Departing Subsea 7 chief executive lauds benefits of differentiation strategy

John Evans, who will retire from his position on 30 June 2026, and be succeeded by Stuart Fitzgerald, currently chief executive of Seaway 7, part of the Subsea 7 Group, said Q1 2026 was characterised by strong financial and operational performance that serves as a solid foundation for growth in the year ahead.

Subsea 7 had adjusted EBITDA in the first quarter of 2026 of US$385M, up more than 60% year-on-year and equating to a margin of 21%, from 15% in the prior year period. 

Mr Evans said the company’s subsea, conventional and renewables business units all delivered robust results. The group remained focused on optimising cash generation, resulting in an increase in net cash to US$198M, including lease liabilities of US$337M.

“During my six-year tenure, the group has executed a differentiated strategy across the energy landscape, one that has driven our backlog to all‑time highs, strengthened returns and enabled significant capital distributions to shareholders,” Mr Evans said.

“Despite the geopolitical and macroeconomic uncertainty facing the world today, the outlook for Subsea 7 – and, in future, Saipem 7 – remains positive, supported by the attractive attributes of offshore energy. As I transition from my role as chief executive and join the board of directors, I do so with great confidence in the leadership team and in the group’s ability to seize the opportunities that lie ahead.”

The company’s backlog as of the end of Q1 2026 stood at US$13.5Bn, including US$5.5Bn for execution in 2026, providing high revenue visibility. Subsea 7 also has a backlog of US$5.0Bn for execution in 2027, up 17% since year-end.

The company’s balance sheet remains strong, with net cash including lease liabilities of US$198M, compared with net cash including lease liabilities of US$21M at year-end 2025. Guidance for the full year 2026 raised, with revenue now expected to be within a range of US$7.4Bn to US$7.8Bn, with an adjusted EBITDA margin of approximately 23%.