regions - Redeployment of vessels like the Seawell would require capital upgrades due to depth limitations [72] Question: Pricing pressure in the US Gulf market - Currently, there is no significant pricing pressure in the US Gulf market, with stable pricing observed [75][76] Question: Impact of UK market on robotics and shallow water abandonment - The negative macro backdrop has slightly impacted robotics and shallow water abandonment, but the North Sea remains the primary concern [81][82]

Financial Data and Key Metrics Changes - Revenues for Q1 2025 were $278 million, with a gross profit of $28 million and a net income of $3 million. Adjusted EBITDA was $52 million, and free cash flow was $12 million [6][8][19] - The company reported strong cash and liquidity, with cash and cash equivalents of $370 million and total liquidity of $405 million [6][19] Business Line Data and Key Metrics Changes - The Well Intervention segment saw strong utilization in West Africa, the Gulf of America, and Brazil, while North Sea vessels experienced lower utilization due to seasonal factors [11][12] - Robotics had a strong quarter, operating six vessels with good seasonal vessel utilization, particularly in trenching and renewable projects [16][18] Market Data and Key Metrics Changes - The company faced challenges in the UK North Sea market due to regulatory issues, low oil prices, and operational paralysis from mergers and acquisitions [21][36] - The global financial markets experienced upheaval, with oil prices dropping to the low $60s due to tariff hikes and OPEC production increases [7][21] Company Strategy and Development Direction - The company is focused on cost reduction measures, including stacking several vessels and adjusting capital spending in response to market conditions [8][21] - Helix aims to maintain a strong balance sheet and generate significant free cash flow, forecasting $100 million to $160 million for 2025 [8][19] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the uncertainty in the current market environment but expressed confidence in the company's resilience and ability to meet challenges [9][35] - The outlook for 2025 was revised downwards due to the negative impact of the UK North Sea market, with expected revenues of approximately $1.3 billion [22][38] Other Important Information - The company has a backlog of approximately $1.4 billion and no significant debt maturities until 2029, indicating a strong financial position [8][19] - The company is actively pursuing share repurchases, targeting at least 25% of free cash flow for this purpose [34] Q&A Session Summary Question: Confirmation on revenue change in Well Intervention - The revenue change in Well Intervention is primarily attributed to the North Sea market [43][46] Question: Long-term outlook for North Sea market - There are large P&A project tenders expected to start in 2026, indicating potential future work despite current market challenges [44] Question: Impact of macro uncertainty on free cash flow options - The focus is currently on share repurchases rather than M&A due to market uncertainty [46] Question: Breakdown of lowered EBITDA guidance - The primary driver for the lowered guidance is the North Sea market, particularly the stacking of the Seawell [55][56] Question: Outlook for North Sea operations and potential for other regions - The Seawell is depth-limited, making redeployment to other regions challenging without capital upgrades [76] Question: Pricing pressure in the US Gulf heavy well intervention market - Currently, there is no significant pricing pressure in the US Gulf market, with stable pricing expected [80]

[Financial and Operational Highlights](index=1&type=section&id=Summary%20of%20Results) Helix reported a net income of **$3.1 million** in Q1 2025, a decrease from the prior quarter but a recovery from the prior year, impacted by seasonal slowdowns and market uncertainty Q1 2025 Financial Summary (in thousands) | | 3/31/2025 | 3/31/2024 | 12/31/2024 | | :--- | :--- | :--- | :--- | | **Revenues** | $278,064 | $296,211 | $355,133 | | **Gross Profit** | $27,538 | $19,554 | $58,859 | | **Net Income (loss)** | $3,072 | $(26,287) | $20,121 | | **Diluted EPS** | $0.02 | $(0.17) | $0.13 | | **Adjusted EBITDA** | $51,985 | $46,990 | $71,641 | | **Free Cash Flow** | $11,954 | $61,242 | $65,454 | - The first quarter was impacted by a seasonal slowdown in the North Sea and Gulf of America, planned regulatory dockings for Robotics fleet vessels, and the mobilization of the Q7000 for a project in Brazil[4](index=4&type=chunk) - Market uncertainty has been created by OPEC+ production increases, U.S. tariffs, and challenges in the North Sea oil and gas market, causing some operators to pause work[4](index=4&type=chunk) - In response to the new market environment, Helix is adjusting operations to align with decreased activity but expects to generate meaningful free cash flow in 2025 due to a strong balance sheet and contracted backlog[4](index=4&type=chunk) [Segment Performance Analysis](index=2&type=section&id=Segment%20Information,%20Operational%20and%20Financial%20Highlights) Q1 2025 segment performance was mixed, with Well Intervention and Robotics revenues declining QoQ due to seasonality, while Production Facilities increased Segment Revenues and Operating Income (in thousands) | | Three Months Ended 3/31/2025 | Three Months Ended 3/31/2024 | Three Months Ended 12/31/2024 | | :--- | :--- | :--- | :--- | | **Revenues:** | | | | | Well Intervention | $198,374 | $211,300 | $226,188 | | Robotics | $51,042 | $50,309 | $81,594 | | Shallow Water Abandonment | $16,818 | $26,853 | $37,690 | | Production Facilities | $19,837 | $24,152 | $18,462 | | **Income (Loss) from Operations:** | | | | | Well Intervention | $19,970 | $18,679 | $29,118 | | Robotics | $5,347 | $5,450 | $19,335 | | Shallow Water Abandonment | $(13,441) | $(12,428) | $(5,422) | | Production Facilities | $6,944 | $(1,543) | $5,498 | [Well Intervention](index=2&type=section&id=Well%20Intervention) Well Intervention revenue decreased QoQ and YoY due to lower utilization and vessel docking, despite a YoY increase in operating income - QoQ revenue decreased by **$27.8 million** (12%) due to seasonally lower utilization in the North Sea and docking days for the Q7000, partially offset by higher rates in Brazil for the Siem Helix 1 and Siem Helix 2[7](index=7&type=chunk) - YoY revenue decreased by **$12.9 million** (6%) due to lower utilization on the Seawell (idle) and Q7000, offset by higher rates on the Q5000 and Siem Helix vessels, while operating income increased by **$1.3 million** YoY[8](index=8&type=chunk) [Robotics](index=3&type=section&id=Robotics) Robotics revenue significantly decreased QoQ due to seasonal declines in vessel utilization, while YoY revenue remained relatively flat - QoQ revenue decreased by **$30.6 million** (37%) due to seasonally lower vessel days and utilization, with chartered vessel activity falling to **244 days** from **508 days** in the prior quarter[9](index=9&type=chunk) - YoY revenue increased slightly by **$0.7 million** (1%) due to a rise in trenching activities (**225 total days** vs **85 days** in Q1 2024), partially offset by lower overall ROV and vessel utilization[10](index=10&type=chunk) [Shallow Water Abandonment](index=3&type=section&id=Shallow%20Water%20Abandonment) Shallow Water Abandonment revenue fell significantly QoQ and YoY, widening operating losses due to lower utilization - QoQ revenue decreased by **$20.9 million** (55%) reflecting seasonally lower vessel utilization (**31%** vs **65%** in Q4 2024) and P&A/CT systems activity, with the operating loss increasing by **$8.0 million**[11](index=11&type=chunk) - YoY revenue decreased by **$10.0 million** (37%) due to lower system and vessel utilization, as the Epic Hedron heavy lift barge was idle in both Q1 2025 and Q1 2024[12](index=12&type=chunk) [Production Facilities](index=3&type=section&id=Production%20Facilities) Production Facilities revenue increased QoQ from Droshky wells, while YoY revenue decreased, but operating income improved - QoQ revenue increased by **$1.4 million** (7%) due to higher oil and gas production from the Droshky wells, which had a full quarter of production[13](index=13&type=chunk) - YoY revenue decreased by **$4.3 million** (18%) due to lower production and prices, as production did not include the shut-in Thunder Hawk wells, however, operating income increased by **$8.5 million** due to well workover costs incurred in Q1 2024[14](index=14&type=chunk) [Other Financial Details](index=4&type=section&id=Selling,%20General%20and%20Administrative%20and%20Other) SG&A expenses decreased in Q1 2025 due to lower compensation, with other expenses minimal from foreign currency losses - SG&A expenses were **$19.4 million** (**7.0%** of revenue) in Q1 2025, down from **$27.6 million** (**7.8%** of revenue) in Q4 2024, mainly due to lower compensation costs[15](index=15&type=chunk) - Other expense, net was **$0.4 million** in Q1 2025, primarily due to net foreign currency losses from the appreciation of the British pound on U.S. dollar cash balances in U.K. subsidiaries[16](index=16&type=chunk) [Cash Flow and Financial Condition](index=4&type=section&id=Cash%20Flows) Operating cash flow significantly decreased in Q1 2025 due to lower earnings and higher costs, despite strong liquidity and negative net debt - Operating cash flows were **$16.4 million** in Q1 2025, a decrease from **$78.0 million** in Q4 2024 and **$64.5 million** in Q1 2024, primarily due to lower earnings and higher regulatory certification costs (**$17.9 million** in Q1 2025)[17](index=17&type=chunk) - Free Cash Flow was **$12.0 million** in Q1 2025, down from **$65.5 million** in Q4 2024 and **$61.2 million** in Q1 2024, mainly due to lower operating cash flows[19](index=19&type=chunk) - At March 31, 2025, the company had cash and cash equivalents of **$370.0 million**, total liquidity of **$404.7 million**, and negative Net Debt of **$58.9 million**[19](index=19&type=chunk) [Consolidated Financial Statements](index=6&type=section&id=Consolidated%20Financial%20Statements) This section provides unaudited consolidated financial statements, including Statements of Operations, Balance Sheets, and Cash Flows [Consolidated Statements of Operations](index=6&type=section&id=Comparative%20Condensed%20Consolidated%20Statements%20of%20Operations) Q1 2025 saw a net income of **$3.1 million** on **$278.1 million** in revenues, a significant improvement from the prior year's net loss Consolidated Statements of Operations (in thousands) | | Three Months Ended Mar. 31, 2025 | Three Months Ended Mar. 31, 2024 | | :--- | :--- | :--- | | **Net revenues** | $278,064 | $296,211 | | **Gross profit** | $27,538 | $19,554 | | **Income (loss) from operations** | $8,172 | $(1,276) | | **Net income (loss)** | $3,072 | $(26,287) | | **Diluted EPS** | $0.02 | $(0.17) | [Consolidated Balance Sheets](index=7&type=section&id=Comparative%20Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2025, total assets increased slightly to **$2.635 billion**, with stable cash and growing shareholders' equity Consolidated Balance Sheet Highlights (in thousands) | | Mar. 31, 2025 | Dec. 31, 2024 | | :--- | :--- | :--- | | **Cash and cash equivalents** | $369,987 | $368,030 | | **Total Current Assets** | $736,207 | $709,682 | | **Total Assets** | $2,635,023 | $2,597,080 | | **Total Current Liabilities** | $323,395 | $304,416 | | **Long-term debt** | $301,697 | $305,971 | | **Total Liabilities** | $1,089,758 | $1,077,315 | | **Shareholders' equity** | $1,545,265 | $1,519,765 | [Consolidated Statements of Cash Flows](index=8&type=section&id=Comparative%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash provided by operating activities significantly decreased to **$16.4 million** in Q1 2025, resulting in a net increase in cash of **$2.0 million** Consolidated Statements of Cash Flows (in thousands) | | Three Months Ended 3/31/2025 | Three Months Ended 3/31/2024 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $16,442 | $64,484 | | **Net cash used in investing activities** | $(4,488) | $(3,242) | | **Net cash used in financing activities** | $(11,075) | $(69,304) | | **Net increase (decrease) in cash** | $1,957 | $(8,342) | [Non-GAAP Financial Measures Reconciliation](index=5&type=section&id=Reconciliation%20of%20Non-GAAP%20Measures) This section reconciles non-GAAP measures like Adjusted EBITDA, Free Cash Flow, and Net Debt to GAAP for performance evaluation - Management uses non-GAAP measures such as EBITDA, Adjusted EBITDA, Free Cash Flow, and Net Debt to monitor performance, compare results with industry peers, and make strategic financial decisions[23](index=23&type=chunk) Non-GAAP Reconciliations (in thousands) | | 3/31/2025 | 3/31/2024 | 12/31/2024 | | :--- | :--- | :--- | :--- | | **Net income (loss)** | $3,072 | $(26,287) | $20,121 | | **Adjusted EBITDA** | $51,985 | $46,990 | $71,641 | | **Cash flows from operating activities** | $16,442 | $64,484 | $77,977 | | **Free Cash Flow** | $11,954 | $61,242 | $65,454 | | **Net Debt** | $(58,878) | $(5,685) | $(52,873) |

Group 1 - The Zacks Rank emphasizes earnings estimates and revisions to identify strong stocks, while also considering value, growth, and momentum trends [1] - Value investing is a popular strategy that relies on traditional analysis of key valuation metrics to find undervalued stocks [2] - Zacks has developed a Style Scores system to identify stocks with specific traits, particularly in the "Value" category [3] Group 2 - Helix Energy Solutions Group (HLX) has a Zacks Rank of 1 (Strong Buy) and an A for Value, indicating it is a strong value stock [4] - HLX's P/E ratio is 8.33, significantly lower than the industry average P/E of 10.90, suggesting it may be undervalued [4] - The P/B ratio for HLX is 0.64, compared to the industry's average P/B of 1.73, further indicating attractive valuation [5] - HLX's P/CF ratio is 5.03, which is lower than the industry's average P/CF of 5.87, suggesting solid cash outlook [6] - These valuation metrics indicate that HLX is likely undervalued and has a strong earnings outlook, making it an impressive value stock [7]