Seadrill (NYSE:SDRL) Announces Quarterly Earnings Results

Seadrill (NYSE:SDRL) released its earnings results on Monday. The oil and gas company reported ($0.11) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.10) by ($0.01), Zacks reports. Seadrill had a negative return on equity of 2.07% and a negative net margin of 5.36%.The firm had revenue of $358.00 million during the quarter, compared to the consensus estimate of $326.75 million.

Here are the key takeaways from Seadrill’s conference call:

• Seadrill added about $860 million of backlog this quarter, including follow‑on contracts for the West Neptune and West Vela in the U.S. Gulf, a 7‑well option in Angola and a 3‑year extension for the West Polaris in Brazil, reducing 2026 white space and improving near‑term revenue visibility.
• Management raised full‑year guidance after a stronger Q1, with EBITDA of $97 million in the quarter and updated 2026 revenue and EBITDA ranges of $1.43–1.48 billion and $370–420 million, respectively.
• Seadrill expects a free‑cash‑flow inflection point in mid‑2026 driven by early contract starts, higher market day rates on re‑contracted rigs, and approximately $70 million of lump‑sum mobilization receipts due from Petrobras related to reacceptance projects.
• The balance sheet shows $329 million cash, $625 million gross principal debt and ~$482 million total liquidity, with capex guidance of $200–240 million; management prioritizes FCF generation and says capital returns or M&A will be considered once cash is generated.

Seadrill Price Performance

NYSE SDRL opened at $51.02 on Tuesday. The stock’s fifty day moving average price is $45.92 and its 200 day moving average price is $38.63. The company has a debt-to-equity ratio of 0.21, a current ratio of 2.03 and a quick ratio of 2.03. The company has a market cap of $3.19 billion, a price-to-earnings ratio of -41.14 and a beta of 1.25. Seadrill has a 1 year low of $22.30 and a 1 year high of $51.25.

Institutional Trading of Seadrill

Several hedge funds have recently added to or reduced their stakes in SDRL. Raymond James Financial Inc. acquired a new position in Seadrill during the 2nd quarter worth approximately $27,000. Aquatic Capital Management LLC acquired a new stake in shares of Seadrill in the 3rd quarter valued at $44,000. EverSource Wealth Advisors LLC purchased a new stake in shares of Seadrill during the 2nd quarter worth $42,000. CIBC Private Wealth Group LLC purchased a new stake in shares of Seadrill during the 3rd quarter worth $61,000. Finally, Osaic Holdings Inc. grew its stake in shares of Seadrill by 18.8% during the second quarter. Osaic Holdings Inc. now owns 3,521 shares of the oil and gas company’s stock worth $92,000 after purchasing an additional 558 shares in the last quarter. Institutional investors and hedge funds own 95.67% of the company’s stock.

Analysts Set New Price Targets

SDRL has been the topic of a number of research analyst reports. Weiss Ratings restated a “sell (d+)” rating on shares of Seadrill in a report on Thursday, April 2nd. Citigroup upped their target price on Seadrill from $46.00 to $48.00 and gave the stock a “neutral” rating in a report on Wednesday, April 15th. Wall Street Zen upgraded shares of Seadrill from a “sell” rating to a “hold” rating in a report on Saturday, March 7th. Barclays upgraded Seadrill from an “equal weight” rating to an “overweight” rating and upped their target price for the stock from $41.00 to $59.00 in a report on Thursday, May 7th. Finally, Zacks Research raised shares of Seadrill from a “strong sell” rating to a “hold” rating in a research report on Tuesday, April 28th. One investment analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, Seadrill currently has a consensus rating of “Moderate Buy” and a consensus target price of $55.00.

About Seadrill

Seadrill Limited, trading on the New York Stock Exchange under the symbol SDRL, is a leading provider of offshore drilling services to the global oil and gas industry. The company specializes in the design, construction, deployment and operation of mobile offshore drilling units, serving major exploration and production companies with turnkey drilling solutions.

Seadrill’s fleet comprises ultra-deepwater drillships, semi-submersible rigs and high-specification jack-up units capable of operating in some of the world’s most challenging offshore environments.