Transocean (RIG) investor relations material

Executive summary

• Achieved contract drilling revenues of $966 million in Q2 2026, with revenue efficiency at 97.0% and adjusted EBITDA margin of 32%.

• Net income reached $170 million, a significant turnaround from a $938 million loss in Q2 2025, driven by improved operational performance and absence of prior-year impairments.

• Strengthened backlog by $292 million in Q2, with total backlog at $6.7 billion, excluding a pending $1.0 billion Equinor contract.

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

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

Financial highlights

• Q2 2026 contract drilling revenues were $966 million, at the upper end of guidance, with adjusted EBITDA of $312 million (32% margin) and free cash flow of $212 million.

• Net income for Q2 2026 was $170 million, or $0.15 per diluted share, versus a net loss of $938 million in Q2 2025.

• Unrestricted cash increased to $510 million, with total liquidity at $1.3 billion at quarter-end.

• Net debt to EBITDA ratio improved to 2.8x from 5.2x at the start of 2025.

• Capital expenditures were $24 million in Q2 2026.

Outlook and guidance

• Increased 2026 revenue guidance reflecting contract extensions and new awards, with full-year guidance at $3.9–3.975 billion.

• Revenue efficiency projected at 96.5% for Q3 and full year.

• Full-year G&A guidance remains $170–$180 million, excluding transaction costs.

• Interest expense guidance for 2026 is ~$475 million, with Q3 and Q4 forecast at $113 million per quarter.

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