Seadrill (SDRL) Q4 2025 earnings summary

Executive summary

• Delivered full-year 2025 EBITDA of $353 million, exceeding guidance midpoint in a challenging market, with a net loss of $77 million.

• Achieved record safety performance, with a 50% improvement over the IADC offshore industry benchmark, and executed deepwater programs ahead of schedule and budget.

• Secured $0.5 billion in new contract awards across seven rigs, boosting contract backlog to $2.5 billion as of February 25, 2026, providing revenue visibility into 2026 and 2027.

• Operational excellence highlighted by record-setting rig performance, industry awards, and strategic investments in workforce development and technology.

• Industry consolidation positions the company as the third largest deepwater driller globally.

Financial highlights

• Q4 2025 operating revenues were $362 million, nearly flat sequentially, with full-year revenues at $1.44 billion.

• Q4 contract drilling revenues decreased by $7 million due to fewer operating days for West Vela, partially offset by Sevan Louisiana.

• Q4 operating expenses rose to $344 million, mainly from increased depreciation and amortization.

• Q4 EBITDA was $88 million; full-year 2025 EBITDA reached $353 million, with a net loss of $77 million.

• Year-end cash balance was $365 million, with total liquidity of $524 million and gross principal debt of $625 million (maturities through 2030); net debt at year-end was $260 million.

Outlook and guidance

• 2026 operating revenues expected at $1.4–$1.45 billion (excluding $50 million reimbursable revenues), with EBITDA guidance of $350–$400 million, including $26 million non-cash expense.

• Capital expenditures for 2026 projected at $200–$240 million, a significant reduction from prior years.

• Anticipates strong cash flow inflection mid-2026 as major rigs commence new contracts and CapEx declines.

• 90% of midpoint 2026 revenue range covered by firm backlog.

• Management expects tightening supply, longer contract durations, and higher dayrates to drive improved results into 2027.