Want to see SDRL full AI Analyst Report?
Top Page
Seadrill Limited
(NYSE:SDRL)
Select Model
Select Model
Rating:61Neutral
Price Target:
$46.00
▼(-4.92% Downside)
Action:Reiterated
Date:08/10/26
The score is driven by a strong and improving near-term outlook from the latest earnings call (raised guidance, high utilization, and expected H2 free-cash-flow inflection), partially offset by currently negative operating/free cash flow in the financial statements and a weak valuation signal from a negative P/E. Technical indicators are broadly neutral and add only modest support.
Positive Factors
High Utilization & Execution
Sustained 96% fleet economic utilization signals strong structural demand for high-spec drillships and superior operational execution. High utilization supports contracted dayrates, reduces idle costs, and materially raises the probability of durable cash generation and backlog conversion over the next several quarters.
Negative Factors
Negative Cash Generation
Persistent negative operating and free cash flow over the trailing twelve months indicates the business is not yet self-funding. Even with improvement trends, continued cash deficits raise reliance on external financing or asset sales and constrain long-term reinvestment and shareholder return flexibility.
Read all positive and negative factors
Positive Factors
Negative Factors
High Utilization & Execution
Sustained 96% fleet economic utilization signals strong structural demand for high-spec drillships and superior operational execution. High utilization supports contracted dayrates, reduces idle costs, and materially raises the probability of durable cash generation and backlog conversion over the next several quarters.
Read all positive factors
Seadrill Limited (SDRL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.90B
Dividend YieldN/A
Average Volume (3M)916.53K
Price to Earnings (P/E)2419.0
Beta (1Y)0.91
Revenue Growth13.06%
EPS Growth-98.53%
CountryUS
Employees3,000
SectorEnergy
Sector Strength52
IndustryOil & Gas Drilling
Share Statistics
EPS (TTM)0.02
Shares Outstanding62,541,443
10 Day Avg. Volume626,832
30 Day Avg. Volume916,534
Financial Highlights & Ratios
PEG Ratio0.23
Price to Book (P/B)0.75
Price to Sales (P/S)1.50
P/FCF Ratio-15.57
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$64.67Price Target Upside33.66% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)0.81
Revenue Forecast (FY)$1.55B
Seadrill Limited Business Overview & Revenue Model
Company Description
Seadrill Limited, a global entity, is dedicated to delivering contract drilling services for the offshore oil and gas sector. The company utilizes a diverse fleet of sophisticated equipment, including drillships, semi-submersible rigs, and jack-up...
How the Company Makes Money
Seadrill primarily makes money by contracting its offshore drilling units to oil and gas companies under drilling contracts. Revenue is generated mainly from dayrate-based drilling services, where customers pay a contracted daily rate for the rig ...
Seadrill Limited Earnings Call Summary
Earnings Call Date:Aug 10, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Dec 01, 2026
Earnings Call Sentiment Positive
The call emphasized strong operational execution and materially improved financial performance (Q2 adjusted EBITDA $144 million, utilization 96%), coupled with strategic backlog additions (~$200 million) and a strengthened balance sheet (refinancing and higher revolver). Management raised full-year revenue and EBITDA guidance and signaled an expected free cash flow inflection in H2 2026, resuming share buybacks. Offsetting items include higher operating and repair & maintenance expenses, working capital timing effects, one-off cash outflows, and limited visibility on some rigs for the remainder of 2026. On balance, the positive developments (guidance raises, high utilization, backlog wins, refinancing, and cash generation prospects) materially outweigh the near-term operational and timing headwinds.Positive Updates
Strong Q2 Financial Performance
Second quarter operating revenues of $449 million and adjusted EBITDA of $144 million, a sequential EBITDA increase of $47 million versus the prior quarter; EBITDA margin excluding reimbursables was 33.5%.
Negative Updates
Higher Operating Expenses
Operating expenses rose to $377 million in Q2, up $43 million sequentially, primarily due to full-quarter operations of West Capella and West Jupiter; management expects repair and maintenance expense to be higher in the second half of the year.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Q2 Financial Performance
Second quarter operating revenues of $449 million and adjusted EBITDA of $144 million, a sequential EBITDA increase of $47 million versus the prior quarter; EBITDA margin excluding reimbursables was 33.5%.
Read all positive updates
Company Guidance
Seadrill raised 2026 guidance to operating revenues of $1.50–$1.55 billion (ex‑~$50 million of reimbursables) and adjusted EBITDA of $420–$450 million (which includes a $30 million non‑cash amortization of mobilization costs, $16 million recognized through Q2); Q2 results underpinning the raise were $449 million of operating revenue, $144 million of adjusted EBITDA (33.5% EBITDA margin ex‑reimbursables), economic utilization of 96%, and operating expenses of $377 million, while the company ended the quarter with $360 million of cash (up $31 million QoQ) after $57 million of capex in Q2 and with full‑year capex guidance of $200–$240 million; management expects meaningful free cash flow in H2 2026 (including collection of the West Tellus mobilization fee in Q3), resumed buybacks ($20 million repurchased in June with $208 million remaining authorization through year‑end), and strengthened liquidity following a $700 million 6.75% senior note issuance, $575 million note redemption, and an increased $300 million revolver extended to 2031.Seadrill Limited Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
74
Positive
Cash Flow
34
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Mar 2023 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.52B | 1.44B | 1.39B | 1.47B | 936.00M | 907.00M |
| Gross Profit | 381.00M | 173.00M | 293.00M | 565.00M | 281.00M | -38.00M |
| EBITDA | 362.00M | 248.00M | 562.00M | 494.00M | 3.92B | -336.00M |
| Net Income | 47.00M | -77.00M | 446.00M | 300.00M | 3.91B | -587.00M |
Balance Sheet | ||||||
| Total Assets | 4.11B | 3.95B | 4.16B | 4.22B | 2.80B | 3.90B |
| Cash, Cash Equivalents and Short-Term Investments | 337.00M | 339.00M | 478.00M | 697.00M | 480.00M | 293.00M |
| Total Debt | 737.00M | 613.00M | 618.00M | 610.00M | 518.00M | 908.00M |
| Total Liabilities | 1.24B | 1.09B | 1.24B | 1.24B | 1.10B | 7.61B |
| Stockholders Equity | 2.86B | 2.86B | 2.92B | 2.98B | 1.70B | -3.72B |
Cash Flow | ||||||
| Free Cash Flow | -260.00M | -138.00M | -69.00M | 186.00M | -140.00M | -183.00M |
| Operating Cash Flow | -196.00M | -28.00M | 88.00M | 287.00M | 9.00M | -154.00M |
| Investing Cash Flow | -79.00M | -113.00M | 226.00M | 42.00M | 343.00M | 37.00M |
| Financing Cash Flow | 70.00M | -3.00M | -532.00M | -200.00M | -363.00M | 0.00 |
Seadrill Limited Technical Analysis
Positive
48.38
Price Trends
42.78
Positive
45.46
Positive
41.44
Positive
Market Momentum
1.10
Negative
55.77
Neutral
32.61
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SDRL, the sentiment is Positive. The current price of 48.38 is above the 20-day moving average (MA) of 45.56, above the 50-day MA of 42.78, and above the 200-day MA of 41.44, indicating a bullish trend. The MACD of 1.10 indicates Negative momentum. The RSI at 55.77 is Neutral, neither overbought nor oversold. The STOCH value of 32.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SDRL.
Seadrill Limited Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $4.14B | -30.30 | -5.27% | 2.83% | 16.57% | -328.07% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
64 Neutral | $5.80B | 6.34 | 31.33% | ― | -13.22% | 249.28% | |
63 Neutral | $4.48B | -53.14 | -2.82% | 3.53% | -6.92% | 91.45% | |
61 Neutral | $2.90B | 2,419.00 | 0.03% | ― | 13.06% | -98.53% | |
60 Neutral | $6.25B | -3.12 | -20.24% | ― | 8.54% | -3.69% | |
52 Neutral | $1.36B | -5.84 | -21.28% | ― | 2.71% | -447.50% |
* Energy Sector Average
SDRL
Seadrill Limited
48.38
16.68
52.62%
HP
Helmerich & Payne
42.42
22.77
115.90%
PTEN
Patterson-UTI
12.26
6.79
124.21%
RIG
Transocean
5.74
2.64
85.16%
BORR
Borr Drilling
4.54
1.58
53.38%
VAL
Valaris
85.44
36.32
73.94%
Seadrill Limited Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Seadrill Limited Issues New Notes and Boosts Liquidity
Positive
Jun 30, 2026
On June 30, 2026, Seadrill Finance Limited issued $700 million of 6.750% senior notes due July 15, 2034, fully and unconditionally guaranteed by Seadrill Limited and certain subsidiaries, with detailed redemption features starting in 2029 and cove...
Business Operations and StrategyStock Buyback
Seadrill Extends Share Repurchase Program to Year-End 2026
Positive
Jun 22, 2026
On June 22, 2026, Seadrill Limited announced that its board has extended the company’s existing $500 million share repurchase program from its prior June 25, 2026 end date to December 31, 2026, with about $208 million still available as of J...
Business Operations and StrategyPrivate Placements and Financing
Seadrill Expands and Extends Senior Secured Revolving Credit Facility
Positive
Jun 18, 2026
On June 16, 2026, Seadrill Limited amended its senior secured revolving credit agreement, increasing the facility’s commitments from $225 million to $300 million and extending the stated maturity from 2028 to 2031, with effectiveness expecte...
Business Operations and StrategyPrivate Placements and Financing
Seadrill Announces $600 Million Senior Notes Offering
Positive
Jun 15, 2026
On June 15, 2026, Seadrill Limited announced that its wholly owned subsidiary, Seadrill Finance Limited, plans a private offering of $600 million in senior unsecured notes due 2034 to eligible institutional investors under Rule 144A and Regulation...
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Seadrill Shareholders Approve Governance Measures and Incentive Plan
Positive
Jun 5, 2026
At its annual general meeting on June 3, 2026, Seadrill Limited shareholders approved several governance and compensation measures, including setting the board size at up to nine directors and re-electing all nominated directors to serve until the...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.