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