McDermott International has published its financial results for the third quarter of 2025.
For the three and nine months ended September 30, 2025, revenue was US$2.7 billion and US$7.4 billion, respectively; adjusted gross operating profit was US$152 million and US$319 million; and cash flow used in operating activities was US$146 million and US$32 million. Backlog at the end of the third quarter was US$17.5 billion.
Consolidated segment operating income during the three months ended September 30, 2025 was US$130 million compared to the consolidated segment operating loss of US$39 million during the three months ended September 30, 2024.
The low carbon segment's operating income during Q3 2025 reached US$50 million, compared to an operating loss of US$59 million in Q3 2024.
Operating income was associated with: progress on a renewable energy contract HVDC project in the North Sea, offshore Germany; a US LNG export facility project in Sabine Pass, Texas, an LNG export facility project in Canada, partially offset by the net unfavourable changes in estimates totaling approximately $12 million across several projects; and other operating items.
The offshore Middle East segment operating income in Q3 2025 reached US$52 million, compared to US$13 million in the same period last year. Operating income also included income associated with an EPCI and commissioning project of satellite wellhead platforms and jackets, offshore Qatar; an EPCI project for oilfield development, offshore Abu Dhabi; and other projects.
Segment operating income for subsea and floating facilities during Q3 2025 was associated with progress on various ongoing projects as well as the impact of the net favourable changes in estimates of approximately US$18 million. Segment operating income was US$28 million, compared to US$7 million in the same period last year.
Operating results in McDermott's corporate and global operations during the three months ended September 30, 2025 and 2024 were primarily associated with selling, general and administrative costs, and included, among other items, approximately US$23 million and US$17 million, respectively, of the fair value adjustment associated with the company's series B preference shares.
"We delivered another quarter of solid operational execution, disciplined cost control, and healthy backlog growth," said Michael McKelvy, Chair and Chief Executive Officer of McDermott. "As energy markets evolve, we believe McDermott remains well-positioned to deliver reliable performance and create long-term value through our integrated solutions and strong project execution."