Noble (NE) Q3 2025 earnings summary

Executive summary

• Achieved $254 million Adjusted EBITDA and $139 million free cash flow in Q3 2025, with $87 million in net disposal proceeds and $80 million distributed to shareholders via dividends.

• Secured $740 million in new contracts since August, increasing backlog to $7.0 billion, with strong contract extensions and new awards in the U.S. Gulf and Ghana.

• Q3 2025 posted a net loss of $21 million, compared to net income in prior periods, impacted by integration costs and higher interest expenses from the Diamond Offshore Drilling acquisition.

• Completed fleet rationalization, including sales of Noble Highlander, Pacific Meltem, and Noble Reacher, and retirements of select rigs.

• Declared $0.50 per share dividend for Q4, totaling $340 million in 2025 shareholder returns.

Financial highlights

• Q3 2025 revenue was $798 million, down from $849 million in Q2 and nearly flat year-over-year.

• Adjusted EBITDA for Q3 was $254 million (32% margin), compared to $282 million (33% margin) in Q2.

• Free cash flow for Q3 was $139 million; cash and equivalents at quarter-end were $478 million.

• Net loss of $21 million in Q3, versus net income of $43 million in Q2 and $61 million in Q3 2024.

• Net debt at quarter end was $1,499 million, with liquidity of $1,010 million.

Outlook and guidance

• 2025 revenue guidance narrowed to $3,225–$3,275 million; Adjusted EBITDA guidance set at $1,100–$1,125 million.

• Capital expenditures for 2025 projected at $425–$450 million, with similar levels anticipated for 2026.

• EBITDA trough expected in H1 2026, with a material inflection anticipated from late 2026 onward as new contracts are secured.

• Management anticipates a moderately lower earnings and cash flow profile in H1 2026, with market recovery expected by late 2026 or early 2027.

• Backlog as of September 30, 2025, was approximately $7.1 billion, with 61% of available days committed for the remainder of 2025.