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Dec 31, 2025
Seadrill Ltd Q4 2025 Earnings Report
Seadrill Ltd Q4 2025 Earnings Report
Key Takeaways
Seadrill reported a net loss of $10 million for the fourth quarter of 2025, with total operating revenues of $362 million. Despite the net loss, the company achieved an Adjusted EBITDA of $88 million and significantly strengthened its contract backlog to $2.5 billion through several new awards and extensions in key deepwater markets.
Secured $0.5 billion in new contract awards during the quarter, bringing total backlog to $2.5 billion.
Reported Adjusted EBITDA of $88 million with an improved margin of 25.4% excluding reimbursables.
Maintained a strong liquidity position with $365 million in cash and cash equivalents at year-end.
Announced positive 2026 guidance with expected total operating revenues between $1.40 billion and $1.45 billion.
Revenue by Segment
Forward Guidance
Seadrill provided full year 2026 guidance reflecting a position of strength and increasing multi-year visibility.
Positive Outlook
- Total operating revenues expected between $1.40 billion and $1.45 billion.
- Adjusted EBITDA projected between $350 million and $400 million.
- Tightening supply in deepwater rig markets supporting higher dayrates.
- Repricing of legacy contracts expected to drive growth.
- Strong foundation laid for an even more robust 2027.
Challenges Ahead
- Capital expenditure and maintenance spend expected to be $200 million to $240 million.
- Exclusion of $50 million in reimbursable revenues from top-line guidance.
- Potential for continued net losses as seen in the 2025 fiscal year.
- Ongoing impact of depreciation and amortization on GAAP profitability.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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