Noble (NE) Q1 2025 earnings summary

Executive summary

• Secured $2.0–$2.7 billion in new long-term contracts, including major awards with Shell and TotalEnergies, increasing backlog by 30% to $7.5 billion and adding nearly 15 rig years.

• Q1 2025 net income was $108 million, with adjusted EBITDA of $338 million and free cash flow of $173 million, supported by robust contract awards and disciplined cost management.

• Returned about $100 million to shareholders in Q1 via $0.50/share dividend and $20 million in buybacks; Q2 dividend maintained at $0.50 per share.

• Surpassed $1 billion in combined dividends and buybacks since Q4 2022.

• Integration of Diamond Offshore progressing, with ~70% of targeted synergies realized and ERP integration ahead of schedule.

Financial highlights

• Q1 2025 revenue was $874 million, up 37% year-over-year but down from $927 million in Q4 2024.

• Adjusted EBITDA margin was 39%, aided by insurance proceeds and strong cost control.

• Net income reached $108 million, with diluted EPS of $0.67.

• Net cash from operating activities was $271 million; free cash flow was $173 million after capex.

• Net debt reduced to $1.675 billion, with liquidity at $834 million and cash/equivalents at $304 million.

Outlook and guidance

• 2025 guidance maintained: revenue $3,250–$3,450 million, adjusted EBITDA $1,050–$1,150 million, capex $375–$425 million.

• Approximately 95% of 2025 EBITDA guidance midpoint is contracted.

• Backlog up 30% sequentially, enhancing revenue visibility through 2030.

• Q2 adjusted EBITDA expected to decline sequentially due to fewer operating days and planned out-of-service time.

• Tariffs expected to have less than $15 million cost impact in 2025.