Constellation Oil Services (OB:COSH) Posts $13.7M Q3 Net Loss, Undermining Profit Turnaround Hopes

Constellation Oil Services Holding (OB:COSH) just posted its Q3 2025 results, revealing revenue of $138.4 million and a basic EPS of -$0.0709, with net income at -$13.7 million. The company has seen revenue hover in the $121 to $144 million range over recent quarters, while EPS and net income have fluctuated, at times moving into mildly positive territory before this latest quarter. Margins continue to be a key focus, with investors eager to see whether COSH can turn the tide on profitability as expectations for future growth remain high.

See our full analysis for Constellation Oil Services Holding.

Let’s set these results against the broader community narrative to see which market stories hold up, and which get challenged by the numbers.

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Premium Valuation Far Above Peers

• COSH’s Price-to-Sales ratio stands at 30.6x, which is significantly higher than the Norwegian Energy Services industry average of 1x and the peer average of 2.1x. This indicates exceptionally high investor expectations despite a lack of current profitability.
• The share price of $112.92 trades well above the DCF fair value of $27.40, raising questions about whether expectations for future growth can justify the heavy premium.
  • Bulls highlight forecasts for 92.53% annual earnings growth and a return to profitability within three years as key factors supporting today's elevated valuation.
  • However, trailing twelve month net income remains deeply negative at -$77.8 million, which challenges the view that rapid growth alone justifies the valuation gap.

Forecasts Call For Explosive Growth

• Revenue is predicted to increase by 17.2% per year, which is substantially ahead of the broader Norwegian market's 2.6% annual projected growth.
• Investors optimistic about COSH point to the strong revenue and earnings growth forecasts as justification for holding through current losses.
  • The optimistic case is based on the prospect of a 92.53% annual increase in earnings, with profitability forecast within three years despite recent instability in the bottom line.
  • Trailing twelve month basic EPS is -$0.0772, which bullish investors expect to turn positive if high growth rates materialize.

Profitability Still Out of Reach

• For the trailing twelve months, net income has totaled -$77.8 million, with no evidence in the latest results of a sustained shift toward profitability.
• Despite high hopes, critics note that net income turned positive just once in the last six quarters, which challenges confidence that a rapid turnaround is imminent.
  • For example, Q2 2025’s net income was $0.2 million before moving back to -$13.7 million this quarter, suggesting ongoing difficulty in maintaining profitability.
  • Consistently negative net income despite stable revenue indicates continued pressure from costs or other factors affecting margins.

Next Steps

Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on Constellation Oil Services Holding's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.

See What Else Is Out There

Despite rapid growth forecasts, COSH remains deeply unprofitable and trades at a steep valuation premium that recent results do not justify.

If you want to avoid overpriced stocks with uncertain turnarounds, try finding more reasonably valued opportunities with these 930 undervalued stocks based on cash flows, which could offer better risk and reward.

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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