New York, Feb 20, 2026, 07:18 EST — Premarket
- Transocean shares were up about 2% in premarket trading after the offshore driller reported 2025 results and updated its rig contract backlog
- The company flagged lower debt and higher free cash flow in 2025, and set 2026 revenue and cost ranges
- A fleet status report showed about $610 million of incremental backlog from 10 new fixtures since October
Transocean Ltd shares rose 1.9% to $6.36 in premarket trade on Friday, after the offshore driller posted its fourth-quarter and full-year results and refreshed investors on rig contracts.
The company said 2025 contract drilling revenues rose to $3.965 billion and adjusted EBITDA — a cash-earnings proxy — increased to $1.37 billion, while free cash flow climbed to $626 million. It also said debt fell to $5.686 billion and guided 2026 contract drilling revenues of $3.8 billion to $3.95 billion, with operating and maintenance expense seen at $2.25 billion to $2.375 billion; CEO Keelan Adamson said the firm made progress “strengthening our balance sheet” after retiring about $1.3 billion of debt principal. (GlobeNewswire)
In a separate fleet status report, Transocean listed 10 contract fixtures it said added about $610 million of incremental backlog since October, taking total backlog to about $6.1 billion. The list included a contract for the Deepwater Mykonos with bp in Brazil and options and extensions on several rigs, with dayrates — the per-day fees paid for a rig and crew — in some cases above $400,000.
Oil’s march toward six-month highs has been one of the backdrops for offshore drillers, with crude pricing feeding producer budgets and longer-cycle projects, though headlines can cut both ways. On Friday, oil was set for its first weekly gain in three weeks on rising U.S.-Iran tensions, Reuters reported. (Reuters)
Some analysts have turned more cautious on valuation even as estimates lift. Barclays downgraded Transocean to “Equalweight” from “Overweight” on Feb. 18 while raising its price target to $6, according to an Investing.com report. (Investing)
The earnings update also lands with Transocean in the middle of a consolidation push. Earlier this month, it agreed to buy rival Valaris in a $5.8 billion all-stock deal that the companies said they expect to close in the second half of 2026. (Reuters)
Peers were firmer in early moves, too. Valaris was up 1.7% and Noble Corp rose 2.4% in the premarket.
But the near-term test is still execution: rigs go idle, shipyard time slips, and “backlog” can move if customers delay work. Dayrates can also soften quickly if oil prices roll over or producers tighten spending, squeezing cash generation just as Transocean tries to keep debt trending down.
Investors will look for detail on the 2026 bridge — utilization, downtime and any color on pricing — and for updates on the Valaris tie-up and expected synergies. The next catalyst is Transocean’s scheduled results call at 9 a.m. EST on Friday.
