Financial Data and Key Metrics Changes - Total company revenue for the quarter was $2,500,000,000 with an adjusted EBITDA of $509,000,000, reflecting a margin of 20.1% when excluding foreign exchange impacts [6][21] - Free cash flow generated was $261,000,000, with total shareholder distributions amounting to $271,000,000 through dividends and share buybacks [6][24] - The company increased its full-year guidance for total adjusted EBITDA by $40,000,000, now expecting approximately $1,800,000,000, a 30% increase compared to the previous year [26] Business Line Data and Key Metrics Changes - In the Subsea segment, revenue was DKK2.2 billion, a 14% increase from the previous quarter, driven by increased iEPCI project activity in the North Sea and higher installation activity in Brazil [22] - Surface Technologies reported revenue of €318,000,000, a 7% increase from the first quarter, primarily due to higher project and services activity in the Middle East [22][23] - Adjusted EBITDA for Subsea was €483,000,000, up 44% sequentially, while Surface Technologies saw an adjusted EBITDA of CHF52 million, a 12% increase [22][23] Market Data and Key Metrics Changes - Inbound orders for the quarter totaled €2,800,000,000, with Subsea orders accounting for €2,600,000,000, indicating a strong order book [21] - The total company backlog increased by 5% sequentially to €16,600,000,000 [21] - The company anticipates continued strength in offshore markets, particularly in Guyana and Mozambique, with a focus on both greenfield and brownfield opportunities [16][52] Company Strategy and Development Direction - The company is focused on transforming its Subsea and Surface Technologies segments through innovative commercial models and configurable product offerings [7][18] - A new iEPCI collaboration agreement with Var Energi was announced, aimed at optimizing subsea developments on the Norwegian continental shelf [11] - The company is committed to technology leadership, with ongoing developments in hybrid flexible pipe and all-electric technology to enhance project economics and operational efficiency [12][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating current market challenges, emphasizing the importance of strong customer relationships and technology innovation [18][19] - The outlook for offshore activity remains robust, with expectations for continued project sanctioning through the end of the decade [20] - The company is optimistic about achieving its three-year goal of $30,000,000,000 in subsea inbound by the end of the year, supported by a healthy project pipeline [20] Other Important Information - The company has reduced its North America footprint by 50% over the last three years while improving operating margins and increasing cash flow [8] - Corporate expenses for the period were €27,000,000, with net interest expense at €14,000,000 and tax expense at €106,000,000 [23] Q&A Session Summary Question: Can you break down the composition of the strong Subsea order book this quarter? - Management confirmed that the strong performance in Subsea Services is a result of successful market strategies and direct awards, indicating a positive trend for the business [30][31] Question: How do you see orders shaping up for 2026? - Management indicated that another $10,000,000,000 in orders for 2026 is a reasonable assumption based on current trends [37] Question: Can you discuss the strong services revenue and its growth trajectory? - Management confirmed that the services revenue is expected to grow in line with Subsea revenue, with a significant installed base contributing to long-term sustainability [41][43] Question: What is the outlook for brownfield and greenfield projects? - Management noted a strong commitment to advancing both brownfield and greenfield projects, with significant capital flowing into offshore markets [52] Question: How does the competitive landscape in the Middle East affect the company? - Management emphasized that the Middle East market is complex and high-end, with a focus on technology leadership and maintaining a strong market structure [70][72] Question: What are the prospects for the hybrid flexible pipe technology? - Management highlighted that hybrid flexible pipe technology could be applicable in various markets, potentially increasing the total market for flexible pipe [94][96]