Transocean Ltd. reported fourth-quarter and full-year 2025 results, highlighting higher operating revenues, improved revenue efficiency, stronger cash generation, and lower debt.
For the year ended 31 December 2025, operating revenues increased to $4.0 billion from $3.5 billion in 2024, while revenue efficiency improved to 96.5% from 94.5%. Adjusted EBITDA rose to $1.4 billion, up from $1.1 billion, and the adjusted EBITDA margin increased to 34.6% from 32.5%.
Net loss attributable to controlling interest was $2.9 billion, or $3.0 per diluted share, compared with $512 million in 2024. The company said full-year results included $3.0 billion of net unfavorable items, led by a loss on impairment of assets, net of tax, and a loss on conversion of debt to equity. These were partially offset by discrete tax items and other favorable items, net. Excluding net unfavorable items, adjusted net income was $37 million, or $0.04 per diluted share.
Cash flows from operations totaled $749 million, up $302 million year on year, and free cash flow increased to $626 million from $193 million. Total principal debt declined to $5.7 billion, down $1.3 billion. Total liquidity was $1.5 billion, including an undrawn revolving credit facility. During 2025, the company added $839 million in contract backlog at a weighted average dayrate of $453,000.
In 4Q25, contract drilling revenues were $1.0 billion, compared with $1.0 billion in 3Q25 and $952 million in 4Q24. Net income attributable to controlling interest was $25 million, or $0.02 per diluted share. Adjusted EBITDA was $385 million, and cash provided by operating activities was $349 million. Capital expenditures were $28 million.
In its fleet and backlog update, the company said that since the October 2025 report it added 10 new fixtures with an aggregate incremental backlog of approximately $610 million at a weighted average dayrate of $417,000 per day. As of 19 February 2026, the total backlog was approximately $6.1 billion.
For 1Q26, guidance for contract drilling revenues was $1.0–$1.1 billion with fleet-wide revenue efficiency of 96.5%. For FY26, contract drilling revenues were guided at $3.8–$4.0 billion, with operating and maintenance expenses of $2.3–$2.4 billion and capital expenditures of $130 million. Total liquidity for FY26 was guided at $1.6–$1.7 billion.
The company planned a conference call and webcast at 9 a.m. EST / 3 p.m. CET on 20 February 2026, with additional materials posted on its website.
