Seadrill(SDRL) - 2025 Q3 - Quarterly Results

Financial Performance - Total operating revenues for Q3 2025 were $363 million, a decrease of $14 million from $377 million in Q2 2025[4] - Contract revenues for Q3 2025 were $280 million, compared to $288 million in the previous quarter[3] - Net loss for Q3 2025 was $11 million, an improvement from a net loss of $42 million in Q2 2025[3] - Adjusted EBITDA for Q3 2025 was $86 million, down from $106 million in the prior quarter, with an adjusted EBITDA margin of 24.4%[3][4] - Net loss for the nine months ended September 30, 2025, was $67 million, compared to a net income of $345 million for the same period in 2024[22] - Adjusted EBITDA for the three months ended September 30, 2025, was $86 million, with an Adjusted EBITDA margin of 23.7%[27] Cash Flow and Debt - Free cash flow for Q3 2025 was reported at $9 million[6] - Free Cash Flow for the three months ended September 30, 2025, was $9 million, a recovery from a negative $12 million in the previous quarter[30] - At the end of Q3 2025, Seadrill had gross principal debt of $625 million and cash and cash equivalents of $428 million, resulting in a net debt position of $197 million[6] - Cash and cash equivalents, including restricted cash, decreased from $592 million at the end of September 2024 to $428 million at the end of September 2025, a decline of approximately 27.7%[22] - Long-term debt remained relatively stable, increasing slightly from $610 million as of December 31, 2024, to $612 million as of September 30, 2025[19] Guidance and Future Outlook - Full year 2025 guidance for total operating revenue is narrowed to a range of $1,360 million to $1,390 million, and adjusted EBITDA is narrowed to $330 million to $360 million[5] - Capital expenditures and long-term maintenance guidance is narrowed to $280 million to $300 million for 2025[5] - The company continues to focus on building backlog coverage through 2025 and 2026 to minimize exposure to contract gaps[3] Operational Metrics - Average contractual dayrates for rigs remained stable at approximately $330,000 for the three months ended September 30, 2025, compared to $331,000 in the previous quarter[28] - Economic utilization decreased to 91.1% for the three months ended September 30, 2025, down from 93.4% in the previous quarter[28] Balance Sheet - Total assets decreased from $4,156 million as of December 31, 2024, to $4,067 million as of September 30, 2025, representing a decline of approximately 2.1%[19] - Total current liabilities decreased from $501 million as of December 31, 2024, to $439 million as of September 30, 2025, a reduction of approximately 12.4%[19] - Retained earnings decreased from $947 million as of December 31, 2024, to $880 million as of September 30, 2025, reflecting a decline of approximately 7.1%[20] Contract and Backlog - The company secured over $300 million in new contracts across five rigs, contributing to an order backlog of approximately $2.5 billion as of November 5, 2025[5][8]