Viridien: Cash Flow of $26M in Q1 2026, Net Debt Reduced to $700M
Viridien generated a net cash flow of $26M in the first quarter of 2026, compared to a negative flow of $20M a year earlier. This performance occurred in a context of a slow market, geopolitical uncertainties in the Middle East, and a contraction in activity in some of its divisions. The group continued its debt reduction with an additional bond repayment of $41M, reducing its net debt to about $700M, and saw its rating upgraded by S&P at the beginning of April.
Revenue Down, Margins Under Pressure in Two Divisions
The consolidated IFRS revenue for the first quarter of 2026 stands at $200M (including a negative impact of $13M related to IFRS 15 adjustments). The Data, Digital and Energy Transition (DDE) division posted revenue of $153M, impacted by the market environment and the phasing of projects. The Sensing and Monitoring (SMO) division recorded revenue of $61M, penalized by a contraction in Oil & Gas activities and the effects of the conflict in the Middle East. The adjusted EBITDA of the SMO activities was -$7M, reflecting both the significantly lower level of activity and an unfavorable exchange rate effect (dollar at 1.18 on average over the quarter compared to 1.04 a year earlier). The consolidated adjusted EBITDA of the activities reached $89M with a margin of 36%. The operating result for SMO stood at -$13M.
Cash Generation and Debt Reduction: Fundamentals Hold
The net cash flow for the first quarter of 2026 amounted to $26M, a marked improvement from the -$20M in the corresponding quarter of the previous year (which included a $39M outflow related to the early payment of interest in March 2025). According to the group, this performance demonstrates the resilience of the asset-light model in the face of a slow start to the year. Viridien executed an additional bond repayment of $40.7M in March 2026, bringing the gross debt to $857M and the net debt to about $700M. Over one year, the group reduced its debt by about $140M, and by $310M compared to the end of March 2024. Standard & Poor's upgraded Viridien's long-term rating to B (stable outlook) at the beginning of April, from B- previously. The rating of the senior secured bonds was also raised to B+.
Cash Flow Target Confirmed for 2026, Results Expected in the Second Half
Viridien confirms its target of generating a net cash flow of $100M for the full year 2026, with a more significant contribution expected in the second half, as in 2025. The group anticipates that some delays in project awards may persist in the short term, described as timing effects rather than a weakening of underlying demand. Beyond the short term, Viridien emphasizes that the structural fundamentals remain favorable, supported by the increasing importance of energy security, diversification of supplies, and the accelerated decline of existing fields.
