Mermaid Group FY2025 Results: Investor Insights and Key Updates

Executive Summary

Mermaid Group has released its financial results for the year ended 31 December 2025, presenting a comprehensive overview of its operational performance, financial health, and forward outlook. The report highlights a solid liquidity position, robust order book, and strategic growth platforms, but also notes revenue and profit declines year-on-year that shareholders should closely monitor.

Key Financial Highlights

• Total Revenue: USD 489.3 million in FY2025, down USD 24.0 million (4.7%) from FY2024. The decrease was mainly driven by reductions in T&I and Decommissioning revenues (USD 16.4 million) due to the completion of major APAC projects, and Cable Lay segment revenues (USD 12.1 million) attributable to project delays. Subsea IRM revenue increased by USD 4.5 million, supported by higher diving and survey activity in the Middle East.
• EBITDA: USD 33.6 million, a decrease of USD 10.6 million year-on-year, reflecting reduced revenue, lower gross profit margin, and higher net foreign exchange losses from a weakened USD.
• Net Profit: USD 7.4 million, a decrease of USD 6.8 million from FY2024. Excluding reversal of impairment loss on assets, net profit was USD 3.0 million, down USD 1.3 million from the previous year.
• Cash Flow: Strong net cash from operating activities at USD 46.1 million (up from USD 15.6 million in FY2024) due to improved working capital management and proceeds from a rights offering raising USD 43 million.
• Balance Sheet: Current ratio improved to 1.78x (up from 1.00x), debt-to-equity ratio reduced to 0.43x, and net gearing dropped to 8.9% from 41.2%, reflecting strong liquidity and deleveraging.
• Order Book: USD 726 million as of December 2025, with multi-year contracts secured across the Middle East, Southeast Asia, North Sea, and Western Sub-Saharan Africa, extending through FY2036.

Segment Performance

• Subsea IRM: Revenue from owned fleet declined 10.5% to USD 71.0 million due to vessel dry-docking and operational disruptions. Non-owned fleet IRM activities grew 12.3% to USD 116.8 million, driven by increased inspection and diving work, particularly in the Middle East.
• Cable Lay: Revenue declined 19.9% to USD 48.7 million on project completions and delays. However, profit share from the Millennium 3 joint venture surged 76.2% to USD 3.7 million, reflecting improved vessel utilization.
• T&I and Decommissioning: Revenue fell 6.1% to USD 252.8 million, impacted by fewer and lower-value projects in the North Sea and APAC regions.

Cash Flow and Debt Profile

• Operating Cash Flow: Net cash from operating activities improved to USD 46.1 million, thanks to working capital gains and a successful rights offering.
• Debt Maturity: Total loans stood at USD 104.4 million. A loan restructuring agreement with the parent company consolidated USD 70.0 million into a single facility, reducing short-term liquidity risk. Repayment schedules are now streamlined, with the next repayment due Q1 2026.
• Liquidity: Cash and equivalents surged to USD 65.8 million from USD 22.9 million, with restricted deposits rising to USD 14.6 million.

Order Book and Business Outlook

• Mermaid’s USD 726 million order book provides strong revenue visibility, with contracts covering IRM, cable-lay, subsea tie-in, inspection, and decommissioning across multiple regions.
• The Middle East remains the primary growth engine, driven by robust IRM and cable-lay demand. The Millennium 3 vessel is booked for substantial cable-lay activity in 2026, reinforcing its strategic importance.
• APAC and North Sea operations are stable, with ongoing decommissioning and P&A activities supporting backlog and regional presence. Africa maintains steady saturation diving campaigns.
• Market diversification and expansion into decommissioning, carbon capture, subsea renewables, and infrastructure integrity are key strategic targets for 2026.

Shareholder Considerations and Price-Sensitive Information

• Revenue and Profit Declines: The YoY drop in revenue and profits, despite robust liquidity, could be perceived negatively by the market. However, the improved balance sheet, reduced leverage, and strong order book may offset some concerns.
• Rights Offering: The issuance of 477.4 million shares and proceeds of USD 43 million improved liquidity and reduced gearing, potentially diluting existing shareholders but strengthening financial stability.
• Loan Restructuring: The consolidation and rescheduling of loans with the parent company significantly lower short-term liquidity risk and improve cash flow predictability.
• Order Book Visibility: The multi-year, diversified order book extends revenue certainty through FY2036, which is a positive indicator for future cash flows and long-term valuation.
• Strategic Growth Platforms: Expansion in cable-lay (especially with Millennium 3), decommissioning, and energy transition services positions Mermaid to capture new market opportunities and support share value.

Operational and Market Outlook

• Elevated bid activity and a healthy pipeline of upcoming IRM, cable-lay, and decommissioning projects provide flexibility for margin optimization in 2026.
• Offshore capital expenditure remains resilient despite softer oil prices, with operators focusing on mature asset reinvestment and regulatory-driven decommissioning.
• Growth in cable-lay, offshore wind, and regional power connectivity is broadening Mermaid’s subsea opportunity set.
• Key assets including Mermaid Asiana, Mermaid Endurer, Millennium 3, Van Gogh, Resilient, Sapphire, and Mermaid Commander are strategically deployed to support backlog delivery and future awards.

Conclusion

Mermaid Group’s FY2025 results reflect both challenges and opportunities. While revenue and profits have declined, the company has significantly strengthened its liquidity, reduced leverage, and secured a robust order book extending through 2036. Strategic market diversification, prudent capital deployment, and operational efficiency set the stage for future growth. Shareholders should closely monitor project execution, margin discipline, and new contract awards as potential catalysts for share price movement.

Disclaimer: The information provided herein is based on Mermaid Group’s official FY2025 results. This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own due diligence and consult financial advisors before making investment decisions.

View Mermaid Maritime Historical chart here