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Is SBM Offshore (ENXTAM:SBMO) A Bargain As Raised Guidance Lifts Valuation Questions?

Simply Wall St · 2d ago

Why SBM Offshore’s latest earnings matter for shareholders

SBM Offshore (ENXTAM:SBMO) has put its first half 2026 performance in focus after the delivery and sale of FPSO ONE GUYANA, new FPSO awards with Petrobras and ExxonMobil Guyana, and higher full year guidance.

See our latest analysis for SBM Offshore.

These earnings and contract wins have arrived alongside sharp share price moves, with the stock up 11.9% on the day, a 30 day share price return of 11.6%, and a 1 year total shareholder return of 66.1%. This suggests momentum has been building over both the short and long term.

If SBM Offshore’s recent jump has your attention, it might be a good moment to see what else is moving in related energy infrastructure. Start by scanning 36 power grid technology and infrastructure stocks

After SBM Offshore’s strong contract pipeline, higher guidance and a 66.1% 1 year return, the key issue now is whether the current price still offers a favourable tradeoff between upside and risk. The valuation numbers give the next clue.

Most Popular Narrative: 21.1% Undervalued

The most followed narrative pegs SBM Offshore’s fair value at €44.50 per share against a last close of €35.10, which frames the latest earnings reaction in a very different light.

SBM ended 2025 with US$31.1bn of Directional backlog and US$8.4bn of Directional net cash backlog. That backlog gives visibility out to 2050, which is unusual for a company priced like a cyclical contractor. The market appears to be applying a broad oil-services discount, but SBM’s business is partly closer to a long-duration infrastructure cash-flow model. The cash flows are not risk-free, because construction, timing, client decisions and geopolitics still matter, but the share price near €30.78 does not appear to fully reflect the value of already-contracted cash generation.

Read the complete narrative.

The narrative leans heavily on contracted backlog, projected cash conversion and margins rather than headline profit. It blends long dated FPSO cash flows with a specific return hurdle and compares that outcome against today’s share price. It also raises the question of which growth, margin and discounting assumptions sit underneath that €44.50 figure and how they compare with current analyst forecasts.

Result: Fair Value of €44.50 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, SBM Offshore’s narrative can shift quickly if large FPSO projects run into cost or timing problems, or if concentrated exposure to Guyana and Brazil increases.

Find out about the key risks to this SBM Offshore narrative.

Next Steps

If this SBM Offshore story feels balanced between promise and concern, use that tension to move quickly and check the detail for yourself. A good place to start is by reviewing the 4 key rewards and 3 important warning signs

Looking for more investment ideas beyond SBM Offshore?

If SBM Offshore has sharpened your focus, do not stop here. Broaden your watchlist now with fresh ideas that might fit your goals just as well.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.