Seadrill Limited (SDRL)
NYSE:SDRL
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Seadrill Limited
(NYSE:SDRL)
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Rating:54Neutral
Price Target:
$39.00
▼(-15.53% Downside)
Action:Reiterated
Date:06/19/26
The score is held back mainly by weak cash flow and poor technical momentum (price below key moving averages with negative MACD). Offsetting factors include a relatively strong balance sheet and a constructive earnings outlook with raised guidance and significant backlog additions, plus liquidity-enhancing financing actions.
Positive Factors
Balance sheet strength
Low leverage and sizable equity provide durable financial flexibility for a capital-intensive driller. This allows Seadrill to withstand cycle volatility, access financing on better terms, and fund maintenance/reactivations without overreliance on distressed capital markets, lowering default risk.
Negative Factors
Weak cash generation
Persistent negative operating and free cash flow in a capital-intensive business raises refinancing and execution risk. Until conversion to consistent positive FCF, Seadrill must rely on financing or lump‑sum receipts, constraining reinvestment and making the firm vulnerable to demand timing setbacks.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance sheet strength
Low leverage and sizable equity provide durable financial flexibility for a capital-intensive driller. This allows Seadrill to withstand cycle volatility, access financing on better terms, and fund maintenance/reactivations without overreliance on distressed capital markets, lowering default risk.
Read all positive factors
Seadrill Limited (SDRL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.40B
Dividend YieldN/A
Average Volume (3M)679.85K
Price to Earnings (P/E)―
Beta (1Y)1.01
Revenue Growth7.91%
EPS Growth-120.67%
CountryUS
Employees3,300
SectorEnergy
Sector Strength52
IndustryOil & Gas Drilling
Share Statistics
EPS (TTM)-1.13
Shares Outstanding62,530,506
10 Day Avg. Volume700,245
30 Day Avg. Volume679,854
Financial Highlights & Ratios
PEG Ratio0.23
Price to Book (P/B)0.75
Price to Sales (P/S)1.50
P/FCF Ratio-15.57
Enterprise Value/Market Cap1.18
Enterprise Value/Revenue1.95
Enterprise Value/Gross Profit11.77
Enterprise Value/Ebitda9.71
Forecast
1Y Price Target
$60.00Price Target Upside29.95% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)0.62
Revenue Forecast (FY)$1.49B
Seadrill Limited Business Overview & Revenue Model
Company Description
Seadrill Limited, a global entity, is dedicated to delivering contract drilling services for the offshore oil and gas sector. The company utilizes a diverse fleet of sophisticated equipment, including drillships, semi-submersible rigs, and jack-up...
How the Company Makes Money
Seadrill makes money primarily by contracting its offshore drilling units to oil and gas producers under drilling contracts. Revenue is chiefly generated from dayrate-based contract drilling: customers pay a negotiated daily rate for the use of a ...
Seadrill Limited Earnings Call Summary
Earnings Call Date:May 11, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 05, 2026
Earnings Call Sentiment Positive
The call conveyed a predominantly positive operational and financial trajectory: Seadrill reported an EBITDA beat, added substantial backlog (~$860M), completed key projects ahead of schedule and raised full-year revenue and EBITDA guidance. Near-term cash was impacted by expected reactivation and reacceptance spending, and some fleet white space and client-funded reactivation constraints remain. Management emphasized a focused path to free cash flow generation beginning mid-2026, supported by expected lump-sum mobilizations (~$70M) and conversion of rigs to market day rates.Positive Updates
EBITDA Beat and Sequential Improvement
Reported adjusted EBITDA of $97 million in Q1 2026, a sequential increase of $9 million (approximately +10% quarter-on-quarter), driven by early contract commencements, higher economic utilization and timing of operating expenditures.
Negative Updates
Q1 Cash Use and Temporary Weak Cash Flow
Used $35 million of cash in Q1 2026 (cash down from approximately $364M to $329M, ≈-9.6% QoQ), driven by reactivation and reacceptance activities (Capella reactivation, Jupiter reacceptance) and timing of working capital; Q1 cash flow was weaker as anticipated.
Read all updates
Q1-2026 Updates
Positive
Negative
EBITDA Beat and Sequential Improvement
Reported adjusted EBITDA of $97 million in Q1 2026, a sequential increase of $9 million (approximately +10% quarter-on-quarter), driven by early contract commencements, higher economic utilization and timing of operating expenditures.
Read all positive updates
Company Guidance
Seadrill updated full‑year 2026 guidance, raising operating revenues to $1.43–$1.48 billion (excludes ~$50 million of reimbursables) and adjusted EBITDA to $370–$420 million (which includes a $26 million non‑cash net expense for amortization of mobilization costs/revenues, of which $7 million was recognized in Q1); full‑year CapEx remains $200–$240 million. The guidance reflects strong Q1 results (Q1 EBITDA $97 million; contract drilling revenues $277 million; management revenues $63 million; leasing $8 million; operating expenses $334 million), ~$860 million of backlog added since the last call, and project execution (early starts for West Jupiter and West Capella and West Carina now expected through mid‑June). Balance sheet and cash flow metrics cited: total cash $329 million, $35 million cash used in Q1 (including $13 million investing CapEx and $38 million long‑term maintenance), gross principal debt $625 million, available liquidity ~$482 million, and expected lump‑sum mobilization receipts of ~ $70 million over the next two quarters—supporting the company’s view of meaningful free‑cash‑flow generation beginning in H2 2026.Seadrill Limited Financial Statement Overview
Summary
Income Statement
52
Neutral
Balance Sheet
76
Positive
Cash Flow
34
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Mar 2023 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.45B | 1.44B | 1.39B | 1.47B | 936.00M | 907.00M |
| Gross Profit | 240.00M | 173.00M | 293.00M | 565.00M | 281.00M | -38.00M |
| EBITDA | 291.00M | 248.00M | 562.00M | 494.00M | 3.92B | -336.00M |
| Net Income | -24.00M | -77.00M | 446.00M | 300.00M | 3.91B | -587.00M |
Balance Sheet | ||||||
| Total Assets | 3.99B | 3.95B | 4.16B | 4.22B | 2.80B | 3.90B |
| Cash, Cash Equivalents and Short-Term Investments | 304.00M | 339.00M | 478.00M | 697.00M | 480.00M | 293.00M |
| Total Debt | 614.00M | 613.00M | 618.00M | 610.00M | 518.00M | 908.00M |
| Total Liabilities | 1.14B | 1.09B | 1.24B | 1.24B | 1.10B | 7.61B |
| Stockholders Equity | 2.85B | 2.86B | 2.92B | 2.98B | 1.70B | -3.72B |
Cash Flow | ||||||
| Free Cash Flow | -55.00M | -138.00M | -69.00M | 186.00M | -140.00M | -183.00M |
| Operating Cash Flow | -23.00M | -28.00M | 88.00M | 287.00M | 9.00M | -154.00M |
| Investing Cash Flow | -77.00M | -113.00M | 226.00M | 42.00M | 343.00M | 37.00M |
| Financing Cash Flow | -4.00M | -3.00M | -532.00M | -200.00M | -363.00M | 0.00 |
Seadrill Limited Technical Analysis
Negative
46.17
Price Trends
47.65
Negative
45.35
Negative
38.73
Negative
Market Momentum
-2.29
Positive
22.91
Positive
7.03
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SDRL, the sentiment is Negative. The current price of 46.17 is above the 20-day moving average (MA) of 45.53, below the 50-day MA of 47.65, and above the 200-day MA of 38.73, indicating a bearish trend. The MACD of -2.29 indicates Positive momentum. The RSI at 22.91 is Positive, neither overbought nor oversold. The STOCH value of 7.03 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SDRL.
Seadrill Limited Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | $3.81B | -31.95 | -3.67% | 5.42% | -9.41% | 88.02% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
65 Neutral | $5.44B | 5.41 | 36.16% | ― | -9.95% | 233.69% | |
62 Neutral | $3.49B | -9.29 | -14.16% | 3.24% | 29.73% | -272.28% | |
55 Neutral | $1.30B | 36.20 | 3.14% | 5.99% | 5.84% | -19.93% | |
54 Neutral | $2.40B | -99.72 | -0.84% | ― | 7.91% | -120.67% | |
54 Neutral | $5.93B | -2.13 | -32.79% | ― | 12.90% | -274.70% |
* Energy Sector Average
SDRL
Seadrill Limited
38.54
10.53
37.59%
HP
Helmerich & Payne
34.97
18.48
112.06%
PTEN
Patterson-UTI
10.04
3.99
65.98%
RIG
Transocean
5.31
2.40
82.47%
BORR
Borr Drilling
4.22
2.14
102.88%
VAL
Valaris
78.56
33.16
73.04%
Seadrill Limited Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Seadrill Expands and Extends Senior Secured Revolving Credit Facility
Positive
Jun 18, 2026
On June 16, 2026, Seadrill Limited amended its senior secured revolving credit agreement, increasing the facility’s commitments from $225 million to $300 million and extending the stated maturity from 2028 to 2031, with effectiveness expecte...
Business Operations and StrategyPrivate Placements and Financing
Seadrill Announces $600 Million Senior Notes Offering
Positive
Jun 15, 2026
On June 15, 2026, Seadrill Limited announced that its wholly owned subsidiary, Seadrill Finance Limited, plans a private offering of $600 million in senior unsecured notes due 2034 to eligible institutional investors under Rule 144A and Regulation...
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Seadrill Shareholders Approve Governance Measures and Incentive Plan
Positive
Jun 5, 2026
At its annual general meeting on June 3, 2026, Seadrill Limited shareholders approved several governance and compensation measures, including setting the board size at up to nine directors and re-electing all nominated directors to serve until the...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.