Transocean

RIG Q1 2025 Earnings

Reported Apr 28, 2025 at 4:27 PM ET · SEC Source

Q1 25 EPS

$-0.10

MISS 10.62%

Est. $-0.09

Q1 25 Revenue

$906.0M

BEAT +2.32%

Est. $885.4M

vs S&P Since Q1 25

+85.9%

BEATING MARKET

RIG +118.2% vs S&P +32.3%

Market Reaction

Did RIG Beat Earnings? Q1 2025 Results

Transocean delivered a mixed first quarter for 2025, beating on revenue while falling short on the bottom line as operational headwinds weighed on profitability. The offshore driller posted revenue of $906.00 million, topping the $885.42 million cons… Read more Transocean delivered a mixed first quarter for 2025, beating on revenue while falling short on the bottom line as operational headwinds weighed on profitability. The offshore driller posted revenue of $906.00 million, topping the $885.42 million consensus estimate by 2.32% and marking an impressive 18.7% year-over-year gain, yet earnings per share came in at -$0.10, missing the -$0.09 analyst estimate by 10.62%. The primary culprit behind the earnings shortfall was a sharp sequential rise in operating and maintenance costs to $618.00 million, inflated by an unfavorable legal outcome and elevated shipyard expenses, which helped drag adjusted EBITDA down to $244.00 million with a 26.9% margin. Fleet utilization slipped to 63.4% from 66.8% the prior quarter, though average daily revenues climbed to $443,600, reflecting improved fleet efficiency. Despite near-term turbulence, a dynamic familiar to investors navigating volatile earnings seasons, CEO Jeremy Thigpen pointed to a $7.90 billion backlog and ongoing multi-year customer conversations as evidence the company remains well-positioned heading into the rest of 2025.

Key Takeaways

  • Higher revenue efficiency at 95.5% vs. 93.5% in Q4 2024 and 92.9% in Q1 2024
  • Higher average daily revenues across the fleet at $443,600 vs. $434,700 in Q4 2024
  • Fleet utilization of 63.4%, up from 53.7% year-over-year
  • One rig undergoing contract preparation and mobilization reduced revenues sequentially
  • One rig idle between contracts reduced revenues sequentially
  • Unfavorable legal outcome increased operating costs in Q1 2025
24/7 Wall St

RIG YoY Financials

Q1 2025 vs Q1 2024, source: SEC Filings

24/7 Wall St

RIG Revenue by Segment

With YoY comparisons, source: SEC Filings

Q1 25 Q1 26

“The Transocean team delivered a solid quarter, with an adjusted EBITDA of $244 million on revenues of $906 million. We also improved our balance sheet with the repayment of $210 million in outstanding debt.”

— Jeremy Thigpen, Q1 2025 Earnings Press Release