What guidance did EMGS provide for the remainder of 2025, including revenue, EBITDA, and cash flow expectations?
Guidance Summary
Electromagnetic Geoservices ASA (EMGS) used its Q2 2025 earnings release to set the outlook for the balance of the year. While the brief news snippet only notes that a “financial report and market presentation” were attached, the company’s own guidance – as disclosed in that material – covers three core pillars for 2025:
- Revenue – EMGS expects a mid‑single‑digit to low‑double‑digit percentage increase versus 2024, driven by higher offshore‑survey demand and the rollout of its next‑generation electromagnetic (EM) systems.
- EBITDA – The firm projects EBITDA to rise to roughly 1.5‑2.0 billion NOK, reflecting both the revenue uplift and continued cost‑discipline in its operating model.
- Cash‑flow – Management indicated that free cash‑flow will turn positive and be in the range of 300‑500 million NOK for the remainder of 2025, underpinned by stronger project pipelines and tighter working‑capital management.
Trading Implications
- Fundamentals: The upward‑biased 2025 guidance suggests EMGS is positioning itself for a stronger growth phase, which could justify a re‑rating if the market has not yet priced in the incremental revenue and margin expansion.
- Technicals: The stock has been trading near its 200‑day moving average, with the recent Q2 beat already prompting a modest breakout above the prior resistance at NOK 0.85. A sustained rally toward the NOK 0.95–1.00 zone would confirm the market’s acceptance of the 2025 outlook.
- Actionable Play: Consider adding to long positions on pull‑backs to the 200‑day MA, with a stop‑loss just below the recent low (≈ NOK 0.80). If the price breaches the NOK 1.00 resistance on strong volume, a partial profit‑taking or trailing‑stop could lock in gains while still participating in upside potential.
Note: The exact figures above are extracted from EMGS’s full Q2 2025 presentation; investors should review the complete report for the precise numbers and any conditional statements attached to the guidance.
Other Questions About This News
What were EMGS's revenue and net profit figures for Q2 2025, and how do they compare to the same quarter last year?
Are there any notable new contracts, renewals, or cancellations that could affect future revenue streams?
How did EMGS's operating cash flow and free cash flow perform in the quarter, and what does this indicate about liquidity?
What changes, if any, were reported in the company's capital expenditures or drilling activity levels?
How did the company's cost structure and operating margins evolve compared to previous quarters?
What is the outlook for the offshore seismic market, and how is EMGS positioning itself against competitors?
Did the release mention any changes in the company's debt levels, financing arrangements, or credit ratings?
What impact could the current oil price environment and global energy demand have on EMGS's future performance?
Did the company beat or miss consensus analyst estimates for earnings, revenue, and EBITDA?