Transocean (RIG) Company Report

Transocean reported strong Q4 2025 Adjusted EBITDA of $385 million and free cash flow of $321 million, contributing to a full-year 2025 Adjusted EBITDA of $1.37 billion and free cash flow of $626 million.
In 2025, the company retired approximately $1.3 billion in debt, reducing annual interest expense by nearly $90 million, and improved its cost structure by $100 million.
Transocean announced a definitive agreement to acquire Valaris, expected to close in the second half of 2026, projecting over $200 million in cost synergies and a pro forma combined backlog of nearly $11 billion.
For 2026, the company expects free cash flow to be in line with or better than 2025, with plans for continued opportunistic debt reduction and projected year-end liquidity between $1.6 billion and $1.7 billion. The market outlook anticipates deepwater utilization to exceed 90% through 2027 due to increasing multi-year tenders.

7 days ago

Transcript

Transocean Reports Strong Q4 and Full-Year 2025 Results, Announces Valaris Acquisition, and Provides 2026 Outlook

RIG

Earnings

M&A

Guidance Update

Transocean reported Q4 2025 Adjusted EBITDA of $385 million and free cash flow of $321 million, contributing to full-year 2025 Adjusted EBITDA of $1.37 billion and free cash flow of $626 million.
In 2025, the company materially strengthened its balance sheet by retiring approximately $1.3 billion in debt, which reduced annual interest expense by nearly $90 million.
Transocean announced a definitive agreement to acquire Valaris, which is expected to close in the second half of 2026, anticipating more than $200 million in cost synergies and a pro forma combined backlog of nearly $11 billion.
For 2026, on a standalone basis, Transocean expects free cash flow to be in line with or better than 2025 and projects ending the year with liquidity between $1.6 billion and $1.7 billion.
The company anticipates deepwater utilization to move meaningfully higher to greater than 90% through 2027, driven by increasing tendering activity and multi-year opportunities in various global basins.

7 days ago

Transcript

Transocean Reports Strong Q4 and Full-Year 2025 Results and Details Valaris Acquisition

RIG

Earnings

M&A

Guidance Update

Transocean reported Q4 2025 Adjusted EBITDA of $385 million and free cash flow of $321 million, contributing to full-year 2025 Adjusted EBITDA of $1.37 billion and free cash flow of $626 million.
The company significantly strengthened its balance sheet in 2025 by retiring approximately $1.3 billion in debt, which reduced annual interest expense by nearly $90 million.
Transocean announced a definitive agreement to acquire Valaris, a transaction expected to close in H2 2026, which will create a combined backlog of nearly $11 billion and is projected to yield over $200 million in cost synergies.
Management anticipates a strengthening deepwater offshore drilling market, with deepwater utilization expected to rise to over 90% through 2027 due to increasing tendering activity and multi-year contract awards.

7 days ago

Transcript

Transocean Reports Fourth Quarter and Full Year 2025 Results

RIG

Earnings

Guidance Update

M&A

For the full year 2025, Transocean Ltd. reported operating revenues of $3.965 billion, a 13% increase from 2024, and an Adjusted EBITDA of $1.37 billion, up 19%.
The company recorded a net loss attributable to controlling interest of $2.915 billion, or $3.04 per diluted share, primarily due to a $3.036 billion loss on impairment of assets.
Transocean significantly reduced its total principal amount of debt by $1.258 billion, or 18%, to $5.686 billion in 2025, and reported total liquidity of $1.507 billion.
As of February 19, 2026, the total contract backlog was approximately $6.1 billion, with $610 million in incremental backlog added from 10 new fixtures since October 2025.
For the full year 2026, the company expects contract drilling revenues between $3,800 million and $3,950 million and anticipates total liquidity between $1,600 million and $1,700 million.

8 days ago

8-K

Transocean Ltd. Announces New Contract Awards and Extensions

RIG

New Projects/Investments

Revenue Acceleration/Inflection

Transocean Ltd. (NYSE: RIG) announced new contract fixtures for two harsh environment semisubmersibles in Norway, totaling approximately $184 million in firm contract backlog.
The Transocean Encourage was awarded a seven-well contract extension for an estimated 365 days of work, expected to commence in the first quarter of 2027, contributing approximately $152 million to backlog.
Two one-well options were exercised for the Transocean Enabler, adding an incremental 70 days of work and approximately $32 million to backlog, committing the rig through December 2027.

Feb 11, 2026, 11:21 AM

8-K

Transocean Ltd. announces acquisition of Valaris Limited

RIG

M&A

New Projects/Investments

Transocean Ltd. announced the acquisition of Valaris Limited in an all-stock transaction.
This combination is expected to generate more than $200 million in annual deal-related cost synergies and add over $1.5 billion in value, equivalent to approximately 15% of the combined market cap.
The combined company is projected to have a pro forma backlog exceeding $10 billion and expects its leverage ratio to decrease to about 1.5x within 24 months of closing.
The acquisition will create a diverse fleet, including 24 7th generation and 2 8th generation drill ships, 7 semi-submersibles, and 31 jackups, enhancing its presence in deepwater, harsh environment, and shallow water geographies.

Feb 10, 2026, 1:57 PM

8-K

Transocean and Valaris Announce All-Stock Combination

RIG

M&A

Transocean and Valaris are combining in an all-stock transaction to create a stronger company with an enhanced fleet and optimized global footprint.
The transaction is expected to generate over $200 million in annual deal-related cost synergies, which are projected to add more than $1.5 billion in value, representing approximately 15% of the combined market capitalization.
The combined entity will have a pro forma backlog exceeding $10 billion and aims to reduce its leverage ratio to about 1.5 times within 24 months of closing.
The combined fleet will include 24 seventh-generation and 2 eighth-generation drillships, 7 highly capable semi-submersibles, and a modern jackup fleet of 31 rigs.
The companies are focused on closing the transaction in the second half of 2026.

Feb 9, 2026, 2:00 PM

Transcript

Transocean Announces All-Stock Combination with Valaris

RIG

M&A

New Projects/Investments

Transocean announced a transformational all-stock combination with Valaris, which is expected to create significant value for shareholders and customers.
The transaction is anticipated to generate more than $200 million in annual deal-related cost synergies, which, when capitalized, is expected to add over $1.5 billion of value.
The combined company will have a pro forma backlog of more than $10 billion and aims to reduce its leverage ratio to approximately 1.5x within 24 months of closing.
The combined fleet will include 24 seventh-generation drillships, two eighth-generation drillships, 7 harsh environment semi-submersibles, and a modern jackup fleet of 31 rigs, enhancing its offering across various water depths and geographies.
The transaction is expected to close in the second half of 2026.

Feb 9, 2026, 2:00 PM

Transcript

Transocean Announces Acquisition of Valaris

RIG

M&A

Transocean announced an all-stock acquisition of Valaris, creating a combined entity with a pro forma backlog of over $10 billion.
The transaction is expected to generate more than $200 million in annual deal-related cost synergies, adding over $1.5 billion of value (approximately 15% of combined market cap).
The combined company aims to accelerate debt reduction, with an expected leverage ratio drop to about 1.5 times within 24 months of closing.
The acquisition enhances Transocean's fleet with 24 seventh-gen drillships, 2 eighth-gen drillships, 7 semi-submersibles, and 31 jackups (including 11 for harsh environments), expanding its global footprint and reestablishing a relationship with Saudi Aramco.
The transaction is expected to be accretive to free cash flow and earnings on a per-share basis and is anticipated to close in the second half of 2026.