Earnings call transcript: Eidesvik rises on Q3 2026 profit jump and contract gains

Eidesvik International ASA reported a rise in earnings during its Q3 2026 earnings call. The offshore vessel operator saw a slight dip in freight revenue, with NOK 202 million generated, down 1.0% from NOK 204 million in the same period a year earlier. However, pre-tax profit soared by nearly 49%, climbing to NOK 67 million from NOK 45 million.

This increase was largely due to lower operating costs and stronger financial income, which helped offset weaker EBITDA. EBITDA fell by 3.4% to NOK 85 million, but the company maintained a solid EBITDA margin of 42%. Management expressed confidence that the market can absorb new vessel supply without significantly impacting rates.

For the first nine months of 2026, freight revenue declined by 2% compared to the same period in 2025, and EBITDA declined by 9%, with the margin narrowing to 36%. The company attributed this early-year weakness to a spot market slowdown. Despite these challenges, the third quarter showed a more positive business, with operational stability and strong contract gains.

Eidesvik's shares closed at $17.8, up 4.71% from the previous close, and are trading near their 52-week high of $18. The stock has delivered a 42% return year-to-date and 44% over the past twelve months, though InvestingPro data suggests it may be overvalued. Management highlighted the value created through disciplined investment and strong commercial performance, as well as the positive outlook for 2027, noting that the company still has capacity available and sees growth in subsea backlog and demand for inspection, maintenance, and repair services.