Saipem: Not That Much Of A Beneficiary Of The Crisis

Saipem (SAPMF) remains independent pre-merger with Subsea 7, but its valuation appears less compelling than peers like JGC Holdings despite its discount to Subsea 7. Margin expansion is notable, yet legacy poor-margin contracts still weigh on profitability, with some completing by mid-2026. So there's more boost to come to margins. Execution risks are now present, especially as 38% of backlog is Middle East–exposed and regional conflicts may delay contract signings and revenue.