Group 1 - The article does not provide any specific content or key points related to a company or industry [1]

Core Viewpoint - Helix Energy Solutions Group, Inc. is set to release its third quarter 2025 financial results on October 22, 2025, after market close [1] Company Announcement - The press release and accompanying slide presentation will be accessible on Helix's official website [1] - A review of the third quarter 2025 results will take place on October 23, 2025, at 9:00 a.m. Central Time through a teleconference and webcast [1]

Group 1 - Helix Energy Solutions Group, Inc. (HLX) has secured a multi-year contract in the U.S. Gulf of Mexico for production enhancement and well abandonment services, starting in 2026 [2] - The contract involves the use of Q5000/Q4000 intervention vessels, riser systems, and remotely operated vehicles, highlighting Helix's expanding role in offshore decommissioning and production support [2] - Helix Energy Solutions operates globally, providing offshore energy services through its Well Intervention, Robotics, Production Facilities, and Shallow Water Abandonment segments [3] Group 2 - Helix Energy Solutions is recognized as one of the best robotics stocks to buy under $20, indicating significant upside potential [1] - While HLX shows investment potential, certain AI stocks are noted to offer greater upside potential with less downside risk [4]

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 auditing and trading, having navigated significant market events such as the dotcom bubble and the subprime crisis [2] - The research provided aims to maintain high quality despite language barriers [2]

Core Viewpoint - Helix Energy Solutions Group reported disappointing Q2 2025 results, with significant declines in revenue and profit primarily due to operational setbacks in its Well Intervention business [1][2] Financial Performance - GAAP revenue for Q2 2025 was $302.3 million, missing the analyst estimate of $318.6 million, and down 17.2% from $364.8 million in Q2 2024 [2] - GAAP EPS was $(0.02), missing the consensus by $0.05 per share, reflecting a 109.5% decline year-over-year from $0.21 [2] - Adjusted EBITDA fell to $42.4 million, down 56.2% from $96.9 million in Q2 2024 [2] - Free Cash Flow was $(21.6 million), a 33.3% increase in cash outflow compared to $(16.2 million) in Q2 2024 [2] - Cash and Cash Equivalents increased to $319.7 million, up 16.2% from $275.1 million a year ago [2] Business Segments Overview - The Well Intervention segment generated $156.8 million in GAAP revenue, down significantly from both Q1 2025 and Q2 2024, with operating income turning to a loss of $16.4 million [5] - The Robotics segment reported GAAP revenue of $85.6 million, a 68% increase from the previous quarter and a 5% increase year-over-year, driven by strong demand for chartered vessel days [6] - Shallow Water Abandonment saw revenue rise to $50.6 million from $16.8 million last quarter, but remained flat year-over-year, with a small operating loss of $0.4 million [7] - Production Facilities recorded $17.1 million in revenue and $4.4 million in operating income, both down from the previous quarter and prior year due to lower output and declining oil prices [8] Market Conditions and Challenges - The quarter was marked by increased market uncertainty, operational challenges, and regulatory hurdles, particularly in the UK North Sea [5][9] - Senior leadership noted that macro and geopolitical volatility led to significant uncertainties, with customers scaling back spending and delaying projects into 2026 [9] Future Outlook - Management lowered its 2025 guidance, citing reduced visibility and slower recovery in the North Sea, but indicated potential improvement in Q3 2025 due to a growing contract backlog [10] - For 2026, early signs of progress were noted with tenders for major UK decommissioning projects underway, but near-term investor focus should be on customer spending clarity and vessel utilization rates [11]

[Report Information](index=1&type=section&id=Report%20Information) [Filing Details](index=1&type=section&id=Filing%20Details) This Quarterly Report on Form 10-Q for Helix Energy Solutions Group, Inc. covers the period ended June 30, 2025, with 146,985,573 common shares outstanding as of July 21, 2025 - The report is a **Quarterly Report on Form 10-Q** for the period ended June 30, 2025[2](index=2&type=chunk) - Helix Energy Solutions Group, Inc. is classified as an **Accelerated Filer**[4](index=4&type=chunk) Common Stock Outstanding | Metric | Value | | :----- | :---- | | Common Stock Outstanding (as of July 21, 2025) | 146,985,573 shares | [PART I. FINANCIAL INFORMATION](index=4&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents Helix's unaudited condensed consolidated financial statements, showing a decline in net revenues and gross profit for the three and six months ended June 30, 2025, resulting in a net loss for the quarter and reduced net income for the half-year [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, Helix's total assets increased to $2.67 billion from $2.60 billion, driven by higher accounts receivable and property and equipment, while total liabilities and shareholders' equity also rose Condensed Consolidated Balance Sheets Highlights (in thousands) | Metric | June 30, 2025 | December 31, 2024 | Change | | :-------------------------------- | :------------ | :---------------- | :----- | | Cash and cash equivalents | $319,743 | $368,030 | $(48,287) | | Accounts receivable, net | $327,921 | $258,630 | $69,291 | | Total current assets | $760,399 | $709,682 | $50,717 | | Property and equipment, net | $1,454,288 | $1,437,853 | $16,435 | | Total assets | $2,672,561 | $2,597,080 | $75,481 | | Total current liabilities | $347,964 | $304,416 | $43,548 | | Total liabilities | $1,103,785 | $1,077,315 | $26,470 | | Total shareholders' equity | $1,568,776 | $1,519,765 | $49,011 | [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Helix experienced a significant decline in profitability for both the three and six months ended June 30, 2025, with net revenues decreasing by 17% and 12% respectively, leading to a net loss for the quarter and substantially reduced net income for the half-year Condensed Consolidated Statements of Operations Highlights (in thousands, except per share amounts) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net revenues | $302,288 | $364,797 | $580,352 | $661,008 | | Gross profit | $14,948 | $75,486 | $42,486 | $95,040 | | Income (loss) from operations | $(3,152) | $53,193 | $5,020 | $51,917 | | Net income (loss) | $(2,598) | $32,289 | $474 | $6,002 | | Basic EPS | $(0.02) | $0.21 | $0.00 | $0.04 | | Diluted EPS | $(0.02) | $0.21 | $0.00 | $0.04 | [Condensed Consolidated Statements of Comprehensive Income (Loss)](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income%20(Loss)) Despite a net loss in Q2 2025, Helix reported a significant increase in comprehensive income for both the three and six months ended June 30, 2025, primarily due to substantial foreign currency translation gains Condensed Consolidated Statements of Comprehensive Income (Loss) Highlights (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net income (loss) | $(2,598) | $32,289 | $474 | $6,002 | | Other comprehensive income (loss) - foreign currency translation gain (loss), net of tax | $54,128 | $266 | $81,313 | $(6,417) | | Comprehensive income (loss) | $51,530 | $32,555 | $81,787 | $(415) | [Condensed Consolidated Statements of Shareholders' Equity](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Shareholders'%20Equity) Shareholders' equity increased to $1.57 billion as of June 30, 2025, from $1.52 billion at December 31, 2024, mainly driven by foreign currency translation adjustments, partially offset by common stock repurchases Shareholders' Equity Changes (Six Months Ended June 30, 2025, in thousands) | Item | Amount | | :-------------------------------- | :------- | | Balance, December 31, 2024 | $1,519,765 | | Net income | $474 | | Foreign currency translation adjustments | $81,313 | | Repurchases of common stock | $(30,183) | | Activity in company stock plans, net and other | $(5,636) | | Share-based compensation | $3,043 | | Balance, June 30, 2025 | $1,568,776 | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2025, Helix experienced a net cash outflow from operating activities of $0.7 million, a significant decrease from a $52.3 million inflow in the prior year, while cash used in investing activities increased and financing activities decreased Condensed Consolidated Statements of Cash Flows Highlights (Six Months Ended June 30, in thousands) | Cash Flow Activity | 2025 | 2024 | | :-------------------------------- | :----- | :----- | | Operating activities | $(691) | $52,320 | | Investing activities | $(8,958) | $(7,231) | | Financing activities | $(40,780) | $(101,526) | | Net decrease in cash and cash equivalents | $(48,287) | $(57,125) | | Cash and cash equivalents, end of period | $319,743 | $275,066 | [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) These notes provide detailed information on Helix's accounting policies, business segments, debt, equity, and other financial instruments, including new accounting standards, segment performance, and share repurchase activities [Note 1 — Basis of Presentation and New Accounting Standards](index=9&type=section&id=Note%201%20%E2%80%94%20Basis%20of%20Presentation%20and%20New%20Accounting%20Standards) The unaudited financial statements are prepared under GAAP for Form 10-Q, with new accounting standards ASU No. 2023-09 and ASU No. 2024-03 adopted, neither expected to materially impact financial statements beyond disclosures - ASU No. 2023-09, 'Improvements to Income Tax Disclosures,' effective January 1, 2025, requires detailed annual income tax disclosures[17](index=17&type=chunk) - ASU No. 2024-03, 'Disaggregation of Income Statement Expenses,' effective January 1, 2027 (annual) and January 1, 2028 (interim), mandates disclosure of specific cost categories[18](index=18&type=chunk) - Neither new ASU is expected to have a material impact on consolidated financial statements other than increased disclosure requirements[17](index=17&type=chunk)[18](index=18&type=chunk)[19](index=19&type=chunk) [Note 2 — Company Overview](index=11&type=section&id=Note%202%20%E2%80%94%20Company%20Overview) Helix is an international offshore energy services company specializing in well intervention, robotics, and decommissioning, supporting the global energy transition through four reportable business segments - Helix provides specialty services to the offshore energy industry, focusing on **well intervention, robotics, and decommissioning operations**[20](index=20&type=chunk) - The company's services support a global energy transition through production maximization, decommissioning, and renewable energy support (primarily offshore wind farms)[20](index=20&type=chunk)[25](index=25&type=chunk) - Helix operates in four reportable business segments: **Well Intervention, Robotics, Shallow Water Abandonment, and Production Facilities**[20](index=20&type=chunk) [Note 3 — Details of Certain Accounts](index=12&type=section&id=Note%203%20%E2%80%94%20Details%20of%20Certain%20Accounts) This note details changes in 'Other current assets,' 'Other assets, net,' 'Accrued liabilities,' and 'Other non-current liabilities,' showing a substantial increase in income tax receivable and deferred revenue Changes in Key Balance Sheet Accounts (in thousands) | Account | June 30, 2025 | December 31, 2024 | Change | | :-------------------------- | :------------ | :---------------- | :----- | | Income tax receivable | $28,523 | $2,635 | $25,888 | | Total other current assets | $112,735 | $83,022 | $29,713 | | Deferred revenue (current) | $38,630 | $14,914 | $23,716 | | Total accrued liabilities | $104,772 | $90,455 | $14,317 | | Deferred costs (current) | $41,107 | $31,874 | $9,233 | [Note 4 — Leases](index=13&type=section&id=Note%204%20%E2%80%94%20Leases) Helix's net lease cost remained stable, with a decreased weighted average remaining lease term and improved discount rate, while cash paid for operating lease liabilities increased and new additions decreased Lease Cost and Metrics (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net lease cost | $38,752 | $39,140 | $71,242 | $71,564 | | Cash paid for operating lease liabilities | N/A | N/A | $43,394 | $38,877 | | Right-of-use assets related to new operating lease liabilities | N/A | N/A | $14,692 | $207,511 | | Weighted average remaining lease term (June 30, 2025) | 5.5 years | N/A | N/A | N/A | | Weighted average discount rate (June 30, 2025) | 7.82% | N/A | N/A | N/A | [Note 5 — Long-Term Debt](index=14&type=section&id=Note%205%20%E2%80%94%20Long-Term%20Debt) Helix's long-term debt primarily comprises $300 million in 2029 Notes and MARAD Debt, with a $120 million Amended ABL Facility having $70.5 million available capacity, and the company was in compliance with all debt covenants Long-Term Debt Summary (as of June 30, 2025, in thousands) | Debt Type | Principal Amount | | :---------- | :--------------- | | MARAD Debt | $19,294 | | 2029 Notes | $300,000 | | Total Gross Debt | $319,294 | - The Amended ABL Facility provides a **$120 million asset-based revolving credit line**, maturing August 2, 2029[32](index=32&type=chunk)[33](index=33&type=chunk) - As of June 30, 2025, there were **no borrowings** under the ABL Facility, and available borrowing capacity was **$70.5 million**[32](index=32&type=chunk)[33](index=33&type=chunk) - In March 2024, Helix redeemed the remaining **$40.0 million of 2026 Notes**, resulting in **$20.9 million in pre-tax losses** and the termination of related capped calls for **$4.4 million cash**[39](index=39&type=chunk)[45](index=45&type=chunk)[46](index=46&type=chunk) Net Interest Expense (in thousands) | Period | 2025 | 2024 | | :------------------------------- | :----- | :----- | | Three Months Ended June 30, | $5,875 | $5,891 | | Six Months Ended June 30, | $11,581 | $11,368 | [Note 6 — Income Taxes](index=17&type=section&id=Note%206%20%E2%80%94%20Income%20Taxes) Helix recognized an income tax benefit for both the three and six months ended June 30, 2025, with significantly higher effective tax rates compared to the prior year, primarily due to non-U.S. discrete items and jurisdictional mix of earnings Income Tax Provision (Benefit) and Effective Tax Rates (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Income tax provision (benefit) | $(5,997) | $14,725 | $(5,544) | $13,027 | | Effective tax rate | 69.8% | 31.3% | 109.3% | 68.5% | [Note 7 — Share Repurchase Programs](index=17&type=section&id=Note%207%20%E2%80%94%20Share%20Repurchase%20Programs) Under its 2023 Repurchase Program, Helix repurchased 4.6 million shares for approximately $30.0 million during the six months ended June 30, 2025, with $128.4 million remaining authorized Share Repurchase Activity (Six Months Ended June 30, in thousands, except share count) | Metric | 2025 | 2024 | | :-------------------------------- | :----- | :----- | | Shares repurchased | 4,643,060 | 937,585 | | Cost of repurchases | $30,000 | $10,200 | | Remaining authorization (as of June 30, 2025) | $128,400 | N/A | [Note 8 — Revenue from Contracts with Customers](index=18&type=section&id=Note%208%20%E2%80%94%20Revenue%20from%20Contracts%20with%20Customers) Helix's total net revenues decreased for both the three and six months ended June 30, 2025, driven by lower Well Intervention and Production Facilities revenues, partially offset by Robotics, with $1.3 billion in unsatisfied performance obligations Disaggregated Revenue by Segment (in thousands) | Segment | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Well Intervention | $156,786 | $217,761 | $355,160 | $429,061 | | Robotics | $85,572 | $81,249 | $136,614 | $131,558 | | Shallow Water Abandonment | $50,618 | $50,841 | $67,436 | $77,694 | | Production Facilities | $17,081 | $25,400 | $36,918 | $49,552 | | Total Consolidated Net Revenues | $302,288 | $364,797 | $580,352 | $661,008 | Disaggregated Revenue by Market Strategy (in thousands) | Market Strategy | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :---------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Production maximization | $74,003 | $150,488 | $212,632 | $255,375 | | Decommissioning | $178,721 | $160,930 | $295,051 | $325,710 | | Renewables | $41,987 | $50,493 | $58,837 | $74,665 | - As of June 30, 2025, **$1.3 billion** related to unsatisfied performance obligations is expected to be recognized as revenue in the future, with **$424.7 million in 2025**, **$450.4 million in 2026**, and **$407.5 million in 2027 and beyond**[58](index=58&type=chunk) [Note 9 — Earnings Per Share](index=21&type=section&id=Note%209%20%E2%80%94%20Earnings%20Per%20Share) Helix reported a basic and diluted loss per share of $(0.02) for the three months ended June 30, 2025, and $0.00 for the six-month period, a significant decline from the prior year, with dilutive securities excluded due to the net loss Earnings (Loss) Per Share (in thousands, except per share amounts) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net income (loss) available to common shareholders, basic | $(2,598) | $32,256 | $474 | $5,996 | | Basic EPS | $(0.02) | $0.21 | $0.00 | $0.04 | | Diluted EPS | $(0.02) | $0.21 | $0.00 | $0.04 | - Diluted EPS calculation for the three-month period ended June 30, 2025, excluded share-based awards as they were **anti-dilutive due to the net loss**[63](index=63&type=chunk) [Note 10 — Employee Benefit Plans](index=23&type=section&id=Note%2010%20%E2%80%94%20Employee%20Benefit%20Plans) Helix's 2005 Long-Term Incentive Plan had approximately 8.1 million shares available, with share-based compensation expenses for PSUs and RSUs decreasing in H1 2025, while fixed-value cash awards compensation slightly increased - Approximately **8.1 million shares** of common stock were available for issuance under the 2005 Incentive Plan as of June 30, 2025[64](index=64&type=chunk) Share-Based Compensation Expenses (Six Months Ended June 30, in thousands) | Award Type | 2025 | 2024 | | :----------------------- | :----- | :----- | | Restricted stock | $0.5 | $0.6 | | PSUs | $2.6 | $2.8 | | RSUs | $1.5 | $3.7 | | Fixed-value cash awards | $2.9 | $2.7 | - In Q1 2025, **1,065,705 PSUs** granted in 2022 vested at **200%**, resulting in **1,958,334 shares of common stock** and **$1.6 million cash**[68](index=68&type=chunk) [Note 11 — Business Segment Information](index=25&type=section&id=Note%2011%20%E2%80%94%20Business%20Segment%20Information) Helix's segments showed varied performance, with Well Intervention and Production Facilities experiencing significant declines in revenue and operating income, Robotics seeing modest revenue growth but reduced operating income, and Shallow Water Abandonment revenues slightly down with increased operating loss Segment Revenues (Three Months Ended June 30, in thousands) | Segment | 2025 | 2024 | | :-------------------------- | :----- | :----- | | Well Intervention | $156,786 | $217,761 | | Robotics | $85,572 | $81,249 | | Shallow Water Abandonment | $50,618 | $50,841 | | Production Facilities | $17,081 | $25,400 | | Total Consolidated Net Revenues | $302,288 | $364,797 | Segment Operating Income (Loss) (Six Months Ended June 30, in thousands) | Segment | 2025 | 2024 | | :-------------------------- | :----- | :----- | | Well Intervention | $3,540 | $47,978 | | Robotics | $24,391 | $33,850 | | Shallow Water Abandonment | $(13,798) | $(12,709) | | Production Facilities | $11,369 | $7,554 | | Total Segment Operating Income | $25,502 | $76,673 | Capital Expenditures by Segment (Six Months Ended June 30, in thousands) | Segment | 2025 | 2024 | | :-------------------------- | :----- | :----- | | Well Intervention | $4,359 | $3,272 | | Robotics | $4,100 | $3,277 | | Shallow Water Abandonment | $378 | $612 | | Production Facilities | $0 | $0 | | Total Capital Expenditures | $8,958 | $7,594 | [Note 12 — Asset Retirement Obligations](index=28&type=section&id=Note%2012%20%E2%80%94%20Asset%20Retirement%20Obligations) Helix's Asset Retirement Obligations increased to $65.8 million as of June 30, 2025, from $62.9 million at January 1, 2025, primarily due to accretion expense related to mature offshore oil and gas properties Changes in Asset Retirement Obligations (in thousands) | Metric | 2025 | 2024 | | :------------------ | :----- | :----- | | AROs at January 1, | $62,947 | $61,356 | | Accretion expense | $2,847 | $2,794 | | AROs at June 30, | $65,794 | $64,150 | [Note 13 — Commitments and Contingencies and Other Matters](index=29&type=section&id=Note%2013%20%E2%80%94%20Commitments%20and%20Contingencies%20and%20Other%20Matters) Helix has long-term charter agreements for various vessels extending through 2034 and is involved in legal proceedings, none of which are expected to have a material adverse impact on its financial statements - Helix has long-term charter agreements for vessels like **Siem Helix 1 and 2** (Well Intervention) and **Grand Canyon II, Grand Canyon III, Shelia Bordelon, North Sea Enabler, Glomar Wave, and Trym** (Robotics), with terms expiring through **2034**[79](index=79&type=chunk) - The Robotics segment took delivery of the **Trym** in February 2025 with a three-year charter, which was **extended by one year on April 1, 2025**[79](index=79&type=chunk) - The company is involved in various legal proceedings but does not currently believe any resulting loss will have a **material adverse impact** on its consolidated financial statements[81](index=81&type=chunk) [Note 14 — Statement of Cash Flow Information](index=29&type=section&id=Note%2014%20%E2%80%94%20Statement%20of%20Cash%20Flow%20Information) Supplemental cash flow information indicates a significant increase in interest paid and income taxes paid for the six months ended June 30, 2025, compared to the prior year, alongside increased non-cash capital additions Supplemental Cash Flow Information (Six Months Ended June 30, in thousands) | Metric | 2025 | 2024 | | :---------------- | :----- | :----- | | Interest paid | $15,442 | $9,762 | | Income taxes paid | $21,208 | $5,714 | | Non-cash capital additions | $400 | $100 | [Note 15 — Allowance for Credit Losses](index=29&type=section&id=Note%2015%20%E2%80%94%20Allowance%20for%20Credit%20Losses) Helix's allowance for credit losses on accounts receivable increased to $3.8 million as of June 30, 2025, from $3.7 million at January 1, 2025, with additions decreasing from the prior year Allowance for Credit Losses Activity (in thousands) | Metric | 2025 | 2024 | | :------------------ | :----- | :----- | | Balance at January 1, | $3,682 | $3,407 | | Additions | $113 | $429 | | Balance at June 30, | $3,795 | $3,836 | [Note 16 — Fair Value Measurements](index=31&type=section&id=Note%2016%20%E2%80%94%20Fair%20Value%20Measurements) The fair value of Helix's total long-term debt was estimated at $336.5 million as of June 30, 2025, slightly lower than $343.0 million at December 31, 2024, determined using Level 2 inputs Fair Value of Long-Term Debt (in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :------------ | :---------------- | | Principal Amount of Total Debt | $319,294 | $323,831 | | Estimated Fair Value of Total Debt | $336,494 | $343,005 | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=31&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Helix's financial condition and operational results, highlighting a challenging market with declining revenues and profitability, negative operating cash flow, but strong liquidity and anticipated support from backlog and growing demand in decommissioning and renewables [Forward-Looking Statements and Assumptions](index=31&type=section&id=Forward-Looking%20Statements%20and%20Assumptions) This section cautions that forward-looking statements involve risks and uncertainties, including economic conditions, market volatility, and geopolitical changes, which could cause actual results to differ materially from expectations - The report contains forward-looking statements covered by the **safe harbor provisions** of the Private Securities Litigation Reform Act of 1995[87](index=87&type=chunk) - Key factors that could cause actual results to differ include **domestic and global economic conditions, oil and natural gas price volatility, geopolitical and domestic policy changes, regional tensions, and the impact of inflation**[90](index=90&type=chunk) - Readers are cautioned not to place undue reliance on forward-looking statements, which are only valid as of their making date, and the company assumes no obligation to update them[92](index=92&type=chunk) [Executive Summary](index=34&type=section&id=Executive%20Summary) Helix, an international offshore energy services company, focuses on well intervention, robotics, and decommissioning, operating in a market characterized by volatile commodity prices, geopolitical events, and regulatory changes, while anticipating support from backlog and increasing demand for decommissioning and renewables [Our Business](index=34&type=section&id=Our%20Business) Helix provides specialty services to the offshore energy industry, focusing on well intervention, robotics, and decommissioning, supporting the global energy transition through maximizing production, decommissioning, and aiding offshore wind farm developments - Helix is an international offshore energy services company focused on **well intervention, robotics, and decommissioning operations**[94](index=94&type=chunk) - The company's services support a global energy transition by **maximizing production, decommissioning, and supporting renewable energy developments**[94](index=94&type=chunk) - Demand for services is influenced by **oil and gas and renewable energy markets, commodity prices, governmental regulations, and geopolitical issues**[95](index=95&type=chunk)[99](index=99&type=chunk) [Current Market Environment](index=35&type=section&id=Current%20Market%20Environment) The market in H1 2025 saw volatile commodity prices due to geopolitical events and OPEC+ actions, impacting global demand, with ongoing threats from regulations and a projected decline in U.S. wind farm activity - Commodity prices were **volatile in H1 2025** due to geopolitical events, U.S. tariffs, and OPEC+ production increases, leading to reduced global oil demand and potential lower customer spending[100](index=100&type=chunk)[101](index=101&type=chunk) - The international wind market is robust, but U.S. wind farm activity is expected to decline following the **2025 Wind Energy Ban**[102](index=102&type=chunk) - The industry faces ongoing threats from **governmental regulations** (e.g., UK Energy Profits Levy), **geopolitical instability**, and resource allocation shifts to renewable energy[101](index=101&type=chunk) [Outlook](index=35&type=section&id=Outlook) Helix anticipates a challenging spot market for Well Intervention and Shallow Water Abandonment for the remainder of 2025, but expects performance to be supported by existing backlog, new contracts, and increasing international demand for decommissioning and renewables services - Helix anticipates more uncertainty and a **challenging spot market** for Well Intervention and Shallow Water Abandonment in the remainder of 2025[104](index=104&type=chunk) - Performance is expected to be supported by **backlog from new contracting at improved rates** and increasing demand for **decommissioning services internationally**[104](index=104&type=chunk) - Growth in renewables services is expected due to global energy demand and international offshore renewable energy developments[104](index=104&type=chunk) [Backlog](index=36&type=section&id=Backlog) As of June 30, 2025, Helix's consolidated backlog totaled approximately $1.3 billion, with $425 million expected in the remainder of 2025, though backlog is not a definitive indicator of future revenues due to potential contract changes Consolidated Backlog (as of June 30, 2025) | Metric | Amount | | :-------------------------------- | :----------- | | Total consolidated backlog | $1.3 billion | | Expected to be performed in remainder of 2025 | $425 million | - Approximately **87% of the total backlog** is represented by contracts with Shell, Subsea 7, Trident Energy, Petrobras, and Talos[105](index=105&type=chunk) - Backlog is not necessarily a reliable indicator of revenues due to potential contract modifications, cancellations, or penalties[105](index=105&type=chunk) [Results of Operations](index=36&type=section&id=Results%20of%20Operations) Helix's results for the three and six months ended June 30, 2025, show a significant decline in consolidated net revenues and gross profit, primarily due to lower performance in the Well Intervention and Production Facilities segments, despite a modest revenue increase in Robotics [Non-GAAP Financial Measures](index=36&type=section&id=Non-GAAP%20Financial%20Measures) Helix uses non-GAAP measures like EBITDA, Adjusted EBITDA, Free Cash Flow, and Net Debt, with Adjusted EBITDA decreasing significantly and Free Cash Flow turning negative for the six months ended June 30, 2025, while Net Debt improved to a net cash position - Helix uses **EBITDA, Adjusted EBITDA, Free Cash Flow, and Net Debt** as non-GAAP financial measures for internal evaluation and external comparison[108](index=108&type=chunk) Non-GAAP Financial Measures (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :---------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | EBITDA | $42,232 | $96,758 | $94,302 | $122,819 | | Adjusted EBITDA | $42,430 | $96,895 | $94,415 | $143,885 | | Free Cash Flow | N/A | N/A | $(9,649) | $45,089 | | Net Debt (as of June 30, 2025 / December 31, 2024) | $(8,131) | N/A | N/A | $(52,873) | [Comparison of Three Months Ended June 30, 2025 and 2024](index=38&type=section&id=Comparison%20of%20Three%20Months%20Ended%20June%2030,%202025%20and%202024) Consolidated net revenues decreased by 17% to $302.3 million, and gross profit decreased by 80% to $14.9 million, driven by lower Well Intervention and Production Facilities revenues, partially offset by a 5% increase in Robotics revenues, while SG&A expenses decreased due to lower compensation costs Net Revenues by Segment (Three Months Ended June 30, in thousands) | Segment | 2025 | 2024 | Change (Amount) | Change (%) | | :-------------------------- | :----- | :----- | :-------------- | :--------- | | Well Intervention | $156,786 | $217,761 | $(60,975) | (28)% | | Robotics | $85,572 | $81,249 | $4,323 | 5 % | | Shallow Water Abandonment | $50,618 | $50,841 | $(223) | (0)% | | Production Facilities | $17,081 | $25,400 | $(8,319) | (33)% | | Total Consolidated | $302,288 | $364,797 | $(62,509) | (17)% | Gross Profit (Loss) by Segment (Three Months Ended June 30, in thousands) | Segment | 2025 | 2024 | Change (Amount) | Change (%) | | :-------------------------- | :----- | :----- | :-------------- | :--------- | | Well Intervention | $(12,306) | $33,615 | $(45,921) | (137)% | | Robotics | $21,654 | $30,888 | $(9,234) | (30)% | | Production Facilities | $4,754 | $9,891 | $(5,137) | (52)% | | Total Consolidated | $14,948 | $75,486 | $(60,538) | (80)% | - Selling, general and administrative expenses decreased to **$18.1 million** in Q2 2025 from **$22.3 million** in Q2 2024, primarily due to lower employee compensation costs[123](index=123&type=chunk) [Comparison of Six Months Ended June 30, 2025 and 2024](index=41&type=section&id=Comparison%20of%20Six%20Months%20Ended%20June%2030,%202025%20and%202024) Consolidated net revenues decreased by 12% to $580.4 million, and gross profit decreased by 55% to $42.5 million, primarily due to declines in Well Intervention, Shallow Water Abandonment, and Production Facilities, despite a 4% increase in Robotics revenues, while SG&A expenses decreased Net Revenues by Segment (Six Months Ended June 30, in thousands) | Segment | 2025 | 2024 | Change (Amount) | Change (%) | | :-------------------------- | :----- | :----- | :-------------- | :--------- | | Well Intervention | $355,160 | $429,061 | $(73,901) | (17)% | | Robotics | $136,614 | $131,558 | $5,056 | 4 % | | Shallow Water Abandonment | $67,436 | $77,694 | $(10,258) | (13)% | | Production Facilities | $36,918 | $49,552 | $(12,634) | (25)% | | Total Consolidated | $580,352 | $661,008 | $(80,656) | (12)% | Gross Profit (Loss) by Segment (Six Months Ended June 30, in thousands) | Segment | 2025 | 2024 | Change (Amount) | Change (%) | | :-------------------------- | :----- | :----- | :-------------- | :--------- | | Well Intervention | $12,016 | $56,759 | $(44,743) | (79)% | | Robotics | $29,670 | $39,071 | $(9,401) | (24)% | | Shallow Water Abandonment | $(10,088) | $(8,109) | $(1,979) | (24)% | | Production Facilities | $12,214 | $8,585 | $3,629 | 42 % | | Total Consolidated | $42,486 | $95,040 | $(52,554) | (55)% | - Selling, general and administrative expenses decreased to **$37.5 million** in H1 2025 from **$43.0 million** in H1 2024, primarily due to lower employee compensation costs[138](index=138&type=chunk) [Liquidity and Capital Resources](index=44&type=section&id=Liquidity%20and%20Capital%20Resources) Helix's liquidity decreased to $374.9 million, with net working capital slightly increasing, operating cash flow turning negative, and financing cash outflows decreasing, though the company believes current resources are sufficient for the next 12 months [Financial Condition and Liquidity](index=44&type=section&id=Financial%20Condition%20and%20Liquidity) Helix's net working capital slightly increased to $412.4 million, but overall liquidity decreased to $374.9 million, though management believes current cash, internally generated cash flows, and available credit will be sufficient for the next 12 months Financial Condition and Liquidity (in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :------------ | :---------------- | | Net working capital | $412,435 | $405,266 | | Long-term debt (excluding current maturities) | $302,200 | $305,971 | | Liquidity | $374,942 | $429,586 | - Liquidity at June 30, 2025, included **$319.7 million of cash and cash equivalents** and **$70.5 million of available borrowing capacity** under the Amended ABL Facility[147](index=147&type=chunk) - Management believes current cash, internally generated cash flows, and ABL facility availability will be sufficient to fund operations, capital spending, debt service, and share repurchases for at least the next 12 months[148](index=148&type=chunk) [Cash Flows](index=44&type=section&id=Cash%20Flows) For the six months ended June 30, 2025, operating cash flow turned negative due to lower earnings and higher costs, investing cash outflows increased, and financing cash outflows significantly decreased due to lower share repurchases and absence of prior-year debt payments Summary Cash Flow Data (Six Months Ended June 30, in thousands) | Cash Flow Activity | 2025 | 2024 | | :-------------------------- | :----- | :----- | | Operating activities | $(691) | $52,320 | | Investing activities | $(8,958) | $(7,231) | | Financing activities | $(40,780) | $(101,526) | - Operating cash flows decreased due to **lower earnings**, higher regulatory recertification costs (**$33.9 million in 2025** vs. **$20.3 million in 2024**), and higher working capital outflows[150](index=150&type=chunk) - Financing cash outflows decreased significantly due to **lower common stock repurchases** (**$30.2 million in 2025** vs. **$10.2 million in 2024**) and the absence of 2026 Notes payments and earnout payments from 2024[152](index=152&type=chunk) [Material Cash Requirements](index=45&type=section&id=Material%20Cash%20Requirements) Helix's total material cash obligations amount to $1.27 billion, with $209.0 million due within one year, including long-term debt, interest, property and equipment commitments, and operating leases, alongside periodic regulatory recertification and dry dock costs Material Cash Obligations (as of June 30, 2025, in thousands) | Obligation Type | Total | Short-Term | Long-Term | | :---------------------- | :---------- | :--------- | :---------- | | MARAD debt | $19,294 | $9,412 | $9,882 | | 2029 Notes | $300,000 | $0 | $300,000 | | Interest related to debt | $108,912 | $30,513 | $78,399 | | Property and equipment | $9,068 | $9,068 | $0 | | Operating leases | $833,395 | $160,021 | $673,374 | | Total cash obligations | $1,270,669 | $209,014 | $1,061,655 | - Undiscounted decommissioning obligations total **$80.9 million for Thunder Hawk Field** and **$37.1 million for Droshky properties**, with no payments expected in the next 12 months[156](index=156&type=chunk) - Regulatory recertification and dry dock costs range from **$0.2 million to $15.0 million per vessel** and **$0.5 million to $5.0 million per system**, occurring periodically[157](index=157&type=chunk) [Critical Accounting Estimates and Policies](index=46&type=section&id=Critical%20Accounting%20Estimates%20and%20Policies) This section directs readers to Helix's 2024 Form 10-K for detailed information on critical accounting estimates, emphasizing that financial statements require estimates and judgments that may materially impact financial results - Helix's financial statements are prepared in conformity with GAAP, requiring estimates, judgments, and assumptions that may materially impact financial condition or results of operations[160](index=160&type=chunk) - For detailed information on critical accounting estimates, readers are directed to the **2024 Annual Report on Form 10-K**[160](index=160&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=46&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Helix is exposed to market risks from foreign currency exchange rates, interest rates, and commodity prices, recording $81.3 million in foreign currency translation gains, minimizing interest rate risk with fixed-rate debt, and managing commodity price risk in its Production Facilities segment - Helix is subject to market risks associated with **foreign currency exchange rates, interest rates, and commodity prices**[161](index=161&type=chunk) - For the six months ended June 30, 2025, Helix recorded foreign currency translation gains of **$81.3 million** in accumulated other comprehensive loss[163](index=163&type=chunk) - The company generally borrows at **fixed rates** to minimize interest rate risk and currently has **no amounts outstanding under variable rate debt**; commodity price risk is related to oil and natural gas production in its Production Facilities business[165](index=165&type=chunk)[166](index=166&type=chunk) [Item 4. Controls and Procedures](index=47&type=section&id=Item%204.%20Controls%20and%20Procedures) Helix's management concluded that disclosure controls and procedures were effective as of June 30, 2025, with no material changes in internal control over financial reporting during the three-month period - Helix's disclosure controls and procedures were **effective** as of June 30, 2025[167](index=167&type=chunk) - No material changes in internal control over financial reporting occurred during the three-month period ended June 30, 2025[168](index=168&type=chunk) [PART II. OTHER INFORMATION](index=39&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=39&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Note 13 of the Condensed Consolidated Financial Statements for information regarding legal proceedings, commitments, and contingencies - Information on legal proceedings is incorporated by reference from **Note 13** to the Condensed Consolidated Financial Statements[170](index=170&type=chunk) [Item 1A. Risk Factors](index=39&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the risk factors previously discussed in Helix's 2024 Annual Report on Form 10-K occurred during the period ended June 30, 2025 - No material changes to risk factors have occurred during the period ended June 30, 2025, as compared to the **2024 Annual Report on Form 10-K**[171](index=171&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=40&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Helix repurchased 4,643,060 shares of common stock for approximately $30.0 million during April and May 2025 under its 2023 Repurchase Program, with $128.38 million remaining authorized Issuer Purchases of Equity Securities (April 1 to June 30, 2025) | Period | Total Shares Purchased | Average Price Paid Per Share | Approximate Dollar Value of Shares Remaining Under Program (in thousands) | | :---------------------- | :--------------------- | :--------------------------- | :---------------------------------------------------------------------- | | April 1 to April 30, 2025 | 1,075,256 | $6.18 | $151,745 | | May 1 to May 31, 2025 | 3,567,804 | $6.55 | $128,380 | | June 1 to June 30, 2025 | — | — | $128,380 | | **Total** | **4,643,060** | **$6.46** | | - All repurchases were made in open-market transactions pursuant to the **2023 Repurchase Program**[173](index=173&type=chunk) [Item 3. Defaults Upon Senior Securities](index=40&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) Helix reported no defaults upon senior securities during the period - There were **no defaults upon senior securities**[175](index=175&type=chunk) [Item 4. Mine Safety Disclosures](index=40&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to Helix Energy Solutions Group, Inc - Mine Safety Disclosures are **not applicable** to the registrant[176](index=176&type=chunk) [Item 5. Other Information](index=40&type=section&id=Item%205.%20Other%20Information) No director or officer of Helix adopted or terminated a Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement during the three-month period ended June 30, 2025 - No director or officer adopted or terminated a **Rule 10b5-1 or non-Rule 10b5-1 trading arrangement** during the three-month period ended June 30, 2025[177](index=177&type=chunk) [Item 6. Exhibits](index=41&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed or furnished with the Form 10-Q, including articles of incorporation, by-laws, certifications (Rule 13a-14(a) and Section 906), and XBRL-related documents - The exhibits include **organizational documents, certifications by the CEO and CFO, and XBRL instance and taxonomy documents**[180](index=180&type=chunk) [Signatures](index=42&type=section&id=Signatures) The Quarterly Report on Form 10-Q was duly signed on July 24, 2025, by Owen Kratz, President and Chief Executive Officer, and Erik Staffeldt, Executive Vice President and Chief Financial Officer - The report was signed by **Owen Kratz, President and Chief Executive Officer**, and **Erik Staffeldt, Executive Vice President and Chief Financial Officer**, on **July 24, 2025**[186](index=186&type=chunk)

Group 1 - Helix Energy Solutions Group, Inc. held its Q2 2025 earnings conference call on July 24, 2025, with key participants including the CEO, CFO, and other executives [1][2][3] - The conference call was initiated by Brent Arriaga, the Vice President of Finance and Accounting, who welcomed participants and introduced the executive team [3][4] Group 2 - The company provided access to its press release and related slide presentation through its Investor Relations page, indicating a focus on transparency and communication with investors [4]

Financial Data and Key Metrics Changes - Revenues for Q2 2025 were $302 million, down from $278 million in Q1 2025, with a gross profit of $15 million compared to $28 million in Q1 [7][6] - The company reported a net loss of $3 million in Q2, contrasting with a net income of $3 million in Q1 [7] - Adjusted EBITDA for Q2 was $42 million, with a negative operating cash flow of $17 million, leading to negative free cash flow of $22 million [7][6] - Year-to-date revenues reached $518 million, with gross profits of $42 million and breakeven net income [7] Business Line Data and Key Metrics Changes - The Well Intervention segment faced challenges due to the regulatory docking of the Q5000 and the demobilization of the Q4000, impacting overall performance [6][9] - Robotics had a strong quarter, operating seven vessels and achieving high utilization, particularly in trenching and ROV support [12][14] - Shallow water abandonment activity increased, but the segment still faced pressure due to market conditions and competition [16][61] Market Data and Key Metrics Changes - The UK North Sea market has experienced a temporary standstill, affecting expected results, with several major producers announcing intentions to exit the market [32][33] - The Gulf of America intervention market is also softening, with customers deferring work due to lower oil prices and regulatory uncertainties [19][71] - Brazil's market remains strong, with three vessels operating on long-term contracts [7][39] Company Strategy and Development Direction - The company is focusing on mitigating impacts from slower markets by adjusting maintenance schedules and pursuing international opportunities [20][35] - A multi-year trenching contract in the North Sea has been secured, indicating a strategic move towards long-term contracts [14][25] - The company anticipates a gradual recovery in 2026 and a return to full strength by 2027, despite current market challenges [39][38] Management's Comments on Operating Environment and Future Outlook - Management expressed concerns over geopolitical uncertainties and lower oil prices affecting customer spending [19][71] - The outlook for the second half of 2025 has been adjusted, with expected revenues between $1.2 billion and $1.3 billion, and EBITDA between $225 million and $265 million [21][22] - Management remains optimistic about the long-term fundamentals and cash flow outlook, despite the current market softness [31][39] Other Important Information - The company has a strong balance sheet with $320 million in cash and liquidity of $375 million at quarter-end [18] - A three-year framework agreement for decommissioning services with Exxon has been secured, enhancing future revenue potential [16][97] - The company repurchased $30 million worth of shares during the second quarter, indicating confidence in its financial position [30] Q&A Session Summary Question: What should be focused on regarding shallow water abandonment? - Management believes the market is at a bottom, with significant bidding activity expected leading up to 2027 [42][44] Question: How does competition affect well intervention in the Gulf of America? - Management indicated that competition is not the main hurdle; rather, it is the overall market demand and customer spending that are impacting results [46][48] Question: What are the drivers behind the decline in robotics EBIT? - The decline is attributed to a shift from providing full trenching spreads to only the trencher, resulting in lower revenue [57][58] Question: Why not remediate the Thunder Hawk well this year? - The decision is based on the need for long lead items and partner preferences for timing, with interventions planned for early 2026 [65][66] Question: What are the main challenges driving customer work pushes? - Factors include lower oil prices, regulatory uncertainties, and overall market indecision, leading to deferred spending [71][72]

Financial Performance - Second quarter revenue was $302 million, a decrease compared to $365 million in the same period of 2024[12] - Net loss for the second quarter was $3 million, or $(002) per diluted share[12, 13] - Adjusted EBITDA for the second quarter was $42 million, down from $97 million in the second quarter of 2024[12, 13] - Free Cash Flow for the second quarter was $(22) million, compared to $(16) million in the second quarter of 2024[12, 13] Financial Condition - Cash and cash equivalents totaled $320 million as of June 30, 2025[12, 13] - The company had a negative Net Debt of $8 million as of June 30, 2025[12, 13] - Total funded debt was $319 million as of June 30, 2025[43] Operational Highlights - Decommissioning accounted for 59% of revenue, Production Maximization 24%, Renewables 14%, and Other 3% for the quarter ended June 30, 2025[16] - Well Intervention vessel utilization was 72% during the second quarter[22] - Robotics vessel utilization was 95% during the second quarter[22] - Shallow Water Abandonment vessel utilization was 60% during the second quarter[22] 2025 Outlook - The company anticipates revenues between $12 billion and $13 billion for 2025[51] - Adjusted EBITDA is projected to be between $225 million and $265 million[51] - Free Cash Flow is expected to be between $90 million and $140 million[51] - Capital additions are forecasted at approximately $70 – $80 million[66]

Company Performance - Helix Energy reported a quarterly loss of $0.02 per share, missing the Zacks Consensus Estimate of $0.01, compared to earnings of $0.21 per share a year ago, representing an earnings surprise of -300.00% [1] - The company posted revenues of $302.29 million for the quarter ended June 2025, missing the Zacks Consensus Estimate by 7.35%, and down from $364.8 million year-over-year [2] - Over the last four quarters, Helix Energy has surpassed consensus EPS estimates two times and topped consensus revenue estimates just once [2] Stock Performance - Helix Energy shares have lost about 29.9% since the beginning of the year, while the S&P 500 has gained 7.3% [3] - The current Zacks Rank for Helix Energy is 4 (Sell), indicating expected underperformance in the near future [6] Earnings Outlook - The current consensus EPS estimate for the coming quarter is $0.32 on revenues of $402.95 million, and $0.36 on revenues of $1.33 billion for the current fiscal year [7] - The estimate revisions trend for Helix Energy was unfavorable ahead of the earnings release, which may impact future stock movements [5][6] Industry Context - The Oil and Gas - Field Services industry, to which Helix Energy belongs, is currently in the bottom 5% of the Zacks Industry Rank, suggesting potential challenges ahead [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could affect Helix Energy's performance [5]