Saipem reported higher first-half 2026 revenue and EBITDA but lowered its full-year EBITDA guidance to reflect additional costs associated with the conflict in the Middle East, while maintaining its revenue and cash flow forecasts.
The Italian engineering and construction company posted first-half revenue of €7.35 billion, up 1.9% from a year earlier, while adjusted EBITDA increased 9.4% to €836 million. Adjusted net profit came in at €131 million, compared with €140 million in the first half of 2025.
Saipem said it incurred approximately €70 million in additional logistical, operational and personnel safety costs related to the conflict in the Middle East during the first six months of the year. Despite those challenges, the company said it maintained operational continuity across all projects in the region and updated its guidance to reflect both the costs already incurred and an estimate of further costs that could arise in the second half of the year.
The company now expects adjusted EBITDA of about €1.75 billion in 2026 while reaffirming revenue guidance of approximately €15.5 billion. It also maintained its forecasts for operating cash flow after lease repayments of around €1.0 billion and free cash flow of about €600 million, citing improved project cash conversion and working capital management. Saipem said any potential recovery of the additional Middle East costs from customers has not been included in its guidance because discussions are ongoing.
Commercial activity strengthened during the period, with new contract awards totaling €5.74 billion in the first half, up 33% year over year. Saipem said it secured a further €2.3 billion in contracts during July and expects total order intake for 2026 to exceed that of 2025. Its backlog stood at €29.86 billion at the end of June, or €29.96 billion including non-consolidated companies.
The company ended the first half with a pre-IFRS 16 net cash position of €1.08 billion, compared with €999 million at the end of 2025. Including lease liabilities, net debt improved to €109 million from €272 million at year-end despite €330 million in dividend payments made in May.
Saipem’s results reflect continued demand for engineering and construction services across the energy sector, although ongoing geopolitical tensions in the Middle East continue to increase operating costs for contractors with projects in the region.
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