Helix Energy Solutions Group Q1 Results: Details All-Stock Hornbeck Deal, Sees $75M+ Synergies

Key Points

• The companies agreed an all-stock deal expected to close in 2H 2026 with Helix shareholders owning ~45% and Hornbeck ~55%; management expects the merger to produce $75 million+ in annual synergies within three years and the combined company will trade as HOS with Todd Hornbeck as CEO and Bill Transier as chairman.
• Helix reported Q1 revenue of $288 million, a net loss of $13 million and adjusted EBITDA of $32 million, ended the quarter with $501 million in cash and $612 million of liquidity, and reiterated 2026 guidance of $1.2–1.4 billion revenue, $230–290 million EBITDA, $70–80 million capex, and $100–160 million free cash flow.
• The pro forma business would operate a ~73‑vessel fleet with a fair market value of $2.8 billion and about $2 billion of combined backlog, increasing exposure to deepwater, defense and renewables markets and leveraging ROV and trenching capabilities.

Helix Energy Solutions Group NYSE: HLX and Hornbeck Offshore Services used a joint conference call to outline a planned all-stock combination and to review Helix’s first-quarter 2026 financial results. Executives from both companies emphasized the strategic rationale of pairing Helix’s well intervention, robotics, and subsea services with Hornbeck’s fleet of offshore support vessels, while also highlighting expected synergies and a broader end-market opportunity set spanning energy, defense, and renewables.

Helix reports seasonal Q1 results and reiterates 2026 guidance

Helix Executive Vice President and Chief Financial Officer Erik Staffeldt said the company delivered “another well-executed quarter” but noted that first-quarter performance reflected “expected seasonal levels during the winter in the North Sea and Gulf of Mexico shelf,” which impacted well intervention, robotics, and shallow water abandonment. He also cited costs tied to “the successful workover of Thunder Hawk Field.”

Staffeldt reported first-quarter revenue of $288 million and gross profit of $9 million, resulting in a net loss of $13 million. Adjusted EBITDA was $32 million, with operating cash flow of $62 million and free cash flow of $59 million. He highlighted strong utilization on the Q4000, improved well intervention rates, the Thunder Hawk workover and return to production, and the reactivation of the Seawell as the North Sea returned to a “two-vessel market.”

Helix ended the quarter with $501 million of cash and $612 million of liquidity, and Staffeldt said the company was maintaining its 2026 guidance despite an uncertain macro environment. Helix’s 2026 outlook includes:

• Revenue of $1.2 billion to $1.4 billion
• EBITDA of $230 million to $290 million, reflecting the Thunder Hawk workover and an upcoming Siem Helix 1 docking
• Capital expenditures of $70 million to $80 million, focused on maintenance and robotics fleet renewal
• Free cash flow of $100 million to $160 million

Staffeldt said oil supply disruptions, higher commodity prices, and increased regulatory enforcement in the North Sea could support activity through 2025, 2026, and into 2027.

All-stock deal targets 2H 2026 close and $75 million-plus in synergies

Helix Chairman Bill Transier said the combination would create a “premier integrated offshore services company” and a “recognized leader in offshore operations” with a diversified, high-specification fleet backed by subsea robotics, well intervention, and technical services, including trenching pipelines and cables.

Transier said the transaction is structured as an all-stock deal, with closing expected in the second half of 2026, subject to Helix shareholder approval, regulatory approvals, and customary conditions. At closing, Helix shareholders are expected to own approximately 45% of the combined company and Hornbeck shareholders approximately 55%. He added that parties representing “a significant majority” of Hornbeck ownership, including Ares Management funds, delivered written consents approving the transaction.

Management said the deal is expected to generate “$75 million or more” in annual revenue and cost synergies within three years after closing. In Q&A, Hornbeck Chairman, President, and CEO Todd Hornbeck said the companies had not yet provided a specific split between revenue and cost synergies, adding that more detail would be included in the merger proxy. Hornbeck said “the majority” would likely come from revenue synergies and efficiencies enabled by integrating service offerings.

Leadership, branding, and headquarters plans

Under the proposed governance structure, Todd Hornbeck would serve as president and CEO of the combined company, Transier would serve as chairman, and the board would comprise seven directors (three from Helix and four from Hornbeck, including Todd Hornbeck). Transier said the combined company would operate under the Hornbeck Offshore Services name and trade on the NYSE under the ticker symbol HOS, while “the Helix brand” would be retained for well intervention services. Headquarters would be in Houston, Texas, and Covington, Louisiana.

Transier also noted that Helix CEO Owen Kratz, who previously announced plans to retire, agreed to support Todd Hornbeck through the closing and remain available thereafter as needed.

Combined fleet and market positioning: deepwater, defense, and trenching

Todd Hornbeck described Hornbeck as a provider of “ultra-high spec marine logistics services” with operations across the U.S. Gulf of Mexico, the Caribbean, Guyana, Suriname, and Brazil. He said Hornbeck has “approximately 71 vessels” in its current fleet, with two multi-purpose support vessels (MPSVs) under construction for delivery in 2027. Hornbeck reported adjusted EBITDA of $288 million and an adjusted EBITDA margin of 40% for fiscal 2025, and said the pro forma fleet would be 73 vessels with a fair market value of $2.8 billion.

Helix EVP and COO Scotty Sparks said the companies’ footprints are complementary, with Helix operating in regions including West Africa, Asia Pacific, and the North Sea, alongside the U.S. and Brazil, while Hornbeck is concentrated in the Americas. Sparks said about half of combined revenue is expected to come from the U.S., followed by Brazil and the North Sea.

Todd Hornbeck also emphasized increased exposure to defense markets, citing a fleet supporting military operations and “emerging technologies such as marine autonomy and artificial intelligence.”

Q&A: backlog, day rates, Mexico outlook, and ROV lead times

Executives said the combined companies referenced approximately $2 billion of backlog in the presentation. Sparks said Helix’s backlog is close to $1 billion “covering a significant portion this year and into next year,” and Todd Hornbeck said Hornbeck’s backlog is also about $1 billion, including long-term military contracts.

On market conditions, Sparks said North Sea demand for decommissioning is high and rates are improving modestly, while the Gulf of Mexico remains “relatively flat” on rates but could tighten into 2026 and 2027 with increased rig activity. He added that Brazil is supported by long-term contracts.

Asked about Mexico, Todd Hornbeck said Woodside’s Trion project began “in earnest” in February and that Hornbeck has four long-term contracts with Woodside, plus a “10-year commitment” covering marine support for supply vessels. He also said the tone in Mexico appeared to be shifting toward bringing international oil companies back, calling the outlook “promising” over the next couple of years.

On offshore support vessel markets, Todd Hornbeck said the company focuses on ultra-deepwater classes and expects tightening supply-demand dynamics in the second half of the year, citing “leading edge rates” in the “mid-$40s.” He also said Hornbeck has 23 vessels available for reactivation, describing reactivation as “minor capital.”

On ROVs, Sparks said building a new ROV currently has about a “six-month lead time,” and that Helix could scale with “a batch build every month after” to add additional units. He also said Helix sees increased renewables-related ROV demand in Taiwan and the Asia-Pacific region, and that Helix plans to build an inspection, repair, and maintenance (IRM) division as the businesses come together.

About Helix Energy Solutions Group NYSE: HLX

Helix Energy Solutions Group, Inc NYSE: HLX is a Houston-based provider of offshore well intervention and robotics services to the global energy industry. The company specializes in extending the productive life of subsea wells through hydraulic workover systems, coiled tubing operations and riser-based wireline services. In addition, Helix offers remotely operated vehicle (ROV) support, inspection, maintenance and repair for subsea infrastructure.

Operating through three core business segments—Well Intervention, Robotics & Subsea Services and Production Facilities—Helix deploys purpose-built vessels, specialized equipment and engineering expertise to execute complex offshore projects.

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