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

Seadrill (NYSE:SDRL) released its earnings results on Monday. The oil and gas company reported $0.47 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.29 by $0.18, FiscalAI reports. The company had revenue of $430.00 million during the quarter, compared to analyst estimates of $388.46 million. Seadrill had a negative return on equity of 1.84% and a negative net margin of 4.79%.

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

NYSE SDRL opened at $46.65 on Tuesday. The firm’s 50 day moving average is $42.03 and its 200-day moving average is $44.11. Seadrill has a 12-month low of $28.02 and a 12-month high of $55.47. The company has a market capitalization of $2.92 billion, a PE ratio of -41.65 and a beta of 1.21. The company has a quick ratio of 1.94, a current ratio of 1.94 and a debt-to-equity ratio of 0.22.

Analyst Ratings Changes

A number of analysts have weighed in on the company. Fearnley Fonds raised Seadrill from a “hold” rating to a “strong-buy” rating in a research report on Tuesday, May 12th. Zacks Research raised Seadrill from a “strong sell” rating to a “hold” rating in a report on Tuesday, April 28th. Weiss Ratings reissued a “sell (d+)” rating on shares of Seadrill in a research note on Tuesday, June 30th. Capital One Financial set a $55.00 target price on Seadrill and gave the stock an “overweight” rating in a report on Wednesday, July 1st. Finally, BWS Financial reaffirmed a “buy” rating and set a $80.00 target price on shares of Seadrill in a research report on Monday, June 29th. Three analysts have rated the stock with a Strong Buy rating, three have assigned a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average target price of $55.00.

Institutional Trading of Seadrill

Several institutional investors have recently added to or reduced their stakes in SDRL. Raymond James Financial Inc. bought a new stake in Seadrill during the second quarter worth $27,000. Aquatic Capital Management LLC bought a new position in Seadrill during the 3rd quarter valued at approximately $44,000. EverSource Wealth Advisors LLC purchased a new stake in Seadrill in the second quarter worth $42,000. CIBC Private Wealth Group LLC purchased a new stake in Seadrill during the 3rd quarter valued at about $61,000. Finally, Osaic Holdings Inc. raised its holdings in shares of Seadrill by 18.8% during the second quarter. Osaic Holdings Inc. now owns 3,521 shares of the oil and gas company’s stock valued at $92,000 after purchasing an additional 558 shares during the last quarter. 95.67% of the stock is currently owned by institutional investors.

Seadrill News Summary

Here are the key news stories impacting Seadrill this week:

• Positive Sentiment: Seadrill reported $0.47 in quarterly EPS, well above the $0.29 analyst consensus and a significant improvement from a $0.68 loss per share in the year-ago period. Revenue of $430 million also exceeded expectations of $388.46 million. Seadrill Q2 Earnings and Revenues Beat Estimates
• Positive Sentiment: The company increased its full-year 2026 revenue guidance to approximately $1.5 billion-$1.6 billion, supporting expectations for stronger operating performance. Seadrill Announces Second Quarter 2026 Results
• Positive Sentiment: Management’s earnings call was characterized as signaling a strong turnaround, which may reinforce confidence that Seadrill’s results are improving after prior losses. Seadrill Limited Earnings Call Signals Strong Turnaround
• Positive Sentiment: The earnings surprise triggered a sharp upward opening in the shares, indicating that investors are responding favorably to the improved profitability and outlook. Seadrill Shares Gap Up After Better-Than-Expected Earnings

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.