Helix Energy Solutions(HLX) - 2025 Q2 - Quarterly Report

Report Information Filing Details 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] - Helix Energy Solutions Group, Inc. is classified as an Accelerated Filer[4] Common Stock Outstanding | Metric | Value | | :----- | :---- | | Common Stock Outstanding (as of July 21, 2025) | 146,985,573 shares | PART I. FINANCIAL INFORMATION Item 1. Financial Statements 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 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 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) 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 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 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 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 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] - 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] - Neither new ASU is expected to have a material impact on consolidated financial statements other than increased disclosure requirements[17][18][19] Note 2 — Company Overview 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] - The company's services support a global energy transition through production maximization, decommissioning, and renewable energy support (primarily offshore wind farms)[20][25] - Helix operates in four reportable business segments: Well Intervention, Robotics, Shallow Water Abandonment, and Production Facilities[20] Note 3 — Details of Certain Accounts 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 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 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][33] - As of June 30, 2025, there were no borrowings under the ABL Facility, and available borrowing capacity was $70.5 million[32][33] - 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][45][46] 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 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 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 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] Note 9 — Earnings Per Share 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] Note 10 — Employee Benefit Plans 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] 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] Note 11 — Business Segment Information 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 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 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] - 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] - 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] Note 14 — Statement of Cash Flow Information 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 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 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 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 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] - 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] - 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] Executive Summary 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 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] - The company's services support a global energy transition by maximizing production, decommissioning, and supporting renewable energy developments[94] - Demand for services is influenced by oil and gas and renewable energy markets, commodity prices, governmental regulations, and geopolitical issues[95][99] Current Market Environment 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][101] - The international wind market is robust, but U.S. wind farm activity is expected to decline following the 2025 Wind Energy Ban[102] - The industry faces ongoing threats from governmental regulations (e.g., UK Energy Profits Levy), geopolitical instability, and resource allocation shifts to renewable energy[101] 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] - Performance is expected to be supported by backlog from new contracting at improved rates and increasing demand for decommissioning services internationally[104] - Growth in renewables services is expected due to global energy demand and international offshore renewable energy developments[104] 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] - Backlog is not necessarily a reliable indicator of revenues due to potential contract modifications, cancellations, or penalties[105] Results of Operations 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 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] 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 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] Comparison of Six Months Ended June 30, 2025 and 2024 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] Liquidity and Capital Resources 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 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] - 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] Cash Flows 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] - 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] Material Cash Requirements 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] - 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] Critical Accounting Estimates and Policies 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] - For detailed information on critical accounting estimates, readers are directed to the 2024 Annual Report on Form 10-K[160] Item 3. Quantitative and Qualitative Disclosures About Market Risk 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] - For the six months ended June 30, 2025, Helix recorded foreign currency translation gains of $81.3 million in accumulated other comprehensive loss[163] - 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][166] Item 4. Controls and Procedures 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] - No material changes in internal control over financial reporting occurred during the three-month period ended June 30, 2025[168] PART II. OTHER INFORMATION Item 1. Legal Proceedings 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] Item 1A. Risk Factors 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] Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 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] Item 3. Defaults Upon Senior Securities Helix reported no defaults upon senior securities during the period - There were no defaults upon senior securities[175] Item 4. Mine Safety Disclosures This item is not applicable to Helix Energy Solutions Group, Inc - Mine Safety Disclosures are not applicable to the registrant[176] Item 5. Other Information 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] Item 6. Exhibits 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] 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]