Valaris Ltd

Latest Results (08.04.2026):

Valaris Ltd — Fourth quarter 2025: The company reported total operating revenues of $537.4 million and net income of $716.8 million for Q4 2025 (net income attributable to Valaris $717.5 million). Adjusted EBITDA for the quarter was $97.0 million. Revenue efficiency was 98% for Q4 and 96% for full-year 2025. The quarter included a large, non‑recurring $691 million deferred tax valuation allowance benefit (part of a $680 million tax benefit in the quarter) that materially boosted net income. Valaris also increased contract backlog and announced an all‑stock transaction with Transocean in February 2026.

Revenue and EBITDA

Q4 2025 total operating revenues: $537.4 million (revenues exclusive of reimbursables: $502.2 million). Adjusted EBITDA: $97.0 million, down from $163.2 million in Q3 2025, driven by fewer floater operating days and higher quarter repairs/mobilization costs.

Net income and tax impact

Net income (Q4 2025): $716.8 million (Valaris earnings attributable: $717.5 million). This includes a $680+ million tax benefit driven by changes in deferred tax asset valuation allowances and discrete items — a one‑time accounting benefit that materially increased net income versus prior quarter.

Operational efficiency and utilization

Revenue efficiency: 98% in Q4 2025 (96% for full-year 2025), marking the fifth consecutive year at or above 96%. Total fleet utilization was 63% for the quarter (active‑fleet utilization higher), with improved prospects as idle drillships are scheduled to return to work through 2026.

Backlog and contract awards

Since Q3 2025, Valaris secured nearly $900 million of additional backlog, increasing total backlog to approximately $4.7 billion (floaters, jackups and other). Recent awards include drillships VALARIS DS‑7, DS‑8 and DS‑9; management expects all ten active drillships to be working as the company enters 2027.

Capital spending, cash and repurchases

Q4 2025 capex was $106 million (up from $70 million in Q3) related to shipyard projects and maintenance. Cash & cash equivalents were $599.4 million at December 31, 2025 (down from $662.7 million at Sept. 30). Valaris repurchased $25 million of shares in Q4 and $100 million during 2025.

Fleet changes and impairments

Q4 included a loss on impairment of roughly $20 million primarily related to classifying semisubmersible VALARIS DPS‑1 as held for sale. The company sold jackups VALARIS 102 and 145 for recycling and continues to high‑grade the fleet.

FY 2026 guidance and strategic note

FY 2026 guidance: total operating revenues $2,125–$2,205 million; adjusted EBITDA $485–$565 million (excluding costs tied to the pending Transocean combination); capex $425–$475 million; and expected upfront customer payments of ~ $110 million for contract upgrades. Valaris announced an all‑stock transaction with Transocean (Feb 9, 2026) and has cancelled its Q4 2025 conference call; future earnings calls/forward‑looking updates are not planned while the transaction is pending.