Third Quarter 2026
Filed Nov 5, 2026Hornbeck reported third-quarter revenue of $293.3 million and Adjusted EBITDA of $105.9 million following the September 1, 2026 Helix merger closing, while merger and integration costs and accelerated stock compensation produced a GAAP net loss of $(85.7) million.
Revenue, Adjusted EBITDA and Adjusted Free Cash Flow rose sequentially with a partial-quarter Helix contribution, but the company reported a GAAP operating loss and net loss driven by $119.8 million of merger-related, integration and terminated offering costs. Adjusted EBITDA margin declined from the prior-year quarter.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Third Quarter 2026 total revenueGAAP | $293.3M | an increase of $110.0 million | – |
| Third Quarter 2026 vessel revenueGAAP | $271.2M | – | – |
| Third Quarter 2026 non-vessel revenueGAAP | $22.18M | – | – |
| Third Quarter 2026 operating income (loss)GAAP | −$59.7M | – | – |
| Third Quarter 2026 operating marginGAAP | (20.4)% | – | – |
| Third Quarter 2026 net income (loss)GAAP | −$85.7M | – | – |
| Third Quarter 2026 basic earnings (loss) per shareGAAP | $(0.40) | – | – |
| Third Quarter 2026 diluted earnings (loss) per shareGAAP | $(0.40) | – | – |
| Third Quarter 2026 Adjusted EBITDAnon-GAAP | $105.9M | – | – |
| Third Quarter 2026 Adjusted EBITDA marginnon-GAAP | 36.1% | – | – |
| Third Quarter 2026 Adjusted Free Cash Flownon-GAAP | $58.7M | – | – |
| Third Quarter 2026 Adjusted Free Cash Flow conversionnon-GAAP | 55.4% | – | – |
| Third Quarter 2026 adjusted operating incomenon-GAAP | $59.9M | – | – |
| Third Quarter 2026 adjusted operating marginnon-GAAP | 20.4% | – | – |
| Third Quarter 2026 adjusted net incomenon-GAAP | $28.2M | – | – |
| Third Quarter 2026 adjusted diluted earnings per sharenon-GAAP | $0.13 | – | – |
| Third Quarter 2026 merger and integration costsGAAP | $78.98M | – | – |
| Third Quarter 2026 stock-based compensation expenseGAAP | $43.37M | – | – |
| Nine Months Ended September 30, 2026 total revenueGAAP | $649.3M | – | – |
| Nine Months Ended September 30, 2026 operating incomeGAAP | $639K | – | – |
| Nine Months Ended September 30, 2026 net income (loss)GAAP | −$55.45M | – | – |
| Nine Months Ended September 30, 2026 Adjusted EBITDAnon-GAAP | $237.7M | – | – |
| Nine Months Ended September 30, 2026 Adjusted Free Cash Flownon-GAAP | $102.8M | – | – |
| Nine Months Ended September 30, 2026 net cash provided by (used in) operating activitiesGAAP | −$14.79M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Marine Transportation & SpecialtyAverage dayrates increased to $51,959 from $50,882 and active vessel utilization increased to 76.7% from 73.7%, primarily reflecting higher activity among high- and ultra-high specification offshore supply vessels and fewer days out of service for regulatory drydockings. | $153.5M | an increase of $5.6 million from $147.8 million | – |
| Subsea ServicesThe segment included a partial-quarter contribution from acquired legacy Helix operations. Utilization increased to 75.2% from 60.3%, while average dayrates decreased to $86,024 from $92,377, primarily reflecting downtime associated with the conversion of a legacy Hornbeck vessel. | $58.4M | an increase of $17.8 million from $35.5 million | – |
| Well InterventionThis new segment solely reflected legacy Helix operations from September 1 through September 30, 2026. It operated an average fleet of 2.6 vessels, with 88.1% utilization and average dayrates of $362,162. | $78M | – | – |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Fourth Quarter 2026 and Full Year 2027 outlook
- NoteAdjusted EBITDA of $90 million to $100 million for the fourth quarter of 2026
- NoteAdjusted EBITDA of $500 million to $550 million for full-year 2027
What drove it
- Third-quarter results included three months of legacy Hornbeck operations and one month of legacy Helix operations following the September 1, 2026 merger closing.
- The company implemented actions representing approximately $20 million of expected annualized cost savings and expects to achieve the $30 million annual cost synergy run-rate target within the first year following the combination.
- The company is targeting approximately $15 million of revenue synergies within the first year.
- Contracted revenue backlog was approximately $1.9 billion as of September 30, 2026, including approximately $333.2 million expected during the remainder of 2026, approximately $792.8 million during 2027 and approximately $741.3 million thereafter.
- Backlog included $667.8 million for Marine Transportation & Specialty, $431.5 million for Subsea Services and $759.9 million for Well Intervention.
- Hornbeck announced five-year integrated services agreements with Shell in the U.S. Gulf of America commencing in 2027 and a two-year North Sea decommissioning contract for integrated well intervention services commencing in 2Q2027.
Concerns
- GAAP operating loss was $(59.7) million and GAAP net loss was $(85.7) million, driven by $119.8 million of merger and integration costs, one-time accelerated stock-based compensation expense and $0.2 million of terminated offering costs.
- Adjusted EBITDA margin was 36.1%, below 42.5% in the third quarter of 2025.
- Marine Transportation & Specialty operating income was $42.1 million, compared with $42.3 million in the second quarter, as higher vessel operating costs and a higher allocation of general and administrative expenses offset higher vessel revenues.
- Subsea Services operating income margin was 31.0%, compared with 42.8% in the second quarter.
- Historical comparisons are significantly affected by transaction timing and are not indicative of the expected quarterly run-rate of the combined company.
- Backlog conversion remains subject to customer cancellation and termination rights, project delays, changes in scope, weather, vessel availability, downtime and other factors.
What to watch
- Achievement of the $30 million annual cost synergy run-rate target within the first year following the combination.
- Progress toward approximately $15 million of revenue synergies within the first year and additional commercial opportunities from integrated service offerings.
- Fourth-quarter 2026 Adjusted EBITDA relative to the $90 million to $100 million guidance range.
- The effect of a heavier regulatory drydock schedule weighted toward the first half of 2027.
- Expected entry into commercial service of the first of two HOS 400-class MPSV newbuilds late in the third quarter of 2027.
- Deliveries of eight new work-class ROV systems beginning in the second quarter of 2027.
Balance sheet and cash flow
- Cash balance of $471.6 million as of September 30, 2026
- $730.6 million of total face value of debt as of September 30, 2026
- Net debt of $259.0 million as of September 30, 2026
- Undrawn revolving line of credit with a current borrowing base of $125.0 million
- Cash plus undrawn capacity under the revolving credit facility of $596.6 million
- Net cash acquired in Merger of $637,878 (in thousands) for the nine months ended September 30, 2026
- Maintenance capital improvements of $(16,474) (in thousands) for the nine months ended September 30, 2026
- Growth capital expenditures of $(40,996) (in thousands) for the nine months ended September 30, 2026
- Commercial capital expenditures of $(20,056) (in thousands) for the nine months ended September 30, 2026
Analysis
Third-quarter revenue was $293.3 million, compared with $183.3 million in the second quarter and $199.1 million in the third quarter of 2025. The quarter included three months of legacy Hornbeck operations and one month of legacy Helix operations after the September 1 merger closing. Management stated that the sequential variance was primarily related to the incremental contribution from legacy Helix operations, and cautioned that historical comparisons are significantly affected by transaction timing.
Underlying non-GAAP results improved sequentially. Adjusted EBITDA was $105.9 million, compared with $66.7 million in the second quarter, while Adjusted Free Cash Flow was $58.7 million, compared with $25.6 million. Adjusted EBITDA margin was 36.1%, essentially in line with 36.4% sequentially but below 42.5% in the prior-year quarter. Adjusted operating income was $59.9 million and adjusted diluted earnings per share were $0.13, compared with $34.5 million and $0.09 in the second quarter.
GAAP earnings were dominated by transaction-related expense. Hornbeck reported operating loss of $(59.7) million and net loss of $(85.7) million, or $(0.40) per diluted share. The company recorded $119.8 million of merger and integration costs, one-time stock-based compensation expense accelerated by the combination, and terminated offering costs. Stock-based compensation expense was $43,368 (in thousands) and merger and integration costs were $78,980 (in thousands).
The established segments showed different operating trends. Marine Transportation & Specialty revenue increased to $153.5 million as average dayrates and active utilization improved, though operating income of $42.1 million was slightly below the second quarter amid higher operating costs and general and administrative allocation. Subsea Services revenue rose to $58.4 million with greater utilization and a partial-quarter legacy Helix contribution, but lower dayrates and higher costs reduced operating margin. Well Intervention added $78.0 million of revenue, $26.0 million of operating income and $32.4 million of Adjusted EBITDA during its first month within the combined company.
Liquidity included $471.6 million of cash, $730.6 million of total face value debt and $125.0 million of undrawn revolver borrowing-base capacity. Contracted backlog was approximately $1.9 billion. Management guided to Adjusted EBITDA of $90 million to $100 million for the fourth quarter of 2026 and $500 million to $550 million for full-year 2027. The 2027 range includes approximately $20 million of anticipated cost-synergy benefits from actions already implemented and assumes U.S. Gulf of America deepwater drilling activity remains generally consistent with current levels.
Management, verbatim
The completion of our combination with Helix marks an important milestone for Hornbeck and creates a differentiated offshore services company with capabilities spanning marine transportation, subsea services and well intervention.
Todd M. Hornbeck, President and CEO
Our priorities remain to operate safely, maintain asset reliability, capture revenue and cost synergies from the combination and maintain disciplined capital allocation.
Todd M. Hornbeck, President and CEO
Our 2027 outlook is supported by contracted backlog, an expanded geographic and service-line footprint, and the anticipated contribution of the combined platform.
Potter Adams, Executive Vice President and Chief Financial Officer
Not in the filing
stated, not guessed- Previous-release outlook was not provided, so comparison of actual results with prior guidance is unavailable.
- Gross profit and gross margin were not reported.
- Fourth-quarter 2026 and full-year 2027 revenue guidance were not reported.
- Fourth-quarter 2026 and full-year 2027 operating expense guidance were not reported.
- Fourth-quarter 2026 and full-year 2027 tax-rate guidance were not reported.
- Third-quarter 2026 GAAP operating cash flow was not reported.
- Third-quarter 2026 GAAP free cash flow was not reported.
- Share repurchases and dividends were not reported.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.