Financial Data and Key Metrics Changes - Revenues for Q4 2025 were $334 million, with a gross profit of $51 million and a net income of $8 million, marking the highest fourth quarter since 2013 [7] - Full year revenues reached $1.3 billion, with a gross profit of $159 million and a net income of $31 million, generating an adjusted EBITDA of $272 million [8] - Positive operating cash flow of $113 million for Q4 and $137 million for the full year, resulting in positive free cash flow of $107 million and $120 million respectively [7][8] Business Line Data and Key Metrics Changes - The robotics segment had a strong year, operating six vessels and achieving high utilization rates, particularly in trenching and ROV support [11][12] - The well intervention segment in the Gulf of America saw high utilization from the Q5000, while the Q4000 experienced lower rates due to gaps in the schedule [10] - The shallow water abandonment business had a seasonal low in Q4, but the EPIC Hedron heavy lift barge achieved 92% utilization [15] Market Data and Key Metrics Changes - The Gulf of America Shelf showed improved results with good late-season utilization [8] - The North Sea market is expected to improve in 2026, with a shift towards decommissioning projects [41] - The APAC market is anticipated to be softer in 2026, with trenching projects planned in Taiwan [26] Company Strategy and Development Direction - The company is focused on maintaining a strong balance sheet and is considering M&A opportunities as well as capital investments to enhance shareholder value [35][69] - There is a strategic shift towards becoming a solutions provider rather than just a service provider, with geographic expansion being a key focus [69] - The company anticipates a multi-year recovery in the market, particularly in the well intervention and robotics segments [25][32] Management's Comments on Operating Environment and Future Outlook - Management noted conflicting signals in the market, with a strong backlog but an uncertain macroeconomic environment [19] - Despite challenges, there is optimism for improved market conditions in late 2026 and into 2027, particularly in the renewables sector [19][20] - The company expects EBITDA reductions in 2026 due to specific events but remains positive about overall performance [20][21] Other Important Information - The company ended the year with $445 million in cash and $554 million in liquidity, with total funded debt of $315 million [9][18] - The CEO announced plans to retire, with a focus on ensuring a smooth transition for the new leadership [16] Q&A Session Summary Question: Cash on the balance sheet and M&A opportunities - Management is assessing actionable opportunities for M&A while considering share repurchases, with collaboration among the board and incoming CEO [38][39] Question: North Sea market outlook - Improved activity is expected in 2026, with a focus on decommissioning projects and strong utilization for the Seawell and Well Enhancer [40][41] Question: Robotics revenue guidance - Robotics revenue is expected to remain flat, with trenching activity anticipated to increase, particularly in the North Sea [48][49] Question: Q1 EBITDA expectations - Q1 is expected to be impacted by the Thunderhawk workover expense, with historical performance indicating it is typically the lowest quarter [51][52] Question: Q7000 utilization and intervention market in Brazil - The intervention market in Brazil is strong, with long-term contracts in place, and potential gaps in utilization may lead to opportunities in West Africa [57] Question: Competitive environment in well intervention - Increased competition is noted in the shallow water market, with expectations for a stronger 2027 as operators shift back to intervention work [60][63]

Core Insights - Helix Energy Solutions Group reported a net income of $8.3 million for Q4 2025, a decrease from $22.1 million in Q3 2025 and $20.1 million in Q4 2024, impacted by an $18.1 million non-cash impairment charge [1][2] - For the full year 2025, net income was $30.8 million, down from $55.6 million in 2024, with Adjusted EBITDA at $272 million compared to $303.1 million in the previous year [2][28] - The company generated $120 million in Free Cash Flow for 2025, with a cash balance of $445 million at year-end, providing significant financial flexibility [2][20] Financial Performance - Q4 2025 revenues were $334.2 million, down from $355.1 million in Q3 2025 and $377.0 million in Q4 2024 [2][35] - Gross profit for Q4 2025 was $50.7 million, compared to $58.9 million in Q3 2025 and $66.0 million in Q4 2024 [2][35] - Selling, general and administrative expenses increased to $20.3 million in Q4 2025 from $18.2 million in Q3 2025, but decreased from $27.6 million in Q4 2024 [15][35] Segment Performance - Well Intervention revenues decreased by $12.2 million, or 6%, in Q4 2025 compared to Q3 2025, primarily due to lower utilization of certain vessels [6][7] - Robotics revenues decreased by $12.1 million, or 12%, in Q4 2025 compared to Q3 2025, attributed to seasonal slowdowns in North Sea operations [8][9] - Shallow Water Abandonment revenues decreased by $17.1 million, or 23%, in Q4 2025 compared to Q3 2025, due to lower utilization during the seasonal slowdown [10][11] Cash Flow and Capital Expenditures - Operating cash flows for Q4 2025 were $113.2 million, significantly higher than $24.3 million in Q3 2025 and $78.0 million in Q4 2024 [18][27] - Capital expenditures totaled $5.7 million in Q4 2025, up from $1.7 million in Q3 2025 but down from $12.5 million in Q4 2024 [19][28] - Free Cash Flow for Q4 2025 was $107.5 million, compared to $22.6 million in Q3 2025 and $65.5 million in Q4 2024 [20][28] Financial Condition - As of December 31, 2025, cash and cash equivalents were $445.2 million, with total liquidity of $553.6 million [29] - The company reported negative Net Debt of $137.2 million, indicating a strong liquidity position [29]