Hornbeck Offshore Announces Third Quarter 2026 Results

(NYSE:HOS) Hornbeck Offshore Services, Inc. announced key operational and financial highlights for the third quarter ended September 30, 2026. The company completed its combination with Helix on September 1, 2026, resulting in a differentiated offshore services company with expanded capabilities in marine transportation, subsea services, and well intervention. Hornbeck announced five-year integrated services agreements with Shell in the U.S. Gulf of America, commencing in 2027, and was awarded a two-year decommissioning contract for integrated well intervention services in the North Sea, commencing in the second quarter of 2027. The company committed to acquire eight new work-class ROV systems, with deliveries beginning in the second quarter of 2027. Hornbeck has implemented $20 million of annualized cost savings to date. For the third quarter of 2026, revenue was $293 million and Adjusted EBITDA was $106 million, resulting in an Adjusted EBITDA margin of 36%. Adjusted Free Cash Flow was $59 million, with a conversion rate of 56%. The company provided Adjusted EBITDA guidance of $90 to $100 million for the fourth quarter of 2026 and $500 to $550 million for the full year 2027. As of September 30, 2026, total basic shares outstanding were 325,608,491, including 221,971,035 common shares and 103,637,456 Jones Act Warrants (strike price $0.00001 per share). The company recorded $119.8 million of merger and integration costs and $0.2 million of terminated offering costs during the third quarter of 2026. Excluding these costs, operating income for the third quarter would have been $59.9 million, operating margin 20.4%, net income $28.2 million, and diluted EPS $0.13 per share. Segment results included Marine Transportation & Specialty Vessel revenues of $141.2 million, Subsea Services Vessel revenues of $53.3 million, and Well Intervention revenues of $76.6 million. The company operated an average active fleet of 38.5 vessels in Marine Transportation, 9.0 vessels in Subsea Services, and 2.6 vessels in Well Intervention. As of September 30, 2026, contracted revenue backlog was approximately $1.9 billion, with $333.2 million expected to be recognized during the remainder of 2026, $792.8 million during 2027, and $741.3 million thereafter. The company had a cash balance of $471.6 million, total face value of debt of $730.6 million, and net debt of $259.0 million. Cash plus undrawn capacity under the revolving credit facility was $596.6 million. Hornbeck identified at least $75 million of annual revenue and cost synergies from the Helix merger, with $45 million in revenue synergies and $30 million in cost synergies expected within three years. The company has implemented actions representing approximately $20 million of expected annualized cost savings and is targeting $30 million annual cost synergy run-rate within the first year following the combination. The company is also targeting approximately $15 million of revenue synergies within the first year. Guidance for 2027 includes an anticipated contribution from the first of two HOS 400-class MPSV newbuilds, expected to enter commercial service late in the third quarter of 2027.