New York, Feb 23, 2026, 07:18 EST — Premarket
- Transocean shares were little changed in premarket trade after ending Friday up about 2.5%
- A recent fleet update lifted contract backlog to about $6.1 billion
- Investors are weighing 2026 guidance and the proposed all-stock Valaris deal
Transocean Ltd shares were little changed before the bell on Monday, after finishing Friday at $6.52, up about 2.5%, as traders sized up the offshore driller’s latest backlog update and 2026 outlook. (MarketWatch)
The setup matters because Transocean is trying to convince investors its cash flow can keep improving even with heavy interest costs, while it pursues a tie-up with rival Valaris. The company guided for first-quarter contract drilling revenue of $1.02 billion to $1.05 billion and full-year revenue of $3.80 billion to $3.95 billion.
A quarterly fleet status report filed last week showed about $610 million of incremental backlog from 10 new fixtures, taking total backlog to roughly $6.1 billion as of Feb. 19. Several awards carried dayrates — the daily fee a customer pays for a rig — well north of $400,000.
In its fourth-quarter update, Transocean posted contract drilling revenue of $1.043 billion, up 1.5% from the prior quarter, and said cash provided by operating activities rose 42% to $349 million. Net income attributable to controlling interest was $25 million.
Adjusted EBITDA — a cash-earnings measure before interest, taxes and other items — was $385 million for the quarter, translating into a 36.8% adjusted EBITDA margin, according to the filing.
For the full year, Transocean’s contract drilling revenue rose to $3.965 billion from $3.524 billion a year earlier. The company also reported a net loss attributable to controlling interest of $2.915 billion, driven largely by impairment charges and other items, but said adjusted net income was $37 million.
Transocean defines contract backlog as the maximum contractual operating dayrate multiplied by the remaining days in the firm contract period — a rough yardstick for revenue already “booked,” though not guaranteed.
Earlier this month, the company also announced about $184 million of firm backlog tied to work on two harsh-environment rigs in Norway, including an extension for the Transocean Encourage expected to start in the first quarter of 2027. (Deepwater)
The bigger overhang is the Valaris deal. Transocean said on Feb. 9 it would buy Valaris in an all-stock transaction valued at $5.8 billion, and Chief Executive Keelan Adamson told a conference call: “We know that our debt level negatively impacts our equity value. This transaction addresses that.” (Reuters)
Wall Street has not been uniformly upbeat. Barclays downgraded Transocean to “Equalweight” from “Overweight” last week while lifting its price target to $6; the stock has been trading near its 52-week high around $6.57. (Investing)
But risks are still easy to list: Transocean guided to roughly $480 million of interest expense for 2026, and offshore drilling demand can swing quickly if oil prices soften or customers delay programs. On the merger, regulatory and shareholder approvals still sit between the headline and the close.
Next up, traders will watch for any merger-related filings that set out the approval timetable and for fresh contract awards in the coming weeks. An earnings calendar from Zacks pegs Transocean’s next report for April 27. (Zacks)
