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Saipem (SAPMY) AI Stock Analysis

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SAPMY

Saipem

(Other OTC:SAPMY)

Select Model
Rating:65Neutral
Price Target:$1.00â–²(0.00% Upside)
Action:reiterated
Date:08/04/26

The score is primarily supported by improved financial performance (turnaround to profitability, strong revenue growth, materially better leverage, and solid recent cash generation). Offsetting this are still-thin net margins and cash-flow volatility, while technicals are neutral and valuation is balanced between an elevated P/E and a supportive dividend yield.

Positive Factors
Profitability TurnaroundSaipem's shift to sustained positive net income and strong TTM revenue growth indicates lasting improvement in project execution and commercial win conversion. Stable operating margins (EBIT/EBITDA) support recurring operating cash generation and help rebuild stakeholder confidence over the medium term.
Negative Factors
Thin Net MarginsVery slim net margins limit the company's buffer against cost overruns, contract disputes, or commodity-driven customer cuts. In a project-driven business, small margin erosion can materially depress returns and cash flow, making profitability fragile across downturns.

Saipem (SAPMY) vs. SPDR S&P 500 ETF (SPY)

-25%0%25%50%75%100%125%SAPMY+97.63%SPY+11.79%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
$9.60B
Dividend Yield
3.96%
Average Volume (3M)
5,760
Price to Earnings (P/E)
32.8
Beta (1Y)
0.65
Revenue Growth
9.32%
EPS Growth
-12.64%
Country
US
Employees
30,409
Sector
Energy
Sector Strength
65
Industry
Oil & Gas Equipment & Services

Saipem Business Overview & Revenue Model

Company Description

Saipem SpA provides energy and infrastructure solutions worldwide. It operates through Asset Based Services, Offshore Drilling, and Energy Carriers segments. The company offers development of subsea fields and pipelaying; installation and lifting of...

How the Company Makes Money

Saipem primarily makes money by executing large, contract-based projects for customers in the energy and infrastructure sectors. Revenue is mainly generated from: (1) EPCI and project execution contracts, where Saipem is paid to engineer, procure mat...

Saipem Earnings Call Summary

Earnings Call Date:Oct 22, 2024(Q3-2024)|% Change Since:139.23%|Next Earnings Date:Oct 23, 2018
Earnings Call SentimentPositive

The earnings call reflects a strong performance in Q3 2024, with significant achievements in order intake, revenue growth, and cash flow generation. While there are challenges related to the temporary suspension in Saudi Arabia and legacy onshore projects, the company's upgraded guidance and robust backlog provide a positive outlook.

Positive Updates

Record Order Intake and Backlog
Saipem recorded the highest quarterly order intake since Q2 2019, with an order intake of EUR 6.4 billion, and a backlog standing at EUR 33 billion, an all-time high.

Negative Updates

Impact of Saudi Aramco's Temporary Suspension
The temporary suspension impacted the drilling operations, particularly for the Perro Negro fleet, leading to adjustments in operations and financial expectations.

Company Guidance

In the recent earnings call, Saipem executive Alessandro Puliti provided a robust outlook for the company's performance in 2024. For the third quarter, Saipem achieved the highest quarterly order intake since Q2 2019, with revenues reaching €3.7 billion, marking a 23% year-on-year increase. The company also reported an EBITDA of €340 million, reflecting a 48% year-on-year growth. The EBITDA margin improved by 40 basis points to 9.2%, supported by the E&C and drilling offshore activities. Saipem's net cash flow generation stood at €115 million, with a significant order intake of €6.4 billion, leading to a record high backlog of €33 billion. Based on these strong results, Saipem upgraded its 2024 guidance, expecting revenues to exceed €14 billion and EBITDA to surpass €1.3 billion, driven by the performance in offshore E&C and despite some impact from the temporary suspension of operations in Saudi Arabia.

Saipem Financial Statement Overview

Summary

Financials reflect a meaningful turnaround with positive net income in 2023–2025 and TTM, strong TTM revenue growth (~77%), and stable operating profitability (TTM EBIT margin ~4.8%, EBITDA margin ~10.2%). Balance sheet leverage has improved substantially (debt-to-equity ~0.47 TTM), and cash generation is strong (TTM operating cash flow ~1.50B; free cash flow ~1.21B). Offsetting strengths are still-thin net margins (~2.0% TTM) and notable historical volatility in earnings and cash flow (including earlier losses and sharp TTM free-cash-flow decline of ~-74%).

Income Statement

74Positive

Balance Sheet

70Positive

Cash Flow

66Positive
Financial statement breakdown
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue15.64B14.89B14.55B11.88B9.99B6.53B
Gross Profit5.06B1.81B4.43B3.69B3.31B-136.00M
EBITDA1.72B1.64B1.32B899.98M538.98M-1.73B
Net Income267.00M297.77M306.00M179.00M-337.30M-2.74B
Balance Sheet
Total Assets5.46B14.61B14.52B12.87B12.40B13.14B
Cash, Cash Equivalents and Short-Term Investments1.08B2.35B2.50B2.22B2.28B1.92B
Total Debt1.19B3.10B3.02B3.12B2.13B2.83B
Total Liabilities3.15B11.97B11.99B10.47B10.31B11.19B
Stockholders Equity2.31B2.64B2.52B2.39B2.21B326.00M
Cash Flow
Free Cash Flow1.21B1.11B735.00M114.00M-990.00M-141.00M
Operating Cash Flow1.50B1.44B1.06B586.00M-477.00M90.00M
Investing Cash Flow-712.00M-614.74M-542.00M-175.00M5.00M-490.00M
Financing Cash Flow-550.00M-1.18B-544.00M-282.00M871.00M331.00M

Saipem Technical Analysis

Technical Analysis SentimentNegative
Last Price1.00

Price Trends

50DMA1.01Negative
100DMA1.01Negative
200DMA0.94Positive

Market Momentum

MACD-0.00Negative
RSI49.64Neutral
STOCH76.39Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SAPMY, the sentiment is Negative. The current price of 1.00 is below the 20-day moving average (MA) of 1.00, below the 50-day MA of 1.01, and above the 200-day MA of 0.94, indicating a neutral trend. The MACD of -0.00 indicates Negative momentum. The RSI at 49.64 is Neutral, neither overbought nor oversold. The STOCH value of 76.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SAPMY.

Saipem Peers Comparison

Overall Rating

UnderperformOutperform
Sector (65)

Financial Indicators

SAPMY against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
FTIFTI77Outperform$26.74B21.2338.54%0.29%7.95%42.53%
BKRBKR69Neutral$54.85B18.8514.83%1.67%3.71%0.14%
HALHAL66Neutral$29.92B15.1318.46%1.88%1.53%58.46%
SLBSLB66Neutral$79.32B25.8411.77%2.18%4.57%-20.58%
Sector *65Neutral$15.17B7.614.09%5.20%3.87%-62.32%
SAPMYSAPMY65Neutral$9.91B32.7810.42%3.96%9.32%-12.64%
NOVNOV59Neutral$6.88B48.232.31%2.26%-0.96%-59.98%

* Energy Sector Average

Performance Comparison

0%50%100%SAPMYBKRFTIHALNOVSLBDec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
SAPMY and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
SAPMYSaipem Spa1.000.4995.69%
BKRBaker Hughes Company55.237.3415.32%
FTITechnipFMC68.7726.8163.89%
HALHalliburton Company36.179.5335.77%
NOVNOV Inc.19.294.5731.09%
SLBSLB N.V.53.7417.6048.72%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Aug 04, 2026