A Look At Helix Energy Solutions (HLX) Valuation After New North Sea Contract And CEO Transition News

Simply Wall St

Mon, February 23, 2026 at 11:06 AM GMT+9 3 min read

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HLX

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Helix Energy Solutions Group (HLX) has drawn fresh investor attention after securing a multi year contract for riserless plug and abandonment work on up to 34 UK North Sea subsea wells, alongside news of CEO Owen Kratz’s planned retirement.

See our latest analysis for Helix Energy Solutions Group.

Those contract and leadership headlines have arrived alongside a strong 30-day share price return of 18.88% and 90-day share price return of 37.96%. The 5-year total shareholder return of 82.45% points to solid longer term progress despite a more modest 13.31% total shareholder return over the past year.

If this kind of contract driven story has your attention, it could be a good moment to check out 23 power grid technology and infrastructure stocks as another way to find infrastructure related opportunities in the energy space.

With the shares recently hitting a new 52 week high, yet still trading around an indicated intrinsic discount of roughly 36% and about 12% below analyst targets, is there still a buying opportunity here, or is the market already pricing in future growth?

Most Popular Narrative: 8.3% Undervalued

Helix Energy Solutions Group’s most followed narrative pegs fair value at $9.75 per share, slightly above the recent $8.94 close, and ties that gap to contract driven earnings power.

The pronounced long term uptick in global demand for well abandonment, decommissioning, and offshore maintenance (as more aging fields require regulatory compliant retirement) will expand Helix’s core addressable market, supporting durable revenue growth, backlog expansion, and reduced earnings volatility.

Read the complete narrative.

Want to see what underpins that valuation gap? The narrative leans on measured revenue expansion, fatter margins, and a future profit multiple that assumes real staying power. Curious how those moving parts add up to that fair value call?

Result: Fair Value of $9.75 (UNDERVALUED)

Have a read of the narrative in full and understand what’s behind the forecasts.

However, keep in mind that project deferrals and exposure to more volatile spot markets could still pressure utilization, margins, and cash flow if those headwinds persist.

Find out about the key risks to this Helix Energy Solutions Group narrative.

Another View: Earnings Multiple Sends a Different Signal

Our DCF work flags Helix as trading about 36% below an estimated fair value of $14.03, yet its current P/E of 30.8x is higher than the US Energy Services industry at 26.5x, the peer average at 12.2x, and a fair ratio of 17.6x. That gap suggests valuation risk if sentiment cools. How comfortable are you paying a premium today for a stock framed as undervalued on cash flows?

Story continues  

See what the numbers say about this price — find out in our valuation breakdown.

NYSE:HLX P/E Ratio as at Feb 2026

Next Steps

If the mix of contract momentum and valuation debate has you thinking, it can help to move quickly and check the underlying numbers for yourself. To see what is currently driving optimism, take a closer look at the 3 key rewards and decide how that fits with your own view.

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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._

Companies discussed in this article include HLX.

Have feedback on this article? Concerned about the content? Get in touch with us directly._ Alternatively, email [email protected]_

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