The call highlighted material financial and operational improvements — strong adjusted EBITDA (+~20% YoY), best-in-several-years quarterly free cash flow, significant debt reduction, record uptime (~98%), and a strategic, transformative acquisition of Valaris with sizable pro forma backlog and identified synergies. Headwinds include some near-term assumed idle time on specific rigs, slower-than-expected award timing in late 2025, and ongoing Petrobras negotiations. Overall, the positive financial momentum, improved liquidity and clear pathway to deleveraging and higher utilization outweigh the limited near-term execution and timing risks.

Company Guidance

Transocean's guidance for Q1 and full‑year 2026 assumes some idle time on the KG2, Deepwater Proteus and Deepwater Skiros but still targets 2026 free cash flow in line with or better than 2025's $626 million, plans to opportunistically reduce debt beyond a remaining 2026 scheduled obligation of about $380 million (≈$130 million already paid), and expects year‑end 2026 liquidity of $1.6–$1.7 billion (current liquidity ≈$1.5 billion: cash $620M, restricted $377M, $510M undrawn). That outlook is supported by Q4 results — contract drilling revenue $1.04B, average daily revenue ≈$461K, adjusted EBITDA $385M (37% margin), cash from operations ≈$349M (+42% q/q), free cash flow $321M (31% margin) after $28M capex — plus a standalone backlog of ≈$6B (pro forma ≈$11B with Valaris), identified GBP>200M synergies, $100M of cost savings realized in 2025 and a further $150M targeted in 2026, reduced annual interest expense of ~ $90M and an expected pro forma leverage of ~1.5x within 24 months as deepwater utilization moves to >90% through 2027.

Strong Adjusted EBITDA and Margins

Q4 adjusted EBITDA of $385,000,000 with an implied margin of 37%. Full-year adjusted EBITDA of $1,370,000,000, up nearly 20% year-over-year.

Robust Free Cash Flow Generation

Q4 free cash flow of $321,000,000 (free cash flow margin 31%); full-year free cash flow of $626,000,000, described as a significant increase versus prior year.

Material Operating Cash Flow Improvement

Q4 cash flow from operations of approximately $349,000,000, a sequential increase of 42% versus prior quarter.

Revenue and Average Daily Rates

Q4 contract drilling revenues of $1,040,000,000 with average daily revenue of approximately $461,000, broadly consistent with recent quarters.

Balance Sheet Strengthening and Interest Savings

Retired about $1,300,000,000 of debt in 2025 and reduced annual interest expense by nearly $90,000,000, improving liquidity and refinancing flexibility.

Cost Reductions and Efficiency Gains

Removed $100,000,000 in costs in 2025 and targeting an additional $150,000,000 of cost reductions in 2026 through shore-based rationalization, G&A cuts and reorganization.

Operational Excellence and Safety

Achieved record fleet uptime just shy of 98%, zero operational integrity events, zero lost-time incidents, and completed five major planned out-of-service projects on time and on budget.

Fleet Optimization Actions

Recycled six rigs during 2025 with a seventh completed early in 2026, indicating active fleet high-grading and capital allocation discipline.

Strong Backlog and Acquisition-Led Scale

Standalone backlog of roughly $6,000,000,000; announced definitive agreement to acquire Valaris creating pro forma backlog near $11,000,000,000 and identified over GBP 200,000,000 of cost synergies.

Liquidity Position and 2026 Outlook

Ended Q4 with total liquidity of approximately $1,500,000,000 (including $620,000,000 unrestricted cash) and guiding to year-end 2026 liquidity of $1.6B–$1.7B (ex-opportunistic deleveraging).

Market Outlook — Deepwater Utilization

Management expects deepwater utilization to move meaningfully higher to greater than 90% through 2027, citing growing tendering activity and multiple multiyear opportunities across major basins.

Transocean (RIG) Earnings, Revenues Date & History

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RIG Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
May 04, 2026	2026 (Q1)	0.08 / -	-0.1	―	―	―
Feb 19, 2026	2025 (Q4)	0.08 / 0.02	-0.09	122.22% (+0.11)	―
Oct 29, 2025	2025 (Q3)	0.04 / 0.06	0.067	-10.45% (>-0.01)	―
Aug 04, 2025	2025 (Q2)	>-0.01 / 0.00	-0.15	―	―
Apr 28, 2025	2025 (Q1)	-0.11 / -0.10	-0.03	-233.33% (-0.07)	―
Feb 17, 2025	2024 (Q4)	<0.01 / -0.09	-0.09	0.00% (0.00)	―
Oct 30, 2024	2024 (Q3)	-0.04 / 0.07	-0.36	118.61% (+0.43)	―
Jul 31, 2024	2024 (Q2)	-0.11 / -0.15	-0.15	0.00% (0.00)	―
Apr 29, 2024	2024 (Q1)	-0.15 / -0.03	-0.38	92.11% (+0.35)	―
Feb 19, 2024	2023 (Q4)	-0.23 / -0.09	-0.49	81.63% (+0.40)	―

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

RIG Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Feb 19, 2026	$6.22	$6.36	+2.25%
Oct 29, 2025	$3.83	$3.91	+2.09%
Aug 04, 2025	$2.81	$2.91	+3.56%
Apr 28, 2025	$2.31	$2.20	-4.76%

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.