McDermott International went into this earnings release trading flat on the day at US$4.50, after a rough 90 days that left the stock down about 83%. The market reaction so far is a shrug. The numbers do not shrug.

The headline this quarter is balance sheet strain. McDermott remains unprofitable on a trailing twelve month basis and is carrying negative shareholders’ equity, even as revenue runs above US$10b. That mix of deep losses and a thin capital cushion is the real story investors will need to weigh as they study the full earnings detail.

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Q2 2026 Earnings Summary

• Revenue (TTM to Q2 2026): US$10,183m vs. US$8,854m in TTM to Q2 2025 (the change reflects higher reported sales over the period)
• Net Loss (TTM to Q2 2026, excl. extra items): US$879m loss vs. US$1,090m loss in TTM to Q2 2025 (losses remain heavy but are smaller than in the prior period)
• Basic EPS (TTM to Q2 2026): loss of US$47.79 per share vs. loss of US$80.49 per share in TTM to Q2 2025 (the per share loss narrowed over the year)
• Earnings from Continuing Operations (TTM to Q2 2026): US$881m loss vs. US$1,236m loss in TTM to Q2 2025 (core operations remain loss making, with a reduced deficit)

Prefer clear visuals instead of another wall of earnings tables and balance sheet jargon? Get a full picture of Mcdermott International’s balance sheet pressure and capital structure at a glance with the company report for Mcdermott International.

McDermott bullish story leans on slower cash burn

For investors backing McDermott International as a transition enabled contractor, the latest figures offer only a tentative supporting signal. Revenue over the last twelve months is above US$10.1b, while the loss narrowed to US$879m and earnings from continuing operations also improved. That points to a business still winning work and reducing the size of its losses. The share price reaction around the release is flat, which suggests the market is not rushing to revise the constructive side of the story, but it is not rewarding it either.

Losses and weak equity keep the bear case alive

The cautious view on McDermott International still rests on financial strain. The company remains loss making on a trailing basis, carries negative shareholders’ equity and has seen the stock fall about 83% over ninety days. Even with smaller losses than a year ago, the absolute deficit near US$0.9b against a thin capital base keeps balance sheet risk front and centre. That mix fits a thesis that execution or working capital setbacks could matter more than any long term energy transition opportunity until the finances are rebuilt.

After a stock drop of about 83% and with negative equity still in play, are these visible issues the whole story or just an early warning sign? Review our risk analysis for Mcdermott International which shows 1 important warning sign

Take Control Of Your Next Move

If Mcdermott International’s heavy losses, negative equity and sharp 90 day share price fall have your attention, register for free with Simply Wall St and add it to a Watchlist to track price against fair value and wait for conditions that fit your plan. When you decide to act, use the Portfolio Command Center to manage your holdings with clear, focused alerts instead of daily noise. For a broader view, tap into crowd opinions and different angles on Mcdermott International through the Community. By spotting potential catalysts and risks early, you may be able to stay ahead of the market.

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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.