Noble Corp Plc - Class A
Q1 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +6.33%.
Did NE Beat Earnings? Q1 2025 Results
Noble Corporation delivered a mixed first quarter for 2025, beating on revenue while falling short on earnings, as a discrete tax adjustment clouded otherwise strong operational momentum. Revenue climbed 37.3% year-over-year to $874.49 million, edging past the $863.46 million consensus, but adjusted diluted EPS came in at $0.26, missing the $0.35 estimate by 26.12%, largely due to a $73.30 million discrete tax charge that compressed the adjusted bottom line. The full integration of the Diamond Offshore acquisition was the defining force behind the year-over-year revenue surge, with the enlarged fleet also pushing adjusted EBITDA to $337.95 million at a 39% margin, up sharply from $183.22 million a year ago. A standout development was approximately $2.20 billion to $2.70 billion in new contract awards, lifting backlog 30% to $7.50 billion. With analysts maintaining Buy ratings on the stock, Noble held its full-year 2025 guidance steady, projecting revenue of $3.25 billion to $3.45 billion and adjusted EBITDA of $1.05 billion to $1.15 billion.
- Full contribution from Diamond Offshore acquisition expanding fleet to 38 marketed rigs
- Floater utilization improved to 80% from 74% in Q4 2024
- Adjusted EBITDA margin expanded to 39% from 34% sequentially
- Free cash flow of $173 million driven by strong operating cash flow of $271 million
- Integration synergies approximately 70% realized on a run-rate basis
“Our strong first quarter financial results and recent contract awards have demonstrated the effectiveness of our First Choice OffshoreSM strategy amid prevalent macroeconomic volatility. Moreover, the booking of over 15 rig years of new contract awards over the past several weeks underscores the durability of our customers' long-term commitments offshore, as well as Noble's place as a trusted service provider for these highly strategic drilling campaigns.”
Noble CEO, on the earnings call
Forward Guidance & Outlook
Noble maintains full-year 2025 guidance: Total Revenue between $3,250 to $3,450 million, Adjusted EBITDA in the range of $1,050 to $1,150 million, and Capital Expenditures (net of reimbursements) between $375 to $425 million. The company's backlog increased 30% to $7.5 billion, providing enhanced visibility through 2030. Integration of Diamond Offshore is progressing with approximately 70% of synergies realized on a run-rate basis. Recent Tier-1 drillship dayrate fixtures have been in the low-to-high $400,000s, with 6th generation floater fixtures between the low $300,000s to mid $400,000s.
NE YoY Financials
NE Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.