Gulf Marine Services Reports 10% Revenue Growth and Significant Debt Reduction in 9M 2025 Results

Gulf Marine Services 9M 2025: double-digit revenue growth, faster deleveraging, and guidance intact

Gulf Marine Services (GMS) has posted a tidy set of unaudited numbers for the nine months to 30 September 2025. Revenue is up 10%, net debt is down 22%, and financing costs have fallen sharply. The only soft spot is utilisation, which dipped as the fleet cycled through maintenance and the Gulf conflict disrupted operations in June.

For me, the punchline is simple: higher day rates are doing the heavy lifting, EBITDA is rising, and the balance sheet is de-risking faster than expected – all while management reiterates guidance and the shareholder rewards programme remains on track.

Key numbers at a glance

Metric	9M 2025	9M 2024	% Change
Revenue (US$’m)	138.3	126.1	+10%
Adjusted EBITDA (US$’m)	81.5	76.1	+7%
Adjusted EBITDA margin	59%	60%	–
Net debt (US$’m)	172.2	221.2	-22%
Net leverage ratio	1.63:1	2.31:1	-30%
Utilisation of vessels	88%	92%	-4%
Average day rates (US$’k)	36.0	32.8	+10%
Backlog at period end (US$’m)	457.5	465.5	-2%
Finance expenses (US$’m)	11.6	17.9	-35%

Top line momentum: day rates up, utilisation softer

Day rates did the heavy lifting

Revenue rose 10% to US$ 138.3 million, mainly thanks to a 10% increase in average day rates to US$ 36.0k. GMS also operated one additional leased vessel for five months, adding incremental capacity. In short, pricing power is evident across the fleet.

Utilisation dipped for planned and external reasons

Utilisation eased to 88% from 92%. Management flags planned maintenance, drydock time, new contract preparation, and geopolitical disruption in the Gulf during June 2025 as the causes. That mix suggests the dip is more timing than structural, though it does cap how much of the rate improvement flows through in-period.

Profitability and costs: sturdy margins, cheaper debt

Adjusted EBITDA rose with a steady margin

Adjusted EBITDA increased 7% to US$ 81.5 million with a 59% margin, just a touch below 60% a year ago. For clarity, Adjusted EBITDA is operating profit before interest, tax, depreciation and amortisation, adjusted for specific items, and it is a common proxy for cash generation in capital-heavy businesses.

Finance expenses fell 35% after refinancing

Finance expenses dropped to US$ 11.6 million from US$ 17.9 million, helped by lower gross debt, lower interest rates, and the successful refinancing of the loan facility on 30 December 2024, which reduced the interest margin. That is a powerful tailwind to free cash flow and deleveraging.

Balance sheet: deleveraging ahead of plan

Net debt fell to US$ 172.2 million, down from US$ 201.2 million at 31 December 2024 and US$ 221.2 million in September 2024. The net leverage ratio improved to 1.63:1 from 2.0x at year-end 2024 and 2.31x a year ago. Net leverage compares net debt to Adjusted EBITDA – the lower the number, the stronger the balance sheet.

This is meaningful. Lower leverage reduces risk, cuts interest costs, and gives GMS more optionality for contract wins, maintenance cycles, and potential capital returns under its stated policy.

Backlog and visibility: broadly stable book

Backlog at period end was US$ 457.5 million, down 2% from US$ 465.5 million. Backlog is the contracted revenue pipeline. The slight dip is not alarming given the utilisation pause and still-rising day rates, but it is one to watch into year-end and early 2026 tendering.

Outlook and shareholder rewards

Guidance reaffirmed and nudged up

GMS says it remains highly confident in achieving the increased 2025 Adjusted EBITDA guidance of US$ 101 – 109 million (previously US$ 100 – 108 million). For 2026, the Group continues to target Adjusted EBITDA of US$ 105 – 115 million. That is consistent with rates holding up and utilisation normalising post maintenance and disruption.

Rewards policy on track

In line with the policy announced on 01 August 2024, GMS is on track to declare shareholder rewards, based on the current performance and financial visibility. The CFO notes that the improving EBITDA and lower leverage support execution of this programme in the coming months.

Operational context: one-offs absorbed

Management highlights that 2025 has included adverse one-offs, including a Saudi tax judgment, warrants exercise, and the June conflict in the Gulf. Despite these, guidance is intact and the balance sheet has strengthened. That resilience matters for confidence in the 2026 target range.

Why this matters for investors

• Pricing power: A 10% rise in day rates to US$ 36.0k is the key driver of revenue and EBITDA growth. If utilisation snaps back, there is further operating leverage.
• De-risking: Net leverage of 1.63:1 and finance expenses down 35% reduce financial risk and improve free cash flow.
• Capital returns: The company is on track to declare shareholder rewards under its stated policy, supported by rising EBITDA and falling debt.
• Execution watchouts: Utilisation at 88% and a slightly lower backlog (-2%) show there is still execution work ahead, particularly after planned maintenance and geopolitical disruption.

Josh’s take: a solid set with clear catalysts

Overall, this is a positive update. The combination of higher day rates, firm margins, and meaningfully lower debt is exactly what you want to see in a cyclical, capital-intensive business. Guidance is credible given nine-month delivery, and the financing tailwind is material.

On the cautious side, utilisation needs to normalise and backlog growth would bolster 2026 visibility. But with net leverage down to 1.63:1 and finance costs sharply lower, GMS has more room to navigate choppier waters and still fund shareholder rewards. On balance, a constructive read-across for the rest of 2025 and into 2026.