v3.26.3
Segment Information
 6 Months Ended 12 Months Ended
Jun. 30, 2026
Dec. 31, 2025
Segment Reporting [Line Items]    
Segment Information
18. Segment information
Operating segments are defined as components of an entity for which separate financial information is available and evaluated on a regular basis by the Chief Operating Decision Maker (“CODM”) to allocate resources and assess performance. As of June 30, 2026 and 2025, the Company had two operating segments, ESS and PCS. The Company has identified its reportable segments based on the nature of the products and services, markets served and pricing and go-to-market strategies.
 
•  
ESS is a supplier of drilling solutions and complete topside drilling packages and services to both onshore and offshore oil and gas customers. Key product offerings consist of overhaul, equipment installation and commissioning, services account management, 24/7 technical support, logistics, engineering upgrades, spare parts supply and training and condition-based maintenance. The ESS segment is derived from the acquisition of MHWirth AS.
 
•  
PCS is a supplier of integrated drilling products and services. Key product offerings consist of blowout preventer systems, controls and drilling riser equipment, spare parts supply for rig operations and maintenance programs, overhaul and recertification and reactivation of rigs and technical and operational rig support. The PCS segment is derived from the acquisition of Subsea Drilling Systems.
In addition to its reportable segments, the Company has corporate operations (Headquarters) which include general corporate expenses. Headquarters includes certain corporate stewardship items discussed below necessary to reconcile the reportable segments to the Company’s total amounts.
The CODM, who is the Company’s Chief Executive Officer, uses segment operating income as the primary financial measure to evaluate segment performance. Segment operating income is defined as income before taxes (excluding certain corporate stewardship costs which are not allocable to the segments, such as legal, certain corporate finance functions and centrally managed initiatives, other non-operating items, and depreciation and amortization related to certain long-lived assets, including the headquarters office space), net other operating expenses (income), net foreign currency gain (loss), net other non-operating income (loss), and
 
net interest income (expense). Inter-segment pricing is determined on an arm’s length basis. The CODM uses segment operating income in the budget and forecasting process and to monitor budget versus actual results, which are used in assessing the performance of the segments and to allocate resources to the segments. Segment assets are not reported to, or used by, the CODM to allocate resources to or assess performance of the Company’s segments.
The following table presents the reconciliation of reportable segment revenues:
 
     
    2026     2025  
(in thousands)   ESS     PCS     Total     ESS     PCS     Total  
Three Months Ended June 30,
  
Revenues from external customers
   $ 97,660     $ 73,162     $ 170,822     $ 125,547     $ 77,910     $ 203,457  
Intersegment revenue
     2,766       2,265       5,031       2,690       3,541       6,231  
 
 
 
  
Total segment revenue
   $ 100,426     $ 75,427     $ 175,853     $ 128,237     $ 81,451     $ 209,688  
Elimination of intersegment revenue
         (5,031 )          (6,231 ) 
 
 
 
  
Total consolidated revenue
       $ 170,822         $ 203,457  
 
 
 
  
Six Months Ended June 30,
            
Revenues from external customers
   $ 198,350     $ 143,793     $ 342,143     $ 233,088     $ 168,799     $ 401,887  
Intersegment revenue
     8,015       5,884       13,899       4,808       6,773       11,581  
 
 
 
  
Total segment revenue
   $ 206,365     $ 149,677     $ 356,042     $ 237,896     $ 175,572     $ 413,468  
Elimination of intersegment revenue
         (13,899 )          (11,581 ) 
 
 
 
  
Total consolidated revenue
       $ 342,143         $ 401,887  
 
  
The following table presents the reconciliation of segment performance:
 
     
     Three months ended June 30, 2026     Three months ended June 30, 2025  
(in thousands)    ESS     PCS     Total     ESS     PCS     Total  
Revenues from external customers(a)
    $ 97,660     $ 73,162       $ 125,547     $ 77,910    
Cost of sales
      (64,585 )      (44,939 )        (94,696 )      (56,849 )   
Selling, general and administrative expenses
      (29,868 )      (27,536 )        (18,166 )      (8,656 )   
Research and development expenses
      (442 )      (329 )        (721 )      72    
Restructuring and other expenses(b)
      (261 )      (4,743 )        (1,072 )      —    
  
 
 
  
Total segment operating income (loss)
    $ 2,504     $ (4,385 )    $ (1,881 )    $ 10,892     $ 12,477     $ 23,369  
  
 
 
  
Unallocated corporate costs(c)
          (2,950 )          (2,619 ) 
Foreign currency gain (loss)
          (591 )          2,948  
Other non-operating income (loss)
          (158 )          334  
Interest expense
          (3,945 )          (9,106 ) 
  
 
 
  
Income (loss) before income taxes
        $ (9,525 )        $ 14,926  
 
  
 
     
   
Six months ended June 30, 2026
    
Six months ended June 30, 2025
  
(in thousands)
  
ESS
    
PCS
    
Total
    
ESS
    
PCS
    
Total
  
Revenues from external customers
(a)
   $ 198,350     $ 143,793       $ 233,088     $ 168,799    
Cost of sales
     (132,845 )      (93,312 )        (170,410 )      (123,018 )   
Selling, general and administrative expenses
     (45,376 )      (43,890 )        (38,064 )      (23,245 )   
Research and development expenses
     (685 )      (500 )        (1,235 )      (445 )   
Restructuring and other expenses
(b)
     (261 )      (4,743 )        (3,951 )      (392 )   
 
 
 
  
Total segment operating income (loss)
  
$
19,183
 
  
$
1,348
 
  
$
20,531
 
  
$
19,428
 
  
$
21,699
 
  
$
41,127
 
 
 
 
  
Unallocated corporate costs
(c)
         (6,199 )          (4,370 ) 
Foreign currency gain (loss)
         (2,819 )          6,941  
Other
non-operating
income (loss)
         (413 )          647  
Interest expense
         (10,898 )          (18,285 ) 
 
 
 
  
Income (loss) before income taxes
      
$
202
 
      
$
26,060
 
 
  
 
(a)   As the CODM does not regularly review intersegment revenue, it is excluded from the determination of total segment operating income. The CODM uses revenue from external customers to assess performance and allocate resources.
(b)   Restructuring and other expenses consist of severance costs primarily related to workforce reductions and impairment of
right-of-use
assets.
(c)   Unallocated corporate costs include certain centralized corporate stewardship costs that are not allocable to the segments and are included in Selling, general and administrative expenses in our condensed consolidated statements of income.
 
HMH Holding BV And Subsidiaries [Member]    
Segment Reporting [Line Items]    
Segment Information  
19. Segment information and geographic data
Operating segments are defined as components of an entity for which separate financial information is available and evaluated on a regular basis by the Chief Operating Decision Maker (“CODM”) to allocate resources and assess performance. As of December 31, 2025 and 2024, the Company had two operating segments, ESS and PCS. The Company has identified its reportable segments based on the nature of the products and services, markets served and pricing and go-to-market strategies.
 
•  
ESS is a supplier of drilling solutions and complete topside drilling packages and services to both onshore and offshore oil and gas customers. Key product offerings consist of overhaul, equipment installation and commissioning, services account management, 24/7 technical support, logistics, engineering upgrades, spare parts supply and training and condition-based maintenance. The ESS segment is derived from the acquisition of MHWirth AS.
 
•  
PCS is a supplier of integrated drilling products and services. Key product offerings consist of BOP systems, controls and drilling riser equipment, spare parts supply for rig operations and maintenance programs, overhaul and recertification and reactivation of rigs and technical and operational rig support. The PCS segment is derived from the acquisition of Subsea Drilling Systems.
In addition to its reportable segments, the Company has corporate operations (Headquarters) which include general corporate expenses. Headquarters includes certain corporate stewardship items discussed below necessary to reconcile the reportable segments to the Company’s total amounts.
The CODM, who is the company’s Chief Executive Officer, uses segment operating income as the primary financial measure to evaluate segment performance. Segment operating income is defined as income before taxes (excluding certain corporate stewardship costs which are not allocable to the segments, such as legal, certain corporate finance functions and centrally managed initiatives, other non-operating items, and depreciation and amortization related to certain long-lived assets, including the headquarters office space), net other operating expenses (income), net foreign currency gain/(loss), net other non-operating income (loss), and net interest income (expense). Inter-segment pricing is determined on an arm’s length basis. The CODM uses segment operating income in the budget and forecasting process and to monitor budget versus actual results, which are used in assessing the performance of the segments and to allocate resources to the segments.
Segment assets are not reported to, or used by, the CODM to allocate resources to or assess performance of the Company’s segments.
 
The following table presents the reconciliation of reportable segment revenue for the year ended December 31, 2025:
 
       
      ESS      PCS      Total  
Revenue from external customers
    $ 438,553      $ 383,201      $ 821,754  
Intersegment revenue
      15,252        11,667        26,919  
  
 
 
  
Total segment revenue
    $ 453,805      $ 394,868      $ 848,673  
Elimination of intersegment revenue
            (26,919 ) 
        
 
 
  
Total consolidated revenue
          $ 821,754  
 
  
The following table presents the reconciliation of segment performance for the year ended December 31, 2025:
 
       
      ESS     PCS     Total  
Revenue from external customers(a)
    $ 438,553     $ 383,201    
Cost of sales
      (303,314 )      (237,721 )   
Selling, general and administrative expenses(b)
      (71,121 )      (46,142 )   
Research and development expenses
      (2,165 )      (648 )   
Restructuring and other expenses(c)
      (4,239 )      (392 )   
Depreciation and amortization(b)
      (10,218 )      (27,012 )   
  
 
 
  
Total segment operating income
    $ 47,496     $ 71,286     $ 118,782  
  
 
 
  
Unallocated corporate costs(d)
          (10,893 ) 
Foreign currency income
          6,790  
Other non-operating income
          1,263  
Interest expense, net
          (43,352 ) 
      
 
 
  
Income before income taxes
        $ 72,590  
 
  
The following table presents the reconciliation of reportable segment revenue for the year ended December 31, 2024:
 
       
     
ESS
     
PCS
     
Total
  
Revenue from external customers
(a)
    $ 443,189      $ 400,174      $ 843,363  
Intersegment revenue
      5,489        10,115        15,604  
  
 
 
  
Total segment revenue
    $ 448,678      $ 410,289      $ 858,967  
Elimination of intersegment revenue
            (15,604 ) 
        
 
 
  
Total consolidated revenue
         
$
843,363
 
 
  
 
The following table presents the reconciliation of segment performance for the year ended December 31, 2024:
 
       
     
ESS
    
PCS
    
Total
  
Revenue from external customers
(a)
    $ 443,189     $ 400,174     $ 843,363  
Cost of sales
      (313,838 )      (223,169 )   
Selling, general and administrative expenses
(b)
      (72,015 )      (63,355 )   
Research and development expenses
      (2,268 )      (4,799 )   
Restructuring and other expenses
(c)
      301       —    
Depreciation and amortization
(b)
      (9,236 )      (27,428 )   
  
 
 
  
Total segment operating income
   
$
46,133
 
  
$
81,423
 
  
$
127,556
 
  
 
 
  
Unallocated corporate costs
(d)
          (8,942 ) 
Foreign currency loss
          (5,293 ) 
Other
non-operating
income
          423  
Interest expense, net
          (37,255 ) 
      
 
 
  
Income before income taxes
       
$
76,489
 
 
  
 
(a)   As the CODM does not regularly review intersegment revenue, it is excluded from the determination of total segment operating income. The CODM uses revenue from external customers to assess performance and allocate resources.
(b)   Depreciation and amortization expense is included in the consolidated statements of income within cost of sales and selling, general and administrative expenses.
(c)   Restructuring and other expenses consist of severance costs primarily related to workforce reductions and reorganization within ESS and impairment of
right-of-use
assets.
(d)   Unallocated corporate costs include certain corporate stewardship costs that are not allocable to the segments, consisting of centralized finance costs of $8.1 million and $7.0 million for the years ended December 31, 2025 and 2024, respectively, and other corporate expenses of $2.7 million and $1.9 million for the years ended December 31, 2025 and 2024, respectively.
Geographical information
The following table presents consolidated revenue disaggregated by geography on an entity basis for the years ended December 31, 2025 and 2024:
 
     
      2025      2024  
United States
    $ 301,448      $ 304,262  
Norway
      203,012        206,155  
Germany
      100,285        99,453  
United Kingdom
      49,863        73,381  
Singapore
      28,278        45,425  
Saudi Arabia
      27,795        19,314  
United Arab Emirates
      27,584        19,904  
Brazil
      25,561        31,827  
Azerbaijan
      20,789        20,754  
Australia
      14,526        10,767  
Canada
      13,843        —  
Other countries
      8,770        12,121  
  
 
 
  
Total revenue
    $ 821,754      $ 843,363  
 
  
 
The following table presents long-lived assets on the basis of geographic location as of December 31, 2025 and 2024:
 
     
     
2025
     
2024
  
Headquarters (Netherlands)
    $ 57,794      $ 59,199  
United States
      85,904        89,767  
Norway
      38,570        25,132  
Brazil
      28,723        25,211  
Germany
      17,289        17,041  
Other countries
      21,277        17,007  
  
 
 
  
Total long-lived assets
   
$
249,557
 
   
$
233,357