Noble (NE) Q1 2026 earnings summary

Executive summary

• Achieved adjusted EBITDA of $277 million, free cash flow of $169 million, and net income of $121 million in Q1 2026, with a quarterly dividend of $0.50 per share declared for Q2.

• Secured $565 million in new contract awards since January 2026, increasing backlog to $7.5 billion.

• Operational disruption from the Iran conflict was limited to one jackup in the Middle East, with all personnel safely evacuated and the rig sold but operated under a bareboat agreement.

• Market conditions for deepwater rigs are robust, with utilization at 95% and open demand up 55% from two years ago, supporting optimism for higher day rates and backlog growth.

• Maintained a consistent return of capital program, including dividends and share repurchases.

Financial highlights

• Q1 2026 revenue was $786 million, up from $764 million in Q4 2025.

• Adjusted EBITDA margin reached 35%, up from 30% sequentially.

• Net income rose to $121 million, with diluted EPS of $0.75.

• Cash flow from operations was $273 million; capital expenditures were $104 million.

• Net debt decreased to $1,255 million, and liquidity increased to $1,206 million.

Outlook and guidance

• Maintained full-year 2026 revenue guidance of $2.8–$3.0 billion and adjusted EBITDA of $940–$1,020 million.

• Capital expenditures guidance increased by $25 million to $615–$665 million due to the Noble Deliverer reactivation.

• The lower end of EBITDA guidance is fully contracted; upside depends on additional rig opportunities and operational performance.

• Management anticipates a financial inflection in 2027, supported by backlog and a robust bidding pipeline.