Energy Holdings reports strong Q2, boosts backlog to $567m

Energy Holdings announced a strong first half of 2025, with $100.6 million in total revenue and adjusted EBITDA of $56.5 million, reflecting high fleet utilization and operational efficiency. The company maintained a conservative leverage ratio of 0.2x and reaffirmed its full-year distribution guidance of $70-90 million, with a $40 million cash distribution for H1 2025 expected in late September/early October.

Following the quarter, new contracts for Energy Drilling and SeaBird Exploration, including a five-year agreement for EDrill-2, boosted the firm revenue backlog to $567 million. This substantial backlog provides strong earnings visibility for the coming years, reinforcing the company's commitment to returning excess liquidity to shareholders.

An ongoing tax audit in Thailand led to a $9.9 million withholding tax expense provision in Q2 2025. Despite this, the company's disciplined capital allocation and strong market positions in tender-assisted drilling and 2D seismic services position it well for sustained value creation and selective growth.