Archer Limited reports record quarterly EBITDA of $44.9 million and a strong EBITDA margin of 17.1% for the second quarter of 2026, demonstrating continued earnings growth and margin expansion. EBITDA increased by 14% year over year, adjusted for the divested workover business in southern Argentina. Archer further strengthened its market position through significant contract awards and strategic investments in P&A technology.
Archer's CEO, Dag Skindlo, comments:
'We are pleased to report another quarter of strong operational execution and significant backlog growth. We are particularly encouraged that our continued focus on our clients' well objectives, operational efficiency, and service quality is translating into stronger financial performance, with EBITDA margins expanding to a record 17.1% in the quarter.
Since the end of the first quarter, we have secured approximately $0.5 billion in net backlog additions, increasing our total backlog to $3.9 billion. The quality and duration of our contract base provide strong multi-year revenue visibility, with approximately 80-90% of our expected 2027 revenue already contracted.
Our strategic focus on the production phase through drilling and well intervention, as well as late-life operations through Plug & Abandonment services, continues to differentiate and position Archer for long-term value creation. P&A remains a long-term growth segment in our industry, and through recent contract awards in Norway, the UK, and the Gulf of America, we have secured integrated P&A projects covering around 500 wells and representing about $800 million of backlog.
Over the last few years, Archer has also built a strong track record in subsea intervention and P&A, with operations across about 300 wells globally. Our P&A backlog now includes more than 100 subsea wells across Norway, the UK, and Brazil, in addition to the approximately 50 subsea interventions we perform annually in Norway. We continue to invest in technology to remain at the forefront of this development.
P&A services are expected to represent approximately 15-20% of Group revenue in 2026. Based on our current backlog and market activity levels, we expect P&A revenue to grow by more than 20% in 2027.
Archer continues to expand its drilling footprint in Vaca Muerta in Argentina through the addition of new rig capacity to support increasing activity. With strong customer demand, increasing development activity across the basin, and $800 million in backlog, the Land Drilling business is becoming an increasingly important contributor to Archer's earnings and growth.'
Q2 financial highlights
- Revenue: $262.6 million
- EBITDA before exceptional items: $47.7 million
- Record quarterly EBITDA: $44.9 million
- Strong quarterly EBITDA margin: 17.1%
- Backlog including options: $3.9 billion
- Shareholder distribution during Q2: NOK 0.62 per share
- Shareholder distribution approved for Q3: NOK 0.62 per share
- Previous financial guidance for the full year reiterated
Subsequent events
- Completed a $30 million tap issue under the outstanding senior secured bonds due in 2030, enhancing liquidity and financial flexibility while supporting future growth initiatives.
- Awarded a large integrated P&A contract on Apache-operated fields in the UK, further expanding Archer's P&A backlog and reinforcing its position as a leading provider of integrated late-life field management and abandonment services.
- Awarded an additional five-year super-spec drilling contract in Argentina's Vaca Muerta basin, continuing Archer's disciplined expansion in one of the world's fastest-growing unconventional resource plays.
Source: Archer Limited
