Seadrill Reports Strong Q1 Results, Raises Full-Year Revenue & EBITDA Guidance, Adds $860M to Backlog
Summary
Seadrill reported better-than-expected first-quarter results, raised its full-year financial guidance, and significantly grew its contract backlog with over $860 million in new awards.
Key Events
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Strong Q1 Financials Beat Projections
Reported a net loss of $7 million (down from $10 million in Q4 2025) and Adjusted EBITDA of $97 million (up from $88 million). Diluted loss per share of -$0.11 significantly beat analyst projections of -$0.24.
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Full-Year 2026 Guidance Raised
Increased total operating revenues guidance to $1.43 - $1.48 billion (from $1.40 - $1.45 billion) and Adjusted EBITDA guidance to $370 - $420 million (from $350 - $400 million).
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Significant Contract Backlog Growth
Added over $860 million to contract backlog since February, bringing the total backlog to $3.1 billion. This includes a 3-year, $480 million extension with Petrobras for the West Polaris rig.
Analysis
Seadrill delivered a strong first quarter, significantly reducing its net loss to $7 million and increasing Adjusted EBITDA to $97 million compared to the prior quarter. The diluted loss per share of -$0.11 also notably beat analyst expectations of -$0.24. This positive performance is reinforced by an upward revision of full-year 2026 revenue and Adjusted EBITDA guidance. Furthermore, the company secured over $860 million in new contract awards, including a substantial $480 million extension with Petrobras, boosting its total contract backlog to $3.1 billion. This substantial backlog provides strong revenue visibility and indicates robust demand for its deepwater rigs, especially as the stock trades near its 52-week high.
At the time of this filing, SDRL was trading at $51.88 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $3B. The 52-week trading range was $22.30 to $50.24. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.