Seadrill beats Q4 revenue expectations on contract wins

Reuters02-26
Seadrill beats Q4 revenue expectations on contract wins

Overview

  • Deepwater drilling firm's Q4 operating revenue beat analyst expectations

  • Adjusted EBITDA for Q4 beat analyst expectations

  • Company secured contract awards across seven rigs, adding $0.5 bln to backlog

Outlook

  • Seadrill expects full-year 2026 operating revenues of $1.40 bln to $1.45 bln

  • Company forecasts 2026 adjusted EBITDA between $350 mln and $400 mln

  • Seadrill anticipates 2026 capital expenditure of $200 mln to $240 mln

Result Drivers

  • CONTRACT AWARDS - Secured contracts for seven rigs, adding $0.5 bln to contract backlog, enhancing future earnings potential

  • DEEPWATER PROGRAMS - Executed complex deepwater programs ahead of schedule and budget, contributing to financial results

  • INCREASED EXPENSES - Operating expenses rose due to $11 mln increase in depreciation and amortization

Company press release: ID:nBw6Trqpva

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q4 Operating Revenue

Beat

$362 mln

$335.36 mln (5 Analysts)

Q4 EPS

-$0.16

Q4 Net Income

-$10 mln

Q4 Adjusted EBITDA

Beat

$88 mln

$77.65 mln (5 Analysts)

Q4 Adjusted EBITDA Margin

25.4%

Q4 Operating Profit

-$3 mln

Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 3 "hold" and 1 "sell" or "strong sell"

  • The average consensus recommendation for the oil & gas drilling peer group is "buy"

  • Wall Street's median 12-month price target for Seadrill Ltd is $40.00, about 11.5% below its February 24 closing price of $45.19

  • The stock recently traded at 51 times the next 12-month earnings vs. a P/E of 45 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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