Transocean Ltd. Reports Second Quarter 2026 Results
Rhea-AI Summary
Transocean (NYSE: RIG) reported second quarter 2026 contract drilling revenues of $966 million, with revenue efficiency of 97.0%. Net income was $170 million, or $0.04 diluted EPS, and adjusted EBITDA was $312 million, a 32.2% margin. Operating cash flow reached $236 million, yielding free cash flow of $212 million after $24 million of capex, and total liquidity exceeded $1.3 billion, including an undrawn revolver.
The company added about $292 million of new contract backlog at a weighted average dayrate of roughly $461,000, bringing total backlog to approximately $6.7 billion, excluding a conditional $1.0 billion Equinor agreement. Total debt (principal) ended the quarter at $5.1 billion, down from $6.7 billion a year earlier. For 3Q26, Transocean guides contract drilling revenues of $920–960 million and full‑year 2026 revenues of $3.9–3.975 billion, with expected fleetwide revenue efficiency of 96.5%.
Positive
- Net income $170 million, up from a $938 million loss year-over-year
- Free cash flow $212 million in 2Q26, up $76 million sequentially
- Operating cash flow $400 million for first half 2026 vs. $154 million in 2025
- Total debt reduced to $5.1 billion, down $1.5 billion year-over-year
- Backlog approximately $6.7 billion plus a conditional $1.0 billion Equinor agreement
- Contract backlog additions $292 million at about $461,000 weighted average dayrate
Negative
- Contract drilling revenues $966 million, down $115 million sequentially
- Contract drilling revenues down $22 million year-over-year
- Adjusted EBITDA $312 million, down $128 million sequentially
- Adjusted EBITDA margin 32.2%, down from 40.7% in the prior quarter
News Explained
Transocean reported
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| May 04 | 1Q26 earnings | Positive | -9.2% | Reported positive operating metrics and cash flow, but shares fell 9.16% over 24 hours. |
| Feb 19 | FY25 earnings | Positive | +2.5% | Reported revenue and EBITDA growth, debt reduction, free cash flow, and higher backlog. |
| Oct 29 | 3Q25 earnings | Negative | +2.1% | Reported a net loss and impairment charges while shares gained 2.09% over 24 hours. |
| Aug 04 | 2Q25 earnings | Negative | +3.6% | Reported a net loss driven by impairment despite improved operating metrics and cash flow. |
| Apr 28 | 1Q25 earnings | Negative | -4.8% | Reported a net loss and higher operating expenses alongside improved revenue efficiency. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Earnings-tag reactions were mixed, with three of the five selected events diverging from the announcement sentiment and an average move of -1.15%.
Key Terms
revenue efficiency financial
adjusted ebitda financial
free cash flow financial
contract backlog financial
semisubmersibles technical
AI-generated analysis. How Rhea-AI works. Not financial advice.
STEINHAUSEN, Switzerland, Aug. 05, 2026 (GLOBE NEWSWIRE) -- Transocean Ltd. (NYSE: RIG) today reported financial results for the second quarter of 2026. The Company will host a conference call and webcast at 9 a.m. EDT, 3 p.m. CEST, on Thursday, August 6, 2026, with participation details included in this release. Supplemental schedules have been posted to the Investors section of the Company’s website at www.deepwater.com.
SECOND QUARTER 2026 KEY POINTS
- Contract drilling revenues were
$966 million with strong revenue efficiency(1) of97.0% . - Net income was
$170 million or$0.04 per diluted share. - Adjusted EBITDA was
$312 million , reflecting a margin of32.2% . - Net cash provided by operating activities was
$236 million ; net of capital expenditures of$24 million , free cash flow was$212 million . - Ended the period with total liquidity of more than
$1.3 billion , including the undrawn revolving credit facility. - Added
$292 million in contract backlog(2) at a weighted average dayrate of about$461,000 .
“Transocean delivered a strong second quarter, supported by
“We expect to see demand for our highest specification rigs increase in the coming years with industry utilization for deepwater and harsh environment assets projected to move well into the
2Q26 FINANCIAL SUMMARY
| Three months ended | Three months ended | |||||||||||||||||||||
| June 30, | March 31, | sequential | June 30, | year-over-year | ||||||||||||||||||
| 2026 | 2026 | change | 2025 | change | ||||||||||||||||||
| (In millions, except per share amounts and percentages) | ||||||||||||||||||||||
| Contract drilling revenues | $ | 966 | $ | 1,081 | $ | (115 | ) | $ | 988 | $ | (22 | ) | ||||||||||
| Revenue efficiency | 97.0 | % | 97.3 | % | 96.6 | % | ||||||||||||||||
| Operating and maintenance expense | $ | 608 | $ | 606 | $ | (2 | ) | $ | 599 | $ | (9 | ) | ||||||||||
| Net income (loss) | $ | 170 | $ | 71 | $ | 99 | $ | (938 | ) | $ | 1,108 | |||||||||||
| Basic earnings (loss) per share | $ | 0.15 | $ | 0.06 | $ | 0.09 | $ | (1.06 | ) | $ | 1.21 | |||||||||||
| Diluted earnings (loss) per share | $ | 0.04 | $ | 0.06 | $ | (0.02 | ) | $ | (1.06 | ) | $ | 1.10 | ||||||||||
| Adjusted EBITDA | $ | 312 | $ | 440 | $ | (128 | ) | $ | 344 | $ | (32 | ) | ||||||||||
| Adjusted EBITDA margin | 32.2 | % | 40.7 | % | 34.9 | % | ||||||||||||||||
| Adjusted net income (loss) | $ | 158 | $ | (28 | ) | $ | 186 | $ | 19 | $ | 139 | |||||||||||
| Adjusted diluted earnings (loss) per share | $ | 0.03 | $ | (0.03 | ) | $ | 0.06 | $ | — | $ | 0.03 | |||||||||||
| Net cash provided by operating activities | $ | 236 | $ | 164 | $ | 72 | $ | 128 | $ | 108 | ||||||||||||
| Free cash flow | $ | 212 | $ | 136 | $ | 76 | $ | 104 | $ | 108 | ||||||||||||
| Total debt, principal amount, end of period | $ | 5,107 | $ | 5,137 | $ | (30 | ) | $ | 6,654 | $ | (1,547 | ) | ||||||||||
- Contract drilling revenues were lower sequentially, primarily due to the expected decrease in rig utilization for this quarter.
- Interest expense, excluding the
$134 million effect of the bifurcated exchange feature of the4.625% Exchangeable Bonds due 2029, was$114 million compared to the$123 million in the prior quarter. - Cash taxes paid, net of tax refunds of
$22 million , were$10 million .
FLEET STATUS REPORT AND CONTRACT BACKLOG
- The Company today issued its Fleet Status Report. Since its May 2026 report, the Company added five new fixtures with an aggregate incremental backlog of approximately
$292 million and a weighted average dayrate of about$461,000 . - As of August 5, 2026, the total backlog is approximately
$6.7 billion . This figure excludes$1.0 billion of backlog for work with Equinor, which will be added subject to receipt of approvals from license partners.
The Fleet Status Report can be accessed on the Company’s website: www.deepwater.com.
2026 THIRD QUARTER AND FULL YEAR OUTLOOK
The following table includes guidance on key items for the third quarter and full year of 2026:
| 3Q26E | FY26E | |||||
| (In millions, except percentages) | ||||||
| Contract drilling revenues | $ | 920 – 960 | $ | 3,900 – 3,975 | ||
| Revenue efficiency, fleet wide (1) | ||||||
| Selected costs and expenses | ||||||
| Operating and maintenance expense | $ | 595 – 625 | $ | 2,325 – 2,400 | ||
| General and administrative | $ | 45 | $ | 170 – 180 | ||
| Interest expense | $ | 113 | $ | 475 | ||
| Interest income | $ | 5 – 10 | $ | 30 – 35 | ||
| Capital expenditures | $ | 40 – 50 | $ | 150 | ||
| Cash taxes | $ | 25 – 30 | $ | 55 – 60 | ||
| 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 Thursday, August 6, 2026. To participate, dial +1 785-424-1222 approximately 15 minutes prior to the scheduled start time and refer to conference code 715943.
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 on the Company’s website 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 Thursday, August 6, 2026. The replay, which will be archived for approximately 30 days, can be accessed at +1 402-220-7239, passcode 715943. The replay will also be available on the Company’s website.
NON-GAAP FINANCIAL MEASURES
We present our financial statements in accordance with accounting principles generally accepted in the U.S. (“U.S. GAAP”). We believe certain financial measures, such as Adjusted Net Income, EBITDA, Adjusted EBITDA, Free Cash Flow and Net Debt, 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 financial statements 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
(1) 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.”
(2) 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, and 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.
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 | Six months ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Contract drilling revenues | $ | 966 | $ | 988 | $ | 2,047 | $ | 1,894 | ||||||||
| Costs and expenses | ||||||||||||||||
| Operating and maintenance | 608 | 599 | 1,214 | 1,217 | ||||||||||||
| Depreciation and amortization | 148 | 175 | 291 | 351 | ||||||||||||
| General and administrative | 56 | 49 | 105 | 99 | ||||||||||||
| 812 | 823 | 1,610 | 1,667 | |||||||||||||
| Loss on impairment of assets | — | (1,136 | ) | — | (1,136 | ) | ||||||||||
| Gain (loss) on disposal of assets, net | (2 | ) | 7 | 2 | 9 | |||||||||||
| Operating income (loss) | 152 | (964 | ) | 439 | (900 | ) | ||||||||||
| Other income (expense), net | ||||||||||||||||
| Interest income | 12 | 10 | 22 | 18 | ||||||||||||
| Interest expense | 20 | (112 | ) | (256 | ) | (228 | ) | |||||||||
| Loss on retirement of debt | — | — | (11 | ) | — | |||||||||||
| Other, net | — | (27 | ) | 7 | (23 | ) | ||||||||||
| 32 | (129 | ) | (238 | ) | (233 | ) | ||||||||||
| Income (loss) before income taxes | 184 | (1,093 | ) | 201 | (1,133 | ) | ||||||||||
| Income tax expense (benefit) | 14 | (155 | ) | (40 | ) | (116 | ) | |||||||||
| Net income (loss) | $ | 170 | $ | (938 | ) | $ | 241 | $ | (1,017 | ) | ||||||
| Earnings (loss) per share | ||||||||||||||||
| Basic | $ | 0.15 | $ | (1.06 | ) | $ | 0.22 | $ | (1.15 | ) | ||||||
| Diluted | $ | 0.04 | $ | (1.06 | ) | $ | 0.21 | $ | (1.15 | ) | ||||||
| Weighted-average shares outstanding | ||||||||||||||||
| Basic | 1,120 | 888 | 1,115 | 885 | ||||||||||||
| Diluted | 1,202 | 888 | 1,125 | 885 | ||||||||||||
| TRANSOCEAN LTD. AND SUBSIDIARIES |
| CONDENSED CONSOLIDATED BALANCE SHEETS |
| (in millions, except par value) |
| (Unaudited) |
| June 30, | December 31, | |||||||
| 2026 | 2025 | |||||||
| Assets | ||||||||
| Cash and cash equivalents | $ | 509 | $ | 620 | ||||
| Accounts receivable, net of allowance of | 604 | 540 | ||||||
| Materials and supplies, net of allowance of | 379 | 378 | ||||||
| Assets held for sale | 1 | 24 | ||||||
| Restricted cash and cash equivalents | 286 | 377 | ||||||
| Other current assets | 133 | 142 | ||||||
| Total current assets | 1,912 | 2,081 | ||||||
| Property and equipment | 17,490 | 17,451 | ||||||
| Less accumulated depreciation | (5,147 | ) | (4,874 | ) | ||||
| Property and equipment, net | 12,343 | 12,577 | ||||||
| Deferred tax assets, net | 70 | 61 | ||||||
| Other assets | 842 | 923 | ||||||
| Total assets | $ | 15,167 | $ | 15,642 | ||||
| Liabilities and equity | ||||||||
| Accounts payable | $ | 283 | $ | 242 | ||||
| Accrued income taxes | 9 | 22 | ||||||
| Debt due within one year | 397 | 445 | ||||||
| Other current liabilities | 514 | 627 | ||||||
| Total current liabilities | 1,203 | 1,336 | ||||||
| Long-term debt | 4,722 | 5,212 | ||||||
| Deferred tax liabilities, net | 340 | 404 | ||||||
| Other long-term liabilities | 532 | 582 | ||||||
| Total long-term liabilities | 5,594 | 6,198 | ||||||
| Commitments and contingencies | ||||||||
| Shares, | ||||||||
| 1,445 authorized, 141 conditionally authorized, 1,304 issued and 1,117 outstanding at June 30, 2026 and | ||||||||
| 1,204 authorized, 141 conditionally authorized, 1,204 issued and 1,102 outstanding at December 31, 2025 | 112 | 110 | ||||||
| Additional paid-in capital | 15,617 | 15,604 | ||||||
| Accumulated deficit | (7,219 | ) | (7,460 | ) | ||||
| Accumulated other comprehensive loss | (140 | ) | (146 | ) | ||||
| Total equity | 8,370 | 8,108 | ||||||
| Total liabilities and equity | $ | 15,167 | $ | 15,642 | ||||
| TRANSOCEAN LTD. AND SUBSIDIARIES |
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
| (in millions) |
| (Unaudited) |
| Six months ended | ||||||||
| June 30, | ||||||||
| 2026 | 2025 | |||||||
| Cash flows from operating activities | ||||||||
| Net income (loss) | $ | 241 | $ | (1,017 | ) | |||
| Adjustments to reconcile to net cash provided by operating activities: | ||||||||
| Depreciation and amortization | 291 | 351 | ||||||
| Share-based compensation expense | 15 | 16 | ||||||
| Loss on impairment of assets | — | 1,136 | ||||||
| Gain on disposal of assets, net | (2 | ) | (9 | ) | ||||
| Amortization of debt-related balances, net | 20 | 25 | ||||||
| (Gain) loss on adjustment to bifurcated compound exchange feature | 19 | (65 | ) | |||||
| Loss on retirement of debt | 11 | — | ||||||
| Deferred income tax benefit | (73 | ) | (157 | ) | ||||
| Other, net | (1 | ) | 31 | |||||
| Changes in contract liabilities, net | (83 | ) | (84 | ) | ||||
| Changes in deferred costs, net | 46 | 16 | ||||||
| Changes in other operating assets and liabilities, net | (84 | ) | (89 | ) | ||||
| Net cash provided by operating activities | 400 | 154 | ||||||
| Cash flows from investing activities | ||||||||
| Capital expenditures | (52 | ) | (84 | ) | ||||
| Investment in equity of unconsolidated affiliates | (2 | ) | — | |||||
| Proceeds from disposal of assets, net of costs to sell | 26 | 10 | ||||||
| Proceeds from disposal of investment in note receivable from unconsolidated affiliate | 13 | — | ||||||
| Proceeds from disposal of investment in equity of unconsolidated affiliate | — | 4 | ||||||
| Net cash used in investing activities | (15 | ) | (70 | ) | ||||
| Cash flows from financing activities | ||||||||
| Repayments of debt | (586 | ) | (240 | ) | ||||
| Other, net | (1 | ) | (13 | ) | ||||
| Net cash used in financing activities | (587 | ) | (253 | ) | ||||
| Net decrease in unrestricted and restricted cash and cash equivalents | (202 | ) | (169 | ) | ||||
| Unrestricted and restricted cash and cash equivalents, beginning of period | 997 | 941 | ||||||
| Unrestricted and restricted cash and cash equivalents, end of period | $ | 795 | $ | 772 | ||||
| TRANSOCEAN LTD. AND SUBSIDIARIES | |||||||||
| FLEET OPERATING STATISTICS | |||||||||
| Three months ended | |||||||||
| June 30, | March 31, | June 30, | |||||||
| Contract Drilling Revenues (in millions) | 2026 | 2026 | 2025 | ||||||
| Ultra-deepwater floaters | $ | 623 | $ | 748 | $ | 699 | |||
| Harsh environment floaters | 343 | 333 | 289 | ||||||
| Total contract drilling revenues | $ | 966 | $ | 1,081 | $ | 988 | |||
| Three months ended | |||||||||
| June 30, | March 31, | June 30, | |||||||
| Average Daily Revenue (1) | 2026 | 2026 | 2025 | ||||||
| Ultra-deepwater floaters | $ | 455,500 | $ | 480,700 | $ | 457,200 | |||
| Harsh environment floaters | 510,000 | 463,800 | 462,400 | ||||||
| Total fleet average daily revenue | $ | 472,500 | $ | 475,600 | $ | 458,600 | |||
| Three months ended | ||||||||||
| June 30, | March 31, | June 30, | ||||||||
| Revenue Efficiency (2) | 2026 | 2026 | 2025 | |||||||
| Ultra-deepwater floaters | 95.7 | % | 97.6 | % | 96.7 | % | ||||
| Harsh environment floaters | 99.5 | % | 96.7 | % | 96.3 | % | ||||
| Total fleet average revenue efficiency | 97.0 | % | 97.3 | % | 96.6 | % | ||||
| Three months ended | ||||||||||
| June 30, | March 31, | June 30, | ||||||||
| Utilization (3) | 2026 | 2026 | 2025 | |||||||
| Ultra-deepwater floaters | 72.6 | % | 82.1 | % | 64.7 | % | ||||
| Harsh environment floaters | 94.2 | % | 100.0 | % | 75.3 | % | ||||
| Total fleet average rig utilization | 78.2 | % | 86.7 | % | 67.3 | % | ||||
| (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 | QTD | YTD | ||||||||||||||||||||||||||
| 06/30/26 | 06/30/26 | 03/31/26 | ||||||||||||||||||||||||||
| Net income | $ | 241 | $ | 170 | $ | 71 | ||||||||||||||||||||||
| Acquisition and restructuring costs | 19 | 12 | 7 | |||||||||||||||||||||||||
| Gain (loss) on disposal of assets, net | (2 | ) | 3 | (5 | ) | |||||||||||||||||||||||
| Loss on retirement of debt | 9 | — | 9 | |||||||||||||||||||||||||
| Discrete tax items | (137 | ) | (27 | ) | (110 | ) | ||||||||||||||||||||||
| Adjusted Net Income (Loss) | $ | 130 | $ | 158 | $ | (28 | ) | |||||||||||||||||||||
| Diluted earnings per share | $ | 0.21 | $ | 0.04 | $ | 0.06 | ||||||||||||||||||||||
| Acquisition and restructuring costs | 0.02 | 0.01 | — | |||||||||||||||||||||||||
| Gain (loss) on disposal of assets, net | — | — | — | |||||||||||||||||||||||||
| Loss on retirement of debt | 0.01 | — | 0.01 | |||||||||||||||||||||||||
| Discrete tax items | (0.12 | ) | (0.02 | ) | (0.10 | ) | ||||||||||||||||||||||
| Adjusted Diluted Earnings (Loss) Per Share | $ | 0.12 | $ | 0.03 | $ | (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 | QTD | YTD | ||||||||||||||||||||||||||
| 06/30/26 | 06/30/26 | 03/31/26 | ||||||||||||||||||||||||||
| Contract drilling revenues | $ | 2,047 | $ | 966 | $ | 1,081 | ||||||||||||||||||||||
| Net income | $ | 241 | $ | 170 | $ | 71 | ||||||||||||||||||||||
| Interest expense, net of interest income | 234 | (32 | ) | 266 | ||||||||||||||||||||||||
| Income tax expense (benefit) | (40 | ) | 14 | (54 | ) | |||||||||||||||||||||||
| Depreciation and amortization | 291 | 148 | 143 | |||||||||||||||||||||||||
| EBITDA | 726 | 300 | 426 | |||||||||||||||||||||||||
| Acquisition and restructuring costs | 19 | 12 | 7 | |||||||||||||||||||||||||
| Gain on disposal of assets, net | (4 | ) | — | (4 | ) | |||||||||||||||||||||||
| Loss on retirement of debt | 11 | — | 11 | |||||||||||||||||||||||||
| Adjusted EBITDA | $ | 752 | $ | 312 | $ | 440 | ||||||||||||||||||||||
| Profit margin | 11.8 | 17.7 | % | 6.5 | % | |||||||||||||||||||||||
| EBITDA margin | 35.4 | 31.0 | % | 39.4 | % | |||||||||||||||||||||||
| Adjusted EBITDA margin | 36.7 | 32.2 | % | 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 | ||||||||||||||||||||||||||||
| Non-GAAP Financial Measures and Reconciliations | ||||||||||||||||||||||||||||
| Free Cash Flow and Levered Free Cash Flow | ||||||||||||||||||||||||||||
| (in millions) | ||||||||||||||||||||||||||||
| YTD | QTD | YTD | ||||||||||||||||||||||||||
| 06/30/26 | 06/30/26 | 03/31/26 | ||||||||||||||||||||||||||
| Net cash provided by operating activities | $ | 400 | $ | 236 | $ | 164 | ||||||||||||||||||||||
| Capital expenditures | (52 | ) | (24 | ) | (28 | ) | ||||||||||||||||||||||
| Free Cash Flow | 348 | 212 | 136 | |||||||||||||||||||||||||
| Debt repayments | (586 | ) | (30 | ) | (556 | ) | ||||||||||||||||||||||
| Debt repayments, paid from debt proceeds | — | — | — | |||||||||||||||||||||||||
| Levered Free Cash Flow | $ | (238 | ) | $ | 182 | $ | (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 | ) | |||||||||
| Transocean Ltd. and subsidiaries | ||||||||||||||||||||
| Non-GAAP Financial Measures and Reconciliations | ||||||||||||||||||||
| Net Debt and Net Debt to EBITDA Ratio | ||||||||||||||||||||
| (in millions, except ratios) | ||||||||||||||||||||
| 06/30/26 | 03/31/26 | |||||||||||||||||||
| Debt, total principal amount | $ | 5,107 | $ | 5,137 | ||||||||||||||||
| Cash and cash equivalents | (509 | ) | (330 | ) | ||||||||||||||||
| Restricted cash and cash equivalents | (286 | ) | (285 | ) | ||||||||||||||||
| Net Debt | $ | 4,312 | $ | 4,522 | ||||||||||||||||
| Adjusted EBITDA, trailing four quarters | $ | 1,534 | $ | 1,566 | ||||||||||||||||
| Net Debt to EBITDA Ratio | 2.8 | x | 2.9 | x | ||||||||||||||||
| 12/31/25 | 09/30/25 | 06/30/25 | 03/31/25 | |||||||||||||||||
| Debt, total principal amount | $ | 5,686 | $ | 6,297 | $ | 6,654 | $ | 6,734 | ||||||||||||
| Cash and cash equivalents | (620 | ) | (833 | ) | (377 | ) | (263 | ) | ||||||||||||
| Restricted cash and cash equivalents | (377 | ) | (417 | ) | (395 | ) | (428 | ) | ||||||||||||
| Net Debt | $ | 4,689 | $ | 5,047 | $ | 5,882 | $ | 6,043 | ||||||||||||
| Adjusted EBITDA, trailing four quarters | $ | 1,370 | $ | 1,308 | $ | 1,253 | $ | 1,193 | ||||||||||||
| Net Debt to EBITDA Ratio | 3.4 | x | 3.9 | x | 4.7 | x | 5.1 | x | ||||||||||||
| Transocean Ltd. and subsidiaries | |||||||||||||||||||||
| Supplemental Effective Tax Rate Analysis | |||||||||||||||||||||
| (in millions, except tax rates) | |||||||||||||||||||||
| Three months ended | Six months ended | ||||||||||||||||||||
| June 30, | March 31, | June 30, | June 30, | June 30, | |||||||||||||||||
| 2026 | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||
| Income (loss) before income taxes | $ | 184 | $ | 17 | $ | (1,093 | ) | $ | 201 | $ | (1,133 | ) | |||||||||
| Acquisition and restructuring costs | 12 | 7 | — | 19 | — | ||||||||||||||||
| Loss on impairment of assets | — | — | 1,136 | — | 1,136 | ||||||||||||||||
| Gain on disposal of assets, net | — | (4 | ) | — | (4 | ) | — | ||||||||||||||
| Loss on conversion of debt to equity | — | — | 24 | — | 24 | ||||||||||||||||
| Loss on retirement of debt | — | 11 | — | 11 | — | ||||||||||||||||
| Adjusted income before income taxes | $ | 196 | $ | 31 | $ | 67 | $ | 227 | $ | 27 | |||||||||||
| Income tax expense (benefit) | $ | 14 | $ | (54 | ) | $ | (155 | ) | $ | (40 | ) | $ | (116 | ) | |||||||
| Acquisition and restructuring costs | — | — | — | — | — | ||||||||||||||||
| Loss on impairment of assets | — | — | 8 | — | 8 | ||||||||||||||||
| Gain on disposal of assets, net | (3 | ) | 1 | — | (2 | ) | — | ||||||||||||||
| Loss on conversion of debt to equity | — | — | — | — | — | ||||||||||||||||
| Loss on retirement of debt | — | 2 | — | 2 | — | ||||||||||||||||
| Changes in estimates (1) | 27 | 110 | 195 | 137 | 181 | ||||||||||||||||
| Adjusted income tax expense | $ | 38 | $ | 59 | $ | 48 | $ | 97 | $ | 73 | |||||||||||
| Effective Tax Rate (2) | 7.8 | % | (335.3 | ) | % | 14.2 | % | (19.8 | ) | % | 10.3 | % | |||||||||
| Effective Tax Rate, excluding discrete items (3) | 19.4 | % | 192.0 | % | 70.0 | % | 42.8 | % | 268.9 | % | |||||||||||
| (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. | |||||||||||||||||||||
