Earnings call transcript: Archer Q3 2026 results lift shares as debt worries grow

Archer reported third-quarter 2026 revenue of $268 million and adjusted EBITDA of $48.4 million. The company's reported EBITDA was $44.2 million, with an adjusted EBITDA margin of 18.1%. Despite a difficult operating backdrop, the company's core business showed an 8% year-on-year increase in underlying EBITDA. Net interest-bearing debt climbed to about $525 million due to the Culzean Wind Project, leading to concerns over the company's elevated leverage.

Archer paused shareholder distributions due to financing restrictions and higher leverage. The company reiterated its full-year 2026 guidance and highlighted strong backlog visibility into 2027. Archer's shares were last quoted at $2.36, up from $1.80, a gain of about 31%. The company expects single-digit EBITDA growth for 2026, with a 5% to 15% increase in the second half of the year.

Capital spending is projected to be 7% of revenue in 2026, higher than its historical range. The company expects 80% of its expected revenue for 2027 to be contracted through backlog. Archer's CEO acknowledged underestimating the complexity and cost of the Culzean project, and emphasized the strength of the order book, which provides visibility into 2027 earnings and cash flow.