| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 50 | — | 17.8x | Around median | |
Growth | 32 | 13.1% | 7.1% | Bottom tier | |
Quality | 19 | 2.9% | 4.5% | Bottom tier | |
Safety | 61 | 1.1x | 2.6x | Around median | |
Capital Return | 23 | — | 2.12% | Bottom tier | |
Momentum | 78 | 49.1% | 2.9% | Top tier | |
Sentiment | 35 | 5 | 3 | Bottom tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Seadrill Limited provides deepwater offshore drilling services through a fleet of drillships and semi-submersible rigs in the U.S. Gulf, Brazil, Southeast Asia, West Africa, and Norway. The company generates revenue from operating dayrates and drilling contracts, along with mobilization fees and additional services, and also charges fees for administrative, operational, and technical support provided to the Sonadrill joint venture. In Q2 FY 2026, revenue benefited from increased operating days and an improved average dayrate, as well as full-quarter contributions from West Capella and West Jupiter and higher activity from Sevan Louisiana.
Revenue in Q2 FY 2026 was approximately $449 million, compared with $358 million in Q1 FY 2026, while net income shifted from a loss of $7 million to a profit of $29 million. Earnings per share were $0.47, exceeding the analyst estimate of $0.29 and compared with a loss of $0.68 per share in the corresponding period of the prior year. The company also generated adjusted earnings before interest, taxes, depreciation, and amortization of $144 million, a sequential increase of $47 million, and a margin of 33.5% excluding reimbursable revenue, while the August 26, 2026 news reported a margin of 32.1% under its applied definition.
The revenue mix in Q2 FY 2026 was driven by the new contracts for West Capella in Malaysia and West Jupiter in Brazil, increased activity from Sevan Louisiana in the U.S. Gulf, and higher Sonadrill management revenue following a retroactive increase in the daily fee from January 1, 2026. This was partially offset by fewer operating days for West Tellus during reacceptance testing before the start of its contract in Brazil. Operating expenses were $377 million, a sequential increase of $43 million, due to West Capella and West Jupiter returning to operations for the full quarter.
Automated analysis for informational purposes only — not investment advice.
The analyst consensus is Neutral, and the average price target is $55, with both the high and low targets matching at $55; this target is very close to the 52-week range high of $55.47, compared with a low of $28.10. No reported price-to-earnings ratio is available, which is consistent with limited trailing net income of $1 million and trailing earnings per share of approximately $0.015 despite the shift to profitability in Q2 FY 2026, so the valuation depends heavily on the sustainability of margins and the conversion of higher-priced contracts into actual cash flow.
Figures in the text are as of 2026-08-31; the live price is shown at the top of the page.
Revenue was $449 million, net income was $29 million, and earnings per share were $0.47 in Q2 FY 2026. Full-quarter operations from West Capella and West Jupiter, increased activity from Sevan Louisiana, and an improved average dayrate contributed to this performance. Sonadrill management revenue also increased following the retroactive application of a daily fee increase from January 1, 2026. Adjusted earnings before interest, taxes, depreciation, and amortization were $144 million, with a margin of 33.5% excluding reimbursable revenue.
Management expects operating revenue of between $1.5 billion and $1.55 billion in FY 2026, excluding $50 million of reimbursable revenue. It also expects adjusted earnings before interest, taxes, depreciation, and amortization of between $420 million and $450 million, marking the second guidance increase during FY 2026. The range reflects conservative assumptions regarding Sevan Louisiana utilization during the remainder of the year, in addition to higher repair and maintenance expenses in the second half. Capital expenditure guidance remained between $200 million and $240 million.
Since the May 2026 call, Seadrill has added approximately $200 million in contracted backlog. This includes the 12-month West Vela contract with Talos beginning in June 2027, valued at approximately $161 million excluding additional services. The West Capella customer also exercised a priced option for approximately 75 days, extending operations in Malaysia into the second half of 2027. West Neptune remains contracted through late 2027, strengthening revenue visibility in the U.S. Gulf.
Management expects to generate meaningful free cash flow in the second half of FY 2026 after the completion of outflows associated with major projects. The cash benefits from the West Capella, West Jupiter, and West Heller contracts are expected to materialize, along with collection of the $40 million West Tellus mobilization fee in Q3 FY 2026. The company ended Q2 FY 2026 with $360 million in cash, an increase of $31 million from the previous quarter. However, the start of West Tellus will lead to a build in accounts receivable, while management expects working capital to return to a normal pattern afterward.
The West Carina contract ended at the end of June 2026, and advanced discussions are targeting opportunities beginning in the first half of 2027, leaving the possibility of an operating gap. The West Gemini contract also expires later in 2026, while visibility for Sevan Louisiana during the remainder of FY 2026 remains limited. In the U.S. Gulf, management expects several drillships to become available before the end of 2026 despite its optimism about an improved balance during 2027. The expectation that drillship utilization will reach the mid-90% range in 2027 depends on existing tenders converting into contracts.
Seadrill issued $700 million of 6.75% senior notes due in 2034. It used part of the proceeds to redeem $575 million of 8.375% second-lien secured notes that were due in 2030. The company also increased its revolving credit facility from $225 million to $300 million and extended its maturity by three years to 2031. This was accompanied by an accelerated interest payment of $20 million related to the redemption of the old notes.
