Transocean Ltd. (NYSE:RIG) Q4 2025 Earnings Call Transcript
Transocean Ltd. held its Q4 2025 earnings call, reporting strong operational and financial results for 2025, including $1.37 billion in adjusted EBITDA and $626 million in free cash flow. The company announced its definitive agreement to acquire Valaris, anticipating significant cost synergies and accelerated debt reduction, aiming for 1.5x leverage within 24 months of closing. Leadership also provided an optimistic market outlook, forecasting increased deepwater utilization and tenders across various regions, underlining confidence in the offshore drilling sector's strengthening environment despite some near-term moderation.
Transocean Ltd (RIG) Q4 2025 Earnings Call Highlights: Strong Financial Performance and ... By GuruFocus
Transocean Ltd (RIG) reported strong financial results for Q4 2025, with adjusted EBITDA of $385 million and free cash flow of $321 million. The company significantly reduced its debt by $1.3 billion and aims for further cost reductions in 2026. Facing some near-term market moderation, Transocean is confident in the long-term deepwater offshore drilling outlook, bolstered by its acquisition of Valaris.
Transocean (RIG) Edges Higher As Investors Weigh Mixed Quarter
Transocean (RIG) stock closed higher after reporting mixed fourth-quarter results and advancing its merger with Valaris Ltd. The offshore driller missed earnings expectations but exceeded revenue forecasts. The upcoming Valaris acquisition is set to create an industry heavyweight with a significant backlog and improved cash flow visibility.
Transocean (RIG) Q4 2025 Earnings Call Transcript
Transocean announced strong Q4 2025 results, with significant Adjusted EBITDA and free cash flow growth, alongside a substantial reduction in debt. The company also detailed the strategic acquisition of Valaris, which is expected to create significant synergies, expand its market footprint, and accelerate debt reduction, preparing for a highly constructive deepwater drilling market. Key topics from the earnings call include discussions on the Valaris acquisition's impact on chartering strategy, market outlook for deepwater and jackup rigs, and Petrobras blend-and-extend negotiations.
RIG Stock Slides Over 3% After-Hours, But Retail Traders Stay Bullish
Transocean Ltd. (RIG) shares fell more than 3% in after-hours trading despite reporting a 13% year-over-year revenue increase, as adjusted earnings of $0.02 per share missed analyst estimates. Retail sentiment remains positive according to Stocktwits data, with investors focusing on the company's $5.8 billion all-stock acquisition of Valaris and significant debt reduction efforts.
Transocean cuts $1.3B debt in year it posts $2.9B net loss
Transocean (NYSE: RIG) reported full-year 2025 results with a net loss of $2.915 billion despite a 13% increase in contract drilling revenues to $3.965 billion and a 19% rise in Adjusted EBITDA to $1.37 billion. The significant net loss was primarily due to $3.036 billion in impairment charges. The company strengthened its balance sheet by reducing its total principal debt by $1.258 billion, or 18%, to $5.686 billion, and ended the year with a total backlog of approximately $6.1 billion.
Transocean: Q4 Earnings Snapshot
Transocean Ltd. reported a fourth-quarter profit of $25 million, or 2 cents per share, which fell short of analysts' expectations of 9 cents per share. The offshore oil and gas drilling contractor achieved revenue of $1.04 billion for the quarter, meeting Street forecasts. For the full year, the company posted a net loss of $2.92 billion on revenues of $3.97 billion.
Transocean Ltd. announces 2025 Q4 and full-year financial results, to host conference call on Feb 20 at 9 am EST.
Transocean Ltd. (NYSE: RIG) announced its financial results for the fourth quarter and full year of 2025 on February 19, 2026, from Steinhause, Switzerland. The company will host a conference call and webcast on Friday, February 20, 2026, at 9 a.m. EST (3 p.m. CET) to discuss these results. Additional presentation slides will be available on the Investors section of Transocean Ltd.'s website.
Offshore driller Transocean locks in $610M of new rig work
Transocean (NYSE: RIG) announced new fixtures worth approximately $610 million, adding to its total backlog which now stands at about $6.1 billion as of February 19, 2026. The new contracts and options cover drilling operations in Romania, Brazil, Australia, and Norway, involving rigs like the Transocean Barents, Deepwater Mykonos, and Deepwater Skyros. Despite the positive news, the stock saw a 2.50% decline, wiping out an estimated $180 million from its valuation.
Transocean Ltd. Provides Quarterly Fleet Status Report
Transocean Ltd. has released its quarterly Fleet Status Report detailing contract updates for several of its offshore drilling rigs. The report includes exercised options and new contracts for rigs like Transocean Barents, Deepwater Mykonos, Deepwater Skyros, Transocean Enabler, Transocean Encourage, Transocean Endurance, and Transocean Equinox. These fixtures add approximately $610 million to the company's backlog, bringing the total backlog to about $6.1 billion as of February 19, 2026.
Westwood: Transocean-Valaris merger 'shakes up' offshore drilling industry
Transocean's acquisition of Valaris for approximately US$5.8 billion is set to significantly consolidate the offshore drilling industry, creating a combined fleet of 73 rigs and a US$10 billion backlog. This merger marks Transocean's re-entry into the jack-up market and positions the company to capitalize on an anticipated upswing in demand for high-specification rigs, especially as market conditions may lead to reactivation of cold-stacked floaters. The deal could also trigger further consolidation among rig contractors vying for market share against the new Transocean powerhouse.
Barclays downgrades Transocean stock rating, raises price target
Barclays downgraded Transocean (NYSE:RIG) to Equalweight from Overweight, while simultaneously raising its price target to $6.00 from $4.50, based on an updated valuation framework. The new price target utilizes a rig-by-rig discounted cash flow methodology with a lower 10.5% discount rate, reflecting Transocean's stronger balance sheet, and updated assumptions for day rates of leading-edge floaters. Despite being unprofitable, analysts expect Transocean to become profitable this year and the company recently announced significant contracts and an all-stock acquisition of Valaris Limited.
Transocean's (RIG) Equal Weight Rating Reaffirmed at Barclays
Barclays has reaffirmed its "equal weight" rating on Transocean (NYSE:RIG) and raised its price target from $4.50 to $6.00, suggesting a slight downside from its current trading price. Despite this, overall analyst sentiment is mixed, with a consensus "Reduce" rating and an average target price of $5.44. Insider activity shows significant purchases by two directors, totaling 3 million shares, even as other insiders have sold shares recently.
Seeking Clues to Transocean (RIG) Q4 Earnings? A Peek Into Wall Street Projections for Key Metrics
Wall Street analysts project Transocean (RIG) to report a significant year-over-year earnings increase of 200% to $0.09 per share for its upcoming Q4 report, with revenues expected to rise 9.1% to $1.04 billion. The article delves into specific key metrics, highlighting expectations for various drilling revenues, fleet utilization, and average daily revenues for different rig types. These projections offer insights into the drillings company's potential performance, with the stock currently holding a Zacks Rank #3 (Hold).
RIG stock: Transocean Ltd. (NYSE) pre-market $6.14 -6.12% ahead of earnings: watch utilization data
Transocean Ltd. (RIG) stock is trading down -6.12% pre-market at $6.14 ahead of its Q4 earnings report on February 19, 2026. Analysts expect EPS of $0.09 and revenue of $1.04 billion, with a key focus on utilization rates for both total rigs and ultra-deepwater rigs. Meyka AI rates RIG as a "HOLD" with a score of 66.98/100, projecting potential downside to $4.78 monthly and $5.40 quarterly based on its model.
Transocean Stock Drops 6.12% After 52-Week High
Transocean's stock (RIG) dropped 6.12% after reaching a 52-week high, largely attributed to profit-taking and investor reassessment of its all-stock acquisition of Valaris. The $5.8 billion deal is expected to create the world's largest offshore drilling contractor with significant synergies and backlog, but concerns about stock dilution and potential legal issues persist. Investors are now focused on Transocean's upcoming Q4 earnings report on February 19 for more details on the Valaris acquisition.
Transocean Merges With Valaris Amid Investor Scrutiny
Transocean's stock has faced a -5.81% downturn following its all-stock merger with Valaris, valued at $5.8 billion. The merger is under scrutiny from law firms regarding fairness to shareholders, and analysts have downgraded Transocean’s stock, with key executives divesting holdings. Despite forming a dominant entity, market sentiment remains mixed due to financial challenges, significant debt, and concerns over integration success.
Transocean (RIG) slides as investors reassess Valaris deal risk amid softer oil-price outlook
Transocean (RIG) shares declined by 5.9% due to investor concerns over the recently announced all-stock merger with Valaris, particularly regarding dilution, integration, and closing risks. This volatility is exacerbated by a softer oil-price outlook from the U.S. Energy Information Administration, which projects WTI crude remaining below $60 through 2027. Despite the negative sentiment surrounding the deal and macroeconomic factors, Transocean also announced new contract fixtures totaling $168 million, indicating improving fundamentals.
Transocean Shares Pull Back From Highs: What's Driving The Action?
Transocean (NYSE: RIG) shares are experiencing a pull back after reaching a 52-week high, despite securing significant contract extensions in Norway. The stock's decline is attributed to a broader negative sentiment in the energy sector and bearish short-term technical indicators. Investors are also looking ahead to the company's upcoming earnings report on February 19th.
Transocean (RIG) – Among the Energy Stocks that Gained This Week
Transocean (RIG) saw a significant stock price surge of 21.34% between February 6 and February 13, 2026, driven by its announced acquisition of Valaris in an all-stock deal valued at $5.8 billion. This merger will expand Transocean's drilling services and is expected to generate over $200 million in cost synergies. Additionally, new contract fixtures for its rigs in Norway, totaling $184 million, contributed to the stock's positive performance.
Transocean (RIG) Is Up 14.5% After Securing $184 Million In New Norway Rig Backlog – Has The Bull Case Changed?
Transocean (RIG) recently secured new contracts for two harsh-environment semisubmersibles in Norway, adding $184 million to its backlog and extending work through late 2027. This boosts utilization and earnings quality for its premium rigs, reinforcing the investment narrative around its backlog, especially considering the planned $5.8 billion all-stock acquisition of Valaris. However, the company still faces challenges including high debt, refinancing needs, and analyst skepticism regarding long-term revenue and profitability.
Transocean (RIG) Ends 3-Day Win, Drops on $381-Million Discounted Share Sale
Transocean (RIG) shares declined after the company announced a $381 million discounted share sale to lenders, aimed at reducing its debt. This move ended a three-day winning streak for its stock. The offering involved 63.5 million shares at $6.00 each, a significant discount from its recent closing price.
RIG Stock Price, Forecast & Analysis | TRANSOCEAN LTD (NYSE:RIG)
This article provides a comprehensive analysis of Transocean Ltd. (NYSE:RIG), covering its stock price performance, technical and fundamental ratings, financial highlights, and analyst forecasts. The company has seen significant price increases over the last year, with a strong technical rating but a weaker fundamental outlook according to ChartMill. Analysts predict a price decrease in the next year despite expected EPS and revenue growth.
Transocean Stock Hits 52-Week High: What's Driving The Action?
Transocean (NYSE: RIG) shares hit a new 52-week high after securing new contracts totaling $184 million for two harsh environment semisubmersibles in Norway. These contracts, set to begin in Q1 2027, will significantly boost the company's backlog and extend operational commitments. While technical indicators show strong momentum, the stock's RSI suggests it may be in overbought territory, potentially indicating a future pullback.
Offshore titans: Transocean buys Valaris for $5.8B
The article reports that Transocean has acquired Valaris in a deal valued at $5.8 billion. This acquisition consolidates two major players in the offshore drilling industry. Further details about the strategic implications and potential market impact are expected to be included in the full article.
Transocean Ltd. (NYSE:RIG) Given Average Recommendation of "Hold" by Brokerages
Transocean Ltd. (NYSE:RIG) has received an average "Hold" rating from brokerages, with an average 12-month price target of $5.22, despite a transformative M&A deal to acquire Valaris for $5.8 billion. The deal, which aims to expand its fleet and backlog, has generated mixed analyst sentiments, with some upgrades and some downgrades, and is facing class-action scrutiny. Recent insider purchases and a new Norway contract suggest some near-term bullish sentiment.
Transocean (RIG) Earnings Expected to Grow: Should You Buy?
Transocean (RIG) is projected to show a year-over-year increase in earnings and revenue for the quarter ending December 2025, with an expected release date of February 19. The company's Zacks Earnings ESP of +5.88% combined with a Zacks Rank #3 suggests a strong probability of beating the consensus EPS estimate of $0.09 per share. Investors are advised to consider other factors alongside this positive outlook.
Two Transocean rigs land $184M, Enabler committed through Dec. 2027
Transocean announced new contracts and extensions for two harsh-environment semisubmersibles in Norway, totaling approximately $184 million in backlog. The Transocean Encourage received a seven-well extension worth about $152 million, starting in Q1 2027, while the Transocean Enabler had two one-well options exercised, adding around $32 million and committing the rig through December 2027. This news caused Transocean's stock (RIG) to gain over 10% on the day of publication.
Transocean Ltd. Announces Contract Award And Extension
Transocean Ltd. has announced new contract fixtures for two of its harsh environment semisubmersibles in Norway, totaling approximately $184 million in firm contract backlog. The Transocean Encourage received a seven-well contract extension, adding an estimated 365 days of work and $152 million to the backlog. Two one-well options were exercised for the Transocean Enabler, contributing an additional 70 days of work and $32 million to the backlog, committing the rig through December 2027.
Transocean Ltd.'s (NYSE:RIG) 28% Price Boost Is Out Of Tune With Revenues
Transocean Ltd.'s shares have risen 28% in the last month, bringing its annual gain to 41%. Despite this price boost, the company's price-to-sales (P/S) ratio of 1.5x is considered "middle-of-the-road" compared to the Energy Services industry median of 1.2x. Analysts' muted revenue growth forecasts for Transocean, at 0.2% compared to the industry's 2.3%, suggest that its current P/S ratio may not be sustainable if future revenues do not support a more positive sentiment.
Transocean Ltd Announces $184 Million Contract Fixtures
Transocean Ltd announced new contract fixtures totaling $184 million for two semisubmersible rigs in Norway. The Transocean Encourage secured a 7-well extension valued at $152 million, starting in Q1 2027 and lasting 365 days. The Transocean Enabler obtained two one-well options worth $32 million, extending its work through December 2027.
Transocean Ltd. Secures $184 Million in Contracts for Harsh Environment Semisubmersibles in Norway
Transocean Ltd. has secured approximately $184 million in new contracts for two of its harsh environment semisubmersibles operating in Norway. The Transocean Encourage received a seven-well extension worth about $152 million, commencing in Q1 2027, while the Transocean Enabler secured two one-well options adding roughly $32 million and extending its work through December 2027. These contracts reinforce Transocean's position in the specialized offshore drilling market.
$HAREHOLDER ALERT: The M&A Class Action Firm Announces An Investigation of Transocean Ltd. (NYSE: RIG)
Monteverde & Associates PC, a class action firm, has announced an investigation into Transocean Ltd. (NYSE: RIG) regarding its merger with Valaris Limited. The firm is assessing whether the proposed transaction, which would result in Transocean shareholders owning approximately 53% of the combined company, is fair. Shareholders are invited to contact the firm for more information, free of charge.
Transocean to acquire rival offshore driller Valaris in $5.8 billion deal
Transocean Ltd. announced its agreement to acquire Valaris Ltd. in an all-stock transaction valued at approximately $5.8 billion, creating a combined offshore drilling company with an estimated enterprise value of $17 billion. The deal will result in a fleet of 73 offshore rigs and is expected to generate over $200 million in cost synergies, capitalizing on an anticipated multi-year offshore drilling upcycle. The transaction, unanimously approved by both boards, is projected to close in the second half of 2026 pending regulatory and shareholder approvals.
Transocean to acquire Valaris in $5.8-billion deal, creating offshore drilling giant
Transocean Ltd. is set to acquire Valaris Ltd. in an all-stock transaction valued at approximately $5.8 billion, forming one of the largest offshore drilling contractors globally. This merger will create a fleet of 73 offshore rigs and an estimated $10-billion contract backlog, aiming to capitalize on an emerging offshore drilling upcycle. The companies anticipate over $200 million in annual cost synergies and strengthened free cash flow, with Transocean shareholders owning 53% of the combined entity.
Transocean to buy Valaris for $5.8 billion, expanding global offshore rig fleet
Transocean announced it will acquire Valaris in an all-stock deal valued at $5.8 billion, creating an offshore rig fleet of 73 rigs with an enterprise value of approximately $17 billion. The deal is expected to help Transocean reduce its debt through cost savings and stronger cash flows. Valaris shareholders will receive 15.235 shares of Transocean stock for each Valaris share, representing a 31.6% premium.
Transocean to buy offshore rig contractor Valaris in $5.8B all-stock deal (RIG:NYSE)
Transocean has agreed to acquire offshore rig contractor Valaris in an all-stock deal valued at approximately $5.8 billion. This acquisition will create a leading offshore drilling company with a combined fleet of 73 rigs, including 33 ultra-deepwater drillships. Following the announcement, Valaris's stock rose significantly in pre-market trading.
Assessing Transocean (RIG) Valuation After Optimistic Update On Earnings Visibility And Offshore Contract Prospects
Transocean (RIG) is receiving renewed attention following an optimistic fleet status report highlighting strong earnings visibility and potential long-term offshore contracts at favorable day rates. While one valuation narrative suggests the stock is 23% overvalued at $5.39 per share with a fair value of $4.37, another discounted cash flow (DCF) model indicates it might be 23% undervalued at an estimated $6.97. Despite a recent share price surge and improved sentiment, the company still carries significant debt, and its valuation remains sensitive to crude prices and project timing.
Why Investors Shouldn't Be Surprised By Transocean Ltd.'s (NYSE:RIG) 28% Share Price Surge
Transocean Ltd. (NYSE:RIG) has seen a 28% surge in its share price over the last thirty days, contributing to a 51% gain over the past year. Despite this growth, the company's P/S ratio of 1.5x remains in line with the Energy Services industry median of 1.2x, suggesting that the recent price movement aligns with its solid revenue growth and analyst forecasts. The article indicates that investors are likely comfortable with the current P/S ratio given that future revenue growth is expected to mirror the broader industry.
Transocean stock hits 52-week high at 5.36 USD By Investing.com
Transocean Ltd (RIG) stock has reached a 52-week high of $5.36 USD, continuing to climb to $5.37, reflecting strong investor confidence with a 63.04% price return over the past six months. The company, an offshore drilling contractor, is predicted to become profitable this fiscal year with an EPS forecast of $0.07. This surge is also supported by recent significant contract wins for its deepwater rigs, securing substantial additions to its backlog.
How Transocean’s Higher Day-Rate Contract Ambitions Could Impact Transocean (RIG) Investors
Transocean's management is optimistic about securing long-term contracts at higher day rates (mid-$500,000 per day), which could significantly improve the company's financial standing and investment appeal. This outlook, supported by detailed fleet status reports, aims to shift focus from current losses and debt towards backlog quality and potential earnings growth. While the stock has seen a strong run, investors remain cautious due to past performance and refinancing risks, leading to varied fair value estimates.
Transocean Ltd. (RIG): A Bull Case Theory
This article summarizes a bullish thesis on Transocean Ltd. (RIG), highlighting the company's strong earnings visibility through its fleet status reports and management's optimistic outlook on offshore day rates. The thesis emphasizes anticipated long-term contract awards with high day rates, which could lead to a sector-wide rerating in offshore drilling. While past guidance may have been overly optimistic, current market conditions suggest a potential inflection point for Transocean's stock.
RIG Stock Rises Significantly on New Contract and Price Target Boost
Transocean Ltd.'s stock (NYSE: RIG) is up 3.32% following investor optimism driven by new contract awards and extensions totaling $168 million for its offshore drilling rigs in Brazil and Norway. Analysts at BTIG and Susquehanna have raised their price targets for Transocean, affirming 'Buy' ratings due to improved rig contracting and stable demand in the U.S. market. These significant operational activities are enhancing the company's financial outlook and are seen as a move towards long-term revenue streams.
Transocean stock rises as oil rebounds; BTIG lifts target ahead of earnings (RIG)
Transocean's stock rose 1.2% as oil rebounded, and BTIG lifted its price target to $6 while maintaining a Buy rating, citing easing risks for 2026 due to increased rig contracting. The company is set to release its fourth-quarter results and fleet status report on February 19, which could be crucial for future revenue and cash-flow forecasts. Investors are also watching for insights into long-term ventures, such as the Neptun Deep gas project in Romania.
Transocean executive sells shares: Impacts on RIG stock
Transocean Ltd (RIG) stock is down by 3.02% following an executive's sale of shares and news of drilling permit revocations. Executive Vice President and Chief Legal Officer, Brady K Long, sold over $576,000 worth of shares, adding to investor caution amidst challenging financial metrics and significant impairment charges that resulted in over $1.9 billion in net losses for the company. The insider selling and financial struggles create a volatile environment, prompting traders to refine strategies and emphasize risk management.
Keybank National Association OH Has $35.17 Million Position in Transocean Ltd. $RIG
Keybank National Association OH increased its stake in Transocean Ltd. (NYSE:RIG) by 4.0% in Q3, now holding 11,273,454 shares valued at approximately $35.17 million. This move comes as two directors also recently bought 1.5 million shares each, boosting insider ownership to 12.27%. Wall Street maintains a "Hold" consensus rating for Transocean, with an average price target of $4.38.
Tejara Capital Ltd Has $2.77 Million Stock Position in Transocean Ltd. $RIG
Tejara Capital Ltd significantly reduced its stake in Transocean Ltd. (NYSE:RIG) by 46.2% in the third quarter, now holding 889,066 shares valued at $2.77 million. This makes Transocean its 25th largest position, accounting for 1.4% of Tejara's portfolio. Despite Tejara Capital's reduction, other institutional investors have recently increased their holdings, and the stock is trading around $4.98 with a market cap of $5.48 billion, following an earnings beat.
A Look At Transocean (RIG) Valuation After New Offshore Contract Wins And 52 Week High
Transocean (RIG) recently secured new offshore drilling contracts totaling over $250 million, pushing its stock to a 52-week high with significant short-term gains. While one valuation model suggests the stock is 19.3% overvalued at $4.17 compared to its current price of $4.97, another discounted cash flow model indicates it might be undervalued by 24% with an intrinsic value of $6.53. The article highlights the tension between these valuation models and the company's strong backlog, encouraging investors to consider various perspectives.
A Look At Transocean (RIG) Valuation After New Offshore Contract Wins And 52 Week High
Transocean (NYSE:RIG) recently secured significant offshore drilling contracts, including a $120 million deal with bp and a $130 million project in Australia, pushing its stock to a 52-week high. Despite this momentum, a "most popular narrative" suggests the company is overvalued when compared to a fair value of $4.17 per share, citing its substantial backlog aiding deleveraging. However, a discounted cash flow (DCF) model from Simply Wall St indicates the stock might be undervalued, trading 24% below an intrinsic value of $6.53, prompting a debate on which valuation approach is more reliable.
547,367 Shares in Transocean Ltd. $RIG Purchased by Mitsubishi UFJ Trust & Banking Corp
Mitsubishi UFJ Trust & Banking Corp recently acquired 547,367 shares of Transocean Ltd. (NYSE:RIG) worth approximately $1.71 million, representing about 0.06% of the company. Insider transactions show Director Frederik Wilhelm Mohn buying 1.5 million shares, while EVP Roderick Mackenzie sold 35,000 shares; insiders collectively own 12.27% of the stock. Transocean's stock currently trades near $4.98, with analysts providing a mixed average rating of "Hold" and a consensus price target of $4.38.
