Transocean misses bottom-line estimates; initiates Q1 and FY26 outlook

Transocean press release (RIG): Q4 Non-GAAP EPS of $0.02 misses by $0.05.
Revenue of $1.04B (+9.2% Y/Y) in-line.
Cash provided by operating activities was $349 million, up 42% compared to prior quarter and was primarily related to working capital improvements.
Excluding discrete items, the Effective Tax Rate was 72.3% compared to 34.8% in the previous quarter. Cash taxes paid in the period were $18 million.
Capital expenditures were $28 million.
“Since the October 2025 report, we added 10 new fixtures with an aggregate incremental backlog of approximately $610 million and a weighted average dayrate of $417,000 per day.”
As of February 19, 2026, the total backlog is approximately $6.1 billion.

2026 FIRST QUARTER AND FULL YEAR OUTLOOK

The following table includes guidance on key items for the first quarter and full year of 2026:

		1Q26E		FY26E
(In millions, except percentages)
Contract drilling revenues	$	1,020 – 1,050 vs. consensus of $1.01B	$	3,800 – 3,950 vs. consensus of $3.86B
Revenue efficiency, fleet wide⁽¹⁾		96.50%		96.50%

Selected costs and expenses
Operating and maintenance expense	$	605 – 625	$	2,250 – 2,375
General and administrative	$	40 – 50	$	170 – 180
Interest expense	$	125	$	480
Interest income	$	(5) – (10)	$	(30) – (35)

Capital expenditures	$	35 – 45	$	130
Cash taxes	$	15	$	85 – 90
Total liquidity		not provided	$	1,600 – 1,700