Helix Energy Solutions Group (NYSE:HLX) used its first-quarter 2026 earnings call to outline both its seasonal results and a planned all-stock combination with Hornbeck Offshore Services. Executives from both companies described the transaction as a strategic fit intended to create a larger, more diversified offshore services provider with expanded vessel capabilities, broader geographic reach, and targeted synergy opportunities.
Helix posts seasonal first-quarter loss, maintains 2026 guidance
Helix Executive Vice President and Chief Financial Officer Erik Staffeldt said the company delivered “another well-executed quarter,” while noting that results reflected “expected seasonal levels during the winter in the North Sea and Gulf of Mexico shelf” across well intervention, robotics, and shallow water abandonment. The quarter also reflected costs related to what Staffeldt called the “successful workover of Thunder Hawk Field.”
Staffeldt also pointed to several operational items during the quarter, including strong utilization of the Q4000 and “performing well intervention work at improved rates.” He said Thunder Hawk returned to production following the workover, and that the North Sea returned to a two-vessel market with the Seawell reactivated and expected to see “good utilization” in 2026. Helix ended the quarter with $501 million of cash and $612 million of liquidity, alongside $310 million of funded debt, according to Staffeldt.
Despite macro uncertainty, Staffeldt said Helix is seeing “some positive developments” and cited oil supply disruptions, higher commodity prices, and “increased regulatory enforcement in the North Sea” as catalysts that may support customer activity into 2026 and 2027. Helix maintained its 2026 outlook:
- Revenue: $1.2 billion to $1.4 billion
- EBITDA: $230 million to $290 million (including impacts from the Thunder Hawk workover and an upcoming Siem Helix 1 docking)
- CapEx: $70 million to $80 million (maintenance and robotics fleet renewal)
- Free cash flow: $100 million to $160 million
Staffeldt said quarterly cadence is expected to follow prior years, with second and third quarters most active and first and fourth quarters impacted by winter weather.
All-stock Helix-Hornbeck deal targets integrated offshore services platform
Helix Chairman Bill Transier said the combination would bring together “two market leaders” and create “a premier integrated offshore services company.” He described the strategic rationale as building a diversified, high-specification fleet supported by subsea robotics, well intervention, and technical services, including subsea trenching of pipelines and cables.
Transier said the combined company intends to provide integrated offerings across deepwater energy, defense, and renewables, and that merging Helix’s well intervention and robotics capabilities with Hornbeck’s offshore support vessel fleet would expand the breadth of services available to customers. He added that the transaction is expected to generate “$75 million or more” in annual revenue and cost synergies within three years of closing.
The deal is structured as an all-stock transaction. Transier said Helix shareholders are expected to own about 45% of the combined company, with Hornbeck shareholders owning about 55% at closing. The companies expect the transaction to close in the second half of 2026, subject to Helix shareholder approval, regulatory approvals, and other customary conditions. Transier also noted that parties representing “a significant majority” of Hornbeck’s ownership, including Ares Management funds, have delivered written consents approving the transaction.
Following closing, Todd Hornbeck will serve as President and CEO of the combined company, Transier will serve as Chairman, and the board will consist of seven directors (three from Helix and four from Hornbeck, including Todd Hornbeck). The combined company will operate under the Hornbeck Offshore Services name, trade on the NYSE under ticker symbol HOS, and retain the Helix brand for well intervention services. Headquarters will be in Houston, Texas, and Covington, Louisiana, according to Transier.
Transier also acknowledged Helix CEO Owen Kratz, who previously announced plans to retire. Transier said Kratz agreed to support Todd Hornbeck through the close and remain available thereafter as needed.
Hornbeck outlines fleet profile, backlog, and growth focus
Todd Hornbeck described Hornbeck as a provider of “ultra-high spec marine logistics services” with a geographic footprint across the U.S. Gulf of Mexico, the Caribbean, Guyana, Suriname, and Brazil. He said Hornbeck has approximately 71 vessels in its current fleet, with two multi-purpose service vessels (MPSVs) under construction and expected to deliver in 2027. On a pro forma basis, he said the fleet would be 73 vessels with a stated fair market value of $2.8 billion.
Hornbeck said the company generated adjusted EBITDA of $288 million and an adjusted EBITDA margin of 40% in fiscal year 2025. He added that the combined company expects to have the “highest specification fleet of specialty vessels designed to support deepwater life-of-field services globally,” and said it would be positioned to provide riser-based well intervention, subsea operations, and surface vessel logistics support.
On backlog, executives said the combined figure discussed in the presentation was about $2 billion, split roughly evenly between the companies. Helix EVP and COO Scotty Sparks said Helix’s backlog was “close to $1 billion, covering a significant portion this year and into next year.” Todd Hornbeck said Hornbeck’s backlog is about $1 billion and includes long-term military contracts as well as specialty vessel work, adding it is “the biggest backlog we’ve had, I think, in our history.”
Synergies, capital needs, and market conditions discussed in Q&A
Asked to break down the expected $75 million synergy target, Todd Hornbeck and Sparks emphasized both revenue opportunities from bundling services and cost efficiencies tied to scale. Hornbeck said the companies “don’t really overlap that much in services,” which he argued strengthens the rationale by enabling cross-selling and integrated offerings. In response to another question, Hornbeck said more detail would be provided in the merger proxy, while adding “the majority of it probably will be from revenue synergies and cost efficiencies.”
On capital intensity and fleet readiness, Hornbeck and Sparks described reactivation as relatively low cost. Hornbeck said Hornbeck has 23 vessels available for reactivation and called it “very low cost to reactivate to put in the market.” On the two newbuild MPSVs, Hornbeck said there is about $50 million left to spend through delivery and characterized the remaining capital needs as limited. Sparks said the vessels are expected to be “the highest spec Jones Act vessels” and that Helix Robotics would be combined into the platform.
Executives also discussed market conditions across regions:
- North Sea: Sparks said both Helix monohull vessels are working and that Helix is seeing “high demand for decommissioning” and “a slight improvement in rates.”
- Americas and Brazil: Sparks said Helix is seeing more production enhancement activity, with the Q5000 working for Shell and the Q4000 working for Oxy. He said the Q7000 was finishing work for Shell in Brazil and that Helix was “very close” to contracting it for Nigeria again, with expectations to return it to Brazil afterward.
- Robotics/trenching: Sparks said trenching utilization and rates are high, with work booked into 2026 and 2027, booked “all the way to 2030,” and bid activity out to 2032.
- OSVs (supply/demand): Todd Hornbeck said the market for higher deadweight vessels is “traded very thinly,” noting Petrobras has absorbed capacity, and said he expects tightening in the second half of the year with “day rate expansion.” He said leading-edge rates are “in the mid-40s.”
- Mexico: Todd Hornbeck said Woodside’s Trion project “started in earnest” in February and that Hornbeck has four long-term contracts with Woodside, including what he described as a 10-year commitment for marine support for supply vessels. He also said the tone in Mexico appears to be shifting toward bringing international oil companies back, describing “green shoots.”
Regarding ROV capacity, Sparks said building a new ROV currently carries a “six-month lead time,” and that if Helix pursued a batch build, “every month after, we can have another ROV,” describing the ability to scale quickly. He also said demand is rising in renewables in Taiwan and the broader Asia-Pacific region. Sparks added that Helix has not historically been an IRM company, but said that as the companies combine, they plan to “build an IRM division.”
In response to a question about why the deal makes sense for Helix shareholders, Transier said the combination provides an opportunity to “build scale, reduce cost of capital,” and pursue growth in ways Helix could not as a smaller standalone company. He characterized the combined company as a “real growth company” aimed at delivering shareholder value over time.
Helix CFO Erik Staffeldt closed the call by thanking participants and said the company appreciates investor interest in what he described as an “exciting opportunity” for investors and customers.
About Helix Energy Solutions Group (NYSE:HLX)
Helix Energy Solutions Group, Inc (NYSE: HLX) is a Houston-based provider of offshore well intervention and robotics services to the global energy industry. The company specializes in extending the productive life of subsea wells through hydraulic workover systems, coiled tubing operations and riser-based wireline services. In addition, Helix offers remotely operated vehicle (ROV) support, inspection, maintenance and repair for subsea infrastructure.
Operating through three core business segments—Well Intervention, Robotics & Subsea Services and Production Facilities—Helix deploys purpose-built vessels, specialized equipment and engineering expertise to execute complex offshore projects.
