McDermott reports strong first-quarter results amid Middle East uncertainty

(WO) — McDermott reported first-quarter 2026 revenue of $2.4 billion and trailing twelve-month adjusted EBITDA of $489 million as the offshore engineering and construction contractor cited strong project execution and improving backlog quality.

Adjusted EBITDA for the quarter totaled $117 million, while backlog at the end of March stood at $17.6 billion.

McDermott reported cash flow used in operating activities of $126 million during the quarter.

CEO Michael McKelvy said the company outperformed internal expectations during the period, driven by operational discipline and continued execution across its project portfolio.

“Our first-quarter performance exceeded our expectations, driven by strong project execution, improving backlog quality and continued operating discipline across the portfolio,” McKelvy said.

The company also said it continues monitoring developments in the Middle East, where regional tensions and shipping disruptions have affected broader energy markets in recent months.

“While we are closely monitoring developments in the Middle East and conditions remain fluid, our operations in the region continue,” McKelvy said.

McDermott remains active across offshore engineering, procurement, construction and subsea infrastructure projects globally, including major developments in the Middle East offshore sector.