Archer Ltd's Q1 revenue falls 7% on delayed approval of variation orders

Archer

19/05/2026 06:26

Overview

Oilfield services firm's Q1 revenue fell 7% yr/yr, up 15% excluding Argentina divestment

Q1 EBITDA was flat yr/yr, margin improved to 13.4% from 12.5%

Company declared $6.4 mln Q1 distribution to shareholders, confirms 2026 EBITDA growth guidance

Outlook

Archer reiterates 2026 guidance for single-digit EBITDA growth over 2025

Company expects stronger first half of 2026, with less growth in second half due to delayed project start-ups

Result Drivers

NORWAY P&A ACTIVITY - Increased activity within plug and abandonment solutions in Norway drove organic growth, per CEO Skindlo

CONTRACT AWARDS - Several new contract awards and exercised options supported backlog and earnings visibility

CASH FLOW IMPACTS - Cash flow generation was below expectations due to frontloaded growth investments and delayed approval of variation orders, especially in offshore wind

Company press release: ID:nWkr4KPPrV

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Miss
$278 mln
$284.50 mln (2 Analysts)
Q1 EBITDA
$37.20 mln
Q1 EBITDA Margin
13.40%


Analyst Coverage

The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 6 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

The average consensus recommendation for the oil & gas drilling peer group is "buy."

Wall Street's median 12-month price target for Archer Ltd is NOK35.00, about 24.3% above its May 18 closing price of NOK28.15

The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 8 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)