Q2 26 EPS Adjusted
$0.03
BEAT +127.27%
Est. $0.01
Adjusted EPS excludes $12 million in acquisition and restructuring costs, $3 million loss on disposal of assets, and $27 million discrete tax benefit
Q2 26 Revenue
$966.0M
BEAT +0.32%
Est. $962.9M
vs S&P Since Q2 26
0.0%
TRAILING MARKET
RIG +0.6% vs S&P +0.6%
Market Reaction
Did RIG Beat Earnings? Q2 2026 Results
Transocean Ltd. Posted a stronger-than-expected second quarter, with adjusted EPS of $0.03 beating the $0.01 consensus estimate by 127.27% and revenue of $966.00 million edging past the $962.88 million forecast by 0.32%, even as total revenue slipped… Read more Transocean Ltd. Posted a stronger-than-expected second quarter, with adjusted EPS of $0.03 beating the $0.01 consensus estimate by 127.27% and revenue of $966.00 million edging past the $962.88 million forecast by 0.32%, even as total revenue slipped 2.2% from a year ago amid lower fleet utilization. The headline story was a dramatic swing in profitability, with GAAP net income of $170.00 million compared to a net loss of $938.00 million in Q2 2025, when a $1.14 billion impairment charge weighed heavily on results. Fleet utilization fell to 78.2% from 86.7% sequentially, pressuring adjusted EBITDA to $312.00 million at a 32.2% margin, though harsh environment floaters delivered 99.5% revenue efficiency. Commercially, a conditional $1.00 billion Equinor agreement for three harsh environment semisubmersibles on the Norwegian shelf underscored demand for high-specification rigs, a trend management expects to push deepwater and harsh environment utilization well into the 90% range by 2027. For Q3 2026, Transocean guided contract drilling revenues of $920 to $960 million, with full-year revenues targeted at $3,900 to $3,975 million.
Key Takeaways
- • Strong revenue efficiency of 97.0% fleet-wide, with harsh environment floaters at 99.5%
- • Adjusted EBITDA margin of 32.2%
- • Free cash flow of $212 million driven by $236 million operating cash flow
- • Net debt reduced to $4,312 million from $4,522 million sequentially, with Net Debt-to-EBITDA ratio improving to 2.8x
- • Lower sequential revenue driven by expected decrease in rig utilization to 78.2% from 86.7%
- • Interest expense decreased to $114 million from $123 million sequentially (excluding exchangeable bond impact)
RIG Forward Guidance & Outlook
For Q3 2026, Transocean guided contract drilling revenues of $920–960 million, revenue efficiency of 96.5%, operating and maintenance expense of $595–625 million, G&A of $45 million, interest expense of $113 million, interest income of $5–10 million, capital expenditures of $40–50 million, and cash taxes of $25–30 million. Full year 2026 guidance includes contract drilling revenues of $3,900–3,975 million, revenue efficiency of 96.5%, operating and maintenance expense of $2,325–2,400 million, G&A of $170–180 million, interest expense of $475 million, interest income of $30–35 million, capital expenditures of $150 million, cash taxes of $55–60 million, and total liquidity of $1,250–1,350 million. Management expects demand for highest specification rigs to increase with industry utilization for deepwater and harsh environment assets projected to move well into the 90% range during 2027.
RIG YoY Financials
Q2 2026 vs Q2 2025, source: SEC Filings
RIG Revenue by Segment
With YoY comparisons, source: SEC Filings
“Transocean delivered a strong second quarter, supported by 97% revenue efficiency and solid adjusted EBITDA margins, resulting in excellent cash flow and improved liquidity. Our performance reflects our ongoing commitment to create value through the cycle by optimizing the value of our differentiated fleet, generating industry-leading free cash flow, and enhancing our capital structure.”
— Keelan Adamson, Q2 2026 Earnings Press Release
RIG Earnings Trends
RIG vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
RIG EPS Trend
Earnings per share: estimate vs actual
RIG Revenue Trend
Quarterly revenue: estimate vs actual
RIG Quarterly Results
6 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q2 26 BEAT Adjusted EPS excludes $12 million in acquisition and restructuring costs, $3 million loss on disposal of assets, and $27 million discrete tax benefit | $0.01 | $0.03 | +127.27% | $966.0M | +0.32% |
| Q1 26 MISS | $0.08 | $0.06 | -27.88% | $1.08B | +4.68% |
| Q4 25 MISS FY | $0.07 | $0.02 | -72.94% | $1.04B | +0.68% |
| FY Full Year | — | $-3.04 | — | $3.97B | — |
| Q3 25 BEAT | $0.03 | $0.06 | +90.48% | $1.03B | +1.67% |
| Q2 25 BEAT | $-0.02 | $0.00 | +100.00% | $988.0M | +1.85% |
| Q1 25 MISS | $-0.09 | $-0.10 | -10.62% | $906.0M | +2.32% |