Earnings

Hornbeck Offshore Posts $119.8 Million Merger Charge

The Tip Desk · November 11, 2026 · 5 min read

The combined offshore services company reported $105.9 million of Adjusted EBITDA for the quarter ended September 30, 2026, and guided 2027 Adjusted EBITDA to $500 million to $550 million.

Hornbeck Offshore Services, Inc. (HOS), a global offshore services company, closed its combination with Helix on September 1, 2026, and reported third-quarter results that included three months of legacy Hornbeck operations and one month of legacy Helix operations. The company said historical comparisons are significantly affected by the timing of the transaction and are not indicative of the expected quarterly run-rate of the combined company.

Revenue was $293.3 million, up $110.0 million from $183.3 million in the second quarter of 2026. GAAP operating results flipped to a loss: operating loss of $(59.7) million, or (20.4)% of revenues, versus operating income of $26.0 million, or 14.2% of revenues, in the sequential quarter. Net loss was $(85.7) million, or $(0.40) per diluted share, versus net income of $11.1 million, or $0.06 per diluted share.

The company recorded $119.8 million of merger and integration costs, one-time stock-based compensation expense that was accelerated due to the combination, and $0.2 million of terminated offering costs, compared with $12.1 million of such costs in the second quarter. Excluding those items, operating income would have been $59.9 million, or a 20.4% margin, net income $28.2 million and adjusted diluted EPS $0.13, versus $38.1 million, 20.8%, $16.3 million and $0.09 sequentially.

Adjusted EBITDA rose to $105.9 million from $66.7 million, with Adjusted EBITDA margin of 36.1% versus 36.4%. Adjusted Free Cash Flow was $58.7 million versus $25.6 million, and Adjusted Free Cash Flow conversion was 55.4% versus 38.3%. The company said the sequential variances in financial results are primarily related to the incremental contribution of legacy Helix operations after the September 1 closing.

Hornbeck realigned its operations and established a new reportable segment structure that does not directly correspond to the historical segments of either legacy company.

Marine Transportation & Specialty vessel revenues were $141.2 million, up $5.6 million from $135.6 million. Non-vessel revenues were $12.3 million in both quarters. The segment operated an average active fleet of 38.5 vessels, compared with 39.7. Average dayrates rose to $51,959 from $50,882 and active utilization to 76.7% from 73.7%, lifting active-fleet effective dayrates to $39,852 from $37,500. The company said the increases primarily reflected higher activity among high- and ultra-high specification offshore supply vessels and fewer days out of service for regulatory drydockings. Operating income was $42.1 million, or 27.4% of total segment revenues, versus $42.3 million, or 28.6%. Adjusted EBITDA was $67.6 million versus $66.3 million.

Subsea Services vessel revenues were $53.3 million, up $17.8 million from $35.5 million, with $5.0 million of non-vessel revenue all related to legacy Helix after the merger. Average vessels were 9.0 versus 7.0, reflecting a full-quarter contribution from seven legacy Hornbeck vessels and a partial-quarter contribution from six legacy Helix vessels, including in-chartered vessels. Average dayrates fell to $86,024 from $92,377 while utilization rose to 75.2% from 60.3%, raising effective dayrates to $64,690 from $55,703. The company said the reduction in average dayrates primarily reflected downtime associated with the conversion of a legacy Hornbeck vessel. Operating income was $18.1 million, or 31.0% of total segment revenues, versus $15.2 million, or 42.8%. Adjusted EBITDA was $25.3 million versus $18.7 million.

Well Intervention was not part of the company’s historical results and solely reflects legacy Helix operations from September 1 through September 30. Vessel and non-vessel revenues were $76.6 million and $1.4 million. The segment operated an average fleet of 2.6 vessels, with average dayrates of $362,162, utilization of 88.1% and effective dayrates of $319,065. Operating income was $26.0 million, or 33.4% of segment revenue, and Adjusted EBITDA was $32.4 million.

The company implemented actions representing approximately $20 million of expected annualized cost savings and expects to achieve the $30 million annual cost-synergy run-rate target within the first year following the combination. It is also targeting approximately $15 million of revenue synergies within the first year, against an announced $75 million of annual revenue and cost synergies expected within three years.

As of September 30, 2026, contracted revenue backlog was approximately $1.9 billion, of which about $333.2 million is expected in the remainder of 2026, $792.8 million in 2027 and $741.3 million thereafter. Cash was $471.6 million and total face-value debt $730.6 million, for net debt of $259.0 million, plus an undrawn revolving line with a $125.0 million borrowing base.

Hornbeck announced five-year integrated services agreements with Shell in the U.S. Gulf of America commencing in 2027, a two-year North Sea decommissioning contract for integrated well intervention commencing in the second quarter of 2027, and a commitment to acquire eight new work-class ROV systems with deliveries beginning in the second quarter of 2027.

Based on current backlog, customer commitments and operating plans, the company expects Adjusted EBITDA of $90 million to $100 million for the fourth quarter of 2026 and $500 million to $550 million for full-year 2027. The guidance assumes no material contribution outside the three core reporting segments, a heavier regulatory drydock schedule weighted toward the first half of 2027, about $20 million of anticipated cost-synergy benefits from actions implemented to date, and the first HOS 400-class MPSV newbuild entering commercial service late in the third quarter of 2027. Chief Financial Officer Potter Adams said the range assumes U.S. Gulf of America deepwater drilling activity remains generally consistent with current levels and does not depend on a meaningful increase in activity during the year.