Short answer
Seadrill Ltd (SDRL) filed its fiscal 2025 10-K annual report with the SEC on Feb 26, 2026. It reported revenue of $1.1B (+7.9% year over year) and net income of −$77M.
- Top risk flagged: 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
FY2025 key financial metrics · XBRL
- Revenue
- $1.1B
- +7.9% YoY
- Net income
- −$77M
- −117.3% YoY
- Operating margin
- 4.3%
- −36.5 pp YoY
- ROE
- -2.7%
- −18.0 pp YoY
- Operating cash flow
- −$28M
- −131.8% YoY
Source: XBRL data from the Seadrill Ltd (SDRL) FY2025 10-K on SEC EDGAR. USD.
Seadrill Ltd FY2025 10-K analysis
AI summary of each section, grounded in the filing text
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
Generated from the filing text; verify against the original. How to read a 10-K
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