Joined today by the management team from GOWell to discuss the first half 2026 results and outlook moving forward. Today's speakers from the team will include Chief Executive Officer, Guillaume Borrel, Chief Financial Officer, Mike Reed, and President of Corporate Development, David MacNeill. We will begin with a presentation led by the GOWell management team. This will be followed by a moderated Q&A session. Anyone who wishes to submit a question, please do so through the Q&A field shown at the bottom of your screen. A recording of today's webinar will be available on the GOWell website following the event. The GOWell management presentation has been filed with the SEC, is available on the GOWell website, and will also be shared live on screen during this call.
Before we begin, please note that statements made during this presentation that state the company's or management's intentions, beliefs, expectations, plans, goals, opinions or predictions of the future are forward-looking statements, and actual results could differ in a material manner. Additional information about factors that could cause results to differ from those in the forward-looking statements is contained in our filings with the SEC. These filings include, but are not limited to, risk factors contained in our registration statement filed with the SEC on October 1st, 2026, and subsequent SEC filings. A copy of the presentation materials can be found on the GOWell website at www.gowell.energy. With that, Guillaume, the floor is yours.
Thank you, [George], and thank you everyone for joining. This is our first update as a listed company, and as we could not do it earlier because of the de-SPAC process, the goal really of today is quite simple. We want to bring our public numbers up to date with H1 and give you a bit of a view of where we are headed. Next slide, please. So quick overview at a glance on the financials first. H1 revenue year-over-year is up 43%, so quite a strong first half of the year, followed as well by strong growth on the Adjusted EBITDA, which leads us to reaffirm our guidance for the year. We're basically on track with what we had announced and laid out during the de-SPAC process earlier in 2026. Mike will take you, in a few minutes, over some more details on those numbers.
On the commercial side, we have had some large capital sales deliveries in H1, mostly in the Caspian region. Those have contributed largely to the H1 growth this year. Having said that, we have also won new awards on the capital sales front, which have allowed us to replenish our backlog, despite those delivery and offset those deliveries, and that's basically providing us a little bit of visibility into 2027. As far as the ongoing conflict in the Middle East, we have obviously experienced a few headwinds. They have been, however, largely offset by a very strong performance, both in North Africa, and Algeria in particular, as well as in Latin America. I think that truly highlights the benefits of having a diversified geographic footprint, and allows us to hedge things a little bit.
On the technology front, the Well Innovation acquisition and the GOTrac technology are now, since a few months ago, fully integrated into GOWell and our offering and conveyance platform. We also have two flagship measurements from our Through Tubing portfolio, namely the Through Tubing Cement Evaluation and the Multi-String Corrosion Imaging technology, which are now firmly into customer hands for validation through field tests and field trials in various part of the world. I will come back to those with a bit more details in a few minutes. Basically, the message here is a strong first half with good momentum, both on the commercial front as well as on the technology maturity side. With this, I will hand it over to Mike for some comments on the numbers.
Thanks, Guillaume. Next slide. We achieved $33.8 million in revenue for the first half of 2026, and this represents a 43% increase over the same period last year. The growth was primarily driven by an increase in equipment sales of about $9 million, but service grew as well at about $1.2 million for the same period last year. Next slide. We achieved operating profit of $9.1 million, and this is a 135% increase over the same period, 2025. Net profit increased 38% to $3.7 million in the first half, versus $2.7 million for the same period last year. The higher operating profit was partially offset by $4.3 million in finance cost, and this is primarily related to the redeemable preferred shares, including a $1.6 million fair value loss on the derivative related to those shares.
Adjusted EBITDA increased 79% to $14.1 million for the first half of 2025, as compared to $7.9 million for the first half of last year. Sorry, 2026 is $14.1 million versus $7.9 million. This growth was supported by both the revenue growth and our operating leverage. Next slide. For the full year, as Guillaume said, the company is reiterating the total revenue guidance of $60 million-$68 million, which is about a 27%-44% increase over the $47.2 million that we reported for 2025. We also reiterate the Adjusted EBITDA guidance for the full year in the range of $25 million-$29 million, which will be an increase of approximately 40%-63% versus the $17.8 million reported for fiscal year 2025. We are excited to mention that we completed the business combination with Inflection Point Acquisition Corp V on September 25th. We began trading as GOWell on the 28th.
That completes the finance slides. I will turn it back to Guillaume.
Thank you, Mike. Next slide, please. As mentioned, a few notes and updates on some of our key technologies. Those are really important, and they do matter because this is where lie the long-term value of the company, basically. Each of those really address a structural trend in the market, not just a simple cycle, be it decommissioning, the tightening regulations on well integrity, or the overall drive for lowering costs in wells intervention. The first one of those, the GOTrac, which is basically our tractor technology. This is the next generation conveyance, and it's now fully integrated into our offering. We started manufacturing the first assets, and operations are going to start early in the new year. This is what is allowing to extend our reach from just making measurements into wells to actually getting the sensors to the bottom of those wells, regardless of their actual architecture.
The second one is the Through Tubing Cement Evaluation. It's basically what allows operators to map the cement behind the casing without pulling the tubing. That removes the need to bring a rig early on in a plug and abandonment type of operation, and hence is a major cost lever or cost saver in decommissioning operation. This technology is fully patented. It's unique. It's very innovative. Its validation is currently underway with major customers over the globe, mostly in the North Sea, in the Middle East, and offshore U.S. Thirdly, the Multi-String Corrosion Imaging is another unique solution, unique technology, fully patented as well. That is really answering the increasing need, driven by regulation as wells are aging, to see corrosion across several strings and through tubing in particular. As I mentioned, unique solution, currently as well in field trials, both in Europe and in North America.
It's important to note that none of those technologies are actually reflected in our 2026 numbers or projections in any significant or meaningful way. They are all about 2027 and beyond. Next slide, please. A quick look at some of the key regions and how they contributed to or how they are contributing to 2026, and going forward, how they will continue in 2027. First, the Middle East. The impact of the regional conflicts there has been relatively muted through H1, and mostly we have, as far as GOWell goes, we have mostly offset it through a very strong activity in North Africa. The slower activity in the Gulf countries, we've been able to offset by mostly Algeria, in fact. We are not calling a rebound date, right? And really are staying careful about what's to come.
Although it's clear that when it rebounds, we should see an increase in activity in well interventions, which is where we play, which is kind of our sweet spot. However, it's a little bit difficult to call a rebound date at this stage, so we're not doing this. And that explains how we framed our guidance. On the Caspian, we have seen strong growth from large capital projects, as we mentioned earlier, and this is driven by many of the vertically integrated operators having a lot of CapEx available, especially with the oil price as they are today. And those operators buy technology directly, which is our model. In North America, there again, the market is dominated by many independent service companies that don't necessarily have their own R&D or their own technology.
They do rely on third party to access the technology, precisely the kind of customers that GOWell is built for. In Latin America, it is poised to be the largest non-OPEC production growth area, through new capacity, but also mature field reactivation or optimization, which is a growing focus. Additionally, we see in a few countries a growing interest as well in decommissioning. Venezuela is a bit of a different story. 2026 has really been a building year, a getting ready year for everybody. We are truly following our main customer, the large OFSCs, who are really getting ready to enjoy a full execution year in 2027, which is where we do expect to see some traction on our side. All in all, if we put all this together, 2027 is a relatively positive outlook for GOWell. The Middle East rebounds when it rebounds.
Again, there is some uncertainty there, should see first operators go towards restoring production, which favors integrity and intervention work, what really we do. Secondly, the current geopolitical tension across the globe has increased the awareness and the need for energy security globally, which is driving reactivation and optimization of existing wells. Thirdly, despite the cycle and whatever the cycle, we continue to see regulations tightening around integrity and decommissioning. What ties this together for us, for GOWell, is that our business and its growth is mostly driven on the installed base of existing wells and not so much by new drilling, which allows us to be a little bit more resilient through cycles. With that, I will hand over the call back to [George]. Thank you.
Thank you, Guillaume. That now concludes our prepared remarks. We will transition into the Q&A portion of our call, where the team will join me in addressing some questions from the audience. We will pause for a moment to compile those. Looks like the first set of questions comes from Tom Hayes at Roth. First one, can you all further elaborate and discuss really the real-world opportunity as it sits in Venezuela for GOWell, and what is the realistic timeline?
Yeah, I can take that one. As I mentioned, 2026 has really been a year of getting ready to reenter the country and to restart operations there. We are starting to see a little bit of movement. We do expect that 2027 will start to show a bit of traction, even though it is a little bit difficult to call an actual date when things are going to start. We tend to follow and come behind the large OFSCs and the major oilfield services companies going there, right? Sometime in 2027, definitely, we will start to see some good traction. We have been on our side as well, making all the preparation to be able to follow that expected increase in demand.
Great. Second question, are you expanding in natural gas storage and geothermal in 2026?
We have been, in geothermal, yes. We have been continuing to cater to geothermal operations around the world, which is truly a real adjacent market to oil and gas. They have the same need, very similar to the more larger market we cater to out there. We have indeed continued. That is in the Far East, where there is a lot of geothermal installations. That is in North America as well, and to a lesser extent, a little bit in Latin America. Those, however, remain very small in terms of quantities and volume. The number of wells compared to oil and gas wells remains quite small, but we are well present there. On the gas storage, similar story.
It is very driven by regulation, which tends to be sometimes a bit volatile, as we have seen recently in California, where there has been a few changes of regulation, and that obviously directly impacts the activity there.
Great. Another one, Aramco is active with your new technologies. What other customers do you expect will use them as well, and how long does it take those customers to ramp?
Okay. We are currently, as I mentioned, introducing our technology to the market with some key major customers, including some large NOCs in the Middle East, Aramco and some of their other neighbors. Typically, what we see is that a new technology will take 12-14 months to be actually accepted in the market. After that, we start to see the ramp. I think, Mike, if you want to comment on an example that we had in the recent years with the ePDT.
Yeah. The most recent example of a major technology breakthrough like this would be ePDT, and yeah, that grew at about 40% after it got established in year one. Let's say year two, year three, it had that type of growth rate and then calmed down a bit, but has continued to be a good growth driver for us.
Yeah. I think specifically, sorry Guillaume, just specifically around the customer base, the corrosion measurements, the Middle East is the biggest corrosion market. They have problems across the whole Middle East. We've already seen PDO in Oman pick up the corrosion tools. We expect that the new technology will flow through there. ADNOC in Abu Dhabi has also already been part of the trials that we've done on the corrosion stuff. On the Through Tubing Cement Evaluation, today, the biggest market is in the North Sea and in the Europe sector of offshore. Those customers would be more the guys that own the big P&A abandonment campaigns, Ithaca, ConocoPhillips, some of the other big players in the North Sea that are doing active abandonment work, and that's where we're operating with those guys. We'll see that activity continue to increase.
It's a little bit kind of horses for courses. The tools are really deployed in the geographic areas where the opportunities are biggest at this time.
Thanks, Dave. Last one from [Tom]. This kind of dovetails, but can you discuss further just Middle East growth opportunities across the board, and what other regions might be most interesting for you now, just given the global uncertainty that's out there?
Yeah. We've talked about the Middle East a little bit and how uncertain that is and how we expect really across the Gulf countries, especially the GCC countries, a pickup whenever it rebounds and whenever the ongoing conflict permits. Beyond Middle East, for us, for GOWell, we've put a bit of focus on a couple of regions where we've restructured our footprint and our setup there throughout the year. Namely Latin America. We've injected a few resources in various country, Colombia, Argentina, to name a few, and putting a strong focus there. This is paying off. We've seen some good uptake already in 2026. We expect that to continue and carry through next year. So one hotspot for growth. I guess the other one might be beyond the North Sea, which remains obviously a fantastic market for our technologies.
The other one where we've also been restructuring is Sub-Saharan Africa, where we do see as well some strong potential for growth for GOWell in the region.
Right. We'll take one now from the group. [Tim], you had previously mentioned M&A opportunities that you feel you could add to the business over the next couple of years. Can you provide an update on how that is progressing?
Sure. Dave, do you want to take that?
Yeah. In leading up to the de-SPAC process, a lot of what we were doing was building the pipeline, getting connected with companies where we believe the technologies really fit with what we want to do, identifying strategically which ones would be the highest priority for us to kind of engage with. Now that that de-SPAC process is over, we're pretty active in now getting into the point where we're negotiating and really should be able to conclude some M&A transactions over the next six months. Hopefully sooner than that, but we have a nice backlog. We know kind of from a priority standpoint, which ones we want to go after, and we should be able to start executing those over the next few months.
Appreciate that, Dave. Next we have a set of questions from Derek Soderberg from Cantor. First one, revenue grew 43% in the first half to close to $34 million, but full year revenue guidance was reiterated at $60 million-$68 million. What second half assumptions are keeping you from raising guidance at this point?
Now, I think as I commented earlier, I think we're being cautious about H2 for a couple of reasons. First, the ongoing conflict in the Middle East, which there's a lot of uncertainties associated to that. The second reason, we have some pending deliveries coming up on some of our large capital projects, which are really tied to getting import permits and time and so on. As we get closer to the cutoff toward the end of the year, we want to be also careful before we gain better visibility on when those will actually be in our hands, before committing to a tighter guidance at this stage.
Thank you. Second question. There was $2.4 million of R&D in the first half versus none previously. While Adjusted EBITDA grew nicely to $14.1 million from $7.9 million, what would EBITDA growth have looked like with that R&D fully expensed?
Mike, you want to take this one?
Yeah, sure. Adjusted EBITDA would've been $11.7 million if that was expensed as it was in 2025. This still would represent 48% increase over the $7.9 million last year. Maybe we should explain that the evolution of the company, we're now in a place where we're bringing these technologies to market. The development commercialization stage is why we're capitalizing now. We hadn't met the criteria under IFRS to capitalize previously. But you could say 2025 would've been higher if we had.
Thanks, Mike, and this next one might be for you as well. Receivables rose from $18 million to $25.7 million between year-end and June, while cash fell from $6.8 million to $2.9 million. Curious how much of those receivables have you collected since June?
Receivables have come back down, and in fact, DSO improved during the first half of 2026. We did have the large delivery on the Turkmengaz project in June. Those receivables are elevated at June, but we have collected that whole amount and receivables are back down to a more normalized level.
Thanks, Mike. Question from Subash Chandra at StoneX. Can you all discuss the current backlog value and visibility to revenue conversion?
We can. We did not report the number. We had not reported the number for 2025, but as Guillaume Borrel said, the backlog, we reported December 2025 at $22.6 million. This backlog grew modestly in H1, we can say, despite the $9 million in capital sales. Despite the real growth in equipment sales, the backlog continued to grow in H1.
Thank you, Mike. Couple from the group. This is more macro related, but if the conflict in the Middle East ends, will we see significant oversupply of oil to the market?
Dave, do you want to comment?
Yeah, sure. This has been a theme I think I've heard from a few of the reports that have already come out. There's certainly, when all of the oil comes back on the market, there could potentially be a bit of a spike in supply. But given the drawdown in all the storages around the world, the strategic storage in the U.S., and all of the various tanks around the world that store oil are all at historic lows. There's going to be a period of time of having to refill the refineries coming back online to be able to do diesel. There's a lot of pent-up demand, I would say, in terms of being able to fill that storage back up again that should soak up a large part of that supply that comes back online.
We continue to kind of move forward with the levels that we're at right now, but it's tough to continue to sustain it. There will be a lot of demand that comes back online. I don't see it having a huge impact on the price or the activity for that matter. Our business is not tied necessarily to the oil price. We're very much, as Guillaume has mentioned, more on the asset integrity side of the business, the intervention side of the business. We don't really see the, even if we get some downward pricing pressure on the oil price. The fact that things have freed up is probably better for our business anyway, and our activities will follow with that freeing up.
We don't think that that has any real overhang in our business, certainly not in 2027 and then we'll see from there going forward how things shape up.
Thank you, Dave. I think the next question is, conversely, if the conflict continues, which markets do you think will pick up that supply demand?
Do you want me to take that, Guillaume?
Yeah, carry on.
The U.S. is continuing to pick up. I think that Canada's growing their production, Venezuela potentially coming back online, although I think it's going to be a while before they're meaningfully adding to the production. I think from a gas standpoint, the focus is really around the Caspian CIS region and North Africa to try to pick up their capacity to be able to deliver gas into Europe, which is one of the reasons we see North Africa increasing their spend in what we do, because they see an opportunity to deliver more into Europe, given the circumstances that are going on right now. I think the CIS Caspian region and North Africa from a gas standpoint, and then from an oil, it's the typical usual suspects, the U.S., Latin America, and Guyana, Brazil, they're increasing. Argentina with the Vaca Muerta shale play.
I think those guys are trying to increase. We are hearing rumors about additional offshore deep water exploration coming back online. I will believe it when I see it, but Schlumberger is talking about there being a resurgence in that deep water play coming back online.
Great. Thank you, Dave. Thank you, guys. That appears to be the end of the Q&A session in terms of inbounds. Thank you all for joining us today. As a reminder, the event replay will be available on the gowell.energy website. Thank you all. Speak soon. Thanks.
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Thank you.