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Seadrill Limited (SDRL)
NYSE:SDRL
Earnings Data
Report Date
May 27, 2026Before Open (Confirmed)
Period Ending
2026 (Q1)Consensus EPS Forecast
-0.22Last Year’s EPS
-0.23Same Quarter Last Year
Based on 5 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call emphasized strong operational performance, record safety, meaningful backlog additions and clear guidance for a 2026–2027 earnings and cash flow improvement driven by repriced contracts, rig reactivations and reduced capital spend. Short-term headwinds were acknowledged: a challenging 2025 market, Q4 cash outflows including a $43 million legal payment, stacked low-spec assets with high reactivation costs, and near-term availability/contracting risk for several rigs. On balance, the positives—EBITDA outperformance, backlog growth (+$0.5B to ~$2.5B), 90% revenue coverage at midpoint for 2026, committed utilization at 88% and a visible path to stronger free cash flow in H2 2026—outweigh the near-term negatives.Company Guidance
Record Safety and Operational Excellence
Seadrill achieved its best safety performance in company history with total recordable incident rate 50% better than the IADC offshore industry benchmark. Operational milestones include West Neptune completing a record 6-zone completion in 11 days (60% faster than prior benchmark), West Tellus achieving 400 consecutive days of BOP subsea deployment (second longest in fleet history), over 100 MPD wells drilled fleetwide, West Elara winning ConocoPhillips Supplier of the Year, and Sevan Louisiana executing first U.S. Gulf deployment of Trendsetter's Trident intervention system.
Full Year 2025 Financial Results — EBITDA Beat
Full year 2025 adjusted EBITDA was $353 million, exceeding the midpoint of prior guidance. Fourth quarter EBITDA was $88 million. Q4 total operating revenues were $362 million (essentially flat vs prior quarter: down $1 million), contract drilling revenues were $273 million (sequential decrease of $7 million, ~2.5%), reimbursable revenues rose $5 million to $16 million, total operating expenses for Q4 were $344 million (sequential +$7 million, ~+2.1%), and SG&A was flat at $27 million.
Backlog Growth and Recent Contract Awards
Seadrill added $0.5 billion to contracted backlog, bringing it to approximately $2.5 billion (implying ~25% growth vs prior balance). Notable awards/extensions: West Capella 14-month PTTEP award contributing ~$152 million (≈440 days) starting Q2 2026; West Neptune 4-month extension adding $48 million; TotalEnergies exercised option in Angola (Sonangol Quenguela) into Feb 2027; Equinor exercised option on West Saturn through Oct 2027; West Carina extended to April 2026; West Talara secured a 450-day accommodation contract. Management reports committed drillship utilization at 88% and ~90% of the midpoint of 2026 revenue guidance is covered by firm backlog.
2026 Guidance and Clear Path to Cash Flow Inflection
Full year 2026 guidance: total operating revenues $1.4–1.45 billion (excludes $50 million reimbursables) and EBITDA $350–400 million (includes $26 million noncash amortization/mobilization). CapEx and long-term maintenance guidance $200–240 million, a material step down from prior two years. Management expects Q1 2026 to be lower, a step-up in Q2 when reactivated contracts commence, and a meaningful inflection to stronger earnings and free cash flow in H2 2026 and into 2027.
Fleet Repricing and Earnings Leverage
Management disclosed repricing of legacy assets: West Jupiter and West Tellus are being repriced to 3-year contracts at day rates roughly $200,000 per day higher than before, with the benefit expected to amplify in H2 2026 and into 2027—providing direct upside to earnings and cash flow as contracts commence.
Positive Industry Tailwinds and Market Signals
Management highlighted an improving ultra-deepwater market entering 2026: IEA now projects oil & gas demand growth through 2050; Westwood forecasts floater utilization rising to 91% in 2026 and 96% in 2027; subsea tree installations have increased for five consecutive quarters. Share price appreciation of over 50% in the last three months was noted, with stock still trading at a discount to peers on forward multiples.
SDRL Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
SDRL Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Feb 25, 2026 | $45.22 | $43.26 | -4.33% |
Nov 05, 2025 | $30.89 | $29.02 | -6.05% |
Aug 06, 2025 | $29.64 | $28.17 | -4.96% |
May 12, 2025 | $23.93 | $24.52 | +2.47% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Seadrill Limited (SDRL) report earnings?
Seadrill Limited (SDRL) is schdueled to report earning on May 27, 2026, Before Open (Confirmed).
What is Seadrill Limited (SDRL) earnings time?
Seadrill Limited (SDRL) earnings time is at May 27, 2026, Before Open (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is SDRL EPS forecast?
SDRL EPS forecast for the fiscal quarter 2026 (Q1) is -0.22.