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Dec 31, 2025
Valaris Q4 2025 Earnings Report
Valaris reported fourth quarter 2025 results with strong revenue efficiency and a significant net income driven by a large tax benefit.
Key Takeaways
Valaris generated $537.4 million in total operating revenues in Q4 2025 with revenue efficiency of 98%. Net income attributable to Valaris was $717.5 million, primarily driven by a $691 million deferred tax valuation allowance benefit and a $7 million discrete tax benefit, partially offset by a $19.5 million impairment loss.
Total operating revenues were $537.4 million with 98% revenue efficiency.
Net income attributable to Valaris was $717.5 million, driven by tax benefits.
Adjusted EBITDA was $97000000.
Secured nearly $900 million of new backlog, increasing total backlog to approximately $4.7 billion.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
For full year 2026, Valaris expects total operating revenues between $2125000000 and $2205000000 and Adjusted EBITDA between $485000000 and $565000000, with significant contract coverage secured.
Positive Outlook
- Approximately 97% of midpoint 2026 revenue guidance secured by firm contracts.
- Four drillships expected to return to work throughout 2026.
- Backlog increased to approximately $4.7 billion.
- Upfront customer payments of approximately $110 million expected for upgrades.
- Industry outlook remains positive with sustained upstream investment.
Challenges Ahead
- Results included a $19.5 million impairment loss.
- Capital expenditures expected between $425 million and $475 million in 2026.
- Lower floater operating days in Q4 impacted revenues.
- Idle drillships weighing on near-term performance.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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