Seadrill Limited Q3 2026 Earnings Recap

Seadrill shares fell 6.5% despite higher full-year guidance, as investors may have focused on the remaining 2026 outlook: management guided to lower fourth-quarter EBITDA than in the third quarter. The $179 million of quarterly free cash flow and roughly $800 million of new contract value are positives, but they do not remove that near-term earnings step-down.

Key Takeaways

• Third-quarter EBITDA was $121 million, with 95% economic utilization; management said revenue and EBITDA exceeded expectations but did not provide the amount.
• Seadrill generated $179 million of free cash flow and repurchased $22 million of shares in the quarter, bringing 2026 repurchases to $42 million.
• Management raised full-year 2026 guidance for the third consecutive quarter, while forecasting fourth-quarter EBITDA below the third quarter’s $121 million.
• Recent awards and extensions added approximately $800 million in total contract value. More than 85% of available drillship days in 2027 are booked.
• The West Carina’s Indonesia assignment starts in the first half of 2027, with 2.5 years firm, options for a further 2.5 years, and an $85 million mobilization fee.