Transocean (RIG) Q3 2026 earnings summary

Executive summary

• Q3 revenue was $937M; net income was $26M, or $0.02 per diluted share, and adjusted EBITDA was $313M at a 33.4% margin. Fleet uptime was 98%.

• Nine new fixtures added $2.0B of backlog at a weighted average dayrate of ~$423K; backlog reached $7.966B and 2027 coverage nearly 95%.

• Valaris regulatory approvals were received; shareholder votes were scheduled for Nov. 24 and closing was expected Dec. 1, with $200M in targeted annual synergies.

• Priorities include safe, reliable service, converting backlog to cash flow, reducing debt and completing Valaris integration planning.

Financial highlights

• Q3 contract drilling revenue declined 9% YoY to $937M; operating income was $143M versus a $1.677B operating loss in Q3 2025.

• Net income was $26M versus a $1.923B net loss in Q3 2025, which included a $1.913B impairment charge.

• Q3 O&M expense was $589M; G&A was $62M, including $10M of acquisition costs.

• Net cash from operations was $174M; free cash flow was $131M after $43M of capital expenditures.

• Nine-month revenue was $2.984B versus $2.922B; operating cash flow was $574M versus $400M.

Outlook and guidance

• 4Q26 revenue guidance is $915M–$965M; FY26 is $3.9B–$3.95B and preliminary FY27 is $3.85B–$4.0B.

• O&M guidance is $550M–$600M for 4Q26, $2.35B–$2.375B for FY26 and $2.4B–$2.5B for preliminary FY27.

• FY26 G&A guidance is $185M–$190M, excluding transaction costs; interest expense guidance is $500M for FY26 and $107M for 4Q26.

• Preliminary FY27 guidance reflects ~95% contract coverage; 2027 O&M costs are expected to rise ~$60M YoY, with low-single-digit cost inflation.

• Industry tendering and awards increased in 2026 for work starting in 2027–28; further awards were anticipated, with harsh-environment demand expected to remain strong through decade-end.