Saipem Maintains Revenue Outlook but Lowers EBITDA Guidance Amid Middle East Conflict Costs
Italian engineering firm Saipem reported higher first-half 2026 revenue of €7.35 billion and adjusted EBITDA of €836 million, despite incurring an additional €70 million in costs due to the conflict in the Middle East. The company has maintained its full-year revenue guidance at approximately €15.5 billion but reduced its 2026 adjusted EBITDA forecast from previous expectations to about €1.75 billion. Saipem cited improved project cash conversion and working capital management as reasons for maintaining operating cash flow after lease repayments of around €1.0 billion and free cash flow near €600 million. The company secured new contract awards totaling €5.74 billion in the first half, a 33% increase year-over-year, with an additional €2.3 billion added in July. Despite ongoing geopolitical tensions increasing operational costs for contractors active in the Middle East region, Saipem emphasized it maintained project continuity and has not included potential customer reimbursements of these extra expenses into its guidance due to ongoing discussions.