ADNOC Drilling Company (ADNOCDRILL) Q2 2026 earnings summary

Executive summary

• Achieved record first-half and second quarter 2026 results, with resilient operations, high rig utilization, and uninterrupted service despite regional challenges.

• Regional expansion accelerated through acquisitions and joint ventures, adding 30 rigs and expanding presence in Oman, Kuwait, Saudi Arabia, and Bahrain.

• Early deployment of AI-enabled automated island rig and successful integration of MBPS and SLDC enhanced operational scale and technology leadership.

• Maintained focus on profitable growth, disciplined capital allocation, and consistent shareholder returns.

• PwC reviewed unaudited condensed consolidated financials for 1H 2026, finding no material misstatements.

Financial highlights

• 1H 2026 revenue reached $2.46 billion, up 4% year-over-year; 2Q revenue was $1.23 billion, up 3% YoY.

• Net profit for 1H 2026 was $706 million (+2% YoY); 2Q net profit was $359 million (+2% YoY).

• EBITDA for 1H 2026 was $1.08 billion (+1% YoY); 2Q EBITDA was $557 million (+2% YoY), margin at 44-45%.

• Free cash flow for 2Q26 was $297 million; cash and cash equivalents at period end were $355 million.

• Board approved 2Q26 dividend of $262.5 million, bringing 1H26 dividends to $525 million.

Outlook and guidance

• FY 2026 guidance reaffirmed: revenue ~$5 billion, EBITDA $2.2–2.3 billion, net profit $1.45–1.5 billion, free cash flow pre-M&A $1.2–$1.3 billion.

• Dividend floor for 2026 set at $1.05 billion, expected to grow at least 5% annually through 2030.

• Q3 expected to see sequential growth in revenue, EBITDA, and net income; 2027 revenue growth targeted at low to mid-single digits.

• Medium-term focus on maintaining ~50% EBITDA margin in domestic drilling and 23–26% in oil field services.

• Management identified no material uncertainties over going concern, citing sufficient liquidity and undrawn borrowing facilities.