Seadrill (SDRL) Q3 2025 earnings summary

Executive summary

• Secured over $300 million in new contract awards, raising total backlog to $2.5 billion, with significant new contracts across Brazil, Angola, and the U.S. Gulf, and several contracts extending into 2027 and beyond.

• Maintained high operational performance, especially in Angola and the U.S. Gulf, with rigs achieving near-perfect technical uptime and industry recognition.

• Strategic upgrades and partnerships, such as with Trendsetter, are enhancing rig capabilities and opening new market opportunities, particularly in well intervention and plug & abandonment segments.

• Net loss for Q3 2025 was $11 million, with Adjusted EBITDA of $86 million, reflecting higher operating and management contract expenses.

• Joint venture rigs in Angola managed through Sonadrill, with management fees rather than dayrates, and ongoing discussions regarding contract compliance.

Financial highlights

• Q3 2025 operating revenues were $363 million, up 3% year-over-year but down sequentially, mainly due to fewer operating days and lower economic utilization.

• Adjusted EBITDA was $86 million, down from $106 million in Q2 2025.

• Net loss: $11 million, improved from $42 million loss in Q2 2025; diluted loss per share: $(0.17).

• Total liquidity at quarter-end was $587 million, with $428 million in cash and $625 million in gross principal debt maturing through 2030.

• Free Cash Flow for Q3 2025 was $9 million; net cash provided by operating activities was $28 million.

Outlook and guidance

• Full-year 2025 operating revenue guidance narrowed to $1,360–$1,390 million, with Adjusted EBITDA guidance at $330–$360 million and capital expenditure at $280–$300 million.

• Management expects market recovery momentum to build from late 2026 into 2027, with increased utilization and day-rate progression.

• Oil majors are expected to renew focus on large-scale exploration and investment.