SEACOR Marine Holdings Inc. (SMHI) - Q1 2026 10-Q Summary
Business Context and Reporting Period
This report covers the quarterly period ended March 31, 2026. SEACOR Marine Holdings Inc. provides global marine and support transportation services to offshore energy facilities. As of the reporting date, the Company operated a fleet of 43 owned vessels across four regions: United States (Gulf of America), Africa and Europe, Middle East and Asia, and Latin America. The Company reported no cold-stacked vessels as of March 31, 2026.
Key Financial Metrics
| Metric | Q1 2026 | Q1 2025 |
|---|---|---|
| Operating Revenues | $44.3 million | $55.5 million |
| Net Loss | $(15.8) million | $(15.5) million |
| Operating Loss | $(6.4) million | $(5.3) million |
| Direct Vessel Profit (DVP) | $6.7 million | $13.6 million |
| Net Cash Used in Operating Activities | $(15.1) million | $(11.5) million |
| Cash and Restricted Cash | $75.4 million | $45.4 million |
| Total Debt (Net) | $327.4 million | $334.6 million |
| Fleet Utilization | 59% | 60% |
| Average Day Rate | $18,199 | $18,825 |
Material Changes vs. Prior Period
- Revenue Decline: Operating revenues decreased by $11.2 million (20%) year-over-year, primarily driven by net asset dispositions and vessel repositioning. Time charter revenues dropped $10.0 million.
- Asset Dispositions: The Company recognized a net gain of $7.4 million on asset dispositions, including the sale of one Platform Supply Vessel (PSV) for $12.8 million in net proceeds. This partially offset the operating loss.
- Regional Performance:
- Africa & Europe: Remained the primary profit center with $10.1 million in Direct Vessel Profit (DVP), driven by high utilization (78%) and increased day rates.
- Middle East & Asia: Reported a DVP loss of $3.4 million due to lower utilization (63% vs. 75% prior year) and higher repair/drydocking costs.
- United States: Reported a DVP loss of $1.1 million, though improved from the prior year's loss of $3.9 million.
- Cost Reductions: Administrative and general expenses decreased by $1.5 million, and interest expense decreased by $1.3 million due to lower outstanding debt balances. Cost reduction measures initiated in Q4 2025 yielded $1.0 million in wage savings in Q1 2026.
Outlook, Risks, and Contingencies
- Capital Commitments: The Company has unfunded capital commitments of $44.3 million, primarily for the construction of two new PSVs ($42.3 million). $30.9 million is held in a restricted account from prior vessel sales to fund these projects.
- Liquidity: The Company maintains $75.4 million in cash and restricted cash. It has an At-The-Market (ATM) equity offering program with approximately $25.0 million of remaining capacity. A dedicated $41.0 million tranche under its credit facility is available for vessel construction, with $24.6 million undrawn.
- Market Risks: Operations remain sensitive to oil price volatility (WTI ranged $56-$105 in Q1 2026) and supply/demand dynamics for offshore support vessels. Geopolitical tensions (e.g., conflict with Iran) are noted as potential drivers of volatility.
- Legal Contingencies: A Brazilian tax deficiency notice regarding PIS and COFINS contributions remains pending, with a potential levy of approximately $5.8 million (R$ 30.5 million). The Company is awaiting an administrative trial.
Investor Verification Checklist
- Verify the status and funding timeline for the two new PSV construction projects ($42.3 million commitment).
- Monitor the resolution of the Brazilian tax deficiency notice and potential impact on future cash flows.
- Assess the sustainability of the 78% utilization rate in the Africa and Europe region, which drives the majority of current profitability.
- Review the impact of ongoing cost reduction measures on long-term operational capacity and crew retention.
- Track the utilization of the remaining $25.0 million ATM equity program and the $24.6 million undrawn credit facility tranche.