STEINHAUSEN, Switzerland, Feb. 19, 2026 (GLOBE NEWSWIRE) -- Transocean Ltd. (NYSE: RIG) today reported financial results for the fourth quarter and full year of 2025. The Company will hold a conference call and webcast at 9 a.m. EST, 3 p.m. CET, on Friday, February 20, 2026, to discuss the results, with participation details included in this release. In addition, supplemental slides have been posted to the Investors section of the Company's website at www.deepwater.com.
2025 KEY POINTS
-- Operating revenues were $3.965 billion, up 13% from $3.524 billion in
2024.
-- Revenue efficiency(1) was 96.5%, up from 94.5%.
-- Net loss attributable to controlling interest was $2.915 billion,
$3.04 per diluted share.
-- Adjusted EBITDA of $1.37 billion, up from $1.148 billion or 19%.
-- Cash flows from operations were $749 million, up $302 million or 68%.
-- Free cash flow was $626 million, up $433 million from $193 million.
-- Total principal amount of debt reduced to $5.686 billion, down
$1.258 billion or 18%.
-- Total liquidity of $1.507 billion, including undrawn revolving credit
facility.
-- Added $839 million in contract backlog(2) at a weighted average dayrate
of $453,000.
"During 2025, we took significant strides to strengthen our capital structure, sustainably lowering costs, and ensuring we continue to deliver best in class service to our customers around the world," said President and Chief Executive Officer, Keelan Adamson. "At just shy of 98%, we delivered our best uptime performance on record while making significant progress in strengthening our balance sheet by retiring approximately $1.3 billion in debt principal and saving nearly $90 million in annualized interest expense.
"In 2026, Transocean achieves its 100th year as a company. As we proudly celebrate this centennial milestone, our primary objective will be to exceed our customers' expectations by delivering safe, efficient, and reliable operations, thereby creating value for our shareholders.
"We believe that our recently announced definitive agreement to combine with Valaris is entirely consistent with these objectives. Customers and investors alike will benefit from the expanded fleet of best-in-class, high-specification rigs and strong pro forma cash flow which improves our financial flexibility, enables accelerated debt reduction, and continued investment in our people, assets, and technologies to enhance the delivery of our services."
FULL YEAR 2025 FINANCIAL SUMMARY
Years ended December 31, sequential
----------------------------------
2025 2024 change
-------------------- ------------ --------------
(In millions,
except per share
amounts and
percentages)
Contract
drilling
revenues $ 3,965 $ 3,524 $ 441
Revenue
efficiency 96.5 % 94.5 %
Operating and
maintenance
expense $ 2,406 $ 2,199 $ (207)
Net loss
attributable to
controlling
interest $ (2,915) $ (512) $ (2,403)
Basic loss per
share $ (3.04) $ (0.60) $ (2.44)
Diluted loss per
share $ (3.04) $ (0.76) $ (2.28)
Adjusted EBITDA $ 1,370 $ 1,148 $ 222
Adjusted EBITDA
margin 34.6 % 32.5 %
Adjusted net
income (loss) $ 37 $ (54) $ 91
Adjusted diluted
earnings (loss)
per share $ 0.04 $ (0.26) $ 0.30
Net loss attributable to controlling interest was $2.915 billion, $3.04 per diluted share.
Full year results included $2.952 billion, $3.08 per diluted share, net unfavorable items as follows:
-- $3.036 billion, $3.16 per diluted share, loss on impairment of assets,
net of tax; and
-- $99 million, $0.10 per diluted share, loss on conversion of debt to
equity.
These are partially offset by:
-- $179 million, $0.18 per diluted share, discrete tax items; and -- $4 million of other favorable items, net.
Excluding these net unfavorable items, Adjusted Net Income was $37 million, $0.04 per diluted share.
Total shares outstanding were 1.1 billion at December 31, 2025.
4Q25 FINANCIAL SUMMARY
Three months
Three months ended ended
------------------------- -------------
December September
31, 30, sequential December 31, year-over-year
2025 2025 change 2024 change
----------- ------------ ------------ ------------- --------------------
(In millions,
except per
share amounts
and
percentages)
Contract
drilling
revenues $1,043 $ 1,028 $ 15 $ 952 $ 91
Revenue
efficiency 96.2% 97.5 % 93.5 %
Operating and
maintenance
expense $ 605 $ 584 $ (21) $ 579 $ (26)
Net income
(loss)
attributable
to
controlling
interest $ 25 $(1,923) $ 1,948 $ 7 $ 18
Basic earnings
(loss) per
share $ 0.02 $ (2.00) $ 2.02 $ 0.01 $ 0.01
Diluted
earnings
(loss) per
share $ 0.02 $ (2.00) $ 2.02 $(0.11) $ 0.13
Adjusted
EBITDA $ 385 $ 397 $ (12) $ 323 $ 62
Adjusted
EBITDA
margin 36.8% 38.7 % 33.9 %
Adjusted net
income $ 21 $ 62 $ (41) $ 27 $ (6)
Adjusted
diluted
earnings
(loss) per
share $ 0.02 $ 0.06 $ (0.04) $(0.09) $ 0.11
-- Net income attributable to controlling interest of $25 million, $0.02 per
diluted share.
-- Cash provided by operating activities was $349 million, up 42% compared
to prior quarter and was primarily related to working capital
improvements.
-- Contract drilling revenues were $1.043 billion, up 1.5% compared to prior
quarter, primarily related to improved rig utilization, partially offset
by slightly lower revenue efficiency across the fleet.
-- Operating and maintenance expense was $605 million, up 3.6% compared to
prior quarter, primarily related to four rigs undergoing recertifications
or shipyard maintenance, partially offset by lower costs on rigs sold or
classified as held for sale.
-- Interest expense was $132 million, excluding the effect of the bifurcated
exchange feature of the 4.625% exchangeable bonds due 2029, down 6%
compared to prior quarter, primarily due to our debt reduction efforts
achieved in the fourth quarter.
-- Capital expenditures were $28 million.
-- The Effective Tax Rate(3) was 68.8%, up from (1.4)% in the prior quarter.
The increase was primarily due to losses on rig impairments in the prior
quarter. Excluding discrete items, the Effective Tax Rate was 72.3%
compared to 34.8% in the previous quarter. Cash taxes paid in the period
were $18 million.
FLEET STATUS REPORT AND CONTRACT BACKLOG
-- We published our Fleet Status Report today. Since the October 2025
report, we added 10 new fixtures with an aggregate incremental backlog of
approximately $610 million and a weighted average dayrate of $417,000 per
day.
-- As of February 19, 2026, the total backlog is approximately $6.1 billion.
2026 FIRST QUARTER AND FULL YEAR OUTLOOK
The following table includes guidance on key items for the first quarter and full year of 2026:
1Q26E FY26E
-------------- --------------
(In millions, except
percentages)
Contract drilling revenues $1,020 -- 1,050 $3,800 -- 3,950
Revenue efficiency, fleet wide
(1) 96.50% 96.50%
Selected costs and expenses
Operating and maintenance
expense $ 605 -- 625 $2,250 -- 2,375
General and administrative $ 40 -- 50 $ 170 -- 180
Interest expense $ 125 $ 480
Interest income $ (5) -- (10) $ (30) -- (35)
Capital expenditures $ 35 -- 45 $ 130
Cash taxes $ 15 $ 85 -- 90
Total liquidity not provided $1,600 -- 1,700
CONFERENCE CALL INFORMATION
Transocean plans to host a conference call at 9 a.m. EST, 3 p.m. CET, on Friday, February 20, 2026, to discuss the results. To participate, dial +1 785-424-1619 approximately 15 minutes prior to the scheduled start time and refer to conference code 788952.
The call will be webcast in a listen-only mode at: www.deepwater.com, by selecting Investors, News, and Webcasts. Supplemental materials that may be referenced during the call will be available at: www.deepwater.com, by selecting Investors, Financial Reports.
A replay of the call will be available after 12 p.m. EST, 6 p.m. CET, on Friday, February 20, 2026. The replay, which will be archived for approximately 30 days, can be accessed at +1 402-220-6068, passcode 788952. The replay will also be available on the Company's website.
NON-GAAP FINANCIAL MEASURES
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