Reach Subsea ASA (REACH) Earnings Call Transcripts

Reach Subsea ASA's Latest Earnings Call - Q1 FY2026

In the first quarter of 2026, Reach Subsea ASA reported revenue of NOK 551.4 million, a significant decline from NOK 698.7 million in Q1 2025, primarily due to lower vessel utilization and unfavorable market conditions. The company recorded an EBIT loss of NOK 192.1 million, compared to a profit of NOK 68.2 million in the prior year. Management highlighted ongoing challenges but noted a positive outlook with the recent signing of a 2 plus 1 year IMR letter of intent, which is expected to enhance the order book and provide greater financial predictability moving forward.

Reported metrics

Guidance from management

Management indicated that while short-term performance is affected by market dynamics, they expect to see improved utilization and financial performance as they scale the Reach remote model and convert the recent letter of intent into a firm contract.

What management said

That's good. So the first question is about our tender pipeline being stable for several quarters at NOK 10 billion. The question is what is the conversion rate we are experiencing. And is the pipeline generally replenishing at the same rate it is converting or is the headline number masking a longer decision time line from our clients.

I think the conversion rate has been around 10%, 15% over the past years. We working on improving that conversion rate, of course. And yes, correct, some decisions are taking longer time. Yes, for the past past year, I can say. But conversion rate is -- we have been used to that 10% to 15%, but I think it will improve in the coming years. So, yes.

What analysts pressed on

Analysts expressed concerns regarding the low conversion rate of tenders and the impact of market fluctuations on future revenue. There were also questions about how the company plans to improve sales and market penetration given the current challenging environment.

Main topics on the call

• Revenue Decline — Revenue decreased to NOK 551.4 million from NOK 698.7 million year-over-year, attributed to lower vessel utilization and adverse currency movements. CEO Jostein Alendal stated, "Our first quarter results are below target...
• Operational Improvements — Despite the revenue decline, management noted early operational improvements with all vessels now in operation. Alendal mentioned, "We are actively working to improve utilization across the fleet through tighter capacity...
• New Contracts and Backlog — The company secured a landmark 2 plus 1 year IMR letter of intent, which is expected to significantly increase the order book. Alendal indicated that this agreement "will add a layer of financial predictability that we h...
• Shift to Renewables — Renewables have now become the largest revenue sector for Reach Subsea, surpassing oil and gas. CFO Arne Joa noted, "This reflects a more cautious client environment during the quarter, coinciding with a period of weaker...

Read the full Reach Subsea ASA transcript (Q1 FY2026) → Summary generated from the call transcript; every figure above is stated by management on the record.

Earnings Call History

EarningsCalls.dev has 16 Reach Subsea ASA earnings call transcripts on record, spanning February 18, 2022 to May 5, 2026. Based on this history, Reach Subsea ASA reports quarterly. The most recent call on file is dated May 5, 2026. The full list is below — each row opens the complete, free-to-read transcript.

Ticker

REACH

Exchange

OB

Country

NO

Sector

Energy

Industry

Energy Equipment and Services

Calls on record

16

First call

February 18, 2022

Most recent

May 5, 2026

Reporting cadence

quarterly