McDermott Returns to Profit in Q2 with $15.8 Billion Backlog
McDermott reported second-quarter revenue of $2.3 billion, adjusted EBITDA of $143 million and net income of $41 million, with backlog at $15.8 billion at the end of June.
On August 19, global energy engineering contractor McDermott reported its results for the second quarter of 2026. Revenue was $2.3 billion, adjusted EBITDA was $143 million and net income was $41 million. Backlog stood at $15.8 billion at the end of June. In the first quarter, McDermott recorded revenue of $2.361 billion and adjusted EBITDA of $117 million, but still posted a net loss of $11 million.
Backlog is another important indicator of the work supporting the business. McDermott’s backlog reached $17.6 billion at the end of the first quarter of 2026 and stood at $15.8 billion at the end of the second quarter. For a major EPC contractor, backlog is not the same as future profit, but it underpins a substantial share of revenue over the coming years. McDermott also highlighted solid project delivery and new awards during the quarter.
McDermott remains concentrated in its traditional areas of strength, including offshore oil and gas, subsea work and major LNG projects. With global deepwater and LNG investment continuing over the past two years, the company has become active again across a number of large developments.
Woodfibre LNG in Canada is now in full construction. McDermott is executing the project through a modular approach, with large process modules fabricated in Qingdao, China, before shipment to the Canadian site. The closely watched Rovuma LNG project in Mozambique is also moving forward. McDermott is the majority shareholder in the SMDC joint venture, whose other members include Saipem, Daewoo E&C and CPECC. The joint venture has received a letter of intent covering limited engineering and procurement services to support further project definition ahead of a final investment decision expected in 2026. For international EPC contractors with capabilities spanning LNG engineering, procurement, modular fabrication and project integration, the current LNG investment cycle is creating a new source of potential orders.
McDermott’s financial restructuring, however, is not yet complete. The company launched a new rights offering on June 30. Preliminary results as of August 17 showed that about 97% of the rights for Class A ordinary shares had been exercised. McDermott expects to close the offering alongside its proposed refinancing transaction during the third quarter of 2026.
The $41 million quarterly profit therefore does not mean that McDermott’s financial repair is complete. A more precise reading is that the company is moving from restructuring toward operational recovery: project execution has improved, core earnings have strengthened, backlog remains at $15.8 billion and management is continuing to reshape the capital structure through refinancing. For a major global energy engineering contractor that has been through a severe financial crisis, that broader transition may matter more than a single quarter’s profit.