Subsea 7: Margin Improvement Continues, with Further Support for Durability

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Subsea 7: Margin Improvement Continues, with Further Support for Durability

J P M O R G A N Europe Equity Research

30 July 2026

Subsea 7 Neutral

SUBC.OL, SUBC NO

Margin Improvement Continues, with Further Support Price (30 Jul 26):Nkr312.80

for Durability ▼Price Target (Dec-27):Nkr367.00 Prior (Dec-27):Nkr370.00

Subsea 7’s 2Q results were in line with our above-consensus model, while the

company raised FY26 EBITDA margin guidance for the second consecutive European Oil & Gas

quarter to ~24% from ~23% and pointed investors toward the upper end of Alejandra Magana AC

its unchanged revenue range, bringing both metrics broadly into line with our (44-20) 3493-8031

existing estimates. While industry rationalisation and improved backlog alejandra.x.magana@jpmchase.com

J.P. Morgan Securities plc

quality have supported margin expansion over the past several years,

Riddhi Agarwalmanagement’s commentary on the call placed greater emphasis on execution

(91-22) 6157-5048

improvements as an additional contributor, supporting the case for a durably riddhi.x.agarwal@jpmorgan.com

higher margin level beyond the cyclical uplift. The external backdrop also J.P. Morgan India Private Limited

remains constructive: management sees no specific high-end reel-lay, J-lay or S-

lay newbuilds progressing towards the market, despite potential concepts Specialist Sales contact details:

remaining on the drawing board. Additionally, Subsea 7’s limited and later- Ian Mitchell - Specialist Sales -

dated Middle East exposure also provides some comfort in the current European Energy

environment. The region represents a single-digit percentage of backlog, with (44-20) 7134-1356

ian.e.mitchell@jpmorgan.com

CRPO 153 accounting for only ~1% and offshore activity expected to conclude by