STEINHAUSEN, Switzerland, Feb. 19, 2026 (GLOBE NEWSWIRE) -- Transocean Ltd. (NYSE: RIG) today reported financial results for the fourth quarter and full year of 2025. The Company will hold a conference call and webcast at 9 a.m. EST, 3 p.m. CET, on Friday, February 20, 2026, to discuss the results, with participation details included in this release. In addition, supplemental slides have been posted to the Investors section of the Company's website at www.deepwater.com.
2025 KEY POINTS
-- Operating revenues were $3.965 billion, up 13% from $3.524 billion in
2024.
-- Revenue efficiency(1) was 96.5%, up from 94.5%.
-- Net loss attributable to controlling interest was $2.915 billion,
$3.04 per diluted share.
-- Adjusted EBITDA of $1.37 billion, up from $1.148 billion or 19%.
-- Cash flows from operations were $749 million, up $302 million or 68%.
-- Free cash flow was $626 million, up $433 million from $193 million.
-- Total principal amount of debt reduced to $5.686 billion, down
$1.258 billion or 18%.
-- Total liquidity of $1.507 billion, including undrawn revolving credit
facility.
-- Added $839 million in contract backlog(2) at a weighted average dayrate
of $453,000.
"During 2025, we took significant strides to strengthen our capital structure, sustainably lowering costs, and ensuring we continue to deliver best in class service to our customers around the world," said President and Chief Executive Officer, Keelan Adamson. "At just shy of 98%, we delivered our best uptime performance on record while making significant progress in strengthening our balance sheet by retiring approximately $1.3 billion in debt principal and saving nearly $90 million in annualized interest expense.
"In 2026, Transocean achieves its 100th year as a company. As we proudly celebrate this centennial milestone, our primary objective will be to exceed our customers' expectations by delivering safe, efficient, and reliable operations, thereby creating value for our shareholders.
"We believe that our recently announced definitive agreement to combine with Valaris is entirely consistent with these objectives. Customers and investors alike will benefit from the expanded fleet of best-in-class, high-specification rigs and strong pro forma cash flow which improves our financial flexibility, enables accelerated debt reduction, and continued investment in our people, assets, and technologies to enhance the delivery of our services."
FULL YEAR 2025 FINANCIAL SUMMARY
Years ended December 31, sequential
----------------------------------
2025 2024 change
-------------------- ------------ --------------
(In millions,
except per share
amounts and
percentages)
Contract
drilling
revenues $ 3,965 $ 3,524 $ 441
Revenue
efficiency 96.5 % 94.5 %
Operating and
maintenance
expense $ 2,406 $ 2,199 $ (207)
Net loss
attributable to
controlling
interest $ (2,915) $ (512) $ (2,403)
Basic loss per
share $ (3.04) $ (0.60) $ (2.44)
Diluted loss per
share $ (3.04) $ (0.76) $ (2.28)
Adjusted EBITDA $ 1,370 $ 1,148 $ 222
Adjusted EBITDA
margin 34.6 % 32.5 %
Adjusted net
income (loss) $ 37 $ (54) $ 91
Adjusted diluted
earnings (loss)
per share $ 0.04 $ (0.26) $ 0.30
Net loss attributable to controlling interest was $2.915 billion, $3.04 per diluted share.
Full year results included $2.952 billion, $3.08 per diluted share, net unfavorable items as follows:
-- $3.036 billion, $3.16 per diluted share, loss on impairment of assets,
net of tax; and
-- $99 million, $0.10 per diluted share, loss on conversion of debt to
equity.
These are partially offset by:
-- $179 million, $0.18 per diluted share, discrete tax items; and -- $4 million of other favorable items, net.
Excluding these net unfavorable items, Adjusted Net Income was $37 million, $0.04 per diluted share.
Total shares outstanding were 1.1 billion at December 31, 2025.
4Q25 FINANCIAL SUMMARY
Three months
Three months ended ended
------------------------- -------------
December September
31, 30, sequential December 31, year-over-year
2025 2025 change 2024 change
----------- ------------ ------------ ------------- --------------------
(In millions,
except per
share amounts
and
percentages)
Contract
drilling
revenues $1,043 $ 1,028 $ 15 $ 952 $ 91
Revenue
efficiency 96.2% 97.5 % 93.5 %
Operating and
maintenance
expense $ 605 $ 584 $ (21) $ 579 $ (26)
Net income
(loss)
attributable
to
controlling
interest $ 25 $(1,923) $ 1,948 $ 7 $ 18
Basic earnings
(loss) per
share $ 0.02 $ (2.00) $ 2.02 $ 0.01 $ 0.01
Diluted
earnings
(loss) per
share $ 0.02 $ (2.00) $ 2.02 $(0.11) $ 0.13
Adjusted
EBITDA $ 385 $ 397 $ (12) $ 323 $ 62
Adjusted
EBITDA
margin 36.8% 38.7 % 33.9 %
Adjusted net
income $ 21 $ 62 $ (41) $ 27 $ (6)
Adjusted
diluted
earnings
(loss) per
share $ 0.02 $ 0.06 $ (0.04) $(0.09) $ 0.11
-- Net income attributable to controlling interest of $25 million, $0.02 per
diluted share.
-- Cash provided by operating activities was $349 million, up 42% compared
to prior quarter and was primarily related to working capital
improvements.
-- Contract drilling revenues were $1.043 billion, up 1.5% compared to prior
quarter, primarily related to improved rig utilization, partially offset
by slightly lower revenue efficiency across the fleet.
-- Operating and maintenance expense was $605 million, up 3.6% compared to
prior quarter, primarily related to four rigs undergoing recertifications
or shipyard maintenance, partially offset by lower costs on rigs sold or
classified as held for sale.
-- Interest expense was $132 million, excluding the effect of the bifurcated
exchange feature of the 4.625% exchangeable bonds due 2029, down 6%
compared to prior quarter, primarily due to our debt reduction efforts
achieved in the fourth quarter.
-- Capital expenditures were $28 million.
-- The Effective Tax Rate(3) was 68.8%, up from (1.4)% in the prior quarter.
The increase was primarily due to losses on rig impairments in the prior
quarter. Excluding discrete items, the Effective Tax Rate was 72.3%
compared to 34.8% in the previous quarter. Cash taxes paid in the period
were $18 million.
FLEET STATUS REPORT AND CONTRACT BACKLOG
-- We published our Fleet Status Report today. Since the October 2025
report, we added 10 new fixtures with an aggregate incremental backlog of
approximately $610 million and a weighted average dayrate of $417,000 per
day.
-- As of February 19, 2026, the total backlog is approximately $6.1 billion.
2026 FIRST QUARTER AND FULL YEAR OUTLOOK
The following table includes guidance on key items for the first quarter and full year of 2026:
1Q26E FY26E
-------------- --------------
(In millions, except
percentages)
Contract drilling revenues $1,020 -- 1,050 $3,800 -- 3,950
Revenue efficiency, fleet wide
(1) 96.50% 96.50%
Selected costs and expenses
Operating and maintenance
expense $ 605 -- 625 $2,250 -- 2,375
General and administrative $ 40 -- 50 $ 170 -- 180
Interest expense $ 125 $ 480
Interest income $ (5) -- (10) $ (30) -- (35)
Capital expenditures $ 35 -- 45 $ 130
Cash taxes $ 15 $ 85 -- 90
Total liquidity not provided $1,600 -- 1,700
CONFERENCE CALL INFORMATION
Transocean plans to host a conference call at 9 a.m. EST, 3 p.m. CET, on Friday, February 20, 2026, to discuss the results. To participate, dial +1 785-424-1619 approximately 15 minutes prior to the scheduled start time and refer to conference code 788952.
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. EST, 6 p.m. CET, on Friday, February 20, 2026. The replay, which will be archived for approximately 30 days, can be accessed at +1 402-220-6068, passcode 788952. 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 "possible," "intend," "will," "if," "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, 2024, 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, 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.
3. 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)
Years ended December 31,
2025 2024 2023
Contract drilling revenues $ 3,965 $3,524 $2,832
Costs and expenses
Operating and maintenance 2,406 2,199 1,986
Depreciation and
amortization 659 739 744
General and administrative 195 214 187
----------------------------
3,260 3,152 2,917
Loss on impairment of assets (3,049) (772) (57)
Gain (loss) on disposal of
assets, net 7 (17) (183)
Operating loss (2,337) (417) (325)
Other income (expense), net
Interest income 40 50 52
Interest expense, net of
amounts capitalized (555) (362) (646)
Gain (loss) on retirement
of debt 3 161 (31)
Other, net (99) 45 9
----------------------------
(611) (106) (616)
Loss before income taxes (2,948) (523) (941)
Income tax expense (benefit) (33) (11) 13
Net loss (2,915) (512) (954)
Net income attributable to
noncontrolling interest -- -- --
Net loss attributable to
controlling interest $ (2,915) $ (512) $ (954)
Loss per share
Basic $ (3.04) $(0.60) $(1.24)
Diluted $ (3.04) $(0.76) $(1.24)
Weighted-average shares
outstanding
Basic 960 850 768
Diluted 960 925 768
TRANSOCEAN LTD. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions, except share data)
(Unaudited)
December 31,
------------------
2025 2024
------- -------
Assets
Cash and cash equivalents $ 620 $ 560
Accounts receivable, net 540 564
Materials and supplies, net 378 439
Assets held for sale 24 343
Restricted cash and cash equivalents 377 381
Other current assets 142 165
-------------------------------------------- ------ ------
Total current assets 2,081 2,452
-------------------------------------------- ------ ------
Property and equipment 17,451 22,417
Less accumulated depreciation (4,874) (6,586)
-------------------------------------------- ------ ------
Property and equipment, net 12,577 15,831
-------------------------------------------- ------ ------
Deferred tax assets, net 61 45
Other assets 923 1,043
-------------------------------------------- ------ ------
Total assets $15,642 $19,371
-------------------------------------------- ------ ------
Liabilities and equity
Accounts payable $ 242 $ 255
Accrued income taxes 22 31
Debt due within one year 445 686
Other current liabilities 627 691
-------------------------------------------- ------ ------
Total current liabilities 1,336 1,663
-------------------------------------------- ------ ------
Long-term debt 5,212 6,195
Deferred tax liabilities, net 404 499
Other long-term liabilities 582 729
-------------------------------------------- ------ ------
Total long-term liabilities 6,198 7,423
-------------------------------------------- ------ ------
Commitments and contingencies
Shares, $0.10 par value, 1,204,009,681
authorized, 141,262,093 conditionally
authorized, 1,204,009,681 issued and
1,101,528,481 outstanding at December 31,
2025, and 1,057,879,029 authorized,
141,262,093 conditionally authorized,
940,828,901 issued and 875,830,772
outstanding at December 31, 2024 110 87
Additional paid-in capital 15,604 14,880
Accumulated deficit (7,460) (4,545)
Accumulated other comprehensive loss (146) (138)
-------------------------------------------- ------ ------
Total controlling interest
shareholders' equity 8,108 10,284
-------------------------------------------- ------ ------
Noncontrolling interest -- 1
-------------------------------------------- ------ ------
Total equity 8,108 10,285
-------------------------------------------- ------ ------
Total liabilities and equity $15,642 $19,371
-------------------------------------------- ------ ------
TRANSOCEAN LTD. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
(Unaudited)
Years ended December 31,
2025 2024 2023
Cash flows from operating
activities
Net loss $(2,915) $ (512) $ (954)
Adjustments to reconcile
to net cash provided by
operating activities:
Amortization of
contract intangible
asset -- 4 52
Depreciation and
amortization 659 739 744
Share-based
compensation expense 35 47 40
Loss on impairment of
assets 3,049 772 57
(Gain) loss on disposal
of assets, net (7) 17 183
Amortization of
debt-related balances,
net 48 53 51
(Gain) loss on
adjustment to
bifurcated compound
exchange feature (10) (214) 127
(Gain) loss on
retirement of debt (3) (161) 31
Loss on conversion of
debt to equity 99 -- 27
Loss on impairment of
investment in
unconsolidated
affiliate -- 5 5
Deferred income tax
expense (benefit) (111) (42) 18
Other, net 14 (19) (1)
Changes in contract
liabilities, net (170) 45 70
Changes in deferred
costs, net 86 (2) (190)
Changes in other
operating assets and
liabilities, net (25) (285) (96)
----------------------------
Net cash provided by
operating activities 749 447 164
Cash flows from investing
activities
Capital expenditures (123) (254) (427)
Investment in loans to
unconsolidated
affiliates -- (3) (3)
Investment in equity of
unconsolidated
affiliates -- -- (10)
Proceeds from disposal of
assets, net of costs to
sell 84 101 10
Proceeds from disposal
of equity investment in
unconsolidated
affiliate 6 -- --
Cash acquired in
acquisition of
unconsolidated
affiliates -- 5 7
----------------------------
Net cash used in investing
activities (33) (151) (423)
Cash flows from financing
activities
Repayments of debt (1,556) (2,103) (1,717)
Proceeds from issuance of
debt, net of issue
costs 492 1,770 1,983
Proceeds from issuance
of shares, net of issue
costs 421 -- --
Other, net (17) (17) (3)
----------------------------
Net cash provided by (used
in) financing activities (660) (350) 263
Net increase (decrease) in
unrestricted and restricted
cash and cash equivalents 56 (54) 4
Unrestricted and restricted
cash and cash equivalents,
beginning of period 941 995 991
Unrestricted and restricted
cash and cash equivalents,
end of period $ 997 $ 941 $ 995
TRANSOCEAN LTD. AND SUBSIDIARIES
FLEET OPERATING STATISTICS
Three months ended
-----------------------------------------------
December 31, September 30, December 31,
Contract Drilling
Revenues (in
millions) 2025 2025 2024
-------------- --------------- --------------
Ultra-deepwater
floaters $ 724 $ 696 $ 675
Harsh environment
floaters 319 332 277
---------- --- ---------- --- ---------
Total contract
drilling
revenues $ 1,043 $ 1,028 $ 952
---------- --- ---------- --- ---------
Three months ended
-----------------------------------------------
December 31, September 30, December 31,
Average Daily
Revenue (1) 2025 2025 2024
-------------- --------------- --------------
Ultra-deepwater
floaters $ 466,000 $ 460,200 $ 428,200
Harsh environment
floaters 449,800 467,100 452,600
---------- ----------- ----------
Total fleet
average daily
revenue $ 461,300 $ 462,300 $ 434,700
---------- ----------- ----------
Three months ended
-----------------------------------------------
December 31, September 30, December 31,
Revenue
Efficiency (2) 2025 2025 2024
-------------- --------------- --------------
Ultra-deepwater
floaters 95.7% 96.2% 92.0%
Harsh environment
floaters 97.2% 100.8% 97.6%
-------- --- ---------- -------- ---
Total fleet
average revenue
efficiency 96.2% 97.5% 93.5%
-------- --- ---------- -------- ---
Three months ended
-----------------------------------------------
December 31, September 30, December 31,
Utilization (3) 2025 2025 2024
-------------- --------------- --------------
Ultra-deepwater
floaters 82.1% 71.0% 64.3%
Harsh environment
floaters 96.6% 90.6% 75.0%
--------- --------- --- -------- ---
Total fleet
average rig
utilization 85.8% 76.0% 66.8%
--------- --------- --- -------- ---
(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 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
-------- ---------- -------- -------- -------- ---------- ----------
Adjusted Net Income
(Loss)
Net income (loss)
attributable to
controlling interest, as
reported $(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
------ ----- ------ ------ ------ ----- -----
Net income (loss), as
adjusted $ 37 $ 21 $ 16 $ 62 $ (46) $ 19 $ (65)
------ ----- ------ ------ ------ ----- -----
Adjusted Diluted Earnings
(Loss) Per Share:
Diluted earnings (loss)
per share, as reported $ (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,
4.625% exchangeable
bonds due December
2029 -- -- (0.03) -- (0.05) (0.02) --
------ ----- ------ ------ ------ ----- -----
Diluted earnings (loss)
per share, as adjusted $ 0.04 $ 0.02 $ (0.01) $ 0.06 $ (0.10) $ -- $ (0.10)
------ ----- ------ ------ ------ ----- -----
YTD QTD YTD QTD YTD QTD YTD
12/31/24 12/31/24 09/30/24 09/30/24 06/30/24 06/30/24 03/31/24
-------- ---------- -------- -------- -------- ---------- ----------
Adjusted Net Income
(Loss)
Net income (loss)
attributable to
controlling interest, as
reported $ (512) $ 7 $ (519) $ (494) $ (25) $ (123) $ 98
Loss on impairment of
assets, net of tax 755 -- 755 617 138 138 --
Loss on impairment of
investment in
unconsolidated
affiliates 5 -- 5 -- 5 4 1
Gain on retirement of
debt (161) -- (161) (21) (140) (140) --
Discrete tax items (141) 20 (161) (38) (123) (2) (121)
------ ----- ------ ------ ------ ----- -----
Net income (loss), as
adjusted $ (54) $ 27 $ (81) $ 64 $ (145) $ (123) $ (22)
------ ----- ------ ------ ------ ----- -----
Adjusted Diluted Earnings
(Loss) Per Share:
Diluted earnings (loss)
per share, as reported $ (0.76) $ (0.11) $ (0.65) $ (0.58) $ (0.03) $ (0.15) $ 0.11
Loss on impairment of
assets, net of tax 0.82 -- 0.82 0.64 0.17 0.17 --
Loss on impairment of
investment in
unconsolidated
affiliates 0.01 -- 0.01 -- -- -- --
Gain on retirement of
debt (0.18) -- (0.18) (0.02) (0.17) (0.17) --
Discrete tax items (0.15) 0.02 (0.18) (0.04) (0.15) -- (0.14)
------ ----- ------ ------ ------ ----- -----
Diluted loss per share, as
adjusted $ (0.26) $ (0.09) $ (0.18) $ -- $ (0.18) $ (0.15) $ (0.03)
------ ----- ------ ------ ------ ----- -----
TRANSOCEAN LTD. AND SUBSIDIARIES
NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS
ADJUSTED CONTRACT DRILLING REVENUES
EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND
AMORTIZATION AND RELATED MARGINS
(in millions, except percentages)
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 %
YTD QTD YTD QTD YTD QTD YTD
12/31/24 12/31/24 09/30/24 09/30/24 06/30/24 06/30/24 03/31/24
-------- ---------- -------- -------- -------- ---------- ----------
Contract drilling
revenues $ 3,524 $ 952 $ 2,572 $ 948 $ 1,624 $ 861 $ 763
Contract
intangible
asset
amortization 4 -- 4 -- 4 -- 4
------ ----- ------ ------ ------ ----- -----
Adjusted Contract
Drilling Revenues $ 3,528 $ 952 $ 2,576 $ 948 $ 1,628 $ 861 $ 767
------ ----- ------ ------ ------ ----- -----
Net income (loss) $ (512) $ 7 $ (519) $ (494) $ (25) $ (123) $ 98
Interest
expense, net of
interest
income 312 81 231 69 162 60 102
Income tax
expense
(benefit) (11) 55 (66) (31) (35) 156 (191)
Depreciation and
amortization 739 180 559 190 369 184 185
Contract
intangible
asset
amortization 4 -- 4 -- 4 -- 4
------ ----- ------ ------ ------ ----- -----
EBITDA 532 323 209 (266) 475 277 198
------ ----- ------ ------ ------ ----- -----
Loss on
impairment of
assets 772 -- 772 629 143 143 --
Loss on
impairment of
investment in
unconsolidated
affiliates 5 -- 5 -- 5 4 1
Gain on
retirement of
debt (161) -- (161) (21) (140) (140) --
------ ----- ------ ------ ------ ----- -----
Adjusted EBITDA $ 1,148 $ 323 $ 825 $ 342 $ 483 $ 284 $ 199
------ ----- ------ ------ ------ ----- -----
Profit (loss) margin (14.5) % 0.7 % (20.2) % (52.0) % (1.5) % (14.3) % 12.9 %
EBITDA margin 15.1 % 33.9 % 8.1 % (28.1) % 29.2 % 32.2 % 25.8 %
Adjusted EBITDA
margin 32.5 % 33.9 % 32.0 % 36.0 % 29.7 % 33.0 % 26.0 %
TRANSOCEAN LTD. AND SUBSIDIARIES
SUPPLEMENTAL EFFECTIVE TAX RATE ANALYSIS
(in millions, except tax rates)
Three months ended Years ended
------------------------------------------- ------------------------
December September December December December
31, 30, 31, 31, 31,
2025 2025 2024 2025 2024
--------- ---------- --------- ------- ---------
Income (loss)
before income
taxes $ 82 $ (1,897) $ 62 $(2,948) $ (523)
Restructuring
costs -- 3 -- 3 --
Loss on
impairment of
assets -- 1,913 -- 3,049 772
Gain on disposal
of assets, net (4) -- -- (4) --
Loss on
impairment of
investment in
unconsolidated
affiliates -- -- -- -- 5
Loss on
conversion of
debt to equity -- 75 -- 99 --
Gain on
retirement of
debt (3) -- -- (3) (161)
----- ------ ----- ------ -----
Adjusted income
before income
taxes $ 75 $ 94 $ 62 $ 196 $ 93
----- ------ ----- ------ -----
Income tax expense
(benefit) $ 57 $ 26 $ 55 $ (33) $ (11)
Restructuring
costs -- -- -- -- --
Loss on
impairment of
assets -- 5 -- 13 17
Loss on
impairment of
investment in
unconsolidated
affiliates -- -- -- -- --
Loss on
conversion of
debt to equity -- -- -- -- --
Gain on
retirement of
debt -- -- -- -- --
Changes in
estimates (1) (3) 1 (20) 179 141
----- ------ ----- ------ -----
Adjusted income tax
expense $ 54 $ 32 $ 35 $ 159 $ 147
----- ------ ----- ------ -----
Effective Tax Rate
(2) 68.8 % (1.4) % 89.0 % 1.1 % 2.2 %
Effective Tax Rate,
excluding discrete
items (3) 72.3 % 34.8 % 56.7 % 81.2 % 159.1 %
(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 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 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
-------- -------- -------- ---------- -------- -------- ----------
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)
------ ------ ------ ----- ------ ------ -----
YTD QTD YTD QTD YTD QTD YTD
12/31/24 12/31/24 09/30/24 09/30/24 06/30/24 06/30/24 03/31/24
-------- -------- -------- ---------- -------- -------- ----------
Cash provided
by (used in)
operating
activities $ 447 $ 206 $ 241 $ 194 $ 47 $ 133 $ (86)
Capital
expenditures (254) (29) (225) (58) (167) (84) (83)
------ ------ ------ ----- ------ ------ -----
Free Cash
Flow 193 177 16 136 (120) 49 (169)
Debt
repayments (2,103) (30) (2,073) (258) (1,815) (1,664) (151)
Debt
repayments,
paid from
debt
proceeds 1,748 -- 1,748 99 1,649 1,649 --
------ ------ ------ ----- ------ ------ -----
Levered Free
Cash Flow $ (162) $ 147 $ (309) $ (23) $ (286) $ 34 $ (320)
------ ------ ------ ----- ------ ------
(MORE TO FOLLOW) Dow Jones Newswires
February 19, 2026 19:23 ET (00:23 GMT)