Seadrill (SDRL) shares tumbled 5.64% in pre-market trading on Monday following the release of its disappointing first-quarter 2025 financial results. The offshore drilling contractor reported a net loss and missed analyst expectations, raising concerns about its performance in a challenging market environment.

The company posted a Q1 net loss of $0.23 per share, a significant drop from earnings of $0.81 per share in the same period last year. This result fell short of the FactSet consensus estimate of $0.36 earnings per share. Seadrill's revenue for the quarter also declined to $335 million from $367 million a year earlier, though it slightly beat analysts' expectations of $332.8 million.

Despite the disappointing results, Seadrill maintained its full-year 2025 operating revenue guidance in the range of $1.30 billion to $1.36 billion. The company's CEO, Simon Johnson, emphasized Seadrill's strategy to operate a floater-focused fleet, stating it positions the company well to navigate near-term volatility. However, investors appear to be concerned about the company's ability to achieve profitability in the current market conditions, as reflected in the sharp pre-market stock decline.