Seadrill (SDRL) Q3 2026 earnings summary

Executive summary

• Q3 generated $428m of revenue, $121m of Adjusted EBITDA and $179m of Free Cash Flow; FY2026 revenue and Adjusted EBITDA guidance increased.

• Contract awards and extensions added ~$800m of Total Contract Value; over 85% of available 2027 drillship days were contracted, and backlog was ~$3.3bn as of November 3.

Financial highlights

• Q3 operating revenue was $428m, down from $449m in Q2 and up 18% YoY; contract revenue was $329m and reimbursable revenue was $24m.

• Operating expenses were $384m; operating profit was $44m, versus $26m in Q3 2025. Adjusted EBITDA was $121m, down from $144m in Q2.

• Net loss was $30m, including a $41m accrual related to the West Hercules litigation; net financial and other non-operating items were a $55m expense.

• Q3 Free Cash Flow was $179m, reconciled from $195m of operating cash flow less $16m of additions to drilling units and equipment.

Outlook and guidance

• FY2026 operating revenue guidance increased to $1.56bn–$1.58bn, excluding $90m of reimbursable revenue; Adjusted EBITDA guidance rose to $440m–$460m.

• FY2026 CapEx and capitalized long-term maintenance guidance narrowed to $210m–$230m from $200m–$240m; midpoint unchanged.

• Guidance reflects repair and maintenance timing, West Carina contract preparation and fleet-wide economic utilization outcomes; Adjusted EBITDA guidance includes a $33m non-cash net expense from mobilization cost and revenue amortization.

• 2027 Free Cash Flow is expected to improve as West Carina starts its contract and its mobilization fee is collected; next-year CapEx was indicated as likely similar to 2026.