Will Strong Q3 Results and Offshore Deals Shift Saipem's (BIT:SPM) Long-Term Growth Narrative?

• Saipem announced its third quarter 2025 results, reporting sales of €3.77 billion and net income of €81 million, with nine-month figures showing higher sales and net income compared to the previous year.
• Alongside the earnings release, Saipem's CEO highlighted progress on offshore technology, continued cooperation with Fincantieri, and pending feedback on €13 billion in bids as the company approaches a key phase in the offshore drilling market.
• We'll examine how Saipem's growth in order intake and focus on offshore innovation may influence its investment narrative and future outlook.

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Saipem Investment Narrative Recap

To be a Saipem shareholder today, you need confidence in the company’s ability to turn its record-high, diversified order backlog into sustained earnings growth, while navigating cost discipline and market competition. The Q3 2025 results, with stable sales but a slight dip in quarterly profit, do not materially impact the short-term catalyst of securing new awards from the €13 billion bid pipeline, nor do they change the most immediate risk related to project cost overruns and legacy exposure.

Among recent announcements, the continued collaboration with Fincantieri on offshore robotics is especially relevant, as it could improve Saipem’s competitive edge in bidding for complex offshore projects. This technological push aligns well with the company’s catalyst of margin expansion through high-value contract wins and innovation, potentially supporting future profitability if order conversion remains robust.

However, despite these positive developments, investors should also be mindful of the ongoing risk from cost overruns and legacy project liabilities, particularly if...

Read the full narrative on Saipem (it's free!)

Saipem's outlook anticipates €15.4 billion in revenue and €637.8 million in earnings by 2028. This is based on flat (0.0%) annual revenue growth and an increase of €309.8 million in earnings from the current €328.0 million.

Uncover how Saipem's forecasts yield a €3.09 fair value, a 37% upside to its current price.

Exploring Other Perspectives

Thirteen fair value estimates from the Simply Wall St Community for Saipem range widely, from €1.77 to €5.34 per share. In a market where earnings growth is a key focus, differing views highlight the importance of order conversion and profitability for the company's future performance.

Explore 13 other fair value estimates on Saipem - why the stock might be worth over 2x more than the current price!

Build Your Own Saipem Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Saipem research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Saipem research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Saipem's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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