ADNOC Drilling Company (ADNOCDRILL) Q1 2026 earnings summary

Executive summary

• Achieved record Q1 2026 results with revenue of $1.228 billion, EBITDA of $527 million, and net profit of $347 million, driven by high fleet utilization, operational excellence, and integrated services growth.

• Maintained 98% rig availability, drilled 191 wells, and expanded the regional fleet through acquisitions and JVs, including MBPS and SLDC.

• Distributed $262.5 million in Q1 dividends, supporting a $1.05 billion annual dividend floor (+5% YoY), reaffirming commitment to progressive shareholder returns.

• Strong ESG performance with zero catastrophic events and a diverse workforce.

• Operational resilience and strong cash generation continued despite regional geopolitical tensions.

Financial highlights

• Revenue increased 5% year-over-year to $1.228 billion; net profit rose 2% to $347 million; EBITDA was $527 million with a 43% margin.

• Free cash flow was $356 million, up 12% year-over-year; CapEx for Q1 was $63 million.

• Net debt stood at $1.7 billion (0.8x EBITDA), with liquidity headroom of $1.56 billion.

• Cash and cash equivalents increased to $331 million.

• Earnings per share was $0.022, up from $0.021 year-over-year.

Outlook and guidance

• Full-year 2026 guidance: revenue ~$5 billion, EBITDA $2.2–2.3 billion, net profit $1.45–$1.5 billion, free cash flow $1.2–$1.3 billion.

• EBITDA margin expected at 44–45%; net profit margin at 29–30%.

• Dividend for FY 2026 expected to be at least $1.05 billion, a minimum 5% increase year-over-year.

• Maintenance CapEx guided at ~$250 million per year; cash CapEx for 2026 expected at $0.6–0.8 billion.

• Medium-term focus on sustained drilling, OFS development, and new rig delivery.