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Seadrill Limited
🏹 Trader: 🚀 Stage 2 + Near High 📈 Stage 2 🎯 Near 52W High | BRS 72 Forming View all →
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$3.0B
Market Cap
6.1
P/E
PEG
2.3%
ROCE
-2.7%
ROE
0.22
D/E
5.1%
OPM
-11.6%
% from 52W High
80
α RS
🔍 SDRL is showing a sector-leadership setup because Sector RRG has Energy in the Leading quadrant with the trail still strengthening, it matches 2 of 39 tracked screener presets, and RS Rating is 80. Net: Broad signal stack, not a recommendation. ? RRG Conviction RS Rating
Sources
Energy in Leading quadrant · Conviction 2/39 · RS Rating 80
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🌏 Global Investor Returns
Currency-adjusted total returns for SDRL including FX impact
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📈 Price History
Ratio Health
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About

Seadrill Limited provides offshore drilling services to the oil and gas industry worldwide. The company owns and operates floaters, such as drillships and semi-submersible rigs for operations in shallow and ultra-deep water in benign and harsh environments. It also offers jackup rigs, management services, and provides contracts drilling units to drill wells. It serves oil super-majors, state-owned national oil companies, and independent oil and gas companies. The company was formerly known as Seadrill 2021 Limited. Seadrill Limited was incorporated in 2005 and is based in Houston, Texas.

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3-Statement Financial Model
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🎙 Management Tone Confident Specific ↑ Improving 4 quarters Full tone analysis in Intelligence →
📊 MIXED Seadrill delivers Q1 EBITDA of $97M, raises FY2026 guidance, adds $860M backlog.
Revenue & Profitability
Q1 2026 EBITDA was $97 million, up $9 million sequentially from the prior quarter. Contract drilling revenues were $277 million, up $4 million quarter-over-quarter. Full-year 2026 revenue guidance (excluding reimbursable revenues) was raised to $1.43-$1.48 billion, and EBITDA guidance to $370-$420 million. Operating expenses were $334 million in Q1, down $10 million from Q4 2025.
Outlook
Management sees a strong demand pipeline driven by growing deepwater exploration as operators intensify efforts to secure future growth. Production declines from maturing fields and a renewed focus on energy security are supporting the thesis of a new exploration cycle. Geopolitical tensions, such as the Iran conflict, have further strengthened the need for domestically anchored supply, benefiting deepwater.
Growth Drivers
Key growth drivers include the recontracting of legacy day-rate rigs at current market rates, with two of three rolling off in 2026 already contracted. The company added approximately $860 million to its backlog through awards including the West Neptune and West Vela (LLOG, $260 million), Sonangol Quenguela (seven-well option), and West Polaris (three-year Petrobras extension). The West Carina is expected to remain on contract until mid-June, providing further upside.
Balance Sheet & CapEx
Full-year 2026 capital expenditure guidance is maintained at $200-$240 million. No additional CapEx requirements were noted for the West Polaris extension. The company expects $70 million in lump-sum mobilization receipts from Petrobras over the next two quarters, related to reacceptance projects for West Jupiter and West Tellus.
Margins
EBITDA margin improved sequentially as Q1 EBITDA of $97 million on contract drilling revenues of $277 million implies a margin of approximately 35%. Full-year EBITDA guidance of $370-$420 million on revenues of $1.43-$1.48 billion suggests a similar range. Cost management is supported by capitalizing mobilization costs and the timing of repair and maintenance expenses.
Key Risks
Key risks include the roll-off of legacy day-rate contracts in 2026, though two of three associated rigs have been recontracted. The West Carina's contract ends in mid-June, and redeployment is not yet secured. Reactivation of stacked rigs depends on client funding. Geopolitical tensions and commodity price fluctuations could impact operator spending.
Generated by AI · Q1 2026 results · Not investment advice
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✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter
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📞 Earnings Call Transcripts (5)
Q2 2026 Q2 2026 2026-08-10
Q2 2026 results exceeded expectations with $144M EBITDA and 96% utilization, prompting a second guidance raise. Backlog grew by $200M, refinancing improved financial flexibility, and share buybacks resumed. Offshore market tightening supports strong outlook into 2027.
Q1 2026 Q1 2026 2026-05-11
First quarter results exceeded expectations with $97 million EBITDA and $860 million in new contract backlog. Full-year revenue and EBITDA guidance were raised, with strong free cash flow expected in the second half of 2026 and into 2027.
Q4 2025 Q4 2025 2026-02-26
Full-year 2025 EBITDA exceeded guidance at $353M, with record safety and operational achievements. Strong backlog and contract wins provide revenue visibility into 2026–27, while market tightening and industry consolidation support a positive outlook for earnings and cash flow growth.
Q3 2025 Q3 2025 2025-11-06
Backlog grew by over $300 million to $2.5 billion, with strong operational performance and new contracts in Angola and the U.S. Gulf. Q3 revenues and EBITDA declined sequentially, but guidance for 2025 remains robust, with market recovery expected from late 2026 into 2027.
Q2 2025 Q2 2025 2025-08-07
Q2 2025 saw strong adjusted EBITDA and margin growth, driven by new contracts and improved utilization. Management maintains full-year guidance and expects a market recovery in late 2026–2027, with robust demand in Brazil and West Africa, and a solid backlog into 2028.
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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

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Investment Risk:
Investing in securities, including US equities and ETFs, involves inherent risks including the potential loss of principal. All investments are subject to market fluctuations, economic conditions, regulatory changes, and other factors that may affect their value. Past performance is not indicative of future results. This analysis is provided for informational and educational purposes only and should not be construed as investment advice under any circumstances.

No Investment Recommendation:
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Information Sources:
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