Noble (NE) Q2 2025 earnings summary

Executive summary

• Q2 2025 delivered adjusted EBITDA of $282 million, net income of $43 million, and free cash flow of $107 million, with revenue at $849 million, reflecting sequential declines but year-over-year growth driven by the Diamond acquisition.

• Over $1.1 billion has been returned to shareholders since Q4 2022 through dividends and buybacks, including a Q3 2025 dividend of $0.50 per share.

• Achieved $100 million in cost synergies from the Diamond acquisition ahead of schedule, with integration milestones met and focus shifting to optimization.

• Secured approximately $380 million in new contracts in Q2, bringing the backlog to $6.9 billion as of August 5, with strong contract coverage into 2026 and beyond.

• Fleet rationalization continued with the disposal or planned sale of Pacific Scirocco, Pacific Meltem, Noble Globetrotter II, Noble Highlander, and Noble Reacher.

Financial highlights

• Q2 2025 contract drilling services revenue was $812 million, with total revenue at $849 million and adjusted EBITDA margin at 33%.

• Net income for Q2 2025 was $43 million ($0.27 per diluted share), down from Q1 2025 and Q2 2024.

• Free cash flow for Q2 2025 was $107 million; net cash from operating activities was $216 million.

• Backlog at quarter end was $6.9 billion, with $1.1 billion scheduled for revenue in 2025, $2.3 billion in 2026, and $1.6 billion in 2027.

• Net debt at quarter end was $1.64 billion, with liquidity of $870 million and net leverage of 1.3x.

Outlook and guidance

• 2025 revenue guidance was lowered to $3.2–$3.3 billion, while adjusted EBITDA guidance was raised to $1.075–$1.15 billion; capital expenditures guidance increased to $400–$450 million.

• Expect sequentially lower adjusted EBITDA in Q3 2025 due to contract rollovers and downtime, with a rebound anticipated in H2 2026 as new contracts start.

• Management expects deepwater demand to increase by late 2026 and into 2027, especially in South America and Africa.

• Near-term utilization for floaters and jackups is anticipated to be lower than prior years due to market conditions.