ADNOC Drilling Company (ADNOCDRILL) Q2 2025 earnings summary

Executive summary

• Achieved record H1 2025 results, with revenue up 30% year-on-year to USD 2,366.6 million and net income up 21% to USD 691.9 million, driven by rig fleet expansion and strong oilfield services growth.

• Regional expansion advanced via acquisition of a 70% stake in SLB's land rig business in Oman and Kuwait.

• Board approved a second quarterly dividend of $217 million, with total dividends for the first eight months reaching $830 million.

• Upgraded full-year 2025 guidance for revenue, net profit, and free cash flow, reflecting strong operational momentum.

• Continued progress on ESG goals, including safety, emissions reduction, and workforce diversity.

Financial highlights

• Q2 2025 revenue: $1.197 billion, up 28% year-on-year; H1 2025 revenue: $2.37 billion, up 30% year-on-year.

• Q2 EBITDA: $545 million, up 15% year-on-year; H1 EBITDA: $1,078.1 million, up 19% year-on-year.

• Q2 net income: $692 million, up 21% year-on-year; H1 net profit: $691.9 million.

• Free cash flow increased by 67% year-on-year; Q2 free cash flow at $408 million, up 45%.

• Cash from operations reached $649 million in Q2, up 25% year-on-year; cash and cash equivalents at period end were $330.1 million.

Outlook and guidance

• Upgraded 2025 revenue guidance to $4.65–$4.8 billion, with OFS revenue expected at $1.2–$1.3 billion.

• Net profit guidance raised to $1.375–$1.45 billion for 2025.

• Free cash flow guidance for 2025: $1.4–$1.6 billion (excluding M&A), at least $1 billion post-M&A.

• 2026 revenue expected around $5 billion, with unconventional revenue stable at $0.6 billion.

• CapEx (excluding M&A) guided at $0.35–$0.55 billion; leverage target remains below 2.0x.