Valaris (VAL) Q3 2026 earnings summary

Executive summary

• Q3 2026 revenue was $593.6M, broadly flat YoY; operating income was $81.3M and net income attributable to common shareholders was $46.1M.

• Adjusted EBITDA rose to $150.6M from $96.5M in Q2, despite ~$24M of Middle East conflict impacts; all 10 active drillships were on contract.

• 9M revenue declined 13% YoY to $1.60B and net income attributable to common shareholders fell 70% to $80.1M, amid fewer operating days, asset sales and lower asset-sale gains.

Financial highlights

• Q3 total operating revenue rose 10% QoQ to $593.6M; revenue excluding reimbursables increased 11% to $555.6M.

• Q3 operating income was $81.3M vs. $130.5M YoY; net income was $46.7M vs. $187.3M, and diluted EPS was $0.66 vs. $2.65.

• 9M operating income was $152.4M vs. $437.6M YoY; net income was $75.7M vs. $262.3M, including lower asset-sale gains and the prior-year tax valuation allowance effect.

• Q3 operating cash flow was $67.2M and capital expenditures were $121.6M; 9M operating cash flow was $155.3M and capital expenditures were $328.0M.

Outlook and guidance

• FY2026 capital expenditures are projected at $445M–$470M, primarily for rig maintenance and upgrades, including contract-specific spending.

• Contract backlog was $4.75B at November 2, 2026, with ARO backlog of $2.20B; approximately $600M of new backlog was added since Q2 results.

• Deepwater opportunities remain robust, with strong demand for high-specification drillships and day rates moving higher.

• The Transocean combination received required regulatory approvals and was expected to close on or about December 1, 2026, subject to remaining approvals and closing conditions.