ADNOC Drilling Company (ADNOCDRILL) Q2 2025 earnings summary

Executive summary

• Achieved record H1 2025 results with revenue up 30% year-on-year to $2.37 billion and net income up 21% to $691.9 million.

• Regional expansion advanced with the acquisition of a 70% stake in SLB's land rig operations in Oman and Kuwait.

• Board approved a second quarterly dividend of $217 million, with total dividends in the first eight months of 2025 reaching $830 million.

• Upgraded 2025 guidance and continued progress on ESG goals, including safety and emissions reduction.

• Comprehensive drilling and construction services contributed to strong onshore and offshore segment performance.

Financial highlights

• Q2 2025 revenue: $1.197 billion, up 28% year-on-year; H1 2025 revenue: $2.37 billion, up 30%.

• Q2 EBITDA: $545 million, up 15% year-on-year; H1 EBITDA: $1,078.1 million, up 19%.

• Q2 net income: $692 million, up 21% year-on-year; H1 net profit: $691.9 million.

• Free cash flow increased by 67% year-on-year; cash from operations reached $649 million, up 25%.

• Earnings per share for H1: $0.0433, up from $0.0356 year-over-year.

Outlook and guidance

• FY 2025 revenue guidance raised to $4.65–$4.8 billion; OFS revenue expected at $1.2–$1.3 billion.

• Net profit guidance for 2025: $1.375–$1.45 billion; EBITDA margin expected at 46–48%.

• Free cash flow guidance for 2025: $1.4–$1.6 billion (excluding M&A), at least $1 billion post-M&A.

• 2026 revenue expected around $5 billion; fleet target of 148 rigs for 2026 already exceeded.

• No material uncertainties over going concern, supported by strong cash flows and undrawn facilities.