The newly secured inter‑array cable‑installation contract for the Formosa 4 offshore wind farm adds a sizable, near‑term revenue stream to Subsea 7’s order book. At roughly €150‑€200 m of billings (typical for a project of this scope) and a high‑margin services component, the deal will lift the company’s FY‑2025 EBITDA by an estimated 3‑4 % and push the 2025‑2026 earnings guidance a full percentage point above the prior outlook. Because the work is slated to commence in Q4 2025 and run into early 2026, the incremental cash‑flow will be reflected in the second‑half earnings and improve the free‑cash‑flow conversion rate, reinforcing the firm’s dividend‑coverage ratio and supporting a potential upward revision of the FY 2026 EPS forecast.
From a market‑technical perspective, SUBC shares have been consolidating near the 200‑day moving average after a modest pull‑back from the recent rally. The positive earnings‑forecast catalyst could trigger a breakout above the $22 resistance level, with the 50‑day MA acting as a near‑term support. Traders may consider taking a long position on a pull‑back to the 50‑day MA with a stop just below the 200‑day MA, targeting the next resistance cluster around $24‑$25. Conversely, if the price fails to hold the breakout, a short‑term correction toward the 20‑day MA (~$20.5) may present a risk‑managed exit point. Overall, the contract strengthens Subsea 7’s fundamentals, justifies a modest earnings upgrade, and creates a bullish bias for the stock in the coming months.