Seadrill Q4 Earnings Call Highlights

Core Insights - Seadrill reported a strong operational performance in 2025, with full-year EBITDA of $353 million, exceeding guidance, and a backlog increase to approximately $2.5 billion, indicating robust demand in the offshore drilling sector [3][7][8] Financial Performance - For Q4 2025, Seadrill achieved EBITDA of $88 million, with total operating revenues of $362 million, slightly down from the previous quarter [10][11] - The company ended 2025 with $365 million in cash and total liquidity of $524 million, against gross debt of $625 million [6][12] - Seadrill's 2026 guidance includes total operating revenues of $1.4 to $1.45 billion and EBITDA of $350 to $400 million, with capital expenditures trimmed to $200 to $240 million [5][13][16] Operational Highlights - Seadrill's contracted backlog increased by roughly $500 million since the last update, with firm backlog covering about 90% of the midpoint of its 2026 revenue guidance [7][9] - The company emphasized operational execution and safety, achieving its best safety performance in history, with a total recordable incident rate 50% better than the industry benchmark [2] Market Outlook - The offshore deepwater market is showing renewed strength entering 2026, driven by tightening supply, rising utilization, and improving contract terms, which may support higher day rates into 2027 [4][17] - Day rates in the U.S. Gulf are stable in the low $400s, with expectations for increases as the market tightens [9][17] Contract Awards and Extensions - Recent contract awards include a $152 million contract for West Capella and extensions for various rigs, contributing to the backlog and enhancing earnings potential for 2026 and 2027 [13][14][19] - Seadrill continues to invest in workforce development and operational discipline, with initiatives at the Seadrill Academy and global workshops [7]