Seadrill Earnings Call Transcripts
Fiscal Year 2026
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Q2 2026 results exceeded expectations with $144M EBITDA and 96% utilization, prompting a second guidance raise. Backlog grew by $200M, refinancing improved financial flexibility, and share buybacks resumed. Offshore market tightening supports strong outlook into 2027.
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First quarter results exceeded expectations with $97 million EBITDA and $860 million in new contract backlog. Full-year revenue and EBITDA guidance were raised, with strong free cash flow expected in the second half of 2026 and into 2027.
Fiscal Year 2025
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Full-year 2025 EBITDA exceeded guidance at $353M, with record safety and operational achievements. Strong backlog and contract wins provide revenue visibility into 2026–27, while market tightening and industry consolidation support a positive outlook for earnings and cash flow growth.
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Backlog grew by over $300 million to $2.5 billion, with strong operational performance and new contracts in Angola and the U.S. Gulf. Q3 revenues and EBITDA declined sequentially, but guidance for 2025 remains robust, with market recovery expected from late 2026 into 2027.
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Q2 2025 saw strong adjusted EBITDA and margin growth, driven by new contracts and improved utilization. Management maintains full-year guidance and expects a market recovery in late 2026–2027, with robust demand in Brazil and West Africa, and a solid backlog into 2028.
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Q1 2025 saw higher revenues and EBITDA, with strong cash and backlog supporting resilience amid market volatility. Guidance is maintained, and while near-term softness persists, medium- to long-term demand for deep-water drilling remains robust.
Fiscal Year 2024
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2024 results met guidance with $378M Adjusted EBITDA and $1.4B revenue, while $792M was returned to shareholders and $1.3B in new backlog was secured. Regulatory and legal challenges persist, but 75% of 2025 fleet days are contracted and $3B in backlog extends through 2029.
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Q3 results exceeded expectations with $93M adjusted EBITDA and raised full-year guidance. Operational focus is on cost control, fleet optimization, and strong contract coverage, especially in Brazil and the Golden Triangle. Share repurchases reduced share count by 19%.
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Q2 EBITDA reached $133M with a 35.5% margin, but full-year guidance was lowered due to rig start delays and softer near-term contracting. Asset sales strengthened the balance sheet, and 67% of the fleet is contracted through 2025, supporting a positive long-term outlook.