McDermott International: On A Good Trajectory, Shares Remain Deeply Discounted (MCDIF)
Alluvial Capital Management·2026-04-29·via All Articles on Seeking Alpha
Summary
McDermott International is making good progress in its turnaround as an energy engineering and construction firm with a long history but recent struggles.
MCDIF reported EBITDA up 38% from 2024, strong cash flow, and good backlog development despite recent global disruptions and delays.
McDermott expects adjusted EBITDA to rise 21% this year to $520 million at a 6.5% margin while legacy fixed-price projects decrease.
McDermott International is currently seeking to refinance its long-term debt due in 2027 to give the company the runway it needs to continue its turnaround.
As milestones are achieved, Alluvial Fund expects the risk premium to diminish and for McDermott International shares to respond appropriately to the company's trajectory.
Our other Mc-investment, McDermott International (MCDIF), is making good progress in its turnaround. McDermott is an energy engineering and construction firm
