10-K · February 23, 2026
Transocean positions itself as a high-specification offshore contract driller focused on ultra-deepwater and harsh-environment work with a 27-unit fleet (20 drillships, 7 semis). Q4 2025 showed stronger operating…
Earnings analysis · 10-Q
RIG earnings analysis
Filed May 5, 2026 · Our reading of the company's report
The latest report
Transocean Ltd. reported Q1 2026 results showing revenues of $1.081 billion, exceeding consensus estimates by 4.76% but with an EPS loss of -$0.03, missing expectations of $0.08. The company indicated improved…
Read full summary
Transocean Ltd. reported Q1 2026 results showing revenues of $1.081 billion, exceeding consensus estimates by 4.76% but with an EPS loss of -$0.03, missing expectations of $0.08. The company indicated improved operational metrics but faces challenges with rising debt costs. Management projects improved revenue efficiency in Q2 2026 as operational activities increase.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $-0.03
What stood out
-
Revenue Exceeds Estimates
Actual Q1 2026 revenue of $1.081 billion surpassed estimates by $49 million, marking a 19.2% increase from the previous year.
-
Improved Operating Efficiency
Average daily revenue rose to $475,600 in Q1 2026, up $32,000 from Q1 2025, indicating a 7.2% year-over-year increase.
-
Lower Operating Costs
Operating and maintenance expenses decreased to $606 million from $618 million in the previous year, a reduction of 1.9%.
-
Strong Rig Utilization
Total fleet average rig utilization improved to 86.7% in Q1 2026, compared to 63.4% in Q1 2025.
-
Lower Depreciation Costs
Depreciation and amortization costs decreased to $143 million from $176 million year-over-year due to rigs sold or classified as held for sale.
-
Increased Cash from Operations
Cash flows from operating activities increased primarily due to higher cash received from customers.
What to watch
-
Negative EPS Report
Q1 2026 EPS of -$0.03 missed expectations by $0.11, raising concerns about profitability.
-
Rising Interest Expense
Interest expense increased to $276 million in Q1 2026 from $116 million in the prior year, a rise of 138%.
-
Substantial Debt Obligations
Total outstanding debt as of March 31, 2026, stands at $5.55 billion, increasing risks related to liquidity and refinancing.
Management's outlook
Q2 2026 revenues projected at $930 million to $970 million; full-year revenues expected to be between $3.8 billion and $3.9 billion.
Earlier filings 4
10-Q · August 5, 2025
Transocean reported Q2 2025 contract drilling revenue of $988 million (up from $861 million in Q2 2024) but recorded a large asset-impairment that drove an operating loss of $964 million and a net loss attributable to…
10-Q · April 29, 2025
Transocean reported Q1 2025 contract drilling revenue of $906 million, up from $763 million in Q1 2024, with operating income of $64 million versus an operating loss of $3 million a year ago. Despite the operating…
10-K · February 18, 2025
Transocean positions itself as a specialist in ultra‑deepwater and harsh‑environment floater drilling with a 34‑unit high‑spec fleet and a contract backlog of $8.74 billion at December 31, 2024. Q4 2024 operations…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.