Zacks Investment Research·Jun 29, 2026
Implied Volatility Surging for Seadrill Stock OptionsInvestors need to pay close attention to SDRL stock based on the movements in the options market lately.
Seadrill Limited(SDRL)Earnings, Financials & Key Ratios
SDRL•NYSE
$38.72
Price updated Jul 7, 2026
AboutSeadrill Limited provides offshore contract drilling services to the oil and gas industry worldwide. It operates in three segments: Harsh Environment, Floaters, and Jack-ups Rigs. The company owns and operates drillships, semi-submersible rigs, and jack-up rigs for operations in shallow and ultra-deep-water in benign and harsh environments. It offers operation support and management services to third parties, as well as related and non-related companies. As of April 8, 2022, the company owned a fleet of 21 offshore drilling units consisting of two harsh-environment rigs, two benign-environment semi-submersible rigs, six drill-ships, and 11 jack-up rigs. It serves oil super-majors, state-owned national oil companies, and independent oil and gas companies. Seadrill Limited was incorporated in 2005 and is headquartered in London, the United Kingdom.Show more
- Revenue$1.44B+3.8%
- EBITDA$308M-46.9%
- Net Income-$77M-117.3%
- EPS (Diluted)-1.24-119.5%
- Gross Margin12.04%-43.1%
- EBITDA Margin21.43%-48.8%
- Operating Margin4.87%-83.6%
- Net Margin-5.36%-116.6%
- ROE-2.67%-117.6%
SDRL Price & Volume
Seadrill Limited (SDRL) stock price & volume — 10-year historical chart
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Operational Volatility Challenges Seadrill's Margin Recovery
Investment Thesis • Updated 2026Q1
VerdictNeutral
Growth:Mixed
Profitability:Strained
Financial:Healthy
Cash Flow:Deteriorating
Primary Risk:Cyclical dayrate volatility
Key Thesis Takeaways
- Seadrill maintains a robust balance sheet with a 0.22 debt-to-equity ratio, yet the company struggles to translate revenue into consistent profitability, as evidenced by operating margins that dipped to -1.0% in 2024Q4.
- While the firm has successfully avoided further dilution, the persistent decoupling of net income from operating cash flow—highlighted by a 2026Q1 OCF/NI ratio of -0.56—suggests significant underlying operational friction.
- Investors should monitor whether the company can stabilize its erratic free cash flow, which swung from a $92 million surplus in 2023Q4 to a $35 million deficit in 2026Q1, before committing capital to this cyclical offshore driller.
Verdict Logic
while the 0.22 debt-to-equity ratio provides a solid foundation, the company's inability to maintain positive free cash flow—evidenced by a $35 million outflow in 2026Q1—suggests that operational risks currently outweigh the potential for near-term margin expansion.
SDRL Growth Metrics
Seadrill Limited (SDRL) revenue, earnings & EPS growth — 3, 5 & 10-year CAGR
Revenue CAGR
10 Years-9.97%
5 Years8.38%
3 Years15.36%
TTM8.3%
Profit CAGR
10 Years-
5 Years-
3 Years-
TTM-106.45%
EPS CAGR
10 Years-
5 Years-
3 Years-
TTM-120.37%
Return on Capital
10 Years-13.09%
5 Years4.05%
3 Years7.84%
Last Year1.94%
SDRL Recent Earnings
Seadrill Limited (SDRL) EPS & revenue vs analyst estimates — last 4 quarters
●Beat EPS 8/12 qtrs (67%)●Beat Revenue 9/12 qtrs (75%)
Q2 2026Latest
May 11, 2026Metric
Actual
Est
EPS
$0.11-10.0%
$0.10
Rev
$358M+9.6%
$327M
Q1 2026
Feb 25, 2026Metric
Actual
Est
EPS
$0.12+71.4%
$0.07
Rev
$362M+7.3%
$337M
Q4 2025
Nov 5, 2025Metric
Actual
Est
EPS
$0.17-165.4%
$0.26
Rev
$352M+5.0%
$335M
Q3 2025
Aug 6, 2025Metric
Actual
Est
EPS
$0.68-200.0%
$0.68
Rev
$377M+9.9%
$343M
| Quarter | Date | EPS (Act vs Est) | Revenue (Act vs Est) |
|---|---|---|---|
| Q2 2026Latest | May 11, 2026 | $0.11vs $0.10-10.0% | $358Mvs $327M+9.6% |
| Q1 2026 | Feb 25, 2026 | $0.12vs $0.07+71.4% | $362Mvs $337M+7.3% |
| Q4 2025 | Nov 5, 2025 | $0.17vs $0.26-165.4% | $352Mvs $335M+5.0% |
| Q3 2025 | Aug 6, 2025 | $0.68vs $0.68-200.0% | $377Mvs $343M+9.9% |
Based on last 12 quarters of dataView full earnings history →
Latest SDRL News
Recent stock market news and headlines for Seadrill Limited (SDRL)
Business Wire·Jun 22, 2026
Seadrill Extends Share Repurchase ProgramHAMILTON, Bermuda--(BUSINESS WIRE)--Seadrill Extends Share Repurchase Program.
Business Wire·Jun 15, 2026
Seadrill Announces Pricing of Upsized Private Offering of $700 Million Senior Notes due 2034HAMILTON, Bermuda--(BUSINESS WIRE)--Seadrill Announces Pricing of Upsized Private Offering of $700 Million Senior Notes due 2034.
Peers Comparison
Key metrics vs top competitors for Seadrill Limited (SDRL)
| Company | Price | Market Cap | P/E Ratio | Rev Growth (1Y) | Net Margin | ROE | Div Yield |
|---|---|---|---|---|---|---|---|
| $38.72 | $2.42B | -31.23 | 3.75% | -5.36% | -2.67% | — | |
| $5.02 | $4.53B | -1.65 | 12.51% | -66.79% | -32.79% | — | |
| $74.59 | $5.17B | 5.38 | 0.27% | 45.37% | 36.13% | — | |
| $38.36 | $6.12B | 28.41 | 7.45% | 7.17% | 5.01% | — | |
| $10.28 | $937.66M | 5.50 | 5.36% | 37.97% | 72.37% | — | |
| $78.09 | $1.16B | 4.55 | 8.69% | 6.43% | 14.11% | — |
Compare SDRL vs Peers
Seadrill Limited (SDRL) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.
SDRL SEC Filings & Documents
Seadrill Limited (SDRL) SEC filings — annual & quarterly reports (10-K, 10-Q)
8-K Announcements
6Material company update
May 11, 2026·SEC
Material company update
Mar 18, 2026·SEC
Material company update
Feb 25, 2026·SEC
10-K Annual Reports
210-Q Quarterly Reports
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SDRL Frequently Asked Questions
Seadrill Limited (SDRL) stock FAQ — growth, dividends, profitability & financials explained
Growth & Financials
What is Seadrill Limited's revenue?
Seadrill Limited (SDRL) reported $1.45B in revenue for fiscal year 2025. This represents a 66% decrease from $4.31B in 2012.
How fast is Seadrill Limited growing?
Seadrill Limited (SDRL) grew revenue by 3.8% over the past year. Growth has been modest.
Is SDRL profitable?
Seadrill Limited (SDRL) reported a net loss of $24.0M for fiscal year 2025.
Dividend & Returns
What is SDRL's return on equity?
Seadrill Limited (SDRL) has a return on equity (ROE) of -2.7%. Negative ROE indicates the company is unprofitable.
What is Seadrill Limited's free cash flow?
Seadrill Limited (SDRL) had negative free cash flow of $55.0M in fiscal year 2025, likely due to heavy capital investments.