The strong operational performance, debt reduction, and backlog growth signal improving fundamentals, but Q2 revenue guidance ($930M-$970M) implies a sequential decline. Monitor Q2 results and oil price trends for sustained recovery.
Price Chart
Executive Summary
Transocean reported strong Q1 2026 results with contract drilling revenues of $1.08B (up 19% YoY), net income of $71M vs a loss of $79M a year ago, and Adjusted EBITDA of $440M (40.7% margin). The company also reduced debt by $549M, added $1.6B in backlog at a weighted average dayrate of ~$410k, and provided Q2 2026 revenue guidance of $930M-$970M.
Key Financial Metrics
Key Facts
- Q1 2026 contract drilling revenues of $1.08B, up 19% YoY from $906M
- Net income of $71M ($0.06 diluted EPS) vs net loss of $79M ($-0.11) in Q1 2025
- Adjusted EBITDA of $440M with 40.7% margin, up from $244M and 26.9% a year ago
- Free cash flow of $136M, vs -$34M in Q1 2025
- Total debt reduced by $549M to $5.14B; early retired $358M in senior notes
- Contract backlog increased to $7.1B with $1.6B in new contracts at ~$410k/day
- Revenue efficiency improved to 97.3% from 95.5% YoY
- Q2 2026 revenue guidance of $930M-$970M, full year 2026 revenue guidance of $3.8B-$3.9B
Financial Impact
Q1 revenue $1.08B (+19% YoY), net income $71M, Adjusted EBITDA $440M, FCF $136M
Risk Factors
- Oil price volatility could impact offshore drilling demand
- Q2 revenue guidance suggests potential seasonal softening
- High debt level ($5.14B) despite reduction
- Market cyclicality in rig utilization
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 4 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001451505-26-000041 |
| Document: 0001451505-26-000041-index.html | 0001451505-26-000041 |
| Document: 0001451505-26-000041.txt | 0001451505-26-000041 |
| 8-K Data (Synthetic) | 0001451505-26-000041 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 15, 2026 17d ago | 8-K | $5.94 $5.49 | ▼ −7.58% | ▼ −9.69% | $5.17 (−12.96%) |
Sep 15, 2026 17d ago | Press Release | $5.94 $5.49 | ▼ −7.58% | ▼ −9.69% | $5.17 (−12.96%) |
Aug 20, 2026 6w ago | 8-K | $6.01 $5.74 | ▼ −4.49% | ▼ −5.61% | $5.17 (−13.98%) |
Aug 5, 2026 8w ago | 8-K | $5.16 $5.72 | ▲ +10.85% | ▲ +9.64% | $5.17 (+0.19%) |
Aug 5, 2026 8w ago | Press Release | $5.16 $5.72 | ▼ −10.85% | ▼ −9.64% | $5.17 (−0.19%) |
Jul 1, 2026 13w ago | DEFA14A | $4.87 $5.02 | ▲ +3.08% | ▲ +2.82% | $5.17 (+6.16%) |
Jul 1, 2026 13w ago | 8-K | $4.87 $5.02 | ▲ +3.08% | ▲ +2.82% | $5.17 (+6.16%) |
Jun 16, 2026 15w ago | 8-K | $5.58 $5.04 | ▼ −9.68% | ▼ −8.64% | $5.17 (−7.35%) |
May 26, 2026 18w ago | 8-K | $6.18 $6.25 | ▲ +1.13% | ▼ −0.07% | $5.17 (−16.34%) |
May 19, 2026 19w ago | DEFA14A | $7.34 $6.22 | ▼ −15.26% | ▼ −17.06% | $5.17 (−29.56%) |
US Market Status
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