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Introduction & Market Context
Reach Subsea (OB:REACH) presented its second quarter 2025 results on August 26, revealing a mixed performance with weaker quarterly numbers compared to the previous year but record-breaking results for the first half. The company’s stock closed at NOK 8.22 on August 25, up 1.48% ahead of the earnings presentation, reflecting cautious optimism in the market.
The subsea services provider continues to navigate market uncertainties while advancing its innovative remote vessel program, which has become a key differentiator in the competitive subsea services landscape. Following a strong first quarter that saw 22% revenue growth, the second quarter results show some moderation while maintaining a robust order backlog.
Quarterly Performance Highlights
Reach Subsea reported Q2 2025 revenue of NOK 684 million, lower than the same period last year but contributing to an all-time high turnover for the first half of 2025. The company achieved an EBIT of NOK 91 million for the quarter, down from NOK 121 million in Q2 2024. Pre-tax profit stood at NOK 88 million compared to NOK 111 million in the same quarter last year.
As shown in the following financial highlights slide, the company maintained a solid cash position of NOK 170 million, though this represents a decrease from NOK 222 million in the comparative period:
Despite the quarterly dip, Reach Subsea emphasized that the first half of 2025 delivered record-breaking results, indicating that the Q2 slowdown may be temporary. The company also highlighted its NOK 500 million bond placement, which closed after the quarter end, strengthening its financial position for future investments.
Strategic Initiatives
The company’s Reach Remote program continues to be a cornerstone of its strategic vision, with significant progress reported during the quarter. This innovative fleet of uncrewed surface vessels promises substantial operational and environmental benefits, positioning Reach Subsea at the forefront of marine robotization.
The presentation highlighted impressive metrics for the Reach Remote program, including 80-90% lower emissions, 30-60% OPEX reduction, and 50-70% CAPEX reduction compared to traditional operations. The company reported that Reach Remote 1 is now in commercial use, while Reach Remote 2 has been delivered, with plans to scale up with Reach Remote 3 & 4 in the pipeline.
The following slide illustrates the company’s progress with its remote vessel program:
This technology advancement represents a significant competitive advantage for Reach Subsea in the subsea services market, potentially offsetting the temporary revenue weakness with long-term operational efficiencies.
Detailed Financial Analysis
Looking at longer-term financial trends, Reach Subsea has demonstrated consistent growth in revenue, EBIT, and pre-tax profit from 2018 through 2025, as illustrated in the rolling 12-month charts:
The company’s revenue mix analysis reveals a 10% increase in quarterly revenue driven by increased project days, higher pricing, and integrated service scope. Notably, the presentation highlighted solid growth in the renewables sector and an increase in global projects, suggesting a successful diversification strategy beyond traditional oil and gas markets.
The following revenue mix breakdown provides insight into the company’s sector, segment, and geographical distribution:
Reach Subsea’s financial position remains strong, with an equity share of 39.4%. The company emphasized that it is well-positioned for further investments in Reach Remote and technology updates, supported by the recently closed NOK 500 million bond loan.
Sustainability Initiatives
Sustainability remains a key focus area for Reach Subsea, with the company highlighting progress across environmental, social, and governance dimensions. The operational maturity of remote services stands as a cornerstone of their environmental strategy, while safety performance benchmarking forms the foundation of their social responsibility efforts.
The following slide outlines the company’s key sustainability initiatives:
On the governance front, Reach Subsea is pursuing ISO27001 certification, demonstrating a commitment to information security management systems that aligns with increasing regulatory expectations in the industry.
Forward-Looking Statements
Despite the weaker Q2 performance, Reach Subsea maintains an optimistic outlook, supported by a substantial order backlog of NOK 1,150 million and an outstanding tender volume of NOK 8 billion. This represents a significant pipeline of potential future work that could drive growth in coming quarters.
The company’s strategic positioning is summarized in the following slide, highlighting its market outlook, growth potential, margin strength, technology leadership, and financial attractiveness:
Management emphasized that Reach Subsea is navigating uncertainty with adaptability while experiencing growing demand for its services. The company has expanded its service offerings, secured long-term vessel capacity, established a global footprint, and is focusing on scaling remote operations—all factors that could contribute to sustainable future growth despite the quarterly fluctuations.
When compared to the strong Q1 2025 results, which saw revenue climb to NOK 700 million (a 22% year-over-year increase) and EBIT soar by 130% to NOK 68 million, the Q2 results suggest some moderation in growth momentum. However, the record first-half performance indicates that the company’s overall trajectory remains positive, with the Reach Remote program potentially providing a significant competitive advantage in the evolving subsea services market.
Full presentation:
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