Saipem Slashes 2026 Earnings Forecast Amid Gulf Conflict

Saipem has reduced its 2026 core earnings forecast, causing its shares to drop by over 8%. Disruptions from the Gulf conflict have increased costs and complicated logistics, challenging the company's operations and finances. However, Saipem remains confident about recovering some costs through customer discussions and ongoing repairs.

Saipem slashed its 2026 core earnings forecast on Tuesday, prompting an over 8% drop in its shares. The Italian oilfield services firm cites cost overruns and logistical challenges intensified by the Gulf conflict as reasons for the reduced forecast.

The company, rooted in Milan, has revised its adjusted EBITDA to €1.75 billion for the year, down from the earlier €1.9 billion prediction. Although initially thought to benefit from the United States-Iran conflict, repair demands have not materialized, leading to operational setbacks and customer caution in spending.

While Baker Hughes, Saipem's U.S. counterpart, foresees a slight decline in global oil and gas spending, Saipem anticipates continued cost recovery talks with its clientele. The firm remains active in the Gulf, managing crossings and gear shipments despite disruptions.