SEACOR Marine 2025 Q2 Earnings Misses Targets as Net Income Falls 46.1%

SEACOR Marine (SMHI) reported its fiscal 2025 Q2 earnings on Jul 30th, 2025. SEACOR Marine fell short of expectations in the second quarter of 2025, with both revenue and earnings not meeting analyst projections. The company failed to provide any adjustments to its guidance, leaving investors uncertain about its future outlook. Despite implementing strategic changes, SEACOR Marine is navigating a challenging market environment.

Revenue

SEACOR Marine experienced a 13% decline in total revenue, reporting $60.81 million for Q2 2025 compared to $69.87 million in the same period the previous year. The time charter segment generated $57.67 million, while the bareboat charter contributed $838,000. Other marine services added $2.30 million, culminating in the total revenue figure.

Earnings/Net Income

SEACOR Marine narrowed its losses to $0.26 per share in Q2 2025 from $0.45 per share in the previous year, marking a 42.2% improvement. The net loss was reduced to $-6.73 million, showcasing a 46.1% decrease from the $-12.48 million recorded in Q2 2024. This indicates a continued struggle to achieve positive EPS.

Post Earnings Price Action Review

Historically, purchasing SEACOR Marine (SMHI) shares after a positive revenue quarter has yielded substantial returns over the last three years. The strategy of buying right after the financial report release and holding for 30 days resulted in a remarkable 326.17% return, considerably outperforming the benchmark return of 87.61%. This excess return of 238.55% underscores the strategy's effectiveness in capitalizing on SMHI's earnings momentum. With a compound annual growth rate (CAGR) of 33.88% and no maximum drawdown, the strategy demonstrated strong risk-adjusted returns and minimal downside risk.

CEO Commentary

John Gellert, CEO, emphasized the benefits of the asset rotation strategy, noting improvements in average rates and PSV fleet utilization. Despite repairs on two premium PSVs, a 30.3% DVP margin was achieved. The sale of two PSVs targeted the shallow water market, while repairs to a liftboat in the Middle East continued. Gellert highlighted healthy market activity and potential FSV redeployment internationally later in 2025.

Guidance

SEACOR Marine plans to redeploy three FSVs to international markets in the latter half of 2025. Gellert reiterated the company's commitment to adapting to markets with lower volatility and higher returns, with new PSV deliveries expected in 2026 and 2027. The aim is to demonstrate the fleet's embedded value and proactively address future market demands.

Additional News

SEACOR Marine has been actively engaging in strategic changes to its asset portfolio. The company successfully completed the sale of two platform supply vessels (PSVs) and one fast supply vessel (FSV) for a total of $33.4 million. These proceeds contributed to the repurchase of shares and warrants from Carlyle, simplifying the capital structure by eliminating outstanding warrants. Furthermore, SEACOR Marine plans to utilize the remaining funds for future investment in new PSV construction, scheduled for delivery between late 2026 and early 2027, as part of its ongoing strategic repositioning efforts.