France's Viridien Q3 segment adjusted EBITDAs fell 40% on absence of exceptional transfer fees

By Reuters News


Overview

  • France advanced technology firm's Q3 revenue beat analyst expectations despite 24% yr/yr decline

  • Segment adjusted EBITDAs fell 40% yr/yr, reflecting tough comparison to prior year

  • Company reduced net debt by 18% yr/yr


Outlook

  • Viridien confirms FY 2026 Net Cash Flow objective of $100m

  • Company sees improving commercial momentum in frontier basins and signs of offshore recovery

  • Company expects more favorable market environment in Q4 and momentum into 2027


Result Drivers

  • GEOSCIENCE GROWTH - Co said Geoscience revenue grew 3% yr/yr and 17% sequentially, driven by backlog conversion and strong execution

  • EARTH DATA DECLINE - Co attributed 49% yr/yr drop in Earth Data revenue to exceptionally high transfer fees in prior year and lower prefunding revenue

  • TOUGH COMPARISON - Co said lower segment adjusted EBITDAs reflected prior year's exceptional transfer fees


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Beat

$237 mln

$173 mln (3 Analysts)

Q3 Net Loss

$10 mln

Q3 Adjusted Net Debt

$656 mln

Q3 Operating Income

$13 mln


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 2 "hold" and 1 "sell" or "strong sell"

  • The average consensus recommendation for the oil related services and equipment peer group is "buy"

  • Wall Street's median 12-month price target for Viridien SA is €142.00, about 50.8% above its November 2 closing price of €94.15

  • The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 7 three months ago


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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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