Seadrill (SDRL) Q2 2026 earnings summary

Executive summary

• Q2 2026 delivered strong results with operating revenues of $449 million, adjusted EBITDA of $144 million, and net income of $29 million, exceeding expectations and prompting a second guidance increase this year.

• Achieved 96% economic utilization, driven by higher dayrates, improved operational performance, and key rig transitions.

• Secured new contract awards and extensions in the U.S. Gulf and Malaysia, adding $200 million to contract backlog, which reached $2.9 billion by August 2026.

• Resumed and extended share repurchase program through year-end 2026, with $20 million repurchased in Q2.

• Completed major refinancing: issued $700 million of senior notes due 2034, redeemed $575 million of 2030 notes, and increased revolving credit facility to $300 million, maturing in 2031.

Financial highlights

• Q2 2026 operating revenues were $449 million, up 19% year-over-year and $91 million sequentially; adjusted EBITDA reached $144 million.

• Net income was $29 million, compared to a $42 million loss in Q2 2025; operating profit rose to $72 million.

• Adjusted EBITDA margin excluding reimbursables improved to 33.5% from 27.9% in Q1.

• Cash and cash equivalents at quarter-end were $360 million; net debt was $390 million.

• Capital expenditures and long-term maintenance for Q2 totaled $57 million.

Outlook and guidance

• Raised full-year 2026 total operating revenue guidance to $1.5–$1.55 billion (excluding $50 million reimbursables); adjusted EBITDA guidance increased to $420–$450 million.

• Capital expenditure and long-term maintenance guidance maintained at $200–$240 million.

• Expect meaningful free cash flow generation in H2 2026, with major project outflows behind and cash benefits from new contracts ahead.