McDermott Beats 2026 Plan with $2.4B Revenue, $489M TTM EBITDA
Event summary
- Q1 2026 revenue hit $2.4B, exceeding annual business plan targets.
- TTM adjusted EBITDA reached $489M, up from $117M in Q1 alone.
- Backlog stands at $17.6B, with CEO citing improved project execution.
- Cash flow used in operations was $126M for the quarter.
- Middle East operations continue despite fluid regional conditions.
The big picture
McDermott's strong Q1 2026 results reflect disciplined execution in a volatile energy sector. The company's ability to maintain operations in the Middle East, despite regional uncertainties, underscores its strategic resilience. With a $17.6B backlog, the focus now shifts to converting that pipeline into consistent earnings amid shifting market dynamics.
What we're watching
- Geopolitical Risk
- How Middle East instability may impact McDermott's regional operations and project timelines.
- Backlog Conversion
- Whether the $17.6B backlog will translate into sustained revenue growth.
- Cost Management
- The pace at which McDermott can improve cash flow from operations.
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