SEADRILL Ltd (SDRL) · Nov 3, 2026 · Earnings
Beat — Q3 revenue $428M vs ~$382.7M consensus
Seadrill’s third-quarter earnings beat revenue estimates, with $3.3B of backlog and strong free cash flow offsetting lower EBITDA and a net loss.
Seadrill is in a fleet-utilization and contract-renewal phase, monetizing a modern deepwater rig fleet while converting improving offshore demand into 2027 coverage and cash flow. Its prior quarter had already raised 2026 revenue and EBITDA guidance and lifted backlog to about $2.9 billion, so the commercial direction was known; this filing shows the latest contracts and cash conversion are arriving faster than the quarter’s operating profit suggests.
The quarter beat the published revenue bar by a wide margin. Revenue was $428 million versus a published consensus of roughly $382.7 million, even though the quarter lost operating days after West Carina completed its prior contract and several rigs experienced time between contracts. The filing says, “Third quarter 2026 Total operating revenues decreased to $428million, compared to $449million in the prior quarter.”
The stronger signal is commercial coverage, not current-quarter earnings. Seadrill added the West Carina contract in Indonesia, extended West Capella into February 2028, and committed Sonangol Libongos into 2030. Backlog reached $3.3 billion from approximately $2.9 billion at the prior quarter’s report, while more than 85% of available 2027 drillship days are contracted. The West Carina award also reprices a legacy contract at a higher dayrate beginning in 2027.
Cash generation was substantially better, but operating momentum softened. Free cash flow was $179 million, helped by West Tellus mobilization revenue and working-capital release, while adjusted EBITDA fell to $121 million from $144 million and the company reported a $30 million net loss. That mix means the filing improves visibility and liquidity more than it improves near-term profitability.
| Q3 2026 | Q2 2026 | Consensus | |
|---|---|---|---|
| Total operating revenues (Financial Highlights) | $428M (-4.7%) | $449M | $382.7M |
| Adjusted EBITDA (Financial Highlights) | $121M (-16.0%) | $144M | |
| Net income/(loss) (Financial Highlights) | ($30M) | $29M | |
| Free cash flow (Cash Flow reconciliation) | $179M | ($43M) | |
| Contract backlog (Commercial Activity) | $3.3B (+13.8%) | $2.9B |
Bottom line: This was a beat on revenue and a meaningful step forward in backlog and cash conversion, but not a clean earnings beat because EBITDA and net income weakened. The event modestly strengthens Seadrill’s forward contract story while leaving execution on margins and utilization to prove itself next.
Third-quarter earnings call, November 4, 2026
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