Transocean Ltd. Reports First Quarter 2026 Results
Rhea-AI Summary
Transocean (NYSE: RIG) reported Q1 2026 results: contract drilling revenues $1.08 billion, revenue efficiency 97.3% and net income $71 million ($0.06 diluted/share). Adjusted EBITDA was $440 million with a margin of ~40.7% and Free Cash Flow $136 million. The company retired $358 million of Deepwater Titan notes, ending the period with $1.125 billion total liquidity. It added ~$1.6 billion of backlog, bringing total backlog to approximately $7.1 billion. Guidance: Q2 2026 revenue $930–970 million; FY26 revenue $3.8–3.9 billion.
Positive
- Contract drilling revenues of $1.08 billion in Q1 2026
- Adjusted EBITDA of $440 million and margin of 40.7%
- Free Cash Flow of $136 million after $28 million capex
- Added $1.6 billion in contract backlog; total backlog ~$7.1 billion
- Accelerated retirement of $358 million senior secured notes, cutting interest to maturity by nearly $40 million
Negative
- Q2 2026 revenue guidance of $930–970 million implies a sequential decline from Q1
- Total debt principal remains elevated at $5.137 billion at period end
Key Figures
Market Reality Check
Peers on Argus
While RIG gained 0.29%, key peers NE, SDRL, PTEN, SOC and HP rose between 0.73% and 1.61%. Momentum scanner shows TDW down 2.17%, suggesting mixed, stock-specific action rather than a clean sector-wide move.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Feb 19 | Full-year 2025 earnings | Neutral | +2.5% | Higher 2025 revenues and EBITDA but large impairment-driven net loss reported. |
| Oct 29 | Q3 2025 earnings | Neutral | +2.1% | Q3 net loss from impairments offset by positive adjusted income and revenue growth. |
| Aug 04 | Q2 2025 earnings | Neutral | +3.6% | Q2 revenue and efficiency improved while a large impairment drove net loss. |
| Apr 28 | Q1 2025 earnings | Neutral | -4.8% | Q1 showed higher revenues but a net loss and rising operating expenses. |
| Feb 17 | Full-year 2024 earnings | Neutral | +0.6% | Q4 2024 profit contrasted with a sizeable full-year net loss from impairments. |
Earnings releases have typically led to modest positive reactions, with one notable selloff on mixed Q1 2025 results.
Over the last several earnings cycles, Transocean has reported improving contract drilling revenues and rising Adjusted EBITDA, but results were often weighed down by large impairment-driven net losses. Backlog has remained strong, around $6.1–7.9 billion, and management repeatedly emphasized balance sheet repair and debt reduction. Market reactions to these earnings have usually been mildly positive, with one sharper decline in Q1 2025. Today’s 1Q26 report, featuring positive net income and higher margins, follows this trajectory of operational improvement and deleveraging.
Historical Comparison
In the past five earnings releases, RIG’s average move was about 0.8%. Today’s 0.29% change sits well within that typical range of post-earnings reactions.
Earnings history shows a shift from impairment-driven net losses in 2024–2025 toward 1Q26 profitability, with steadily higher contract revenues, stronger EBITDA margins and ongoing debt reduction efforts.
Market Pulse Summary
This announcement highlights Transocean’s continued operational and financial improvement, with Q1 2026 contract drilling revenues of $1,081M, net income of $71M and adjusted EBITDA of $440M at a 40.7% margin. Backlog reached about $7.1B and total debt declined to $5,137M, following early retirement of the Deepwater Titan Notes. Investors may watch how future quarters track the $3.8–3.9B 2026 revenue guidance, margin durability, cash generation, and ongoing debt reduction.
Key Terms
ebitda financial
adjusted ebidta financial
free cash flow financial
senior secured notes financial
exchangeable bonds financial
revolving credit facility financial
non-gaap financial
revenue efficiency financial
AI-generated analysis. Not financial advice.
STEINHAUSEN, Switzerland, May 04, 2026 (GLOBE NEWSWIRE) -- Transocean Ltd. (NYSE: RIG) today reported financial results for the first quarter of 2026. The Company will host a conference call and webcast at 9 a.m. EDT, 3 p.m. CEST, on Tuesday, May 5, 2026, with participation details included in this release. In addition, supplemental schedules have been posted to the Investors section of the Company’s website at www.deepwater.com.
FIRST QUARTER 2026 KEY POINTS
- Contract drilling revenues were
$1.08 billion due in part to strong revenue efficiency(1) of97.3% . - Net income was
$71 million or$0.06 per diluted share. - Adjusted EBITDA was
$440 million , with adjusted EBITDA margin exceeding40% . - Net cash provided by operating activities was
$164 million ; net of capital expenditures of$28 million , Free Cash Flow was$136 million . - Accelerated retirement of
$358 million remaining principal amount of the8.375% Senior Secured Notes due 2028 (the Deepwater Titan Notes), reducing interest to maturity by nearly$40 million . - Ended the period with total liquidity of
$1.125 billion , including the undrawn revolving credit facility. - Added
$1.6 billion in contract backlog(2) at a weighted average dayrate of about$410,000 .
“The Transocean team delivered exceptional performance to start the year,” said Keelan Adamson, President and Chief Executive Officer. “During the quarter, we executed new or extended contracts on five rigs increasing our total backlog to
“Recent global events clearly underscore the importance of secure and reliable hydrocarbon supply. We continue to believe that we are in the early days of a multi-year upcycle with increasing demand for offshore exploration and development drilling services. Transocean is very well-positioned to play a key role in developing these offshore resources and creating long-term shareholder value.”
1Q26 FINANCIAL SUMMARY
| Three months ended | Three months ended | ||||||||||||||||||||||
| March 31, | December 31, | sequential | March 31, | year-over-year | |||||||||||||||||||
| 2026 | 2025 | change | 2025 | change | |||||||||||||||||||
| (In millions, except per share amounts and percentages) | |||||||||||||||||||||||
| Contract drilling revenues | $ | 1,081 | $ | 1,043 | $ | 38 | $ | 906 | $ | 175 | |||||||||||||
| Revenue efficiency | 97.3 | % | 96.2 | % | 95.5 | % | |||||||||||||||||
| Operating and maintenance expense | $ | 606 | $ | 605 | $ | (1 | ) | $ | 618 | $ | 12 | ||||||||||||
| Net income (loss) | $ | 71 | $ | 25 | $ | 46 | $ | (79 | ) | $ | 150 | ||||||||||||
| Basic earnings (loss) per share | $ | 0.06 | $ | 0.02 | $ | 0.04 | $ | (0.09 | ) | $ | 0.15 | ||||||||||||
| Diluted earnings (loss) per share | $ | 0.06 | $ | 0.02 | $ | 0.04 | $ | (0.11 | ) | $ | 0.17 | ||||||||||||
| Adjusted EBITDA | $ | 440 | $ | 385 | $ | 55 | $ | 244 | $ | 196 | |||||||||||||
| Adjusted EBITDA margin | 40.7 | % | 36.8 | % | 26.9 | % | |||||||||||||||||
| Adjusted net income (loss) | $ | (28 | ) | $ | 21 | $ | (49 | ) | $ | (65 | ) | $ | 37 | ||||||||||
| Adjusted diluted earnings (loss) per share | $ | (0.03 | ) | $ | 0.02 | $ | (0.05 | ) | $ | (0.10 | ) | $ | 0.07 | ||||||||||
| Net cash provided by operating activities | $ | 164 | $ | 349 | $ | (185 | ) | $ | 26 | $ | 138 | ||||||||||||
| Free Cash Flow | $ | 136 | $ | 321 | $ | (185 | ) | $ | (34 | ) | $ | 170 | |||||||||||
| Total debt, principal amount, end of period | $ | 5,137 | $ | 5,686 | $ | (549 | ) | $ | 6,734 | $ | (1,597 | ) | |||||||||||
- Favorable contract drilling revenues were primarily related to improved rig utilization, higher revenue efficiency and increased average daily revenues across the fleet.
- Interest expense, excluding the
$153 million effect of the bifurcated exchange feature of the4.625% Exchangeable Bonds due 2029, was$123 million . - Net cash provided by operating activities was
$164 million reflecting timing of payments from customers and increased payroll obligations in the period. - Cash taxes paid in the period were
$11 million . - The Company early retired the Deepwater Titan Notes in full on March 20, 2026. The outstanding principal amount of
$358 million , plus a call premium and accrued but unpaid interest, was settled with cash on hand and funds from the associated debt service reserve account.
FLEET STATUS REPORT AND CONTRACT BACKLOG
- The Company today issued its Fleet Status Report. Since the February 2026 report, we added five new fixtures with an aggregate incremental backlog of approximately
$1.6 billion and a weighted average dayrate of about$410,000 . - As of May 4, 2026, the total backlog is approximately
$7.1 billion .
2026 SECOND QUARTER AND FULL YEAR OUTLOOK
The following table includes guidance on key items for the second quarter and full year of 2026:
| 2Q26E | FY26E | ||||||
| (In millions, except percentages) | |||||||
| Contract drilling revenues | $ | 930 – 970 | $ | 3,800 – 3,900 | |||
| Revenue efficiency, fleet wide (1) | |||||||
| Selected costs and expenses | |||||||
| Operating and maintenance expense | $ | 630 – 660 | $ | 2,250 – 2,375 | |||
| General and administrative | $ | 40 – 45 | $ | 170 – 180 | |||
| Interest expense | $ | 113 | $ | 610 | |||
| Interest income | $ | 5 – 10 | $ | 25 – 30 | |||
| Capital expenditures | $ | 30 – 40 | $ | 150 | |||
| Cash taxes | $ | 30 | $ | 70 – 75 | |||
| Total liquidity | — | $ | 1,250 – 1,350 | ||||
CONFERENCE CALL INFORMATION
Transocean will host a conference call at 9 a.m. EDT, 3 p.m. CEST, on Tuesday, May 5, 2026, to discuss the results. To participate, dial +1 785-424-1634 approximately 15 minutes prior to the scheduled start time and refer to conference code 948789.
The call will be webcast in a listen-only mode at: www.deepwater.com, by selecting Investors, News, and Webcasts. Supplemental materials that may be referenced during the call will be available at: www.deepwater.com, by selecting Investors, Financial Reports.
A replay of the call will be available after 12 p.m. EDT, 6 p.m. CEST, on Tuesday, May 5, 2026. The replay, which will be archived for approximately 30 days, can be accessed at +1 402-220-7203, passcode 948789. The replay will also be available on the Company’s website.
NON-GAAP FINANCIAL MEASURES
We present our operating results in accordance with accounting principles generally accepted in the U.S. (“U.S. GAAP”). We believe certain financial measures, such as EBITDA, Adjusted EBITDA, Adjusted Net Income and Free Cash Flow, which are non-GAAP measures, provide users of our financial statements with supplemental information that may be useful in evaluating our operating performance. We believe that such non-GAAP measures, when read in conjunction with our operating results presented under U.S. GAAP, can be used to better assess our performance from period to period and relative to performance of other companies in our industry, without regard to financing methods, historical cost basis or capital structure. Such non-GAAP measures should be considered as a supplement to, and not as a substitute for, financial measures prepared in accordance with U.S. GAAP.
All non-GAAP measure reconciliations to the most comparative U.S. GAAP measures are displayed in quantitative schedules on the company’s website at: www.deepwater.com.
ABOUT TRANSOCEAN
Transocean is a leading international provider of offshore contract drilling services for oil and gas wells. The company specializes in technically demanding sectors of the global offshore drilling business with a particular focus on ultra-deepwater and harsh environment drilling services and operates the highest specification floating offshore drilling fleet in the world.
Transocean owns or has partial ownership interests in and operates a fleet of 27 mobile offshore drilling units, consisting of 20 ultra-deepwater drillships and seven harsh environment semisubmersibles.
For more information about Transocean, please visit: www.deepwater.com.
FORWARD-LOOKING STATEMENTS
The statements described herein or in the Fleet Status Report that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements could contain words such as “believe,” “primarily,” “should,” “outlook,” “future,” “schedule,” “progress,” “possible,” “will,” “expect,” “estimate,” “may,” “approximate,” “could,” “plan,” or other similar expressions. Forward-looking statements in the Fleet Status Report include, but are not limited to, statements involving estimated duration of customer contracts, contract dayrate amounts, future contract commencement dates and locations, planned shipyard projects and other out-of-service time, sales of drilling units, and the cost and timing of mobilizations and reactivations. Forward-looking statements are based on management’s current expectations and assumptions, and are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. As a result, actual results could differ materially from those indicated in these forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, the level of activity in offshore oil and gas exploration and development, exploration success by producers, operating hazards and delays, risks associated with international operations, actions by customers and other third parties, the fluctuation of current and future prices of oil and gas, the global and regional supply and demand for oil and gas, the intention to scrap certain drilling rigs, the effects of the spread of and mitigation efforts by governments, businesses and individuals related to contagious illnesses, and other factors, including our expectations regarding the timing, completion and anticipated benefits of the proposed business combination with Valaris Limited, an exempted company limited by shares incorporated under the laws of Bermuda, and those and other risks discussed in the Company's most recent Annual Report on Form 10-K for the year ended December 31, 2025, and in the Company's other filings with the SEC, which are available free of charge on the SEC's website at: www.sec.gov. Should one or more of these risks or uncertainties materialize, or the other consequences of such a development worsen, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated or expressed or implied by such forward-looking statements. All subsequent written and oral forward-looking statements attributable to the company or to persons acting on our behalf are expressly qualified in their entirety by reference to these risks and uncertainties. You should not place undue reliance on forward-looking statements, each of which speaks only as of the date of the particular statement. We expressly disclaim any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in our expectations or beliefs with regard to the statement or any change in events, conditions or circumstances on which any forward-looking statement is based, except as required by law.
This press release, or referenced documents, do not constitute an offer to sell, or a solicitation of an offer to buy, any securities, and do not constitute an offering prospectus within the meaning of the Swiss Financial Services Act (“FinSA”) or advertising within the meaning of the FinSA. Investors must rely on their own evaluation of Transocean and its securities, including the merits and risks involved. Nothing contained herein is, or shall be relied on as, a promise or representation as to the future performance of Transocean.
NOTES
- Revenue efficiency is defined as actual operating revenues, excluding revenues for contract terminations and reimbursements, for the measurement period divided by the maximum revenue calculated for the measurement period, expressed as a percentage. Maximum revenue is defined as the greatest amount of contract drilling revenues the drilling unit could earn for the measurement period, excluding revenues for incentive provisions, reimbursements and contract terminations. See the accompanying schedule entitled “Revenue Efficiency.”
- Contract backlog is defined as the maximum contractual operating dayrate multiplied by the number of days remaining in the firm contract period, including certain performance-based provisions for which achievement is probable, excluding provisions for mobilization, demobilization, contract preparation, other incentive provisions or reimbursement revenues, which are not expected to be material to our contract drilling revenues. The contract backlog represents the maximum contract drilling revenues that can be earned considering the reported operating dayrate in effect during the firm contract period.
- Effective Tax Rate is defined as income tax expense or benefit divided by income or loss before income taxes. See the accompanying schedule entitled “Supplemental Effective Tax Rate Analysis.”
ANALYST CONTACT:
Sarah Davidson
+1 713-232-7217
MEDIA CONTACT:
Kristina Mays
+1 713-232-7734
| TRANSOCEAN LTD. AND SUBSIDIARIES |
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
| (in millions, except per share data) |
| (Unaudited) |
| Three months ended | |||||||||
| March 31, | |||||||||
| 2026 | 2025 | ||||||||
| Contract drilling revenues | $ | 1,081 | $ | 906 | |||||
| Costs and expenses | |||||||||
| Operating and maintenance | 606 | 618 | |||||||
| Depreciation and amortization | 143 | 176 | |||||||
| General and administrative | 49 | 50 | |||||||
| 798 | 844 | ||||||||
| Gain on disposal of assets, net | 4 | 2 | |||||||
| Operating income | 287 | 64 | |||||||
| Other income (expense), net | |||||||||
| Interest income | 10 | 8 | |||||||
| Interest expense | (276 | ) | (116 | ) | |||||
| Loss on retirement of debt | (11 | ) | — | ||||||
| Other, net | 7 | 4 | |||||||
| (270 | ) | (104 | ) | ||||||
| Income (loss) before income taxes | 17 | (40 | ) | ||||||
| Income tax expense (benefit) | (54 | ) | 39 | ||||||
| Net income (loss) | $ | 71 | $ | (79 | ) | ||||
| Earnings (loss) per share | |||||||||
| Basic | $ | 0.06 | $ | (0.09 | ) | ||||
| Diluted | $ | 0.06 | $ | (0.11 | ) | ||||
| Weighted-average shares outstanding | |||||||||
| Basic | 1,109 | 883 | |||||||
| Diluted | 1,124 | 958 | |||||||
| TRANSOCEAN LTD. AND SUBSIDIARIES |
| CONDENSED CONSOLIDATED BALANCE SHEETS |
| (in millions, except par value) |
| (Unaudited) |
| March 31, | December 31, | ||||||||
| 2026 | 2025 | ||||||||
| Assets | |||||||||
| Cash and cash equivalents | $ | 330 | $ | 620 | |||||
| Accounts receivable, net of allowance of | 638 | 540 | |||||||
| Materials and supplies, net of allowance of | 383 | 378 | |||||||
| Assets held for sale | 1 | 24 | |||||||
| Restricted cash and cash equivalents | 285 | 377 | |||||||
| Other current assets | 129 | 142 | |||||||
| Total current assets | 1,766 | 2,081 | |||||||
| Property and equipment | 17,465 | 17,451 | |||||||
| Less accumulated depreciation | (5,006 | ) | (4,874 | ) | |||||
| Property and equipment, net | 12,459 | 12,577 | |||||||
| Deferred tax assets, net | 47 | 61 | |||||||
| Other assets | 879 | 923 | |||||||
| Total assets | $ | 15,151 | $ | 15,642 | |||||
| Liabilities and equity | |||||||||
| Accounts payable | $ | 229 | $ | 242 | |||||
| Accrued income taxes | 28 | 22 | |||||||
| Debt due within one year | 329 | 445 | |||||||
| Other current liabilities | 562 | 627 | |||||||
| Total current liabilities | 1,148 | 1,336 | |||||||
| Long-term debt | 4,945 | 5,212 | |||||||
| Deferred tax liabilities, net | 317 | 404 | |||||||
| Other long-term liabilities | 549 | 582 | |||||||
| Total long-term liabilities | 5,811 | 6,198 | |||||||
| Commitments and contingencies | |||||||||
| Shares, | |||||||||
| and December 31, 2025, and 1,107 and 1,102 outstanding at March 31, 2026 and December 31, 2025, respectively | 111 | 110 | |||||||
| Additional paid-in capital | 15,611 | 15,604 | |||||||
| Accumulated deficit | (7,389 | ) | (7,460 | ) | |||||
| Accumulated other comprehensive loss | (141 | ) | (146 | ) | |||||
| Total equity | 8,192 | 8,108 | |||||||
| Total liabilities and equity | $ | 15,151 | $ | 15,642 | |||||
| TRANSOCEAN LTD. AND SUBSIDIARIES |
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
| (in millions) |
| (Unaudited) |
| Three months ended | |||||||||
| March 31, | |||||||||
| 2026 | 2025 | ||||||||
| Cash flows from operating activities | |||||||||
| Net income (loss) | $ | 71 | $ | (79 | ) | ||||
| Adjustments to reconcile to net cash provided by operating activities: | |||||||||
| Depreciation and amortization | 143 | 176 | |||||||
| Share-based compensation expense | 8 | 8 | |||||||
| Gain on disposal of assets, net | (4 | ) | (2 | ) | |||||
| Amortization of debt-related balances, net | 10 | 13 | |||||||
| (Gain) loss on adjustment to bifurcated compound exchange feature | 153 | (36 | ) | ||||||
| Loss on retirement of debt | 11 | — | |||||||
| Deferred income tax expense (benefit) | (73 | ) | 15 | ||||||
| Other, net | (1 | ) | 4 | ||||||
| Changes in contract liabilities, net | (42 | ) | (38 | ) | |||||
| Changes in deferred costs, net | 31 | (12 | ) | ||||||
| Changes in other operating assets and liabilities, net | (143 | ) | (23 | ) | |||||
| Net cash provided by operating activities | 164 | 26 | |||||||
| Cash flows from investing activities | |||||||||
| Capital expenditures | (28 | ) | (60 | ) | |||||
| Proceeds from disposal of assets, net of costs to sell | 25 | 2 | |||||||
| Proceeds from disposal of investment in note receivable from unconsolidated affiliate | 13 | — | |||||||
| Net cash provided by (used in) investing activities | 10 | (58 | ) | ||||||
| Cash flows from financing activities | |||||||||
| Repayments of debt | (556 | ) | (210 | ) | |||||
| Other, net | — | (8 | ) | ||||||
| Net cash used in financing activities | (556 | ) | (218 | ) | |||||
| Net decrease in unrestricted and restricted cash and cash equivalents | (382 | ) | (250 | ) | |||||
| Unrestricted and restricted cash and cash equivalents, beginning of period | 997 | 941 | |||||||
| Unrestricted and restricted cash and cash equivalents, end of period | $ | 615 | $ | 691 | |||||
| TRANSOCEAN LTD. AND SUBSIDIARIES | |||||||||||
| FLEET OPERATING STATISTICS | |||||||||||
| Three months ended | |||||||||||
| March 31, | December 31, | March 31, | |||||||||
| Contract Drilling Revenues (in millions) | 2026 | 2025 | 2025 | ||||||||
| Ultra-deepwater floaters | $ | 748 | $ | 724 | $ | 658 | |||||
| Harsh environment floaters | 333 | 319 | 248 | ||||||||
| Total contract drilling revenues | $ | 1,081 | $ | 1,043 | $ | 906 | |||||
| Three months ended | |||||||||||
| March 31, | December 31, | March 31, | |||||||||
| Average Daily Revenue(1) | 2026 | 2025 | 2025 | ||||||||
| Ultra-deepwater floaters | $ | 480,700 | $ | 466,000 | $ | 443,600 | |||||
| Harsh environment floaters | 463,800 | 449,800 | 443,600 | ||||||||
| Total fleet average daily revenue | $ | 475,600 | $ | 461,300 | $ | 443,600 | |||||
| Three months ended | |||||||||||
| March 31, | December 31, | March 31, | |||||||||
| Revenue Efficiency(2) | 2026 | 2025 | 2025 | ||||||||
| Ultra-deepwater floaters | 97.6 | % | 95.7 | % | 94.3 | % | |||||
| Harsh environment floaters | 96.7 | % | 97.2 | % | 99.3 | % | |||||
| Total fleet average revenue efficiency | 97.3 | % | 96.2 | % | 95.5 | % | |||||
| Three months ended | |||||||||||
| March 31, | December 31, | March 31, | |||||||||
| Utilization(3) | 2026 | 2025 | 2025 | ||||||||
| Ultra-deepwater floaters | 82.1 | % | 82.1 | % | 61.5 | % | |||||
| Harsh environment floaters | 100.0 | % | 96.6 | % | 69.5 | % | |||||
| Total fleet average rig utilization | 86.7 | % | 85.8 | % | 63.4 | % | |||||
| (1)Average daily revenue is defined as operating revenues, excluding revenues for contract terminations, reimbursements and contract intangible amortization, earned per operating day. An operating day is defined as a day for which a rig is contracted to earn a dayrate during the firm contract period after operations commence. | |||||||||||
| (2)Revenue efficiency is defined as actual operating revenues, excluding revenues for contract terminations and reimbursements, for the measurement period divided by the maximum revenue calculated for the measurement period, expressed as a percentage. Maximum revenue is defined as the greatest amount of contract drilling revenues the drilling unit could earn for the measurement period, excluding revenues for incentive provisions, reimbursements and contract terminations. | |||||||||||
| (3)Rig utilization is defined as the total number of operating days divided by the total number of rig calendar days in the measurement period, expressed as a percentage. | |||||||||||
| Transocean Ltd. and subsidiaries | |||||||||||||||||||||||||||||
| Non-GAAP Financial Measures and Reconciliations | |||||||||||||||||||||||||||||
| Adjusted Net Income (Loss) and Adjusted Diluted Earnings (Loss) Per Share | |||||||||||||||||||||||||||||
| (in millions, except per share data) | |||||||||||||||||||||||||||||
| YTD | |||||||||||||||||||||||||||||
| 03/31/26 | |||||||||||||||||||||||||||||
| Net income | $ | 71 | |||||||||||||||||||||||||||
| Acquisition and restructuring costs | 7 | ||||||||||||||||||||||||||||
| Gain on disposal of assets, net | (5 | ) | |||||||||||||||||||||||||||
| Loss on retirement of debt | 9 | ||||||||||||||||||||||||||||
| Discrete tax items | (110 | ) | |||||||||||||||||||||||||||
| Adjusted Net Loss | $ | (28 | ) | ||||||||||||||||||||||||||
| Diluted earnings per share | $ | 0.06 | |||||||||||||||||||||||||||
| Acquisition and restructuring costs | — | ||||||||||||||||||||||||||||
| Gain on disposal of assets, net | — | ||||||||||||||||||||||||||||
| Loss on retirement of debt | 0.01 | ||||||||||||||||||||||||||||
| Discrete tax items | (0.10 | ) | |||||||||||||||||||||||||||
| Adjusted Diluted Loss Per Share | $ | (0.03 | ) | ||||||||||||||||||||||||||
| YTD | QTD | YTD | QTD | YTD | QTD | YTD | |||||||||||||||||||||||
| 12/31/25 | 12/31/25 | 09/30/25 | 09/30/25 | 06/30/25 | 06/30/25 | 03/31/25 | |||||||||||||||||||||||
| Net income (loss) attributable to controlling interest | $ | (2,915 | ) | $ | 25 | $ | (2,940 | ) | $ | (1,923 | ) | $ | (1,017 | ) | $ | (938 | ) | $ | (79 | ) | |||||||||
| Restructuring costs | 3 | — | 3 | 3 | — | — | — | ||||||||||||||||||||||
| Loss on impairment of assets, net of tax | 3,036 | — | 3,036 | 1,908 | 1,128 | 1,128 | — | ||||||||||||||||||||||
| Gain on disposal of assets, net | (4 | ) | (4 | ) | — | — | — | — | — | ||||||||||||||||||||
| Loss on conversion of debt to equity | 99 | — | 99 | 75 | 24 | 24 | — | ||||||||||||||||||||||
| Gain on retirement of debt | (3 | ) | (3 | ) | — | — | — | — | — | ||||||||||||||||||||
| Discrete tax items | (179 | ) | 3 | (182 | ) | (1 | ) | (181 | ) | (195 | ) | 14 | |||||||||||||||||
| Adjusted Net Income (Loss) | $ | 37 | $ | 21 | $ | 16 | $ | 62 | $ | (46 | ) | $ | 19 | $ | (65 | ) | |||||||||||||
| Diluted earnings (loss) per share | $ | (3.04 | ) | $ | 0.02 | $ | (3.23 | ) | $ | (2.00 | ) | $ | (1.15 | ) | $ | (1.06 | ) | $ | (0.11 | ) | |||||||||
| Restructuring costs | — | — | — | — | — | — | — | ||||||||||||||||||||||
| Loss on impairment of assets, net of tax | 3.16 | — | 3.34 | 1.98 | 1.27 | 1.27 | — | ||||||||||||||||||||||
| Gain on disposal of assets, net | — | — | — | — | — | — | — | ||||||||||||||||||||||
| Loss on conversion of debt to equity | 0.10 | — | 0.11 | 0.08 | 0.03 | 0.03 | — | ||||||||||||||||||||||
| Gain on retirement of debt | — | — | — | — | — | — | — | ||||||||||||||||||||||
| Discrete tax items | (0.18 | ) | — | (0.20 | ) | — | (0.20 | ) | (0.22 | ) | 0.01 | ||||||||||||||||||
| Dilutive effect, | — | — | (0.03 | ) | — | (0.05 | ) | (0.02 | ) | — | |||||||||||||||||||
| Adjusted Diluted Earnings (Loss) Per Share | $ | 0.04 | $ | 0.02 | $ | (0.01 | ) | $ | 0.06 | $ | (0.10 | ) | $ | — | $ | (0.10 | ) | ||||||||||||
| Transocean Ltd. and subsidiaries | |||||||||||||||||||||||||||||
| Non-GAAP Financial Measures and Reconciliations | |||||||||||||||||||||||||||||
| Earnings Before Interest, Taxes, Depreciation and Amortization and Related Margins | |||||||||||||||||||||||||||||
| (in millions, except percentages) | |||||||||||||||||||||||||||||
| YTD | |||||||||||||||||||||||||||||
| 03/31/26 | |||||||||||||||||||||||||||||
| Contract drilling revenues | $ | 1,081 | |||||||||||||||||||||||||||
| Net income | $ | 71 | |||||||||||||||||||||||||||
| Interest expense, net of interest income | 266 | ||||||||||||||||||||||||||||
| Income tax benefit | (54 | ) | |||||||||||||||||||||||||||
| Depreciation and amortization | 143 | ||||||||||||||||||||||||||||
| EBITDA | 426 | ||||||||||||||||||||||||||||
| Acquisition and restructuring costs | 7 | ||||||||||||||||||||||||||||
| Gain on disposal of assets, net | (4 | ) | |||||||||||||||||||||||||||
| Loss on retirement of debt | 11 | ||||||||||||||||||||||||||||
| Adjusted EBITDA | $ | 440 | |||||||||||||||||||||||||||
| Profit margin | 6.5 | % | |||||||||||||||||||||||||||
| EBITDA margin | 39.4 | % | |||||||||||||||||||||||||||
| Adjusted EBITDA margin | 40.7 | % | |||||||||||||||||||||||||||
| YTD | QTD | YTD | QTD | YTD | QTD | YTD | |||||||||||||||||||||||
| 12/31/25 | 12/31/25 | 09/30/25 | 09/30/25 | 06/30/25 | 06/30/25 | 03/31/25 | |||||||||||||||||||||||
| Contract drilling revenues | $ | 3,965 | $ | 1,043 | $ | 2,922 | $ | 1,028 | $ | 1,894 | $ | 988 | $ | 906 | |||||||||||||||
| Net income (loss) | $ | (2,915 | ) | $ | 25 | $ | (2,940 | ) | $ | (1,923 | ) | $ | (1,017 | ) | $ | (938 | ) | $ | (79 | ) | |||||||||
| Interest expense, net of interest income | 515 | 163 | 352 | 142 | 210 | 102 | 108 | ||||||||||||||||||||||
| Income tax expense (benefit) | (33 | ) | 57 | (90 | ) | 26 | (116 | ) | (155 | ) | 39 | ||||||||||||||||||
| Depreciation and amortization | 659 | 147 | 512 | 161 | 351 | 175 | 176 | ||||||||||||||||||||||
| EBITDA | (1,774 | ) | 392 | (2,166 | ) | (1,594 | ) | (572 | ) | (816 | ) | 244 | |||||||||||||||||
| Restructuring costs | 3 | — | 3 | 3 | — | — | — | ||||||||||||||||||||||
| Loss on impairment of assets | 3,049 | — | 3,049 | 1,913 | 1,136 | 1,136 | — | ||||||||||||||||||||||
| Gain on disposal of assets, net | (4 | ) | (4 | ) | — | — | — | — | — | ||||||||||||||||||||
| Gain on retirement of debt | (3 | ) | (3 | ) | — | — | — | — | — | ||||||||||||||||||||
| Loss on conversion of debt to equity | 99 | — | 99 | 75 | 24 | 24 | — | ||||||||||||||||||||||
| Adjusted EBITDA | $ | 1,370 | $ | 385 | $ | 985 | $ | 397 | $ | 588 | $ | 344 | $ | 244 | |||||||||||||||
| Profit (loss) margin | (73.5 | ) | % | 2.4 | % | (100.6 | ) | % | (187.0 | ) | % | (53.7 | ) | % | (94.9 | ) | % | (8.7 | ) | % | |||||||||
| EBITDA margin | (44.8 | ) | % | 37.5 | % | (74.1 | ) | % | (154.9 | ) | % | (30.2 | ) | % | (82.5 | ) | % | 26.9 | % | ||||||||||
| Adjusted EBITDA margin | 34.6 | % | 36.8 | % | 33.8 | % | 38.7 | % | 31.1 | % | 34.9 | % | 26.9 | % | |||||||||||||||
| Transocean Ltd. and subsidiaries | |||||||||||||
| Supplemental Effective Tax Rate Analysis | |||||||||||||
| (in millions, except tax rates) | |||||||||||||
| Three months ended | |||||||||||||
| March 31, | December 31, | March 31, | |||||||||||
| 2026 | 2025 | 2025 | |||||||||||
| Income (loss) before income taxes | $ | 17 | $ | 82 | $ | (40 | ) | ||||||
| Acquisition and restructuring costs | 7 | — | — | ||||||||||
| Gain on disposal of assets, net | (4 | ) | (4 | ) | — | ||||||||
| (Gain) loss on retirement of debt | 11 | (3 | ) | — | |||||||||
| Adjusted income (loss) before income taxes | $ | 31 | $ | 75 | $ | (40 | ) | ||||||
| Income tax expense (benefit) | $ | (54 | ) | $ | 57 | $ | 39 | ||||||
| Acquisition and restructuring costs | — | — | — | ||||||||||
| Gain on disposal of assets, net | 1 | — | — | ||||||||||
| (Gain) loss on retirement of debt | 2 | — | — | ||||||||||
| Changes in estimates(1) | 110 | (3 | ) | (14 | ) | ||||||||
| Adjusted income tax expense | $ | 59 | $ | 54 | $ | 25 | |||||||
| Effective Tax Rate(2) | (335.3 | ) | % | 68.8 | % | (95.8 | ) | % | |||||
| Effective Tax Rate, excluding discrete items(3) | 192.0 | % | 72.3 | % | (62.3 | ) | % | ||||||
| (1)Our estimates change as we file tax returns, settle disputes with tax authorities, or become aware of changes in laws, operational changes and rig movements that have an effect on our (a) deferred taxes, (b) valuation allowances on deferred taxes and (c) other tax liabilities. | |||||||||||||
| (2)Our effective tax rate is calculated as income tax expense or benefit divided by income or loss before income taxes. | |||||||||||||
| (3)Our effective tax rate, excluding discrete items, is calculated as income tax expense or benefit, excluding various discrete items (such as changes in estimates and tax on items excluded from income or loss before income taxes), divided by income or loss before income taxes, excluding gains and losses on sales and similar items pursuant to the accounting standards for income taxes related to estimating the annual effective tax rate. | |||||||||||||
| Transocean Ltd. and subsidiaries | |||||||||||||||||||||||||||||
| Non-GAAP Financial Measures and Reconciliations | |||||||||||||||||||||||||||||
| Free Cash Flow and Levered Free Cash Flow | |||||||||||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||||||||
| YTD | |||||||||||||||||||||||||||||
| 03/31/26 | |||||||||||||||||||||||||||||
| Net cash provided by operating activities | $ | 164 | |||||||||||||||||||||||||||
| Capital expenditures | (28 | ) | |||||||||||||||||||||||||||
| Free Cash Flow | 136 | ||||||||||||||||||||||||||||
| Debt repayments | (556 | ) | |||||||||||||||||||||||||||
| Debt repayments, paid from debt proceeds | — | ||||||||||||||||||||||||||||
| Levered Free Cash Flow | $ | (420 | ) | ||||||||||||||||||||||||||
| YTD | QTD | YTD | QTD | YTD | QTD | YTD | |||||||||||||||||||||||
| 12/31/25 | 12/31/25 | 09/30/25 | 09/30/25 | 06/30/25 | 06/30/25 | 03/31/25 | |||||||||||||||||||||||
| Net cash provided by operating activities | $ | 749 | $ | 349 | $ | 400 | $ | 246 | $ | 154 | $ | 128 | $ | 26 | |||||||||||||||
| Capital expenditures | (123 | ) | (28 | ) | (95 | ) | (11 | ) | (84 | ) | (24 | ) | (60 | ) | |||||||||||||||
| Free Cash Flow | 626 | 321 | 305 | 235 | 70 | 104 | (34 | ) | |||||||||||||||||||||
| Debt repayments | (1,556 | ) | (1,106 | ) | (450 | ) | (210 | ) | (240 | ) | (30 | ) | (210 | ) | |||||||||||||||
| Debt repayments, paid from debt proceeds | 492 | 492 | — | — | — | — | — | ||||||||||||||||||||||
| Levered Free Cash Flow | $ | (438 | ) | $ | (293 | ) | $ | (145 | ) | $ | 25 | $ | (170 | ) | $ | 74 | $ | (244 | ) | ||||||||||
