ADNOC Drilling Company (ADNOCDRILL) Q1 2026 earnings summary

Executive summary

• Achieved record Q1 2026 results with revenue of $1.228 billion, EBITDA of $527 million, and net profit of $347 million, driven by high fleet utilization, operational excellence, and integrated services growth.

• Maintained 98% rig availability, drilled 191 wells, and expanded the regional fleet to 170 rigs through acquisitions and JVs.

• Distributed $262.5 million in Q1 dividends, supporting a $1.05 billion annual dividend floor (+5% YoY).

• Strong ESG performance with zero catastrophic events and a diverse workforce.

• Expanded portfolio with two regional acquisitions, including MBPS, and increased rig count to the largest in MENA.

Financial highlights

• Revenue increased 5% year-over-year to $1.228 billion, led by oilfield services and offshore segments.

• EBITDA reached $527 million (43% margin); net profit rose 2% year-over-year to $347 million (28% margin).

• Free cash flow was $356 million, up 12% year-over-year; CapEx for Q1 at $63 million.

• Net debt stood at $1.7 billion, or 0.8x EBITDA, providing financial flexibility.

• Cash and cash equivalents increased to $331 million, with liquidity headroom of $1.56 billion.

Outlook and guidance

• Full-year 2026 revenue guidance confirmed at ~$5 billion, with EBITDA $2.2–2.3 billion and net profit $1.45–1.5 billion.

• EBITDA margin expected at 44–45%; net profit margin at 29–30%.

• Free cash flow guidance for 2026 is $1.2–1.3 billion; maintenance CapEx projected at ~$250 million per year.

• Dividend guidance for FY 2026 is at least $1.05 billion, a minimum 5% increase year-over-year.

• Targeting deployment of ~70 IDS rigs by end-2026 and sustained drilling/OFS development.