Seadrill Ltd (SDRL) FY2025 10-K Annual Report
Seadrill Ltd (SDRL) 10-K annual report for fiscal year 2025, filed with SEC EDGAR on Feb 26, 2026. This page provides AI-powered analysis including business overview, management discussion & analysis (MD&A), risk factors, and key financial data such as revenue, net income, gross margin, operating margin, and return on equity (ROE) extracted from XBRL.
Seadrill Ltd FY2025 10-K Analysis
Business Overview
- • Core business: Worldwide offshore drilling services via ownership and operation of drillships and semi-submersibles for shallow to ultra-deepwater contracts
- • New emphasis: Upgraded drillship entering contract Q2 2026, expanding management services for Sonangol’s two drilling units
- • Strategic shift: Delisted common shares from Oslo Stock Exchange (Sep 2024) to focus on NYSE and Euronext listings for broader capital access
- • Quantitative: Employee count steady at ~3,000; fleet of 15 drilling units with 10 active, 1 upgraded, 3 cold stacked as of Dec 31, 2025
- • Noteworthy: Total Recordable Incident Rate (TRIR) improved to 0.17 in 2025, well below 2025 IADC average of 0.34, reflecting strong safety performance
Management Discussion & Analysis
- • Revenue $1,437M, up 4% YoY from $1,385M, driven by 8% increase in contract revenues (+$80M) partially offset by declines in reimbursable and leasing revenues
- • Operating profit $47M vs $412M, operating margin 3.3% vs 29.7%, impacted by increased operating expenses (+12%) and loss on impairment of $22M
- • Best performing segment: Contract revenues $1,089M, up 8% YoY; worst: Leasing revenues $33M, down 39% YoY due to asset disposals
- • Vessel and rig operating expenses up $55M (8%) due to fleet activity, depreciation +42% due to capital projects; management contract expenses +33% from unfavorable court judgment
- • Share repurchases of $634M authorized since 2023, $192M repurchased by September 2024; capital allocation targets <1.0x net leverage, minimum $250M cash-on-hand
- • Management expects market recovery in 2027 amid increased global tendering activity; risks include U.S. trade policy volatility, inflationary cost pressures, and deferral of offshore expenditures
Risk Factors
- • Regulatory/legal risk: U.S. tariffs under Trade Act of 1974 may impose 10-15% global tariffs, pressuring costs across operating jurisdictions and reducing competitive pricing
- • Geopolitical/macroeconomic threat: Ongoing conflicts in Ukraine and the Middle East create regional instability, potentially disrupting offshore drilling activity and supply chains
- • Operational/supply chain vulnerability: Rig upgrade delays due to shipyard financial problems, labor shortages, or weather interference may cause costly downtime and contract penalties
- • Competitive/market disruption risk: February 2026 merger of two major competitors may create larger rivals with enhanced scale, threatening contract awards and market share
- • Financial/structural risk: Increased competition for skilled offshore crew and local staffing regulatory requirements in Brazil and West Africa may raise costs and risk contract penalties for under-staffing
Seadrill Ltd FY2025 Key Financial MetricsXBRL
Revenue
$1.1B
▲ +7.9% YoY
Net Income
-$77M
▼ -117.3% YoY
Operating Margin
4.3%
▼ -3652bp YoY
Net Margin
-7.1%
▼ -5127bp YoY
ROE
-2.7%
▼ -1798bp YoY
Total Assets
$3.9B
▼ -5.0% YoY
Operating Cash Flow
-$28M
▼ -131.8% YoY
Source: XBRL data from Seadrill Ltd FY2025 10-K filing on SEC EDGAR. All figures in USD.
Get deeper insights on Seadrill Ltd
Access full AI analysis, insider trading data, fund holdings, and cross-signal detection on SignalX.