Transocean Ltd
Q4 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: −3.75%.
Did RIG Beat Earnings? Q4 2025 Results
Transocean closed out 2025 on a steadying note, posting Q4 earnings of $0.02 per share on contract drilling revenues of $1.04 billion — a 9.6% year-over-year increase from $952 million — as fleet utilization surged to 85.8% from just 66.8% a year ago, the single clearest driver of the quarter's improvement. The offshore driller swung to a Q4 net income of $25 million compared to $7 million in the prior-year period, capping a full year in which revenues climbed 13% to $3.96 billion even as $3.04 billion in asset impairment charges produced a headline GAAP net loss of $2.92 billion. Adjusted EBITDA grew 19% to $1.37 billion for the full year, while free cash flow surged to $626 million from $193 million in 2024, helping the company reduce total debt by $1.26 billion. Analysts remain divided on the outlook — one firm raised its price target to $7.50 while another downgraded the stock — as Transocean guides 2026 revenues of $3.80 billion to $3.95 billion amid its pending combination with Valaris.
- Revenue efficiency improved to 96.5% for the year, up from 94.5% in 2024
- Fleet utilization improved to 85.8% in Q4 2025 from 66.8% in Q4 2024
- Best uptime performance on record at just shy of 98%
- Average daily revenue increased to $461,300 in Q4 2025 from $434,700 in Q4 2024
- Working capital improvements drove 42% sequential increase in Q4 operating cash flow
- Improved rig utilization partially offset by slightly lower revenue efficiency sequentially
“During 2025, we took significant strides to strengthen our capital structure, sustainably lowering costs, and ensuring we continue to deliver best in class service to our customers around the world. At just shy of 98%, we delivered our best uptime performance on record while making significant progress in strengthening our balance sheet by retiring approximately $1.3 billion in debt principal and saving nearly $90 million in annualized interest expense.”
Transocean CEO, on the earnings call
Forward Guidance & Outlook
For Q1 2026, Transocean guides contract drilling revenues of $1,020–$1,050 million, operating and maintenance expense of $605–$625 million, G&A of $40–$50 million, interest expense of $125 million, interest income of $5–$10 million, capex of $35–$45 million, cash taxes of $15 million, and revenue efficiency of 96.50%. For full year 2026, the company guides contract drilling revenues of $3,800–$3,950 million, operating and maintenance expense of $2,250–$2,375 million, G&A of $170–$180 million, interest expense of $480 million, interest income of $30–$35 million, capex of $130 million, cash taxes of $85–$90 million, revenue efficiency of 96.50%, and total liquidity of $1,600–$1,700 million.
RIG YoY Financials
RIG Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.