Seadrill (NYSE:SDRL) Issues Quarterly Earnings Results, Beats Estimates By $0.18 EPS

Seadrill (NYSE:SDRL) issued its quarterly earnings results on Monday. The oil and gas company reported $0.47 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.29 by $0.18, FiscalAI reports. The firm had revenue of $430.00 million for the quarter, compared to analyst estimates of $388.46 million. Seadrill had a return on equity of 0.64% and a net margin of 0.07%.

Here are the key takeaways from Seadrill’s conference call:

• Strong second-quarter results: Seadrill reported $449 million in operating revenue and $144 million in adjusted EBITDA, driven by higher utilization, more operating days, and improved day rates. Management raised full-year 2026 guidance to $1.5–$1.55 billion of revenue and $420–$450 million of EBITDA.
• Backlog and contracting momentum improved: The company added approximately $200 million of backlog since May, including a 12-month, roughly $161 million West Vela contract with Talos and a 75-day West Capella option extension. Seadrill said year-to-date U.S. Gulf backlog additions are approaching $500 million.
• Deepwater market outlook is tightening: Management expects drillship utilization could reach the mid-90% range in 2027, supported by rising offshore project FIDs, renewed exploration activity, and limited new rig supply. Seadrill believes these conditions could support higher day rates and greater scarcity of high-specification floaters.
• Cash generation and capital returns are expected to strengthen: Major project outflows are largely complete, while higher-rate West Jupiter, West Capella, and West Tellus contracts should support second-half free cash flow. Seadrill resumed share repurchases with $20 million of buybacks in June and has $208 million remaining under its authorization, subject to board approval and market conditions.
• Near-term visibility remains uneven: Sevan Louisiana has limited revenue visibility for the remainder of 2026, and management is not including additional upside for the rig in its forecast. West Carina and West Gemini also require follow-on work, while higher repair and maintenance spending is expected in the second half.

Seadrill Price Performance

Shares of NYSE SDRL opened at $46.82 on Wednesday. Seadrill has a 1-year low of $28.02 and a 1-year high of $55.47. The business has a 50-day moving average of $42.02 and a 200-day moving average of $44.17. The company has a debt-to-equity ratio of 0.22, a current ratio of 1.94 and a quick ratio of 1.94. The company has a market capitalization of $2.93 billion, a price-to-earnings ratio of 1,560.80 and a beta of 1.21.

Analyst Ratings Changes

A number of research firms have recently commented on SDRL. Barclays raised shares of Seadrill from an “equal weight” rating to an “overweight” rating and upped their price objective for the company from $41.00 to $59.00 in a research note on Thursday, May 7th. BWS Financial restated a “buy” rating and issued a $80.00 target price on shares of Seadrill in a report on Tuesday. Citigroup upped their price target on shares of Seadrill from $46.00 to $48.00 and gave the stock a “neutral” rating in a research report on Wednesday, April 15th. Weiss Ratings reaffirmed a “sell (d+)” rating on shares of Seadrill in a research note on Tuesday, June 30th. Finally, Zacks Research upgraded shares of Seadrill from a “strong sell” rating to a “hold” rating in a report on Tuesday, April 28th. Three analysts have rated the stock with a Strong Buy rating, three have given a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and an average price target of $55.00.

Institutional Investors Weigh In On Seadrill

Large investors have recently added to or reduced their stakes in the company. Mercer Global Advisors Inc. ADV acquired a new stake in shares of Seadrill during the fourth quarter valued at about $244,000. Elliott Investment Management L.P. raised its position in shares of Seadrill by 23.1% in the 4th quarter. Elliott Investment Management L.P. now owns 4,558,758 shares of the oil and gas company’s stock valued at $157,733,000 after purchasing an additional 855,012 shares in the last quarter. Empowered Funds LLC increased its stake in shares of Seadrill by 35.1% in the fourth quarter. Empowered Funds LLC now owns 285,631 shares of the oil and gas company’s stock worth $9,883,000 after buying an additional 74,250 shares during the last quarter. SummitTX Capital L.P. raised its stake in shares of Seadrill by 2,972.8% in the 4th quarter. SummitTX Capital L.P. now owns 312,385 shares of the oil and gas company’s stock valued at $10,809,000 after purchasing an additional 302,219 shares in the last quarter. Finally, Odyssean LLC bought a new position in shares of Seadrill during the fourth quarter worth about $282,000. 95.67% of the stock is owned by institutional investors and hedge funds.

About Seadrill

Seadrill Limited, trading on the New York Stock Exchange under the symbol SDRL, is a leading provider of offshore drilling services to the global oil and gas industry. The company specializes in the design, construction, deployment and operation of mobile offshore drilling units, serving major exploration and production companies with turnkey drilling solutions.

Seadrill’s fleet comprises ultra-deepwater drillships, semi-submersible rigs and high-specification jack-up units capable of operating in some of the world’s most challenging offshore environments.