Transocean (RIG) investor relations material

Executive summary

• Achieved Q2 2026 contract drilling revenues of $966 million, net income of $170 million, and adjusted EBITDA of $312 million (32% margin), marking a turnaround from a $938 million loss in Q2 2025.

• Free cash flow was $212 million, with total liquidity exceeding $1.3 billion and unrestricted cash at $510 million.

• Strengthened backlog by $292–$300 million in Q2, with total backlog at $6.7 billion and an additional $1 billion pending approval.

• Nearly all active drill ships are contracted or mobilizing, with 94% coverage for 2026 and 81% for 2027.

• Integration planning for the Valaris acquisition is progressing, with regulatory clearances received in most jurisdictions and expected closing in Q4.

Financial highlights

• Q2 2026 revenue was $966 million, at the upper end of guidance, with revenue efficiency at 97.0%.

• O&M expense was $608 million and capital expenditures $24 million, both below guidance.

• Adjusted EBITDA margin was 32.2%; free cash flow margin was 22%.

• Net debt at quarter end was $4.3 billion, down $1.7 billion over 18 months; total debt at $5.1 billion, down from $6.7 billion a year ago.

• Net income for Q2 2026 was $170 million, or $0.15 per diluted share.

Outlook and guidance

• Increased 2026 revenue guidance due to contract extensions and new awards; full-year cost guidance slightly raised.

• G&A guidance remains $170–$180 million, excluding transaction costs; interest expense guidance is $475 million for the year.

• Expect to end 2026 with less than $4.8 billion gross debt and $1.25–$1.35 billion liquidity.

• Deepwater and harsh environment utilization projected to exceed 90% by 2027; market outlook remains constructive.

• Contract backlog as of August 5, 2026, was $6.7 billion, with an additional $1.0 billion pending approval.