Viridien - comment

Viridien’s Q2 results were broadly in line with our expectations, and we expect some slight support for bond prices. Deleveraging continues to progress, with net debt reduced to $692m and management reiterating its FY26 net cash flow target of c.$100m. Revenue remains light, reflecting the slower recovery in activity levels, but the improving backlog provides confidence that demand is beginning to recover. Geoscience backlog increased 19% since year-end to $306m, supporting the outlook for future growth.

Overall, the results reinforce the ongoing balance sheet recovery, although a sustained improvement in EBITDA remains required to drive a meaningful rerating of the bonds.