Noble Corp Plc - Class A
Q2 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +2.54%.
Did NE Beat Earnings? Q2 2025 Results
Noble Corporation delivered a sharp earnings miss in Q2 2025, posting adjusted diluted EPS of $0.13 against a consensus estimate of $0.48, a shortfall of 72.78%, as sequential declines in rig utilization weighed heavily on profitability. Revenue came in at $848.65 million, missing estimates by 0.62% though still representing 22.5% growth year-over-year, while net income collapsed to $43 million from $108 million in Q1. The primary culprit was a meaningful drop in marketed fleet utilization, which fell to 70% from 78% sequentially, with jackup utilization taking the steeper hit, sliding to 61% from 74%. Adjusted EBITDA compressed to $282 million, pushing margins down to 33% from 39% the prior quarter. The deterioration drew a downgrade from at least one analyst, with a price target set at $30.00. Looking ahead, Noble trimmed its full-year revenue guidance to $3.20 to $3.30 billion while nudging its Adjusted EBITDA midpoint slightly higher, with management pointing to deepwater demand recovery signals emerging in late 2026, particularly across South America and Africa.
- Marketed fleet utilization declined to 70% from 78% sequentially, driving revenue decrease
- Average floater dayrates increased to $400,802 from $381,161 sequentially
- Average jackup dayrates increased to $176,503 from $159,527 sequentially
- Contract drilling services costs increased to $502 million from $462 million sequentially
- Floater contracted utilization at 75% vs. 80% in prior quarter
- Jackup utilization fell to 61% from 74% in prior quarter
“Our second quarter results reflect resilient earnings and free cash flow delivery against a backdrop of elevated macro volatility. We have successfully achieved our integration targets and meaningfully expanded backlog in the first half of 2025, positioning Noble to continue to deliver differentiated shareholder capital returns going forward.”
Noble CEO, on the earnings call
Forward Guidance & Outlook
Noble updated full-year 2025 guidance: Total Revenue lowered to $3,200–$3,300 million (from $3,250–$3,450 million previously); Adjusted EBITDA raised to $1,075–$1,150 million (from $1,050–$1,150 million); Capital Expenditures (net of reimbursements) increased to $400–$450 million (from $375–$425 million) due to capital associated with recent long-term contract awards. Management noted persisting near-term softness in spot market contracting activity and increased instances of contract extension options lapsing due to upstream capital restraint. However, the deepwater market shows tangible, encouraging indicators of increasing demand levels by late 2026 and into 2027, especially throughout South America and Africa.
NE YoY Financials
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Figures from SEC filings and company reports. Not investment advice.