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Item 2 — Management's Discussion and Analysis
Seacor Marine Holdings Inc. · 10-Q · Q2 FY2026 · Period ended Jun 30, 2026
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This Form 10-Q includes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements concern management’s expectations, strategic objectives, including our announcement of the commencement of a strategic review of the business, business prospects, anticipated economic performance and financial condition and other similar matters. Achievement of these expectations and strategic objectives, including any increase to shareholder value from the strategic review, business prospects, anticipated economic performance and financial condition involve significant known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements of results to differ materially from any future results, performance or achievements discussed or implied by such forward-looking statements. Certain of these risks, uncertainties and other important factors are discussed in the Risk Factors and Management’s Discussion and Analysis of Financial Condition and Results of Operations of the Company’s 2025 Annual Report on Form 10-K and this Quarterly Report on Form 10-Q. However, it should be understood that it is not possible to identify or predict all such risks, uncertainties and factors, and others may arise from time to time. All of these forward-looking statements constitute the Company’s cautionary statements under the Private Securities Litigation Reform Act of 1995. The words “anticipate,” “estimate,” “expect,” “project,” “intend,” “believe,” “plan,” “target,” “forecast” and similar expressions are intended to identify forward-looking statements. Forward looking statements speak only as of the date of the document in which they are made. The Company disclaims any obligation or undertaking to provide any updates or revisions to any forward-looking statement to reflect any change in the Company’s expectations or any change in events, conditions or circumstances on which the forward-looking statement is based. It is advisable, however, to consult any further disclosures the Company makes on related subjects in its Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K filed with the United States Securities and Exchange Commission.
The following Management’s Discussion and Analysis (the “MD&A”) is intended to help the reader understand the Company’s financial condition and results of operations. The MD&A is provided as a supplement to and should be read in conjunction with the unaudited consolidated financial statements and notes thereto included in this Quarterly Report on Form 10-Q, as well as “Management’s Discussion and Analysis of Financial Condition and Results of Operations” contained in the 2025 Annual Report.
Overview
The Company provides global marine and support transportation services to offshore energy facilities worldwide. As of June 30, 2026, the Company operated a fleet of 38 support vessels, of which all were owned. The primary users of the Company’s services are major integrated national and international oil companies, independent oil and natural gas exploration and production companies, oil field service and construction companies, as well as offshore wind farm operators and offshore wind farm installation and maintenance companies.
The Company operates and manages a diverse fleet of offshore support vessels that (i) deliver cargo and personnel to offshore installations, including offshore wind farms, (ii) assist offshore operations for production and storage facilities, (iii) provide construction, well work-over, offshore wind farm installation and decommissioning support and (iv) carry and launch equipment used underwater in drilling and well installation, maintenance, inspection and repair. Additionally, the Company’s vessels provide emergency response services and accommodations for technicians and specialists.
The Company operates its fleet in three principal geographic regions: the Americas; Africa and Europe; and the Middle East and Asia. The Company’s vessels are highly mobile and regularly and routinely move between countries within a geographic region. In addition, the Company’s vessels are redeployed among geographic regions, subject to flag restrictions, as changes in market conditions dictate.
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Significant items affecting our results of operations
The number and type of vessels operated, their rates per day worked and their utilization levels are the key determinants of the Company’s operating results and cash flows. Unless a vessel is cold-stacked, there is little reduction in daily running costs for the vessels and, consequently, operating margins are most sensitive to changes in rates per day worked and utilization. The Company manages its fleet utilizing a global network of shore side support, administrative and finance personnel.
Offshore oil and natural gas market conditions are highly volatile. For example, oil prices experienced unprecedented volatility during 2020 due to the COVID-19 pandemic, with the price per barrel going negative for a short period of time. Oil prices steadily increased since the lows of the pandemic and hit a multi-year high of $122 per barrel during 2022 primarily as a result of the conflict between Russia and Ukraine but subsequently decreased to pre-conflict levels. Volatility of oil prices has more recently significantly increased and become even more difficult to predict with the onset of the conflict with Iran and the associated affects the conflict has had on one of the of the world’s most important oil producing regions. During the six months ended June 30, 2026, WTI oil prices reached a high of $113 per barrel and a low of $56 per barrel, ending the period at $70 per barrel.
While the Company has experienced difficult market conditions over the past few years due to volatile oil and natural gas prices and the focus of oil and natural gas producing companies on cost and capital discipline, the increases since the lows experienced during the COVID-19 pandemic in oil and natural gas prices has led to an increase in utilization, day rates and customer inquiries about new projects.
The Company closely monitors the availability of vessels in the offshore support vessel market as the utilization and day rates of the Company’s fleet is dependent on the supply and demand dynamics for its vessels. For example, low oil and natural gas prices and a corresponding decline in offshore exploration may reduce demand for the Company’s vessels and in the past such declines have forced many operators in the industry to restructure, liquidate assets or consolidate with other operators. Additionally, the delivery of newly built offshore support vessels to the industry-wide fleet has in the past contributed to an oversupply of vessels in the market, thereby further decreasing the demand for the Company’s existing offshore support vessel fleet. A combination of low customer exploration and drilling activity levels, and excess supply of offshore support vessels whether from laid up fleets or newly built vessels could, in isolation or together, have a material adverse effect on the Company’s business, financial position, results of operations, cash flows and growth prospects. Alternatively, increasing activity levels and a stable supply of offshore support vessels could support higher utilization and day rates and improved financial performance of the Company’s business.
Certain macro drivers somewhat independent of oil and natural gas prices may support the Company’s business, including: (i) underspending by oil and natural gas producers over the last five to ten years leading to pent up demand for maintenance and growth capital expenditures; (ii) improved extraction technologies; and (iii) the need for offshore wind farm support as the industry grows. While the Company expects that alternative forms of energy will continue to develop and add to the world’s energy mix, especially as certain governments, supranational groups, institutional investors, and various other parties focus on climate change causes and concerns, the Company believes that for the foreseeable future demand for gasoline and oil will be sustained, as will demand for natural gas, particularly in the context of expanded power generation demand worldwide. Some alternative forms of energy such as offshore wind farms support some of the Company’s operations and the Company expects such support to increase to the extent that development of these forms of renewable energy expands.
The Company adheres to a strategy of cold-stacking vessels (removing from active service) during periods of weak utilization in order to reduce the daily running costs of operating the fleet, primarily personnel, repairs and maintenance costs, as well as to defer some drydocking costs into future periods. The Company considers various factors in determining which vessels to cold-stack, including upcoming dates for regulatory vessel
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inspections and related drydocking requirements. The Company may maintain class certification on certain cold-stacked vessels, thereby incurring some drydocking costs while cold-stacked. Cold-stacked vessels are returned to active service when market conditions improve, or management anticipates improvement, typically leading to increased costs for drydocking, personnel, repair and maintenance in the periods immediately preceding the vessels’ return to active service. Depending on market conditions, vessels with similar characteristics and capabilities may be rotated between active service and cold-stack. On an ongoing basis, the Company reviews its cold-stacked vessels to determine if any should be designated as retired and removed from service based on the vessel’s physical condition, the expected costs to reactivate and restore class certification, if any, and its viability to operate within current and projected market conditions. As of June 30, 2026, none of the Company’s 38 owned vessels were cold-stacked worldwide.
Recent Developments
Strategic Alternatives Review
On July 29, 2026, the Company announced that its Board of Directors (“Board”) is evaluating potential strategic alternatives to maximize shareholder value. During the review process, the Board expects to evaluate a range of strategic alternatives that may include a sale of the Company, merger, other business combinations, sale of assets, or other transactions aimed at maximizing value for shareholders. The Board has retained independent financial advisors to assist in evaluating strategic alternatives. The Board and management team remain fully committed to acting in the best interests of the Company and its stakeholders throughout this evaluation process.
There can be no assurance that the strategic review process will result in any transaction or other strategic outcome. The Company has not established a timetable for completion of the review process and does not intend to disclose developments related to the review unless and until SEACOR Marine executes a definitive agreement with respect thereto, or the Board otherwise determines that further disclosure is appropriate or required.
Modification of 2024 Credit Agreement
On May 20, 2026, SEACOR Marine, as parent guarantor, and SEACOR Marine Foreign Holdings Inc., as borrower and wholly-owned subsidiary of the Company (“SMFH”), entered into a letter agreement (“Letter Agreement”) for the purposes of modifying that certain credit agreement, dated as of November 27, 2024, among the Company, SMFH, certain other wholly-owned subsidiaries of the Company, as subsidiary guarantors, an affiliate of EnTrust Global, as lender, Kroll Agency Services Limited, as facility agent, and Kroll Trustee Services Limited, as security trustee (the “2024 Credit Agreement”).
The Letter Agreement provided for (i) the release to SMFH of $13.7 million (the “Release”) from a restricted escrow account into which vessel sale proceeds are deposited from the sale of vessels that serve as collateral under the 2024 Credit Agreement (the “Escrow Account”) and (ii) the cancellation of the $24.6 million of undrawn commitments available under Tranche B of the 2024 Credit Agreement (“Tranche B”). The Tranche B commitments were exclusively available to make a portion of the payments for the construction of two platform supply vessels (“PSVs”), each with a contract price of $41.0 million per vessel. After giving effect to the Release, the Escrow Account held $41.0 million to be used to fully fund the remaining PSV construction payments without the need for any additional borrowings. The new PSVs are expected to be delivered in the fourth quarter of 2026 and the first quarter of 2027, respectively.
Cost Reduction Measures
During the fourth quarter of 2025, the Company initiated certain cost reduction measures to better align its operating expenses with the current state of the offshore marine industry, in general, and its business, in particular. These measures include a reduction of workforce, reorganization of the management structure and
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streamlining of operations. For the year ended December 31, 2025, the Company incurred one-time charges totaling $1.2 million related to severance charges arising from a reduction in workforce resulting in a decrease in annualized wages and benefits expenses of at least $3.9 million. Management continues to focus on optimizing the cost structure and regional footprint of the business to help maintain the Company’s competitiveness in the industry, improve its operating leverage and position itself to take advantage of market opportunities. As a result of the cost reduction measures, the Company recognized savings of $2.0 million in wages and benefits expenses for the six months ended June 30, 2026.
Vessel Sales
On May 20, 2026, the Company completed the sale of one 241.5 foot, DP-2 PSV built in 2009 for total proceeds of $8.0 million for a gain of approximately $7.4 million. Approximately $6.2 million of these sale proceeds were designated to make future payments on the construction of two PSVs and deposited in the Escrow Account.
On May 18, 2026, the Company completed the sale of two liftboats built in 2009 for total proceeds of $16.0 million for a gain of approximately $9.6 million. None of the sales proceeds from these liftboat sales were encumbered by the Company’s 2024 SMFH Credit Facility or required to be used to repay such facility.
On April 21, 2026, the Company completed the sale of one 190 foot, DP-2 fast support vessel (“FSV”) built in 2010 for total proceeds of $7.9 million for a gain of approximately $6.9 million. Approximately $6.2 million of these sale proceeds were designated to make future payments on the construction of two PSVs and deposited in the Escrow Account.
On April 14, 2026, the Company completed the sale of one 201 foot, DP-2 PSV built in 2015 for total proceeds of $14.6 million for a gain of approximately $7.6 million. Approximately $11.4 million of these sale proceeds were designated to make future payments on the construction of two PSVs and deposited in the Escrow Account.
On February 24, 2026, the Company completed the sale of one 201 foot, DP-2 PSV built in 2015 for total proceeds of $14.6 million for a gain of approximately $7.3 million. Approximately $11.3 million of these sale proceeds were designated to make future payments on the construction of two PSVs and deposited in the Escrow Account.
On December 19, 2025, the Company completed the sale of one 201 foot, DP-2 PSV built in 2013 for total proceeds of $13.4 million for a gain of approximately $8.1 million. Approximately $11.0 million of these sale proceeds were designated to make future payments on the construction of two PSVs and deposited in the Escrow Account.
On September 29, 2025, the Company completed the sale of the United States (“U.S.”) flag liftboat LB Jill and the U.S. flag liftboat LB Robert (together, the “Liftboat Sales”) for total proceeds of $76.0 million. In addition, concurrently with the closing of the Liftboat Sales, the Company sold certain uninstalled vessel equipment for total proceeds of $1.0 million (the “Equipment Sale”). After deducting transaction costs and expenses, the Company received net cash proceeds of $74.7 million and recognized a gain of $30.5 million for the Liftboat Sales and the Equipment Sale. None of the sale proceeds from the Liftboat Sales and the Equipment Sale are encumbered by the Company’s 2024 SMFH Credit Facility or required to be used to repay such facility.
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Consolidated Results of Operations
The sections below provide an analysis of the Company’s results of operations for the three and six months (“Current Year Quarter” and “Current Year Six Months”) ended June 30, 2026 compared with the three and six months (“Prior Year Quarter” and “Prior Year Six Months”) ended June 30, 2025. Except as otherwise noted, there have been no material changes since the end of the Company’s fiscal year ended December 31, 2025, in the Company’s results of operations. For the periods indicated, the Company’s consolidated results of operations were as follows (in thousands, except statistics):
Three Months Ended June 30, Six Months Ended June 30,
2026 2025 2026 2025
Time Charter Statistics:
Average Rates Per Day $ 20,227 $ 19,731 $ 19,245 $ 19,291
Fleet Utilization 68 % 68 % 63 % 64 %
Fleet Available Days 3,635 4,310 7,532 8,893
Operating Revenues:
Time charter $ 49,697 91 % $ 57,673 95 % $ 91,654 93 % $ 109,606 94 %
Bareboat charter 834 2 % 838 1 % 1,662 2 % 1,546 1 %
Other marine services 4,099 7 % 2,299 4 % 5,596 5 % 5,157 5 %
54,630 100 % 60,810 100 % 98,912 100 % 116,309 100 %
Costs and Expenses:
Operating:
Personnel 15,697 29 % 18,969 31 % 31,119 31 % 37,506 32 %
Repairs and maintenance 12,648 23 % 13,648 22 % 23,248 23 % 22,168 19 %
Drydocking 2,961 5 % 5,143 9 % 4,213 4 % 9,012 8 %
Insurance and loss reserves 2,698 5 % 2,982 5 % 4,490 5 % 5,135 4 %
Fuel, lubes and supplies 5,302 10 % 4,296 7 % 8,610 9 % 8,842 8 %
Other 7,378 13 % 4,455 7 % 12,577 13 % 8,758 8 %
46,684 85 % 49,493 81 % 84,257 85 % 91,421 79 %
Lease expense - operating 266 0 % 325 1 % 516 1 % 662 1 %
Administrative and general 12,343 23 % 11,998 20 % 22,297 23 % 23,484 20 %
Depreciation and amortization 10,718 20 % 12,090 20 % 21,048 21 % 24,900 21 %
70,011 128 % 73,906 122 % 128,118 130 % 140,467 121 %
Gains on Asset Dispositions and Impairments, Net 31,347 57 % 19,163 32 % 38,795 39 % 24,972 21 %
Operating Income 15,966 29 % 6,067 10 % 9,589 10 % 814 1 %
Other Expense, Net (8,778 ) (16 )% (10,504 ) (17 )% (16,048 ) (16 )% (20,725 ) (18 )%
Income (Loss) Before Income Tax Expense and Equity in Earnings of 50% or Less Owned Companies 7,188 13 % (4,437 ) (7 )% (6,459 ) (7 )% (19,911 ) (17 )%
Income Tax Expense 3,951 7 % 2,508 4 % 6,159 6 % 3,412 3 %
Income (Loss) Before Equity in Earnings of 50% or Less Owned Companies 3,237 6 % (6,945 ) (11 )% (12,618 ) (13 )% (23,323 ) (20 )%
Equity in Earnings of 50% or Less Owned Companies 56 0 % 218 0 % 106 0 % 1,107 1 %
Net Income (Loss) $ 3,293 6 % $ (6,727 ) (11 )% $ (12,512 ) (13 )% $ (22,216 ) (19 )%
Direct Vessel Profit. Direct vessel profit (defined as operating revenues less operating expenses excluding leased-in equipment, “DVP”) is the Company’s measure of segment profitability. DVP is a critical financial measure used by the Company to analyze and compare the operating performance of its regions, without regard to financing decisions (depreciation and interest expense for owned vessels vs. lease expense for leased-in vessels). See “Note 11. Segment Information” in the unaudited consolidated financial statements included in Part I. Item 1. “Financial Statements” elsewhere in this Quarterly Report on Form 10-Q.
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The following tables summarize the operating results and property and equipment for the Company’s reportable segments for the periods indicated (in thousands, except statistics):
Americas (1) Africa and Europe Middle East and Asia Total
For the Three Months Ended June 30, 2026
Time Charter Statistics:
Average Rates Per Day $ 28,394 $ 18,877 $ 15,588 $ 20,227
Fleet Utilization 58 % 77 % 60 % 68 %
Fleet Available Days 935 1,741 959 3,635
Operating Revenues:
Time charter $ 15,518 $ 25,248 $ 8,931 $ 49,697
Bareboat charter 834 — — 834
Other marine services 1,353 1,041 1,705 4,099
17,705 26,289 10,636 54,630
Direct Costs and Expenses:
Operating:
Personnel 5,322 5,523 4,852 15,697
Repairs and maintenance 2,252 5,673 4,723 12,648
Drydocking 680 554 1,727 2,961
Insurance and loss reserves 787 504 1,407 2,698
Fuel, lubes and supplies 1,494 2,416 1,392 5,302
Other 3,271 3,154 953 7,378
13,806 17,824 15,054 46,684
Direct Vessel Profit (Loss) $ 3,899 $ 8,465 $ (4,418 ) 7,946
Other Costs and Expenses:
Lease expense $ 191 $ — $ 75 266
Administrative and general 12,343
Depreciation and amortization 3,168 4,485 3,065 10,718
23,327
Gains on asset dispositions and impairments, net 31,347
Operating income $ 15,966
(1)In prior periods the United States and Latin America were reported as separate segments. Due to the reduction of the United States operating segment, the Company’s United States operations are no longer analyzed by the chief operating decision maker on a standalone basis but rather as part of the Americas segment. As a result, for purposes of segment reporting United States operations are now consolidated with Latin America operations and reported as a consolidated segment, and prior period information has been conformed to the new consolidated reporting segment.
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Americas (2) Africa and Europe Middle East and Asia Total
For the Six Months Ended June 30, 2026
Time Charter Statistics:
Average Rates Per Day $ 24,728 $ 18,798 $ 15,490 $ 19,245
Fleet Utilization 45 % 78 % 61 % 63 %
Fleet Available Days 2,304 3,279 1,949 7,532
Operating Revenues:
Time charter $ 25,361 $ 47,782 $ 18,511 $ 91,654
Bareboat charter 1,662 — — 1,662
Other marine services 1,635 1,618 2,343 5,596
28,658 49,400 20,854 98,912
Direct Costs and Expenses:
Operating:
Personnel $ 11,329 $ 10,505 $ 9,285 31,119
Repairs and maintenance 3,896 8,630 10,722 23,248
Drydocking 1,120 730 2,363 4,213
Insurance and loss reserves 1,210 834 2,446 4,490
Fuel, lubes and supplies 2,569 3,750 2,291 8,610
Other 4,655 6,346 1,576 12,577
24,779 30,795 28,683 84,257
Direct Vessel Profit (Loss) $ 3,879 $ 18,605 $ (7,829 ) 14,655
Other Costs and Expenses:
Lease expense $ 368 $ — $ 148 516
Administrative and general 22,297
Depreciation and amortization 6,334 8,548 6,166 21,048
43,861
Gains on asset dispositions and impairments, net 38,795
Operating income $ 9,589
As of June 30, 2026
Property and Equipment:
Historical cost $ 187,845 $ 322,783 $ 243,741 $ 754,369
Accumulated depreciation (91,051 ) (142,164 ) (118,625 ) (351,840 )
$ 96,794 $ 180,619 $ 125,116 $ 402,529
Total Assets (1) $ 120,274 $ 224,039 $ 198,329 $ 542,642
(1)Total Assets by region does not include corporate assets of $90.7 million as of June 30, 2026.
(2)In prior periods the United States and Latin America were reported as separate segments. Due to the reduction of the United States operating segment, the Company’s United States operations are no longer analyzed by the chief operating decision maker on a standalone basis but rather as part of the Americas segment. As a result, for purposes of segment reporting United States operations are now consolidated with Latin America operations and reported as a consolidated segment, and prior period information has been conformed to the new consolidated reporting segment.
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Americas (1) Africa and Europe Middle East and Asia Total
For the Three Months Ended June 30, 2025
Time Charter Statistics:
Average Rates Per Day $ 24,622 $ 19,140 $ 15,506 $ 19,731
Fleet Utilization 54 % 77 % 73 % 68 %
Fleet Available Days 1,553 1,668 1,089 4,310
Operating Revenues:
Time charter $ 20,773 $ 24,535 $ 12,365 $ 57,673
Bareboat charter 838 — — 838
Other marine services 1,061 806 432 2,299
22,672 25,341 12,797 60,810
Direct Costs and Expenses:
Operating:
Personnel 8,943 5,515 4,511 18,969
Repairs and maintenance 2,664 4,646 6,338 13,648
Drydocking 4,229 901 13 5,143
Insurance and loss reserves 1,241 899 842 2,982
Fuel, lubes and supplies 1,303 1,714 1,279 4,296
Other 994 2,357 1,104 4,455
19,374 16,032 14,087 49,493
Direct Vessel Profit (Loss) $ 3,298 $ 9,309 $ (1,290 ) $ 11,317
Other Costs and Expenses:
Lease expense $ 202 $ 51 $ 72 325
Administrative and general 11,998
Depreciation and amortization 4,600 4,263 3,227 12,090
24,413
Gains on asset dispositions and impairments, net 19,163
Operating income $ 6,067
(1)In prior periods the United States and Latin America were reported as separate segments. Due to the reduction of the United States operating segment, the Company’s United States operations are no longer analyzed by the chief operating decision maker on a standalone basis but rather as part of the Americas segment. As a result, for purposes of segment reporting United States operations are now consolidated with Latin America operations and reported as a consolidated segment, and prior period information has been conformed to the new consolidated reporting segment.
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Americas (2) Africa and Europe Middle East and Asia Total
For the Six Months Ended June 30, 2025
Time Charter Statistics:
Average Rates Per Day $ 23,829 $ 18,246 $ 16,735 $ 19,291
Fleet Utilization 47 % 74 % 74 % 64 %
Fleet Available Days 3,256 3,378 2,259 8,893
Operating Revenues:
Time charter $ 36,161 $ 45,370 $ 28,075 $ 109,606
Bareboat charter 1,546 — — 1,546
Other marine services 2,775 1,658 724 5,157
40,482 47,028 28,799 116,309
Direct Costs and Expenses:
Operating:
Personnel 17,370 10,698 9,438 37,506
Repairs and maintenance 5,217 8,108 8,843 22,168
Drydocking 5,826 2,142 1,044 9,012
Insurance and loss reserves 2,098 1,493 1,544 5,135
Fuel, lubes and supplies 2,786 3,894 2,162 8,842
Other 1,689 5,084 1,985 8,758
34,986 31,419 25,016 91,421
Direct Vessel Profit $ 5,496 $ 15,609 $ 3,783 $ 24,888
Other Costs and Expenses:
Lease expense $ 393 $ 114 $ 155 662
Administrative and general 23,484
Depreciation and amortization 9,778 8,665 6,457 24,900
49,046
Gains on asset dispositions and impairments, net 24,972
Operating income $ 814
As of June 30, 2025
Property and Equipment:
Historical cost $ 320,379 $ 315,018 $ 252,011 $ 887,408
Accumulated depreciation (145,095 ) (122,999 ) (109,171 ) (377,265 )
$ 175,284 $ 192,019 $ 142,840 $ 510,143
Total Assets (1) $ 209,413 $ 229,966 $ 191,228 $ 630,607
(1)Total Assets by region does not include corporate assets of $49.4 million as of June 30, 2025.
(2)In prior periods the United States and Latin America were reported as separate segments. Due to the reduction of the United States operating segment, the Company’s United States operations are no longer analyzed by the chief operating decision maker on a standalone basis but rather as part of the Americas segment. As a result, for purposes of segment reporting United States operations are now consolidated with Latin America operations and reported as a consolidated segment, and prior period information has been conformed to the new consolidated reporting segment.
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For additional information, the following tables summarize the worldwide operating results and property and equipment for each of the Company’s vessel classes for the periods indicated (in thousands, except statistics):
AHTS (1) FSV (2) PSV (3) Liftboats Other activity Total
For the Three Months Ended June 30, 2026
Time Charter Statistics:
Average Rates Per Day $ — $ 14,411 $ 28,443 $ 16,417 $ — $ 20,227
Fleet Utilization — % 74 % 70 % 24 % — % 68 %
Fleet Available Days — 1,840 1,427 368 — 3,635
Operating Revenues:
Time charter $ — $ 19,636 $ 28,622 $ 1,448 $ (9 ) $ 49,697
Bareboat charter — — 834 — — 834
Other marine services — 1,819 1,459 789 32 4,099
— 21,455 30,915 2,237 23 54,630
Direct Costs and Expenses:
Operating:
Personnel — 5,416 7,859 2,409 13 15,697
Repairs and maintenance — 6,434 2,865 3,294 55 12,648
Drydocking — 898 803 1,260 — 2,961
Insurance and loss reserves — 951 903 844 — 2,698
Fuel, lubes and supplies — 1,481 3,290 531 — 5,302
Other — 2,548 4,357 497 (24 ) 7,378
— 17,728 20,077 8,835 44 46,684
Other Costs and Expenses:
Lease expense $ — $ — $ — $ — $ 266 266
Administrative and general 12,343
Depreciation and amortization — 5,244 3,565 1,734 175 10,718
23,327
Gains on asset dispositions and impairments, net 31,347
Operating income $ 15,966
(1)Anchor handling towing supply vessel (“AHTS”).
(2)Fast support vessel (“FSV”).
(3)Platform support vessel (“PSV”).
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AHTS FSV PSV Liftboats Other activity Total
For the Six Months Ended June 30, 2026
Time Charter Statistics:
Average Rates Per Day $ — $ 14,122 $ 27,023 $ 16,419 $ — $ 19,245
Fleet Utilization — % 74 % 62 % 21 % — % 63 %
Fleet Available Days — 3,702 3,012 818 — 7,532
Operating Revenues:
Time charter $ — $ 38,565 $ 50,310 $ 2,788 $ (9 ) $ 91,654
Bareboat charter — — 1,662 — — 1,662
Other marine services — 2,290 2,270 967 69 5,596
— 40,855 54,242 3,755 60 98,912
Direct Costs and Expenses:
Operating:
Personnel — 10,582 15,207 5,306 24 31,119
Repairs and maintenance — 9,613 5,666 7,888 81 23,248
Drydocking — 1,474 936 1,803 — 4,213
Insurance and loss reserves — 1,614 1,351 1,787 (262 ) 4,490
Fuel, lubes and supplies — 2,984 4,491 1,131 4 8,610
Other — 4,231 7,649 679 18 12,577
— 30,498 35,300 18,594 (135 ) 84,257
Other Costs and Expenses:
Lease expense $ — $ — $ — $ — $ 516 516
Administrative and general 22,297
Depreciation and amortization — 9,963 7,139 3,761 185 21,048
43,861
Gains on asset dispositions and impairments, net 38,795
Operating income $ 9,589
As of June 30, 2026
Property and Equipment:
Historical cost $ — $ 339,525 $ 275,120 $ 120,132 $ 19,592 $ 754,369
Accumulated depreciation — (186,497 ) (81,444 ) (64,460 ) (19,439 ) (351,840 )
$ — $ 153,028 $ 193,676 $ 55,672 $ 153 $ 402,529
AHTS FSV PSV Liftboats Other activity Total
For the Three Months Ended June 30, 2025
Time Charter Statistics:
Average Rates Per Day $ — $ 13,468 $ 22,231 $ 31,904 $ — $ 19,731
Fleet Utilization — % 67 % 68 % 67 % — % 68 %
Fleet Available Days — 1,935 1,738 637 — 4,310
Operating Revenues:
Time charter $ (22 ) $ 17,573 $ 26,440 $ 13,682 $ — $ 57,673
Bareboat charter — — 838 — — 838
Other marine services (9 ) 516 433 1,168 191 2,299
(31 ) 18,089 27,711 14,850 191 60,810
Direct Costs and Expenses:
Operating:
Personnel 9 4,526 8,567 5,673 194 18,969
Repairs and maintenance 255 3,542 3,799 6,022 30 13,648
Drydocking — 666 1,993 2,484 — 5,143
Insurance and loss reserves (4 ) 683 906 1,376 21 2,982
Fuel, lubes and supplies (125 ) 1,449 1,858 1,114 — 4,296
Other (4 ) 1,428 2,199 803 29 4,455
131 12,294 19,322 17,472 274 49,493
Other Costs and Expenses:
Lease expense $ — $ — $ — $ — $ 325 325
Administrative and general 11,998
Depreciation and amortization 3 4,703 3,943 3,424 17 12,090
24,413
Gains on asset dispositions and impairments, net 19,163
Operating income $ 6,067
31
AHTS FSV PSV Liftboats Other activity Total
For the Six Months Ended June 30, 2025
Time Charter Statistics:
Average Rates Per Day $ — $ 13,633 $ 20,919 $ 35,118 $ — $ 19,291
Fleet Utilization — % 69 % 62 % 55 % — % 64 %
Fleet Available Days — 3,915 3,628 1,350 — 8,893
Operating Revenues:
Time charter $ (7 ) $ 36,930 $ 46,726 $ 25,957 $ — $ 109,606
Bareboat charter — — 1,546 — — 1,546
Other marine services — 1,278 941 2,457 481 5,157
(7 ) 38,208 49,213 28,414 481 116,309
Direct Costs and Expenses:
Operating:
Personnel 10 9,459 16,918 10,920 199 37,506
Repairs and maintenance 293 6,525 7,748 7,593 9 22,168
Drydocking — 1,019 4,506 3,487 — 9,012
Insurance and loss reserves (4 ) 1,200 1,537 2,617 (215 ) 5,135
Fuel, lubes and supplies (59 ) 2,622 4,452 1,826 1 8,842
Other 8 3,210 4,217 1,285 38 8,758
248 24,035 39,378 27,728 32 91,421
Other Costs and Expenses:
Lease expense $ — $ — $ — $ — $ 662 662
Administrative and general 23,484
Depreciation and amortization 7 9,635 8,076 7,143 39 24,900
49,046
Gains on asset dispositions and impairments, net 24,972
Operating income $ 814
As of June 30, 2025
Property and Equipment:
Historical cost $ 948 $ 341,426 $ 296,183 $ 229,920 $ 18,931 $ 887,408
Accumulated depreciation (833 ) (168,742 ) (74,359 ) (114,641 ) (18,690 ) (377,265 )
$ 115 $ 172,684 $ 221,824 $ 115,279 $ 241 $ 510,143
Fleet Counts. The Company’s fleet count as of June 30, 2026 and December 31, 2025 was as follows:
Owned Total
June 30, 2026
FSV 20 20
PSV 15 15
Liftboats 3 3
38 38
December 31, 2025
FSV 21 21
PSV 18 18
Liftboats 5 5
44 44
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Operating Income (Loss)
Americas. For the three and six months ended June 30, 2026 and 2025 the Company’s time charter statistics and direct vessel profit in the Americas were as follows (in thousands, except statistics):
For the Three Months Ended June 30, For the Six Months Ended June 30,
2026 2025 2026 2025
Time Charter Statistics:
Rates Per Day Worked:
FSV $ 16,120 $ 15,188 $ 15,668 $ 14,328
PSV 40,131 22,825 34,334 23,327
Liftboats 16,417 30,230 16,420 32,063
Overall 28,394 24,622 24,728 23,829
Utilization:
FSV 66 % 27 % 58 % 40 %
PSV 58 % 60 % 40 % 51 %
Liftboats 47 % 73 % 37 % 47 %
Overall 58 % 54 % 45 % 47 %
Available Days:
FSV 273 455 630 905
PSV 476 643 1,218 1,363
Liftboats 186 455 456 988
Overall 935 1,553 2,304 3,256
Operating revenues:
Time charter $ 15,518 88 % $ 20,773 92 % $ 25,361 88 % $ 36,161 89 %
Bareboat charter 834 5 % 838 4 % 1,662 6 % 1,546 4 %
Other marine services 1,353 7 % 1,061 4 % 1,635 6 % 2,775 7 %
17,705 100 % 22,672 100 % 28,658 100 % 40,482 100 %
Direct operating expenses:
Personnel 5,322 30 % 8,943 39 % 11,329 40 % 17,370 43 %
Repairs and maintenance 2,252 13 % 2,664 12 % 3,896 14 % 5,217 13 %
Drydocking 680 4 % 4,229 19 % 1,120 4 % 5,826 14 %
Insurance and loss reserves 787 4 % 1,241 5 % 1,210 4 % 2,098 5 %
Fuel, lubes and supplies 1,494 8 % 1,303 6 % 2,569 9 % 2,786 7 %
Other 3,271 19 % 994 4 % 4,655 15 % 1,689 4 %
13,806 78 % 19,374 85 % 24,779 86 % 34,986 86 %
Direct Vessel Profit $ 3,899 22 % $ 3,298 15 % $ 3,879 14 % $ 5,496 14 %
Current Year Quarter compared with Prior Year Quarter
Operating Revenues. Charter revenues were $5.3 million lower in the Current Year Quarter compared with the Prior Year Quarter. Charter revenues were $10.7 million lower due to the disposition of five vessels subsequent to the Prior Year Quarter. Charter revenues were $5.3 million higher due to the repositioning of two vessels with higher than average day rates into the region partially offset by four vessels repositioned out of the region subsequent to the Prior Year Quarter. Charter revenues were $0.1 million higher for the vessels included in the results of this region in both comparative periods (as applicable to each region, the “Regional Core Fleet”), which consists of seven vessels, due to higher utilization of 61% in the Current Year Quarter compared to 51% in the Prior Year Quarter offset by lower average day rates of $20,886 in the Current Year Quarter compared to $24,730 in the Prior Year Quarter. Other marine services were $0.3 million higher primarily due to higher mobilization revenues offset by lower catering revenues. As of June 30, 2026, the Company had no vessels cold-stacked in this region compared with three of 11 owned vessels (three FSVs) as of June 30, 2025.
Direct Operating Expenses. Direct operating expenses were $5.6 million lower in the Current Year Quarter compared with the Prior Year Quarter. Direct operating expenses were $11.1 million lower due to net asset dispositions, $5.4 million higher due to the repositioning of vessels between geographic regions and $0.1 million higher for the Regional Core Fleet primarily due to the timing of drydocking and repair expenditures.
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Current Year Six Months compared with Prior Year Six Months
Operating Revenues. Charter revenues were $10.7 million lower in the Current Year Six Months compared with the Prior Year Six Months. Charter revenues were $15.4 million lower due to the disposition of five vessels subsequent to the Prior Year Six Months and were $0.7 million lower for the Regional Core Fleet, which consists of seven vessels, due to lower average day rates of $21,067 in the Current Year Six Months compared to $23,460 in the Prior Year Six Months offset by higher utilization of 56% in the Current Year Six Months compared to 53% in the Prior Year Six Months. Charter revenues were $5.4 million higher due to the repositioning of three vessels with higher than average day rates into the region partially offset by four vessels repositioned out of the region subsequent to the Prior Year Six Months. Other marine services were $1.1 million lower primarily due to lower catering revenues.
Direct Operating Expenses. Direct operating expenses were $10.2 million lower in the Current Year Six Months compared with the Prior Year Six Months. Direct operating expenses were $18.6 million lower due to net asset dispositions, $8.0 million higher due to the repositioning of vessels between geographic regions and $0.4 million higher for the Regional Core Fleet primarily due to the timing of drydocking and repair expenditures.
Africa and Europe. For the three and six months ended June 30, 2026 and 2025 the Company’s time charter statistics and direct vessel profit in Africa and Europe were as follows (in thousands, except statistics):
For the Three Months Ended June 30, For the Six Months Ended June 30,
2026 2025 2026 2025
Time Charter Statistics:
Rates Per Day Worked:
FSV $ 15,710 $ 15,278 $ 15,445 $ 15,702
PSV 23,467 25,473 23,894 22,825
Overall 18,877 19,140 18,798 18,246
Utilization:
FSV 78 % 84 % 77 % 83 %
PSV 76 % 67 % 78 % 61 %
Overall 77 % 77 % 78 % 74 %
Available Days:
FSV 1,021 940 1,986 1,930
PSV 720 728 1,293 1,448
Overall 1,741 1,668 3,279 3,378
Operating revenues:
Time charter $ 25,248 96 % $ 24,535 97 % $ 47,782 97 % $ 45,370 96 %
Other marine services 1,041 4 % 806 3 % 1,618 3 % 1,658 4 %
26,289 100 % 25,341 100 % 49,400 100 % 47,028 100 %
Direct operating expenses:
Personnel 5,523 21 % 5,515 22 % 10,505 21 % 10,698 23 %
Repairs and maintenance 5,673 22 % 4,646 18 % 8,630 17 % 8,108 17 %
Drydocking 554 2 % 901 4 % 730 1 % 2,142 5 %
Insurance and loss reserves 504 2 % 899 3 % 834 2 % 1,493 3 %
Fuel, lubes and supplies 2,416 9 % 1,714 7 % 3,750 8 % 3,894 8 %
Other 3,154 12 % 2,357 9 % 6,346 13 % 5,084 11 %
17,824 68 % 16,032 63 % 30,795 62 % 31,419 67 %
Direct Vessel Profit $ 8,465 32 % $ 9,309 37 % $ 18,605 38 % $ 15,609 33 %
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Current Year Quarter compared with Prior Year Quarter
Operating Revenues. Charter revenues were $0.7 million higher in the Current Year Quarter compared with the Prior Year Quarter. Charter revenues were $5.0 million higher for the Regional Core Fleet, which consists of 15 vessels, primarily due to higher average day rates of $19,257 in the Current Year Quarter compared to $18,242 in the Prior Year Quarter and higher utilization of 91% in the Current Year Quarter compared to 74% in the Prior Year Quarter. Charter revenues were $3.2 million lower due to the repositioning of four vessels with lower than average day rates into the region partially offset by two vessels repositioning out of the region subsequent to the Prior Year Quarter and $1.1 million lower due to the disposition of one vessel subsequent to the Prior Year Quarter. Other marine services were $0.2 million higher primarily due to higher catering revenues. As of June 30, 2026 and 2025, the Company had no vessels cold-stacked in this region.
Direct Operating Expenses. Direct operating expenses were $1.8 million higher in the Current Year Quarter compared with the Prior Year Quarter. Direct operating expenses were $1.5 million higher due to the repositioning of vessels between geographic regions, $0.8 million higher for the Regional Core Fleet and $0.5 million lower due to net asset dispositions.
Current Year Six Months compared with Prior Year Six Months
Operating Revenues. Charter revenues were $2.4 million higher in the Current Year Six Months compared with the Prior Year Six Months. Charter revenues were $7.6 million higher for the Regional Core Fleet, which consists of 15 vessels, primarily due to higher average day rates of $19,153 in the Current Year Six Months compared to $18,079 in the Prior Year Six Months and higher utilization of 88% in the Current Year Six Months compared to 78% in the Prior Year Six Months. Charter revenues were $4.0 million lower due to the repositioning of three vessels into the region with lower relative utilization offset by three vessels repositioning out of the region and $1.2 million lower due to net asset dispositions subsequent to the Prior Year Six Months.
Direct Operating Expenses. Direct operating expenses were $0.6 million lower in the Current Year Six Months compared with the Prior Year Six Months. Direct operating expenses were $0.5 million lower due to net asset dispositions, $0.2 million lower due to the repositioning of vessels between geographic regions and $0.1 million higher for the Regional Core Fleet primarily due to the timing of drydocking and repair expenditures.
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Middle East and Asia. For the three and six months ended June 30, 2026 and 2025 the Company’s time charter statistics and direct vessel (loss) profit in the Middle East and Asia were as follows (in thousands, except statistics):
For the Three Months Ended June 30, For the Six Months Ended June 30,
2026 2025 2026 2025
Time Charter Statistics:
Rates Per Day Worked:
FSV $ 10,995 $ 9,201 $ 11,008 $ 8,867
PSV 25,500 16,467 25,828 15,790
Liftboats — 37,678 — 40,232
Overall 15,588 15,506 15,490 16,735
Utilization:
FSV 72 % 72 % 77 % 69 %
PSV 79 % 86 % 72 % 80 %
Liftboats — % 53 % — % 76 %
Overall 60 % 73 % 61 % 74 %
Available Days:
FSV 546 540 1,086 1,080
PSV 231 367 501 817
Liftboats 182 182 362 362
Overall 959 1,089 1,949 2,259
Operating revenues:
Time charter $ 8,931 84 % $ 12,365 97 % $ 18,511 89 % $ 28,075 97 %
Other marine services 1,705 16 % 432 3 % 2,343 11 % 724 3 %
10,636 100 % 12,797 100 % 20,854 100 % 28,799 100 %
Direct operating expenses:
Personnel 4,852 46 % 4,511 35 % 9,285 45 % 9,438 33 %
Repairs and maintenance 4,723 45 % 6,338 49 % 10,722 51 % 8,843 31 %
Drydocking 1,727 16 % 13 0 % 2,363 11 % 1,044 4 %
Insurance and loss reserves 1,407 13 % 842 7 % 2,446 12 % 1,544 5 %
Fuel, lubes and supplies 1,392 13 % 1,279 10 % 2,291 11 % 2,162 7 %
Other 953 9 % 1,104 9 % 1,576 8 % 1,985 7 %
15,054 142 % 14,087 110 % 28,683 138 % 25,016 87 %
Direct Vessel (Loss) Profit $ (4,418 ) (42 )% $ (1,290 ) (10 )% $ (7,829 ) (38 )% $ 3,783 13 %
Current Year Quarter compared with Prior Year Quarter
Operating Revenues. Charter revenues were $3.4 million lower in the Current Year Quarter compared with the Prior Year Quarter. Charter revenues were $1.8 million lower due to the disposition of two vessels subsequent to the Prior Year Quarter. Charter revenues were $1.6 million lower for the Regional Core Fleet, which consists of ten vessels, due to lower utilization of 63% in the Current Year Quarter compared to 71% in the Prior Year Quarter and lower average day rates of $15,603 in the Current Year Quarter compared to $17,009 in the Prior Year Quarter. Other marine services were $1.3 million higher primarily due to $1.6 million for recharges of certain insurance and labor costs associated with the current Iran conflict offset by a $0.3 million decrease in catering revenues and management fees. As of June 30, 2026 and 2025, the Company had no vessels cold-stacked in this region.
Direct Operating Expenses. Direct operating expenses were $1.0 million higher in the Current Year Quarter compared with the Prior Year Quarter. Direct operating expenses were $2.0 million higher for the Regional Core Fleet primarily due to the timing of certain drydocking and repair expenditures, $0.1 million higher due to the repositioning of vessels between geographic regions and $1.1 million lower due to net asset dispositions.
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Current Year Six Months compared with Prior Year Six Months
Operating Revenues. Charter revenues were $9.6 million lower in the Current Year Six Months compared with the Prior Year Six Months. Charter revenues were $6.4 million lower for the Regional Core Fleet, which consists of nine vessels, due to lower utilization of 64% in the Current Year Six Months compared to 76% in the Prior Year Six Months and lower average day rates of $16,290 in the Current Year Six Months compared to $18,784 in the Prior Year Six Months. Charter revenues were $4.5 million lower due to the disposition of two vessels subsequent to the Prior Year Six Months and $1.3 million higher due to the repositioning of one vessel into the region subsequent to the Prior Year Six Months. Other marine services were $1.6 million higher primarily due to the recharges of certain insurance and labor costs associated with the current Iran conflict.
Direct Operating Expenses. Direct operating expenses were $3.7 million higher in the Current Year Six Months compared with the Prior Year Six Months. Direct operating expenses were $6.1 million higher for the Regional Core Fleet primarily due to the timing of certain drydocking and repair expenditures, $0.3 million higher due to the repositioning of vessels between geographic regions and $2.7 million lower due to net asset dispositions.
Other Operating Expenses
Lease expense. Leased-in equipment expense for the Current Year Quarter and Current Year Six Months was nearly flat compared to the Prior Year Quarter and Prior Year Six Months.
Administrative and general. Administrative and general expenses for the Current Year Quarter were $0.3 million higher compared to the Prior Year Quarter primarily due to increases in professional fees offset by decreases in wages and benefits expenses. Administrative and general expenses for the Current Year Six Months were $1.2 million lower compared to the Prior Year Six Months primarily due to decreases in wages and benefits expenses partially offset by increases in professional fees.
Depreciation and amortization. Depreciation and amortization expense for the Current Year Quarter and Current Year Six Months were $1.4 million lower and $3.9 million lower compared to the Prior Year Quarter and Prior Year Six Months due to net fleet changes.
Gains (Losses) on Asset Dispositions and Impairments, Net. During the Current Year Quarter, the Company sold two PSVs, two liftboats and one FSV, each previously classified as held for sale, and other equipment for net cash proceeds of $44.7 million, after transaction costs, for a gain of $31.3 million. During the Prior Year Quarter, the Company sold one FSV and two PSVs, each previously classified as held for sale, and other equipment, not previously classified as held for sale, for net cash proceeds of $31.6 million, after transaction costs, for a gain of $19.2 million.
During the Current Year Six Months, the Company sold three PSVs, two liftboats and one FSV, previously classified as held for sale, and other equipment for net cash proceeds of $57.5 million, after transaction costs, and a gain of $38.8 million. During the Prior Year Six Months, the Company sold one FSV and two PSVs, each previously classified as held for sale, as well as one liftboat and other equipment, each not previously classified as held for sale, for net cash proceeds of $40.1 million, after transaction costs, and a gain of $25.0 million.
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Other Income (Expense), Net
For the three and six months ended June 30, 2026 and 2025, the Company’s other income (expense) was as follows (in thousands):
Three Months Ended June 30, Six Months Ended June 30,
2026 2025 2026 2025
Other Income (Expense):
Interest income $ 443 $ 372 $ 934 $ 808
Interest expense (8,244 ) (8,844 ) (16,483 ) (18,430 )
Derivative gains, net — 87 — 212
Foreign currency losses, net (981 ) (2,119 ) (503 ) (3,315 )
Other, net 4 — 4 —
$ (8,778 ) $ (10,504 ) $ (16,048 ) $ (20,725 )
Interest income. Interest income for the Current Year Quarter and Current Year Six Months compared with the Prior Year Quarter and Prior Year Six Months was nearly flat.
Interest expense. Interest expense was lower in the Current Year Quarter and Current Year Six Months compared with the Prior Year Quarter and Prior Year Six Months primarily due to lower outstanding debt obligations on the 2024 SMFH Credit Facility (which bears interest at a fixed rate of 10.30% per annum).
Derivative gains (losses), net. Net derivative gains for the Current Year Quarter and Current Year Six Months compared with the Prior Year Quarter and Prior Year Six Months decreased due to the Company no longer having an open forward currency exchange contract.
Foreign currency losses, net. Net foreign currency losses for the Current Year Quarter and Current Year Six Months compared with the Prior Year Quarter and Prior Year Six Months decreased primarily due to the strengthening of the U.S. dollar in relation to the pound sterling.
Income Tax Expense
During the six months ended June 30, 2026, the Company’s effective income tax rate of 95.4% was primarily due to foreign taxes paid that are not creditable against U.S. income taxes and foreign losses for which there is no benefit in the U.S. for income tax purposes.
Equity in Earnings of 50% or Less Owned Companies
Equity in earnings of 50% or less owned companies for the Current Year Quarter compared with the Prior Year Quarter were $0.2 million lower and earnings for the Current Year Six Months compared with the Prior Year Six Months were $1.0 million lower due to the following changes in equity earnings (in thousands):
Three Months Ended June 30, Six Months Ended June 30,
2026 2025 2026 2025
SEACOR Marine Arabia $ 118 $ 355 $ 254 $ 1,064
Other (62 ) (137 ) (148 ) 43
$ 56 $ 218 $ 106 $ 1,107
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Liquidity and Capital Resources
General
The Company’s ongoing liquidity requirements arise primarily from working capital needs, capital commitments and its obligations to service outstanding debt and comply with covenants under its 2024 SMFH Credit Facility. The Company may use its liquidity to fund capital expenditures, make acquisitions or to make other investments. Sources of liquidity are cash balances, cash flows from operations and sales under the Company’s at-the-market offering program entered into on February 7, 2025 (the “ATM Program”), which has approximately $25.0 million of remaining sales capacity as of June 30, 2026. From time to time, the Company may secure additional liquidity through asset sales or the issuance of debt, shares of Common Stock or common stock of its subsidiaries, preferred stock or a combination thereof.
As of June 30, 2026 and June 30, 2025, the Company held balances of cash, cash equivalents and restricted cash totaling $93.0 million and $51.6 million, respectively.
As of June 30, 2026, the Company had outstanding debt of $320.2 million, net of debt discount and issue costs. The Company’s contractual long-term debt maturities as of June 30, 2026, are as follows (in thousands):
Actual
Remainder 2026 $ 15,000
2027 31,397
2028 31,397
2029 246,106
2030 —
Years subsequent to 2030 —
$ 323,900
As of June 30, 2026, the Company had unfunded capital commitments of $39.4 million consisting of $37.5 million in respect of the construction of two PSVs, $1.7 million in respect of two hybrid battery power systems and $0.2 million for miscellaneous vessel equipment. Of the unfunded capital commitments, $21.2 million is payable during 2026, $16.5 million is payable during 2027 and the remainder is payable during 2028. As of June 30, 2026, $37.0 million remained in a restricted account designated to make payments on the construction of the two PSVs, of which $11.3 million were deposited during the first quarter of 2026 from the sale of one PSV, $23.8 million was deposited during the second quarter of 2026 from the sale of two PSVs and one FSV, and the remainder from prior vessel sales, all in accordance with the terms of the 2024 SMFH Credit Facility as previously described in the 2025 Annual Report. The funds deposited in the restricted account will be used to fully fund the remaining payments for the construction of the two PSVs, without the need for any additional proceeds from Tranche B of the 2024 SMFH Credit Facility, of which $16.4 million was drawn as of June 30, 2026. During the second quarter of 2026, the Company exercised its right to cancel the remaining borrowing capacity of $24.6 million of this tranche in accordance with the terms of the 2024 SMFH Credit Facility.
Summary of Cash Flows
The following is a summary of the Company’s cash flows for the six months ended June 30, 2026 and 2025 (in thousands):
Six Months Ended June 30,
2026 2025
Cash flows provided by or (used in):
Operating Activities $ (28,311 ) $ (13,543 )
Investing Activities 44,998 9,056
Financing Activities (16,764 ) (20,098 )
Effects of Exchange Rate Changes on Cash, Restricted Cash and Cash Equivalents 1 —
Net Change in Cash, Restricted Cash and Cash Equivalents $ (76 ) $ (24,585 )
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Operating Activities
Cash flows used in operating activities was $28.3 million in the Current Year Six Months, an increase of $14.8 million compared to $13.5 million in the Prior Year Six Months due to changes in working capital and a decrease in days worked primarily due to net fleet changes. The components of cash flows provided by and/or used in operating activities during the Current Year Six Months and Prior Year Six Months were as follows (in thousands):
Six Months Ended June 30,
2026 2025
DVP:
Americas $ 3,879 $ 5,496
Africa and Europe 18,605 15,609
Middle East and Asia (7,829 ) 3,783
Operating, leased-in equipment 83 (364 )
Administrative and general (excluding provisions for bad debts and amortization of share awards) (19,661 ) (20,967 )
Other, net (excluding non-cash losses) 4 —
Dividends received from 50% or less owned companies — 3,199
(4,919 ) 6,756
Changes in operating assets and liabilities before interest and income taxes (8,503 ) (2,325 )
Cash settlements on derivative transactions, net — (373 )
Interest paid, excluding capitalized interest (1) (15,925 ) (19,504 )
Interest received 934 808
Income taxes refunded, net 102 1,095
Total cash flows used in operating activities $ (28,311 ) $ (13,543 )
(1)During the Current Year Six Months and the Prior Year Six Months capitalized interest paid and included in the purchase of property and equipment was $2.1 million and $0.8 million, respectively.
For a detailed discussion of the Company’s financial results for the reported periods, see “Consolidated Results of Operations” included above. Changes in operating assets and liabilities before interest and income taxes are the result of the Company’s working capital requirements.
Investing Activities
During the Current Year Six Months, net cash provided by investing activities was $45.0 million, primarily as a result of the following:
•capital expenditures were $12.5 million; and
•the Company sold three PSVs, two liftboats and one FSV, each previously classified as held for sale, and other equipment for net cash proceeds of $57.5 million, after transaction costs, for a gain of $38.8 million.
During the Prior Year Six Months, net cash used in investing activities was $9.1 million, primarily as a result of the following:
•capital expenditures were $31.0 million; and
•the Company sold one FSV and two PSVs, each previously classified as held for sale, as well as one liftboat and other equipment, each not previously classified as held for sale, for net cash proceeds of $40.1 million, after transaction costs, for a gain of $25.0 million.
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Financing Activities
During the Current Year Six Months, net cash used in financing activities was $16.8 million, primarily as a result of the following:
•the Company made scheduled payments on long-term debt and other obligations of $15.0 million;
•the Company made payments on tax withholdings for restricted stock vesting of $1.8 million.
During the Prior Year Six Months, net cash used in financing activities was $20.1 million primarily as a result of the following:
•the Company made scheduled payments on long-term debt and other obligations of $12.5 million;
•the Company received proceeds from the issuance of long-term debt of $7.7 million;
•the Company made payments for the repurchase of Common Stock of $7.1 million;
•the Company made payments for the repurchase of Warrants of $6.7 million; and
•the Company made payments on tax withholdings for restricted stock vesting of $1.5 million.
Short and Long-Term Liquidity Requirements
The Company believes that a combination of cash balances on hand, cash generated from operating activities and access to the credit and capital markets, including the $25.0 million in remaining sales capacity under the ATM Program, will provide sufficient liquidity to meet its obligations, including to support its capital expenditures, working capital needs, debt service requirements and covenant compliance over the short to long term. With respect to the remaining $37.5 million in capital expenditures related to the construction of two PSVs, $37.0 million of proceeds from vessel sales remained in a restricted account designated for these capital expenditures as of June 30, 2026. The Company continually evaluates possible acquisitions and dispositions of certain businesses and assets. The Company’s sources of liquidity may be impacted by the general condition of the markets in which it operates and the broader economy as a whole, which may limit its access to or the availability of the credit and capital markets on acceptable terms. Management continuously monitors the Company’s liquidity and compliance with covenants in its 2024 SMFH Credit Facility.
Debt Securities and Credit Agreements
For a discussion of the Company’s debt securities and credit agreements, see “Note 4. Long-Term Debt” in the unaudited consolidated financial statements included in Part I. Item 1. “Financial Statements” elsewhere in this Quarterly Report on Form 10-Q and in “Note 5. Long-Term Debt” in the Company’s audited consolidated financial statements included in its 2025 Annual Report. There have been no material changes to the Company’s long-term debt during the period.
Future Cash Requirements
For a discussion of the Company’s future cash requirements, refer to “Management’s Discussion and Analysis of Financial Condition and Results of Operations - Liquidity and Capital Resources” in the Company’s 2025 Annual Report. There has been no material change in the Company’s future cash requirements since our fiscal year ended December 31, 2025, except as described in “Results of Operations - Liquidity and Capital Resources” in this Quarterly Report on Form 10-Q.
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Contingencies
For a discussion of the Company’s contingencies, see “Note 9. Commitments and Contingencies” in the unaudited consolidated financial statements included in Part I. Item 1. “Financial Statements” elsewhere in this Quarterly Report on Form 10-Q.
42