Seadrill Announces Third Quarter 2026 Results
Q3 revenue $428M (down from $449M), net loss $30M on legal provision, Adj. EBITDA $121M; FY26 EBITDA guide raised to $440-460M.
What this release says
Seadrill reported third quarter 2026 results, with a net loss of $30 million that includes a legal provision, while adjusted EBITDA fell to $121 million from $144 million in the prior quarter. The company also raised its full-year 2026 revenue and adjusted EBITDA guidance and said over 85% of available drillship days are now contracted for 2027. For a shareholder, the release points to stronger future visibility on revenue and cash flow, offset by a weaker quarter and new share repurchases.
Key figures
- Third quarter net loss
- $30 million
- Third quarter adjusted EBITDA
- $121 million
- Free cash flow in quarter
- $179 million
- Shares repurchased in quarter
- approximately $22 million
- Revised full-year adjusted EBITDA guidance
- $440 - $460 million
- New contract value added
- approximately $800 million
Positive for shareholders
- Free cash flow of $179 million in the quarter, with $195 million of operating cash flow.
- Over 85% of available drillship days are now contracted in 2027, adding visibility into next year.
- Full-year 2026 revenue and adjusted EBITDA guidance were raised and narrowed.
- Share repurchases of about $22 million were made in the quarter.
Negative for shareholders
- The company posted a net loss of $30 million, including a legal provision booked in the quarter.
- Total operating revenues and adjusted EBITDA both declined from the prior quarter.
- Some rigs had fewer operating days or time between contracts.
Written by Quantisnow AI from this release. Not financial advice.
Key terms
- Total Contract Value:
- The expected revenue from a firm contract, calculated from the daily rate multiplied by the contract days, plus mobilization and demobilization revenue.
- Free Cash Flow:
- Operating cash flow minus capital spending, showing cash left over after maintaining and investing in the fleet.
- Contract Backlog:
- The total value of firm contracts still to be earned, measured at the daily rate over the remaining contract days.
- Adjusted EBITDA:
- A non-GAAP profit measure that adds back depreciation, amortization, taxes, and financing and non-operating items to net income.
FAQ
Why did Seadrill report a net loss this quarter?
The release says the net loss of $30 million includes the impact of a legal provision booked in the third quarter.
Did Seadrill change its 2026 outlook?
Yes, the company increased its total operating revenues guidance to $1.56 - $1.58 billion excluding reimbursables and raised adjusted EBITDA guidance to $440 - $460 million.
How much of Seadrill's 2027 drillship capacity is contracted?
The release states that over 85% of available drillship days are now contracted in 2027.
Historical context for SDRL
Across the 25 sessions after earlier SDRL headlines, the stock closed higher 9 times and lower 16 times, with a median move of 3.4% in either direction. This shows timing only: many things move a stock in a session, and these figures do not show that any headline caused a move.
| Session | Earlier headline | SDRL | SPY |
|---|---|---|---|
| Oct 13, 2026 | Seadrill Announces Contract Awards and Extensions in Indonesia, Malaysia, Angola, and the U.S. Gulf | +4.3% | -0.0% |
| Oct 7, 2026 | Seadrill Schedules Third Quarter 2026 Earnings Release and Conference Call | -1.0% | -0.2% |
| Aug 10, 2026 | Seadrill Announces Second Quarter 2026 Results | +8.1% | -0.0% |
| Jul 15, 2026 | Seadrill Schedules Second Quarter 2026 Earnings Release and Conference Call | -0.5% | +0.4% |
| Jul 1, 2026 | CapitalOne initiated coverage on Seadrill Ltd with a new price target | +2.7% | -0.1% |
| Jun 23, 2026 | Seadrill Extends Share Repurchase Program | -0.3% | -1.5% |
- Market cap
- 30-day
- Sector
- Energy
- Industry
- Oil & Gas Production
- Listed since
- 2022
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