ARCHER LIMITED Overview
The ~26% reduction from end-2024 to mid-2026 is overwhelmingly structural: around 600 positions were removed in southern Argentina during 2025, and approximately 750 employees transferred with the divested southern Argentina workover business on 30 January 2026 (Q4 2025 Trading Update; Q2 2026 Report, Note 15).
Archer is a mid-cap, North Sea–anchored drilling and well services contractor whose economic engine sits in the least cyclical part of the oil and gas value chain: production-phase (brownfield) drilling and intervention, and late-life plug and abandonment (P&A). Management states that roughly 90% of revenue comes from brownfield operations and P&A. It holds what it estimates to be close to 50% of the active North Sea platform drilling market, a fast-growing Well Services franchise (fishing, wireline, coiled tubing, barrier and P&A technology), a Vaca Muerta–focused land drilling business in Argentina, and a smaller renewables arm (geothermal drilling via Iceland Drilling, wind and hydropower services). With a USD 3.9 bn backlog (Q2 2026), 80–90% of expected 2027 revenue contracted, and a quarterly cash distribution of NOK 0.62 per share, Archer combines contract visibility and yield with meaningful financial leverage (net interest-bearing debt of USD 489 m at 30 June 2026).
Company's own description (Q2 2026 Report, Note 1, paraphrased): Archer describes itself as an international oilfield service company providing oilfield and renewable energy products and services. These include platform drilling, land drilling, modular rigs, engineering services, equipment rentals, wireline services, production monitoring, well imaging and integrity management tools. It says it operates in over 40 countries, with main operations in the major basins of Europe, Asia Pacific, and North and South America, and is expanding into the Middle East and West Africa. It claims a leading, technologically advanced position in P&A, delivering integrated solutions for permanent well decommissioning in mature basins.
Independent characterisation. Archer is best understood as a portfolio of four distinct businesses with different economics:
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Platform Operations is a long-contract, labour-intensive manning-and-operations business on customers' fixed platforms. It is primarily in Norway and the UK, with Equinor the largest customer. It has low capital intensity, modest margins (~12–15% EBITDA margin under IFRS) and very high revenue visibility. Management calls it the "cash cow," and it accounts for roughly half of backlog.
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Well Services is the growth and margin engine (~20% EBITDA margins, ~19% EBITDA CAGR 2017–2025). It is a technology-and-equipment business combining proprietary downhole tools (plugs, barriers), rental, fishing, wireline and coiled tubing. It sells under multi-year frame agreements, which are typically not included in backlog.
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Land Drilling is an asset-heavy rig contracting business in Argentina. After divesting the conventional southern workover business, it is now focused on Vaca Muerta shale development. It has improved economics on long-term YPF and Pan American Energy (PAE) contracts, and management states it has been self-funding and cash-positive.
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Renewables covers geothermal drilling (Iceland Drilling), wind and hydropower maintenance services, and fabrication of a floating offshore wind substructure. It is small, with lumpy profitability, and the offshore wind fabrication project has seen delays, cost overruns and a subcontractor dispute.
Revenue model mix.
Source: Archer AR 2025 / Q2 2026 Report Note 4. IFRS FY2025 revenue from contracts with customers was 1,174.6 m out of total revenue of 1,196.7 m.
Value chain position. Archer is a Tier-2/Tier-1 hybrid oilfield service contractor. It is not an integrated "Big 4" provider like SLB, Halliburton, Baker Hughes or Weatherford. It frequently participates in alliance structures: under the Equinor integrated wireline contract, about half the value goes to alliance partners, and it partners with SLB on integrated P&A in the Gulf of America. It also acts as subcontractor to lead decommissioning contractors such as Well-Safe Solutions on the Apache Beryl/Forties P&A project.
Customer types. Its customers are national and international E&P operators and independents, including Equinor, Aker BP, ConocoPhillips, Apache North Sea (via Well-Safe), NEO NEXT Energy, YPF, Pan American Energy, US Gulf of America operators, and TotalEnergies (renewables).
End-markets. It serves offshore brownfield production (Norway, UK), offshore decommissioning/P&A (North Sea, Gulf of America, Brazil), onshore unconventional drilling (Vaca Muerta, Argentina), and geothermal and renewable energy services (Iceland, Nevis, Europe).
Strategy
Stated strategic themes (Q4 2025 Trading Update; Q2 2026 Report)
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"We are the P&A company." Archer aims to become the leading integrated P&A provider in mature basins, notably the North Sea, the Gulf of America and Brazil, through its integrated "OneArcher" operating model. It expects P&A to represent 15–20% of group revenue in 2026 and to grow by more than 20% in 2027. It has secured integrated P&A projects covering ~500 wells and ~USD 800 m of backlog, plus more than 100 subsea wells in backlog.
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Brownfield production focus. Archer is positioned in production drilling and well intervention on existing assets, which management describes as the least cyclical part of upstream spending, with ~90% of revenue from brownfield and P&A.
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Vaca Muerta growth. It intends to grow its high-spec and super-spec drilling fleet and MPD offering in the expanding unconventional basin, citing Rystad expectations of ~40% higher rig demand by 2028 as new pipeline takeaway capacity comes online (VMOS pipeline).
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Technology leadership in P&A. It is investing through Isol8, dSolve, Exacte, internally developed intangible assets (capitalised development of USD 4.5 m in H1 2026) and the Elemental JV. New P&A technologies are to be commercialised in 2026.
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Selective energy-transition exposure. It holds geothermal drilling (Iceland Drilling) and wind/hydro services while seeking adjacent markets for its drilling and engineering competencies.
Capital allocation framework (announced February 2025, updated February 2026)
| Pillar | Target |
|---|---|
| Balance sheet | Long-term leverage of 1.5–2.0x; solid liquidity; reduce cost of capital |
| Capex | 5–6% of revenue over time (IFRS basis); 6–7% in 2026; maintenance ~3%; target returns of 30–50%; self-funded Argentina capex |
| M&A | Selective, accretive, synergistic, cash-generating bolt-ons with 30–50% returns |
| Shareholder returns | Regular quarterly cash distributions, increasing in line with earnings growth |
Initiatives announced in the last 24 months
| Initiative | Date | Detail |
|---|---|---|
| Full refinancing | Feb 2025 | USD 425 m 9.5% bond to 2030 + USD 75 m RCF (later 95 m) |
| Shareholder distribution programme | Q2 2025 onward | NOK 0.62–0.63 per share quarterly |
| Elemental Energies P&A JV | Oct 2024 | Integrated P&A engineering (Archer 60%) |
| Fishing/P&A expansion in Gulf of America | Nov 2024 / Sep 2025 | WFR, Premium acquisitions |
| Exit from conventional southern Argentina | Q4 2025 – Jan 2026 | Workover business sold; ~USD 20–25 m non-cash write-down |
| IFRS conversion | Q4 2025 | Align with Oslo peers |
| P&A unit investments | 2025–2026 | Lighter P&A units for the North Sea and Gulf of America; three starting Q3 2026 |
| Super-spec rig lease programme | 2025–2026 | Three super-spec rigs leased from Patterson-UTI for YPF |
| P&A technology investments | 2025–2026 | dSolve (20%), Isol8 (100%), Exacte (22%) |
| ESG | 2,025 | Reported early achievement of its 2030 decarbonisation target (≈37% reduction in Scope 1+2 vs 2018, per AR 2025 summary) |
Guidance (reiterated 13 August 2026)
| Item | 2026 guidance |
|---|---|
| EBITDA | Single-digit growth over 2025 (USD 166.5 m preliminary base), despite the divestment |
| EBITDA margin | +2–3 pp (Feb 2026), +2–4 pp (May 2026 call) |
| H2 vs H1 phasing | Initially 20–30% higher H2; revised in May 2026 to 10–20% because of UK start-up delays |
| Capex | 6–7% of revenue |
| Distributions | Increase in H2 2026, supported by earnings growth |
| 2027 visibility | 80–90% of expected 2027 revenue contracted |
No formal medium-term revenue or EBITDA target beyond 2026 is published. Implied EBITDA in backlog is approximately USD 550 m, at a ~15% average margin.
Products & Services
Platform Operations
| Offering | Description & capabilities | Target customer | Pricing model | Flagship / notes |
|---|---|---|---|---|
| Platform drilling services | Drilling crews, management and operations on customers' fixed platform rigs; ~31 contracted platform rigs across active drilling, P&A and maintenance mode (Q4 2025 deck chart) | North Sea operators (Equinor, Aker BP, UK operators) | Long-term day-rate/manning contracts | Company estimates close to 50% North Sea platform drilling share (Dec 2025) |
| Maintenance & modification services | Drilling equipment maintenance, upgrades, modification projects | Platform operators | Contract/reimbursable | Supported by 22% stake in Exacte (equipment maintenance software) |
| Engineering | Well and drilling facility engineering, integrated operations | Operators | Service fees | Combined with Elemental JV for P&A engineering |
| Modular drilling rigs (MDR) | Modular rigs deployed onto platforms lacking drilling packages | Operators in North Sea, Asia | Day-rate | Asian Pearl 101 modular rig acquired 2025 (USD 4.7 m); MDR activity elevated Q2–Q3 2025, none in 2026 |
| Compact workover / P&A units | Lightweight units for platform P&A and workover | UK/Norway decommissioning, US Gulf of America | Multi-year contracts | 5-year compact unit contract with NEO NEXT (UK); three P&A units starting Q3 2026 |
| Rig rental | Rental of rig equipment | Operators/contractors | Rental | Included in PO |
Well Services
| Offering | Description & capabilities | Target customer | Pricing model | Flagship / notes |
|---|---|---|---|---|
| Wireline services | E-line and slickline intervention, logging and conveyance | Equinor (integrated contract), North Sea, US | Frame agreements / job | Equinor integrated wireline contract since 2021, extended 3 years in Apr 2026 (~NOK 3 bn total, ~half to Archer) |
| Coiled tubing | CT intervention and conveyance | Offshore/onshore operators | Job/frame | Part of "conveyance" service line |
| Well integrity & P&A tools | Barrier plugs, packers, mechanical isolation, TCP (tubing-conveyed perforating) services for P&A | Decommissioning operators | Product sale/rental + service | Equinor TCP/fishing/mechanical isolation frame extension (NOK 700 m, May 2026); Archer Oil Tools heritage (product family names not re-verified in this pass) |
| Fishing services | Removal of stuck pipe, tools, casing and liners during intervention, workover and P&A | US Gulf of America, Norway | Rental/job | WFR (2024; ~USD 45 m revenue, >30% EBITDA margin at acquisition); Premium Oilfield Services (thru-tubing fishing, whipstocks, wireline; 2025) |
| Light & heavy well intervention | Rigless and rig-based intervention | Offshore operators | Job/frame | ~50 subsea interventions per year in Norway |
| Integrated P&A | Planning, engineering and execution of platform and subsea P&A | Equinor, NEO NEXT, Apache/Well-Safe, GoA operators, Brazil | Integrated multi-year contracts | Equinor 30 subsea wells (USD 140 m, ~50% to alliance partners); Equinor 7-yr subsea P&A planning frame (USD 150 m); GoA integrated P&A with SLB |
| Wellbore barrier technology | Alloy sealing, exothermic heaters and initiators | P&A operators | Product/service (in development) | Isol8 acquired May 2026 |
| Rigless subsea P&A technology | Electrochemical steel removal | Subsea P&A | Development stage | 20% stake in dSolve AS with option for remaining 80% |
| Well Machining / Wellconnection | Machining and well-service supplies | Internal and external | Product | Acquired June 2025 |
Land Drilling (Argentina)
| Offering | Description | Target customer | Notes |
|---|---|---|---|
| High-spec drilling rigs | Fleet of 12 drilling rigs post-divestment, of which 6 high-spec on contract with YPF and PAE (early 2026) | YPF, PAE | USD 600 m YPF contract for 7 high-spec rigs, 5 years + 2-year option |
| Super-spec rigs | Leased from Patterson-UTI; first operational around June 2026; third super-spec rig to start Q1 2027 | YPF | ~USD 90 m 5-year contract (July 2026) |
| Operated client-owned rig | Operation of 1 high-spec rig owned by PAE | PAE | — |
| Managed pressure drilling (MPD) | 7 MPD sets in 2026 (4 owned via ADA, 3 leased); integrated MPD on all 7 YPF rigs | YPF | Builds on ADA acquisition |
| Retained workover/pulling units | 5 workover rigs and 6 pulling units retained | Vaca Muerta operators | To be sold, rented or redeployed |
Approximately 510 employees remain in Land Drilling post-transaction. Archer estimates a 25–30% drilling market share in Vaca Muerta after the YPF contract starts up (Q4 2025 Trading Update).
Renewables
| Offering | Description | Notes |
|---|---|---|
| Geothermal power drilling | Deep wells for power generation | Iceland Drilling; record activity in 2025; geothermal contract in Nevis (2026) |
| District heating | Shallow wells for heating/cooling | Iceland Drilling |
| Carbon storage | Storage wells for CO2 mineralisation | Small scale |
| Wind power services | Blade and turbine maintenance | Vertikal; seasonal |
| Hydropower services | Plant maintenance | Backlog secured |
| Floating offshore wind | Floating substructures for turbines | TotalEnergies contract delayed with cost overruns; completion slipped to 2026 |
Segment revenue exceeded USD 100 m in 2025 with an EBITDA margin above 10% and around 300 employees. Pricing models are not disclosed for most individual products; launch years for individual tools are not publicly disclosed.
Financial Narrative
Income statement — US GAAP basis (as originally reported)
Sources: Archer Q4 2021 presentation; Q4 2022 release; Q4 2023 release (29 Feb 2024); Q4 2024 presentation/release (27 Feb 2025); EPS from aggregator (Simply Wall St), reflecting the post-consolidation share count. An aggregator shows FY2021 EBITDA of 75.7. FY2024 pro forma EBITDA, including full-year WFR and Iceland Drilling, was 156 m.
Income statement — IFRS basis
FY2022–FY2024 IFRS figures are company-presented, unaudited estimates (Q4 2025 Trading Update). FY2025 EBITDA before exceptional items is approximated by summing the IFRS quarterly figures: Q1 2025 45.3 (derived as H1 90.7 less Q2 45.4), Q2 45.4, Q3 44.5 and Q4 50.2, giving ≈185.4. Treat this as approximate. FY2025 distributions per share: NOK 0.63 + 0.62 + 0.62 = 1.87 paid during calendar 2025 (Q2–Q4).
Gross profit is not reported. Archer presents expenses by nature (personnel, other operating expenses), so gross profit is not publicly disclosed.
Margins (IFRS)
Company-reported historical EBITDA margins (IFRS est.): 8% (2017), 10% (2018), 13% (2019), 12% (2020–2022), 14% (2023), 13% (2024), 14% (2025). Management guides a 2–3 percentage-point margin improvement in 2026; the Q1 2026 call indicated 2–4 points. Q2 2026 delivered a record 17.1%.
Revenue CAGR: IFRS FY2022–FY2025 = (1,196.7/818)^(1/3) − 1 ≈ 13.5%. The company cites +14% on the preliminary 1,209 figure. EBITDA CAGR FY2022–FY2025 ≈ 20.8%. US GAAP FY2022–FY2024 revenue CAGR ≈ 15.8%.
H1 2026 (IFRS, unaudited): Revenue 541.1 (−9.2% reported; organic ex-divestment growth ~15% in Q1). EBITDA 82.2 (+3.8%). EBIT 39.7. Net profit 3.8 (H1 2025: −26.0, which included refinancing costs). EPS 0.04. Effective tax rate 66.2% because losses in some jurisdictions carry unrecognised deferred tax assets.
Balance sheet
FY2021–FY2023 data are US GAAP (Q4 2021–Q4 2023 reports). The FY2022 debt split shows the October 2023 maturity classified as current, which was resolved by the 2023 refinancing. Leverage ratio (company-defined): 5.3x (YE2022), 2.9x (YE2023), 2.3x pro forma (YE2024). Long-term target: 1.5–2.0x.
Debt composition at 30 June 2026 (Q2 2026 Report, Note 10)
The company was covenant-compliant at 30 June 2026.
Cash flow
FY2021–FY2024 figures are US GAAP (OCF FY2024 per Q4 2024 release). The FY2024 equity figure is the USD 50 m private placement for WFR (gross). FY2025 is IFRS (Q2 2026 Report cash flow statement, year-end column). Under IFRS, lease repayments (8.0 in FY2025) sit in financing.
H1 2026: OCF 19.9 (working capital outflow of 57.7, as receivables rose 33.6 and payables/other fell 28.5); capex 34.3 + development 4.5; distributions 12.8; net borrowing +70.7. Cash fell to 35.2 and NIBD rose to 489.0. Purchase commitments, including capex, stood at USD 57.1 m.
Ratios (FY2025, IFRS; analyst-computed from AR 2025 / Q2 2026 Report comparatives)
Multi-year ratio trend (where computable)
Commentary — trends, inflections, drivers
Growth. Archer has compounded EBITDA at roughly 21% per year since 2022 through a combination of organic growth (Well Services in Norway and the US, Vaca Muerta rig additions) and bolt-on M&A (Romar-Abrado, Iceland Drilling, ADA, WFR, Premium, Wellconnection, Isol8). The 2025 increase of 12% was achieved despite muted markets in Argentina, the US and the UK. Management emphasises that most large oil service peers reported declining EBITDA over the same period.
The net income problem. Despite EBITDA of ~165 m, Archer has reported net losses in four of the last five years. The drivers are structural: D&A of ~78 m; net interest of ~55–60 m on a run-rate basis (9.5% bond coupon on ~USD 425–450 m); recurring "exceptional" items (20–25 m per year); impairments (25.3 m on the Argentina workover business in 2025, 13.5 m on idle Argentine assets in Q4 2021); and a high effective tax rate caused by unrecognised tax losses. H1 2026 net income of 3.8 m on 82.2 m of EBITDA illustrates how thin the equity layer of earnings is.
Balance sheet inflection. The February 2025 refinancing extended maturities to 2030 and removed the 2023-era refinancing overhang. The leverage ratio has drifted back up modestly to ~2.6–2.9x as of H1 2026, driven by growth capex (6–7% of revenue), distributions (~USD 25–27 m per year) and working capital build ahead of H2 2026 project starts. The 30 m tap in July 2026 at 106.25% signals strong credit-market appetite but adds gross debt. Book equity is thin (USD 193 m) relative to debt (USD 524 m carrying value) and includes 204 m of goodwill, which means tangible equity is negative (≈ −47 m after goodwill and intangibles).
IFRS conversion effect. On an IFRS basis, 2025 revenue is ~174 m lower (1,383 under US GAAP vs 1,209 preliminary IFRS) because reimbursables are excluded. EBITDA is ~17.5 m higher (166.5 vs 149.0) because operating lease costs move below EBITDA. Investors comparing historical leverage and margins must adjust accordingly.
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Segment Overview
| Segment | Contents | Key products / services |
|---|---|---|
Platform Operations | Drilling operations, maintenance and engineering on offshore production platforms, mainly North Sea; supports P&A and decommissioning | Platform drilling crews and management, modular drilling rigs (MDR), compact workover/P&A units, engineering, maintenance, rig rental |
Well Services | Well intervention, wireline and downhole services across the well life cycle | Wireline, coiled tubing, conveyance, fishing (incl. WFR, Premium), well integrity & P&A tools, TCP services, downhole mechanical isolation, heavy/light intervention |
Land Drilling | High-spec land drilling fleet, primarily Vaca Muerta (Argentina) | Drilling rigs (high-spec and super-spec), managed pressure drilling (MPD), retained workover/pulling units |
Renewables | Energy-transition services | Geothermal drilling (Iceland Drilling), district heating wells, carbon storage wells, wind blade/turbine maintenance, hydropower maintenance, floating offshore wind substructures |
Segment revenue (USD Mn, IFRS)
| Segment revenue (USD Mn, IFRS) | FY2023 | FY2024 | FY2025 |
|---|---|---|---|
Platform Operations | — | — | 470.7 |
Well Services | — | — | 299.9 |
Land Drilling | — | — | 301.8 |
Renewables | — | — | 123.8 |
Corporate | — | — | 0.5 |
Total | 973 | 1,118 | 1,196.7 |
Segment EBITDA (USD Mn, IFRS)
| Segment EBITDA (USD Mn, IFRS) | FY2023 | FY2024 | FY2025 |
|---|---|---|---|
Platform Operations | 57 | 59 | 64.7 |
Well Services | 55 | 61 | 68.0 |
Land Drilling (incl. southern workover) | 31 | 38 | 29.2 |
Renewables | — | 2 | 14.0 |
Corporate & overhead | — | — | -10.4 |
Group EBITDA | 131 | 149.3 | 165.5 |
Segment Overview — Platform Operations
| Segment | Revenue (USD Mn) | % of revenue | EBITDA (USD Mn) | EBITDA margin |
|---|---|---|---|---|
Platform Operations | 470.7 | 39.3% | 64.7 | 13.7% |
Well Services | 299.9 | 25.1% | 68.0 | 22.7% |
Land Drilling | 301.8 | 25.2% | 29.2 | 9.7% |
Renewables | 123.8 | 10.3% | 14.0 | 11.3% |
Corporate | 0.5 | 0.0% | -10.4 | n/m |
Group | 1,196.7 | 100% | 165.5 | 13.8% |
Segment Revenue
| Segment | Rev H1 2025 | Rev H1 2026 | YoY | EBITDA H1 2025 | EBITDA H1 2026 | YoY | EBIT H1 2026 |
|---|---|---|---|---|---|---|---|
Platform Operations | 223.5 | 203.3 | -9.0% | 32.3 | 26.1 | -19.2% | 14.5 |
Well Services | 139.3 | 171.9 | +23.4% | 31.5 | 36.2 | +14.9% | 19.3 |
Renewables | 56.8 | 65.3 | +15.0% | 5.5 | 2.4 | -56.4% | -0.7 |
Land Drilling | 175.7 | 100.5 | -42.8% | 13.8 | 21.8 | +58.0% | 10.8 |
Corporate | 0.5 | 0.1 | n/m | -3.9 | -4.4 | n/m | -4.4 |
Total | 595.8 | 541.1 | -9.2% | 79.2 | 82.2 | +3.8% | 39.7 |
Segment revenue (USD Mn)
| Segment revenue (USD Mn) | Q2 2025 | Q3 2025 | Q4 2025 | Q1 2026 | Q2 2026 |
|---|---|---|---|---|---|
Platform Operations | 117.8 | 133.2 | 114.0 | 107.1 | 96.2 |
Well Services | 71.4 | 72.6 | 88.0 | 83.0 | 88.9 |
Land Drilling | 73.2 | 62.6 | 63.5 | 48.4 | 52.1 |
Renewables | 34.3 | 31.1 | 35.9 | 39.8 | 25.3 |
Total | 296.7 | 299.7 | 301.4 | 278.4 | 262.6 |
Segment EBITDA (USD Mn)
| Segment EBITDA (USD Mn) | Q2 2025 | Q3 2025 | Q4 2025 | Q1 2026 | Q2 2026 |
|---|---|---|---|---|---|
Platform Operations | 19.6 | 18.2 | 14.2 | 14.2 | 12.0 |
Well Services | 17.3 | 17.0 | 19.5 | 16.2 | 19.9 |
Land Drilling | 3.9 | 5.5 | 9.9 | 8.8 | 13.0 |
Renewables | 3.0 | 4.6 | 3.9 | 0.9 | 1.5 |
Overhead & Corporate | -2.2 | -2.5 | -4.0 | -2.9 | -1.5 |
Group EBITDA | 41.7 | 42.8 | 43.5 | 37.2 | 44.9 |
Income Statement and Per-Share Data
| Metric (USD Mn, US GAAP) | FY2021 | FY2022 | FY2023 | FY2024 |
|---|---|---|---|---|
Total revenue (incl. reimbursables) | — | 970 | 1,169.3 | 1,300.7 |
Reimbursable revenue | 123.0 | — | 192.1 | 203.7 |
EBITDA (reported) | — | 86 | 116.8 | 135 |
Operating income | — | — | — | 71.3 |
Net interest expense | — | 30.8 | 46.2 | 51.7 |
Net income (loss) | -14.8 | 9.8 | -28.1 | -25.2 |
Adjusted net income | — | -11.8 | 14.4 | — |
EPS basic (USD) | — | — | -0.55 | -0.37 |
Income Statement and Per-Share Data (FY2022–FY2025)
| Metric (USD Mn, IFRS) | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|
Revenue | 818 | 973 | 1,118 | 1,196.7 |
EBITDA | 94 | 131 | 149.3 | 165.5 |
EBITDA before exceptional items | — | — | — | 186 |
Operating profit (EBIT) | — | — | — | 45.6 |
Pre-tax income | — | — | — | -48.2 |
Net income (total) | — | — | — | -53.5 |
Net income attributable to Archer | — | — | — | -58.7 |
EPS basic (USD) | — | — | — | -0.63 |
Dividends/distributions per share (NOK) | 0 | 0 | 0 | 1.87 |
Margin
| Margin | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|
EBITDA margin (%) | 11.5 | 13.5 | 13.4 | 13.8 |
Operating margin (%) | — | — | — | 3.8 |
Net margin (%) | — | — | — | -4.5 |
Balance Sheet
| Metric (USD Mn) | FY2021 | FY2022 | FY2023 | FY2025 | H1 2026 |
|---|---|---|---|---|---|
Total assets | — | — | — | 1,054.9 | 1,064.1 |
Cash & equivalents | — | — | — | 40.6 | 35.2 |
Interest-bearing debt — current | — | 562.9 | 17.6 | 37.8 | 91.9 |
Interest-bearing debt — long-term | — | 8.7 | 402.5 | 430.1 | 432.0 |
Lease liabilities (total) | — | — | — | 59.4 | 57.8 |
Net interest-bearing debt (excl. leases) | 500 | — | — | 427.3 | 489.0 |
Total equity (incl. NCI) | — | — | — | 199.6 | 193.1 |
Shareholders' equity (excl. NCI) | — | — | — | 179.0 | 173.2 |
Goodwill | — | — | — | 196.2 | 204.4 |
Intangible assets | — | 2.2 | 2.8 | 32.5 | 35.3 |
PP&E | 343.6 | 310.7 | 313.1 | 324.9 | 330.8 |
Working capital (current assets − current liabilities) | — | — | — | 10.1 | -15.9 |
Capital Instruments
| Instrument | Principal (USD Mn) | Terms |
|---|---|---|
Senior secured bonds (Archer Norge AS) | 417.5 (447.5 after July 2026 tap) | 9.5% fixed, 5-year, maturity Feb 2030; USD 7.5 m annual amortisation in 2026 and 2027; covenants: liquidity ≥ max(USD 30 m, 5% gross debt), ICR ≥ 2.0x |
Super senior RCF (carved into overdrafts) | 57.5 drawn of 95.0 | SOFR + 300 bp; 4.5-year tenor; increased from 75 to 95 in Q2 2026; ICR covenant ≥ 2.5x |
Other loans (incl. equipment financing 36.6) | 55.6 | Well Services and Platform Operations equipment |
Leases | 57.8 | Weighted average discount rate 8.0% |
Cash Flow
| Metric (USD Mn) | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Operating cash flow | 52.7 | 41.5 | — | 102.8 | 105.4 |
Capex (PP&E) | — | — | — | — | 51.7 |
Development project investment | — | — | — | — | 5.3 |
Free cash flow (OCF − capex − dev.) | — | — | — | — | 48.4 |
Distributions to shareholders | 0 | 0 | 0 | 0 | 17.3 |
Share buybacks | 0 | 0 | 0 | 0 | 0 |
Net equity issued | 0 | 0 | 100.6 | 50 | 20.0 |
Interest paid | — | 33.1 | 49.3 | — | 77.3 |
Returns & Leverage Ratios (%) and Financial Ratios (x)
| Ratio | FY2025 | Comment |
|---|---|---|
ROE (net income / year-end total equity) | -26.8% | Distorted by impairments (33.1) and refinancing costs |
ROA (net income / total assets) | -5.1% | — |
Pre-tax ROIC (EBIT / [equity + NIBD + leases]) | 6.6% | 45.6 / 686.3 |
Current ratio | 1.03x | 379.4 / 369.3 |
Debt / equity (gross IBD / total equity) | 2.34x | 2.64x incl. leases |
Net debt / EBITDA | 2.58x | 427.3 / 165.5; company YE2025 NIBD 426 |
Interest coverage (EBIT / net interest) | 0.56x | FY2025 net interest inflated by Q1 2025 make-whole/refinancing |
EBITDA / net interest | 2.04x | Run-rate H1 2026: 82.2 / 27.0 ≈ 3.0x |
Asset turnover | 1.13x | 1,196.7 / 1,054.9 |
Cash conversion cycle (approx.) | ~41 days | DSO ≈ 57 days; DIO ≈ 57 days and DPO ≈ 73 days, both on other opex (approximation, not company-disclosed) |
Financial Ratios (x) and Margin Analysis (%)
| Ratio | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|
Leverage ratio, company-defined (x) | 5.3 | 2.9 | 2.3 | 2.6 |
EBITDA margin, IFRS (%) | 11.5 | 13.5 | 13.4 | 13.8 |
Revenue by Region
| Region (USD Mn) | H1 2025 | H1 2026 | YoY % |
|---|---|---|---|
Norway | 228.5 | 256.8 | 12.4 |
Europe excl. Norway (mainly UK, Iceland) | 112.1 | 98.8 | -11.9 |
North America (US Gulf of America) | 28.6 | 43.7 | 52.8 |
South America (Argentina, Brazil) | 194.5 | 116.8 | -39.9 |
Other geographical markets | 32.1 | 24.9 | -22.4 |
Total | 595.8 | 541.1 | -9.2 |
Region Overview
| Region | Platform Ops | Well Services | Renewables | Land Drilling | Total |
|---|---|---|---|---|---|
Norway | 160.8 | 81.1 | 15.0 | 0.0 | 256.8 |
Europe excl. Norway | 34.7 | 20.8 | 43.2 | 0.0 | 98.8 |
North America | 0.0 | 42.1 | 0.0 | 1.6 | 43.7 |
South America | 7.8 | 10.0 | 0.0 | 99.0 | 116.8 |
Other | 0.0 | 17.8 | 7.1 | 0.0 | 24.9 |
Total | 203.3 | 171.9 | 65.3 | 100.5 | 541.1 |
Norway | 155.1 | 57.1 | 15.5 | 0.5 | 228.5 |
Europe excl. Norway | 52.7 | 18.0 | 41.3 | 0.0 | 112.1 |
North America | 0.0 | 27.0 | 0.0 | 1.6 | 28.6 |
South America | 15.7 | 5.2 | 0.0 | 173.6 | 194.5 |
Other | 0.0 | 32.1 | 0.0 | 0.0 | 32.1 |
Total | 223.5 | 139.3 | 56.8 | 175.7 | 595.8 |
Capital Markets
| Item | Value | Notes |
|---|---|---|
Share price | ~NOK 23–25 | ~USD 2.30 on 11 Oct 2026 (Eulerpool); NOK 24.65 (Snowball) |
Shares outstanding | 99.5 m | Note 13 |
Market capitalisation | ~NOK 2.3–2.5 bn (~USD 220–245 m) | Aggregator figures conflict |
Enterprise value (analyst) | ~USD 790 m | Market cap ~230 + NIBD 489 + leases 58 + NCI 20 (H1 2026) |
EV / EBITDA (FY2025 IFRS 165.5) | ~4.8x | Analyst-computed |
EV / Sales (FY2025) | ~0.66x | Analyst-computed |
P / B | ~1.3x | ~230 / 173.2 shareholders' equity |
P / E | n/m (trailing loss) | One aggregator shows forward 2026 P/E ~10x on EPS of ~USD 0.23 |
Beta | ~0.34 | Snowball |
Distribution yield | ~9–10% | NOK 2.48 annualised / ~NOK 24–25 |
Per-Share Data
| Distribution (NOK per share) | Q2 2025 | Q3 2025 | Q4 2025 | Q1 2026 | Q2 2026 | Q3 2026 |
|---|---|---|---|---|---|---|
NOK per share | 0.63 | 0.62 | 0.62 | 0.62 | 0.62 | 0.62 |
USD Mn (approx.) | 5.5 | 5.5 | 6.1 | 6.4 | 6.6 | — |
Capital Markets — Moody's / S&P / Fitch ratings
| Item | Detail |
|---|---|
Moody's / S&P / Fitch ratings | Not publicly disclosed; the Nordic high-yield bond appears unrated |
Bond pricing | Tap at 106.25% (Jun 2026); fair value 443.6 vs carrying 411.8 (30 Jun 2026) |
Call schedule | Make-whole to Feb 2028; 104.75% (3.0–3.5 yrs); 103.8% (3.5–4.0); 102.85% (4.0–4.5); 100.5% thereafter |
Debt Maturity Profile
| Maturity | FY2026 | FY2027 | FY2028 | FY2029 | FY2030 |
|---|---|---|---|---|---|
Senior secured bond amortisation/maturity | 7.5 | 7.5 | 0 | 0 | 432.5 |
RCF/overdrafts (drawn at 30 Jun 2026; facility ~Aug 2029) | 57.5 | 0 | 0 | 0 | 0 |
Analyst Conclusions
Management guidance (reiterated 13 August 2026)
FY2026 EBITDA: single-digit growth over 2025 (~USD 166.5 m base), despite losing the southern Argentina workover business (≈12% of 2025 revenue).
H2 2026 EBITDA: 10–20% above H1 (H1 2026 = 82.2 m), implying FY2026 of ~USD 172–181 m. Three P&A units, two YPF rigs and North Sea integrated P&A projects start in H2.
Capex: 6–7% of revenue.
Distributions: increase in H2 2026.
P&A: 15–20% of 2026 revenue; more than 20% growth in 2027.
2027 coverage: 80–90% of expected revenue contracted.
Consensus revenue and EPS for 2026–2027 are not reliably available; aggregator data contain evident errors, such as a "USD 11.42 bn" 2026 revenue estimate.
Bull case
-
Earnings inflection is underway. The record 17.1% Q2 2026 margin, the start of high-margin P&A and Vaca Muerta drilling contracts in H2 2026, and ~USD 550 m of EBITDA embedded in backlog support a path to FY2027 EBITDA comfortably above USD 180–200 m.
-
Valuation is undemanding. At ~4.8x EV/EBITDA with a ~9–10% cash yield and 80–90% of 2027 revenue contracted, the equity prices in little of the P&A growth story. Deleveraging toward 1.5–2.0x would transfer meaningful EV from debt to equity.
-
Refinancing optionality. The bond trading at ~106 suggests a lower-coupon refinancing could be achievable once call prices step down from 2028. Each 200 bp reduction on ~USD 450 m saves ~USD 9 m per year, which is material relative to current net income.
Bear case
-
Shareholders capture little of the EBITDA. Interest (~USD 55 m per year), D&A (~80 m), recurring exceptional items (~20 m) and a high tax rate leave net income near zero (H1 2026 net income: 3.8 m on 82.2 m EBITDA). Distributions (~USD 26 m per year) exceed net earnings.
-
The balance sheet is moving the wrong way in the near term. NIBD rose from USD 427 m to 489 m in H1 2026, the bond was tapped by USD 30 m, cash is near the USD 30 m covenant floor, and tangible equity is negative.
-
Execution and concentration risk. UK project delays already cut H2 phasing guidance. Peregrino shows contract vulnerability to asset sales. Norway/Equinor concentration and Argentine macro exposure add risk, and the offshore wind dispute could produce write-downs.
Catalysts and monitorables (next 12 months)
| Catalyst | Timing | What to watch |
|---|---|---|
| Q3 2026 report | 29 Oct 2026 | Start-up of P&A units and YPF rigs; H2 phasing; NIBD trend; distribution step-up |
| Q4 2026 trading update / 2027 guidance | ~Feb 2027 | First 2027 EBITDA guidance; capex; distribution policy |
| Apache/Well-Safe P&A mobilisation | H2 2026 | Utilisation and margins on the largest UK P&A scope |
| Third super-spec rig start (YPF) | Q1 2027 | Vaca Muerta rig count and day-rates |
| dSolve option decision | From ~2026 onwards | Commercialisation milestones for rigless subsea P&A |
| Offshore wind dispute resolution | 2026–2027 | Receivable recovery or write-down |
| UK fiscal policy | Ongoing | Energy Profits Levy changes affecting UK activity |
| Equity/ownership moves | Ongoing | Hemen (30.6%) actions; free-float liquidity |
Analyst verdict
Archer Limited has transformed itself over the past four years. It was a leveraged, restructuring-prone contractor that needed a 2023 refinancing with roughly USD 100 m of fresh equity. It is now a focused brownfield and P&A specialist with a refinanced balance sheet to 2030, a USD 3.9 bn backlog, and a regular cash distribution. The operational evidence is persuasive. EBITDA has compounded at ~21% per year since 2022, margins reached a record 17.1% in Q2 2026, and the portfolio has been sensibly high-graded: the low-margin southern Argentina workover business was exited, and capital was redeployed into Gulf of America fishing, North Sea P&A and Vaca Muerta drilling. The P&A strategy is coherent and credible. Archer is one of very few providers able to combine platform drilling crews, compact units, intervention services, engineering and proprietary barrier technology under one contract. Its role in the Equinor subsea programme and the Apache Beryl/Forties decommissioning validates that positioning.
The investment case, however, hinges on whether EBITDA growth can finally flow through to equity holders. Today it largely does not. Interest, depreciation, exceptional items and tax absorb almost all operating earnings. Book equity is thin and goodwill-heavy, and net debt rose in H1 2026 as growth capex and distributions outpaced operating cash flow. The ~9–10% yield is attractive but is currently funded partly by the balance sheet rather than by retained earnings.
The verdict is a cautiously constructive, catalyst-dependent stance. At ~4.8x EV/EBITDA, the market is discounting leverage and execution risk more than growth. If the H2 2026 ramp delivers the guided step-up and FY2027 EBITDA approaches or exceeds USD 190 m, deleveraging toward 2.0x and a lower-coupon refinancing from 2028 could drive material equity re-rating. Conversely, further project slippage, wind-project write-downs or Argentine disruption would quickly pressure a capital structure with limited buffers. The Q3 2026 print on 29 October is the next key test.
Primary sources referenced: Archer Limited Q2/H1 2026 Report and release (13 Aug 2026); Q1 2026 release and presentation (19 May 2026); Q4 2025 Trading Update presentation (2 Feb 2026); FY2025 trading update release; Annual Report 2025 publication notice (23 Apr 2026); Q3 2025 trading update (Nov 2025); Q4 2024 release and presentation (27 Feb 2025); Q4 2023 release (29 Feb 2024) and report; Q4 2022 release (28 Feb 2023); Q4 2021 release and presentation (25 Feb 2022); Q1 2022 release; 2025 AGM minutes (9 May 2025); WFR closing release (18 Nov 2024); contract releases (14 Nov 2025; 27 Apr 2026; 4 May 2026; 26 Jun 2026; 7 Jul 2026; 10 Jul 2026); Archer Form 6-K exhibit (SEC, 2011). Secondary and aggregator sources (flagged where used): Simply Wall St, Investing.com, Eulerpool, Snowball Analytics, Stockopedia, Offshore Magazine, KeyFacts Energy, FilingReader, Quartr, sustainabilityreports.com.
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View Subscription PlansExecutive Leadership
Executive Leadership Team
| Name | Title | Tenure / background |
|---|---|---|
Dag Skindlo | Chief Executive Officer | CEO since March 2020; age ~58 (aggregator); former independent director of KLX Energy Services (2020–Nov 2024); director of Paratus Energy Services since May 2025; owns ~0.14% of shares |
Espen Joranger | Chief Financial Officer | CFO since at least 2021 (signatory on releases from Feb 2022) |
Alexander Olsson | EVP Platform Operations | Quoted on UK platform drilling extension (Nov 2025) |
Nicholas Pantin | EVP (Well Services / P&A) | Quoted on Equinor frame extension (May 2026) |
Gerardo Molinaro | VP Land Drilling | Quoted on YPF super-spec award (Jul 2026) |
Joachim Houeland | Manager Treasury & Investor Relations | IR contact |
Major Shareholders
| Holder | Stake | Notes |
|---|---|---|
Hemen Holding Ltd (Fredriksen-related) | ~30.6% | Increased after Q3 2025 transaction (from 21.5%); Seatankers (related to main shareholder) is a related party |
Paratus Energy Services | 0% | Exited Q3 2025 via USD 49 m secondary sale (previously 23.8%) |
Free float | ~69.4% | Post Q3 2025 transaction |
Insiders (CEO) | ~0.14% | Aggregator |
Competitive Landscape
Competitors by Segment
| Segment | Named competitors | Relative positioning |
|---|---|---|
Platform drilling (North Sea) | Odfjell Technology, KCA Deutag, Saipem (selectively), Equinor in-house/alliances | Archer estimates close to 50% share of active North Sea platform drilling contracts (Dec 2025) |
Well intervention, wireline, coiled tubing | SLB, Halliburton, Baker Hughes, Weatherford, Expro, Altus Intervention, Oceaneering (subsea) | Archer is a niche specialist versus the integrated majors and often partners with them (SLB in GoA) |
Fishing and rental tools | Weatherford, Baker Hughes, NOV, independent US fishing companies | Strengthened by WFR and Premium |
P&A / decommissioning | Well-Safe Solutions (also partner), Wood, Petrofac (historically), Expro, ClearWell, Allseas | Archer positions as "the P&A company"; ~500 wells/USD 800 m P&A backlog |
Land drilling (Vaca Muerta) | Helmerich & Payne (Argentina), Nabors, San Antonio Internacional, other regional contractors | Archer estimates itself as one of the two leading drilling contractors in Vaca Muerta, with ~25–30% share post-YPF start-up |
Geothermal drilling | Iceland-based and international drilling contractors; geothermal service lines of Baker Hughes and Halliburton | Iceland Drilling had record activity in 2025 |
Wind/hydro services | Regional rope-access and blade maintenance specialists | Small, fragmented |
Competitor Detail
| Metric | Archer (FY2025, IFRS) |
|---|---|
Revenue (USD Mn) | 1,196.7 |
Revenue growth (%) | 7 |
EBITDA margin (%) | 13.8 |
R&D intensity (%) | 0.4 (capitalised only) |
