Seadrill Limited (NYSE:SDRL) shares climbed more than 6% in premarket trading on Monday after the offshore drilling contractor reported first-quarter results that topped analyst expectations and raised its outlook for 2026.
The company posted a quarterly loss of $0.11 per share, outperforming analyst forecasts for a loss of $0.28 per share.
Revenue and EBITDA Beat Expectations
First-quarter revenue totaled $358 million, exceeding the consensus estimate of $326.75 million and rising 6.9% from $335 million recorded in the same quarter last year.
Seadrill also reported adjusted EBITDA of $97 million for the quarter, compared with $88 million in the previous quarter.
Adjusted EBITDA margin, excluding reimbursable revenue, improved to 27.9% from 25.4%.
The company recorded a net loss of $7 million during the period.
“Seadrill delivered a solid quarter financially and operationally, including the completion of two major projects ahead of schedule and on budget,” said President and CEO Samir Ali.
Company Raises Full-Year Outlook
Following the stronger quarterly performance and recent contract wins, Seadrill increased its full-year 2026 guidance.
The company now expects revenue between $1.43 billion and $1.48 billion, excluding approximately $50 million in reimbursable revenue. This compares with prior guidance of $1.40 billion to $1.45 billion.
The midpoint of the updated revenue forecast is broadly in line with analyst expectations of $1.44 billion.
Seadrill also raised its adjusted EBITDA outlook to a range of $370 million to $420 million from the previous forecast of $350 million to $400 million.
New Contract Awards Expand Backlog
Since February, Seadrill has secured more than $860 million in new drilling contracts across the U.S. Gulf, Brazil and Angola.
As a result, the company’s total contract backlog has expanded to approximately $3.1 billion.
Among the key awards was a three-year extension for the West Polaris rig with Petrobras in Brazil, valued at roughly $480 million.
Seadrill also secured contracts for the West Neptune and West Vela rigs with LLOG, a subsidiary of Harbour Energy, adding another $260 million to backlog.
Balance Sheet Remains Stable
At the end of the quarter, Seadrill held $329 million in cash and cash equivalents, compared with gross debt of $625 million.
During the quarter, the company spent $51 million on capital additions and long-term maintenance projects.