Noble (NE) Q2 2026 earnings summary

Executive summary

• Q2 2026 Adjusted EBITDA was $212 million, with a net loss of $37 million, impacted by $43 million in operational suspensions in Brazil and a $42 million impairment on Ocean Apex; free cash flow was negative $59 million.

• Backlog stood at $6.8 billion as of late Q2, with approximately $200 million in new contracts secured, including Noble Viking (Asia-Pac, six wells) and Noble Claus Bachmann (UK North Sea, three wells, $320,000/day, starts March 2027).

• $0.50/share dividend declared for Q3 2026, with $80 million returned to shareholders in Q2.

• 2026 revenue and Adjusted EBITDA guidance were reduced due to Brazil operational suspensions and contract swaps.

• Successful refinancing of $800 million in legacy notes is expected to unlock $35 million in annual cash benefits.

Financial highlights

• Q2 2026 revenue was $720 million, with contract drilling services revenue at $679 million; net loss was $37 million, and operating income was $30 million.

• Adjusted EBITDA margin declined to 29–30% from 35% in the prior quarter.

• Free cash flow was negative $59 million; net cash provided by operating activities was $144 million; capital expenditures were $205 million.

• Net debt increased to $1.43 billion, with total debt principal at $1.9 billion and liquidity at $1.1 billion.

• Cash and cash equivalents at quarter-end were $456 million.

Outlook and guidance

• Full-year 2026 revenue guidance revised to $2.8–$2.9 billion (down from $2.8–$3.0 billion); Adjusted EBITDA guidance lowered to $850–$925 million (from $940–$1,020 million), mainly due to Brazil rig issues.

• Capital expenditures guidance unchanged at $615–$665 million.

• Near-term revenue headwinds expected from Brazil operations and re-sequenced backlog, but market outlook for 2027 and beyond remains positive.

• Earnings inflection expected in H2 2027, supported by strong backlog and anticipated new contracts.