Gulf Marine Services - adding to its fleet will capitalise upon strong market demand, shares 21.50p, TP 32p

Mark Watson-Mitchell - 26.01.2026

Gulf Marine Services (LON:GMS), which is a leading provider of self-propelled, self-elevating support vessels to the offshore energy industry, this morning announced that it has acquired a new mid-class vessel, expected to join its fleet within two weeks, to capitalise on strong market demand and support its strategic goal of doubling 2024 adjusted EBITDA by 2030.

The acquisition was partially financed by a $37.4m 90-day interim loan, with the remainder funded from cash reserves.

The company's net leverage remains below 2.0x, excluding the new vessel's EBITDA contribution.

The vessel is earmarked for identified commercial opportunities, and further announcements regarding backlog and revised 2026 adjusted EBITDA guidance will be made.

The company also plans to commence a shareholder reward programme, returning 20%-30% of adjusted net income.

Management Comment

Chairman Mansour Al Alami stated that:

"We are delighted to announce this acquisition and would like to thank all those involved.

This represents the first vessel acquisition by GMS in a decade and marks an important milestone for the Company.

The addition of this vessel supports our growth ambitions, while preserving our financial strength and operational flexibility.

Subject to market conditions, we look forward to pursuing further acquisitions, and to commencing our shareholder reward programme in the coming months."

CGO Alex Aclimandos noted that:

"We are very pleased with the lenders' response, which reflects our shared view of the industry and their confidence in GMS's management.

This support is a strong endorsement of the successful turnaround the Company has delivered over the past few years."

Broker's View

Analyst Daniel Slater, at Zeus Capital, reckons that:

"We would expect the new vessel to reduce the overall average age of GMS’s fleet (already relatively young at around 14 years in any case), but also upgrade the average capability, being a mid-size vessel and hence typically more flexible and in greater demand than some of the company’s small-size vessels."

Slater has estimates out for the group's sales in 2025 of $184.4m ($167.5m), with adjusted pre-tax profits of $44.5m ($40.9m), with 3.3c (3.4c) per share in earnings.

For the current year to end-December 2026 he goes for $200.9m sales, $51.9m profits and 3.9c per share in earnings.

Zeus Capital has a 32p per share valuation.

My View

I am a big fan of this £250m capitalised group.

It has mega-clients and massive prospects in an ever-expanding market, in which it is a leader.

Its shares, at 21.50p, offer an attractive upside.

(Profile 30.11.23 @ 13p set a Target Price of 16p*)

(Profile 22.01.24 @ 15.95p set a Target Price of 19.50p*)

(Profile 30.12.25 @ 18.8p set a Target Price of 23p)