McDermott International recently posted its financial results for the first quarter of 2026.
For the three months ended March 31, 2026, revenue was US$2.361 billion (US$2.133 billion in Q1 2025); adjusted gross operating profit was US$117 million (US$); and cash flow used in operating activities was US$126 million. Backlog at quarter end was US$17.6 billion. Trailing twelve months adjusted gross operating profit was US$489 million.
"Our first-quarter performance exceeded our expectations, driven by strong project execution, improving backlog quality and continued operating discipline across the portfolio," said Michael McKelvy, Chief Executive Officer and Chair of the Board of McDermott.
"While we are closely monitoring developments in the Middle East and conditions remain fluid, our operations in the region continue. We remain focused on sustaining this momentum and delivering the 2026 plan with the same discipline and execution excellence demonstrated to date."
Segment operating results for the three months ended March 31, 2026 were impacted by net unfavourable changes in estimates of: approximately U$2 million in the low carbon solutions segment; and US$25 million in the offshore Middle East segment. These changes were partially offset by net improvements of US$7 million in the subsea and floating facilities segment.
McDermott said its operating results for the three months ended March 31, 2026 were not materially affected by the conflict in the Middle East, primarily due to the recognition of unapproved change orders. The company admitted, however, that the continuation or escalation of the conflict could have a material adverse effect on its operations in future periods.