Saipem Slashes 2026 Earnings Forecast Amid Middle East Crisis

Italian oil and gas contractor Saipem has revised its earnings guidance for 2026 due to increased costs related to the Middle East crisis. The company now expects its adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) to be around €1.75 billion this year, down from a previous estimate of €1.9 billion.

The de-consolidation of Saipem's shallow-water drilling business, which was recently sold for $285 million, also impacted the full-year estimate. The company incurred approximately €70 million in first-half expenses on enhanced personnel security and overcoming logistical issues amid the Iran war, with further costs anticipated in H2.

Saipem confirmed a previous €1 billion forecast for its full-year operating cash flow but missed analyst consensus for Q2 adjusted EBITDA, which fell nearly 3% to €402 million.