SMHI

SMHI is a sub-$210M small-cap offshore support-vessel owner (44 vessels, all owned) whose headline improvement is deceptive. FY2025 net loss narrowed 64% to -$27.8M and operating income swung positive to $13.7M, but the MD&A shows the heavy lifting came from non-operating asset sales, not the core business: the Liftboat Sales netted $74.7M and a $30.5M gain, plus PSV/FSV disposals booked another ~$27M of gains ($16.1M, $8.1M, $3.0M). Strip those out and the picture is a shrinking, cyclical business — revenue fell 16% to $228M off the FY2023 peak of $280M, and, most importantly, operating cash flow was deeply negative at -$36.4M (versus positive a year earlier) against $48.8M of capex to build two new PSVs. A vessel owner that funds itself by selling vessels is shrinking its own earning base.

The bull case is asset value and capital discipline. Book equity is $264M versus a $205M market cap, so the stock trades at ~0.78x book — a discount to hard-asset net worth. Management is acting shareholder-friendly: it bought out the Carlyle stake and cancelled all outstanding warrants at $4.90/share (~9% of the share count) using vessel-sale proceeds, repurchased $7.09M of stock, cut headcount for ~$3.9M annualized savings, and is trimming net debt. Cash grew 16% to $68.9M and current liabilities dropped, leaving current assets ($180M) comfortably above current liabilities ($70.7M).