Gulf Marine Services (LSE:GMS) delivered its fifth straight year of double-digit growth in 2025, with revenue rising 12% to $188.1 million and adjusted EBITDA also increasing 12% to $112.9 million. Performance was driven by higher day rates and the addition of a leased large vessel, although overall fleet utilisation declined. Adjusted net profit reached $41.8 million, while leverage improved to 1.39x following a reduction in net bank debt. The company’s backlog also expanded significantly to $606 million.
Despite these gains, reported net profit was affected by impairment charges and a higher tax burden. The board opted not to declare a dividend, citing rising geopolitical tensions in the Gulf region that have disrupted operations and created uncertainty around near-term conditions. As a result, the company is reassessing its 2026 guidance while continuing to invest in fleet expansion to support longer-term growth.
From an investment perspective, Gulf Marine Services benefits from strong revenue momentum, solid margins, and healthy cash generation, alongside a relatively low valuation based on earnings. Technical indicators also point to a sustained upward trend in the share price. However, elevated momentum signals, such as high RSI and stochastic readings, suggest the stock may be overbought, increasing the likelihood of a short-term pullback.
More about Gulf Marine Services
Gulf Marine Services is a leading operator of self-propelled, self-elevating support vessels serving the offshore energy sector, with a primary focus on the Gulf and broader Middle East. The company operates a fleet of 13 owned vessels, supplemented by leased units, providing critical support for oil and gas operations. Its business is underpinned by high utilisation rates, improving day rates, and a growing backlog of multi-year contracts.
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