Free cash flow margins have improved to 12.6% in 2026Q1 from a negative 22.1% in 2024Q1, suggesting that the shift toward maintenance-focused capital allocation is beginning to enhance cash conversion efficiency.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Cash from Operations | 887M | 749M | 447M | 164M | 448M | 575M | 398M | 340M | 558M | 1.14B | 1.91B | 3.44B | 2.22B | 1.92B | 2.71B | 1.78B | 3.95B | 5.6B | 4.96B | 3.07B | 1.24B | 864.2M | 604.1M | 525.8M | 936.6M | 566.8M | 197.38M | 240.64M | 469.7M | 416.8M | 125.52M |
| Operating CF Margin % | - | 18.89% | 12.68% | 5.79% | 17.4% | 22.5% | 12.63% | 11.01% | 18.49% | 38.48% | 45.93% | 46.64% | 24.17% | 20.74% | 30.27% | 22.24% | 49.64% | 48.44% | 39.13% | 48.19% | 31.86% | 29.88% | 23.11% | 21.6% | 35.03% | 20.1% | 16.05% | 37.12% | 43.07% | 46.76% | 23.73% |
| Operating CF Growth % | 623.23% | 67.56% | 172.56% | -63.39% | -22.09% | 44.47% | 17.06% | -39.07% | -51.22% | -40.14% | -44.53% | 55.18% | 15.75% | -29.17% | 51.71% | -54.76% | -29.51% | 12.89% | 61.37% | 148.42% | 43.14% | 43.06% | 14.89% | -43.86% | 65.24% | 187.16% | -17.98% | -48.77% | 12.69% | 232.06% | -31.89% |
| Net Income | -2.77B | -2.92B | -512M | -954M | -621M | -591M | -568M | -1.26B | -2B | -3.1B | 827M | 825M | -1.96B | 1.37B | 876M | -5.63B | 988M | 3.17B | 4.2B | 3.13B | 1.39B | 715.6M | 152.2M | 19.2M | -3.73B | 252.6M | 107.12M | 58.1M | 343.4M | 175.9M | 78.05M |
| Depreciation & Amortization | 626M | 659M | 743M | 796M | 852M | 962M | 996M | 1.04B | 930M | 832M | 893M | 948M | 1.12B | 1.09B | 1.08B | 1.4B | 1.49B | 1.18B | 746M | 411M | 401M | 399.2M | 503.4M | 483.9M | 506.5M | 621M | 268.91M | 105.77M | 116.9M | 326M | 46.59M |
| Stock-Based Compensation | 35M | 0 | 47M | 40M | 29M | 28M | 31M | 37M | 45M | 41M | 42M | 67M | 98M | 113M | 97M | 95M | 102M | 81M | 64M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | -199M | -111M | -42M | 18M | 46M | 128M | 60M | 248M | -16M | 89M | 68M | -78M | -142M | -9M | -133M | -31M | -145M | 13M | 8M | -40M | -23M | 27.1M | 18.1M | -98.5M | -224.4M | -98.2M | -30.1M | -24.25M | 64.5M | 60M | 6.53M |
| Other Non-Cash Items | 3.38B | 3.23B | 465M | 497M | 236M | 125M | 293M | 571M | 1.47B | 3.21B | -45M | 1.96B | 4.12B | 173M | 244M | 5.28B | 1.1B | 717M | 260M | 75M | 10M | -142.6M | -42.5M | 59.6M | 4.27B | -100.4M | -67.34M | 24.9M | 29.9M | -105.7M | -10.72M |
| Working Capital Changes | -190M | -109M | -254M | -233M | -94M | -77M | -414M | -301M | 129M | 68M | 126M | -278M | -1.02B | -820M | 543M | 668M | 409M | 434M | -321M | -238M | -69M | -135.1M | -27.1M | 61.6M | 121M | -108.2M | -81.21M | 76.12M | -62.7M | -700K | 5.08M |
| Change in Receivables | 0 | 0 | 0 | 0 | -15M | 137M | 67M | 87M | 180M | 230M | 350M | 757M | 63M | 58M | -139M | -174M | 386M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | -85M | -111M | -64M | 83M | -115M | -96M | 87M | 811M | 567M | -792M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -31.2M | 0 |
| Change in Payables | 0 | 0 | 0 | 0 | 8M | -52M | -254M | -21M | -154M | -115M | -286M | -844M | -874M | -625M | 931M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | 35M | -33M | -151M | -423M | -757M | -233M | -257M | -268M | -797M | -587M | -1.31B | -1.93B | -1.83B | -1.66B | -389M | -1.9B | -721M | -2.69B | -2.2B | -5.68B | -415M | 168.6M | 548.8M | -447.5M | -45.3M | -26.4M | -492.91M | -90.15M | -546.1M | -712.2M | -453.58M |
| Capital Expenditures | -91M | -123M | -254M | -427M | -717M | -208M | -265M | -387M | -184M | -497M | -1.34B | -2B | -2.17B | -2.24B | -1.41B | -1.02B | -1.41B | -3.05B | -2.21B | -1.38B | -876M | -181.9M | -127M | -495.9M | -141M | -506.2M | -574.7M | -537.03M | -573.3M | -698.8M | -212.96M |
| CapEx % of Revenue | 2.2% | 3.1% | 7.21% | 15.08% | 27.84% | 8.14% | 8.41% | 12.53% | 6.1% | 16.72% | 32.3% | 27.09% | 23.57% | 24.2% | 15.75% | 12.71% | 17.75% | 26.41% | 17.42% | 21.64% | 22.57% | 6.29% | 4.86% | 20.37% | 5.27% | 17.95% | 46.74% | 82.84% | 52.57% | 78.4% | 40.26% |
| Acquisitions | 65M | 84M | 0 | 0 | -42M | -1M | -19M | -77M | -990M | 350M | 30M | 54M | 0 | 0 | 0 | 284M | 1.41B | 45M | 0 | -4.43B | 0 | 0 | 0 | 0 | 0 | 264.7M | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 46M | 0 | 103M | 4M | 2M | -24M | -243M | -314M | 43M | 360M | 31M | 69M | 337M | 580M | 1.02B | -91M | -754M | 18M | 348M | 379M | 461M | 350.5M | 675.8M | 48.4M | 95.7M | -3.8M | 81.79M | 446.88M | 27.2M | -13.4M | -240.62M |
| Cash from Financing | -998M | -660M | -350M | 263M | -112M | -490M | -930M | -312M | -147M | -1.09B | 115M | -1.81B | -1B | -2.15B | -1.2B | 734M | -961M | -2.74B | -3.04B | 3.38B | -800M | -1.04B | -1.18B | -818.5M | -530.5M | 278.5M | 164.4M | -159.29M | 91.6M | 279.3M | 239.24M |
| Debt Issued (Net) | -1.41B | -1.06B | -333M | 266M | -379M | -606M | -894M | -269M | -51M | -1.14B | 106M | -1.51B | -539M | -1.69B | -1.05B | 442M | -719M | -2.74B | -3.07B | 13.46B | 1.7B | -880M | -1.21B | -1B | -516M | 288.8M | 179.3M | -157.18M | 28.52M | -186.38M | 254.45M |
| Equity Issued (Net) | 0 | 421M | 0 | 0 | 263M | 158M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1.21B | -240M | 0 | -7M | -360M | -2.53B | -170M | 30.4M | 12.8M | 0 | 29.6M | 13.7M | 0 | 6.7M | -53.2M | 3.48M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -381M | -1.02B | -606M | -278M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -19.1M | -38.2M | -25.27M | 0 | -12M | -92.8M | -8.21M |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -240M | 0 | -7M | -400M | -2.6B | -400M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -53.2M | 0 |
| Other Financing | 412M | -17M | -17M | -3M | 4M | -42M | -36M | -43M | -96M | 99M | 9M | 78M | 557M | 147M | 123M | -156M | -2M | 4M | 36M | -9.72B | 32M | 11.3M | 1M | 169.3M | 4M | -1.7M | -1.9M | -2.11M | 68.38M | 41.92M | -10.49M |
| Net Change in Cash | -76M | 56M | -54M | 4M | -421M | -148M | -789M | -240M | -386M | -533M | 713M | -296M | -608M | -1.89B | 1.12B | 623M | 2.26B | 167M | -278M | 774M | 22M | -5.9M | -22.7M | -740.2M | 360.8M | 818.9M | -131.13M | -8.81M | 15.2M | -16.1M | -88.82M |
| Free Cash Flow | 796M | 626M | 193M | -263M | -269M | 367M | 133M | -47M | 374M | 647M | 567M | 1.44B | 55M | -320M | 1.3B | 765M | 2.54B | 2.55B | 2.75B | 1.69B | 361M | 682.3M | 477.1M | 29.9M | 795.6M | 60.6M | -377.32M | -296.39M | -103.6M | -282M | -87.44M |
| FCF Margin % | 19.23% | 15.79% | 5.48% | -9.29% | -10.45% | 14.36% | 4.22% | -1.52% | 12.39% | 21.76% | 13.63% | 19.55% | 0.6% | -3.46% | 14.52% | 9.53% | 31.89% | 22.03% | 21.71% | 26.55% | 9.3% | 23.59% | 18.25% | 1.23% | 29.75% | 2.15% | -30.69% | -45.72% | -9.5% | -31.64% | -16.53% |
| FCF Growth % | 142.68% | 224.35% | 173.38% | 2.23% | -173.3% | 175.94% | 382.98% | -112.57% | -42.19% | 14.11% | -60.73% | 2525.45% | 117.19% | -124.63% | 69.8% | -69.82% | -0.43% | -7.45% | 62.49% | 368.98% | -47.09% | 43.01% | 1495.65% | -96.24% | 1212.87% | 116.06% | -27.3% | -186.09% | 63.26% | -222.51% | 71.17% |
| FCF per Share | 0.71 | 0.65 | 0.21 | -0.34 | -0.38 | 0.58 | 0.22 | -0.08 | 0.80 | 1.65 | 1.54 | 3.98 | 0.15 | -0.89 | 3.65 | 2.38 | 7.92 | 7.93 | 8.57 | 7.63 | 1.58 | 2.05 | 1.49 | 0.09 | 2.49 | 0.19 | -1.78 | -2.70 | -0.94 | -2.57 | -1.22 |
| FCF Conversion (FCF/Net Income) | -0.29x | -0.26x | -0.87x | -0.17x | -0.72x | -0.97x | -0.70x | -0.27x | -0.28x | -0.37x | 2.46x | 3.98x | -1.21x | 1.36x | -12.37x | -0.31x | 4.26x | 1.76x | 1.23x | 0.98x | 0.89x | 1.21x | 3.97x | 27.39x | -0.25x | 2.24x | 1.82x | 4.14x | 1.38x | 1.60x | 1.61x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 648M | 570M | 486M | 351M | 439M | 490M | 669M | 719M | 501M | 455M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 121M | 151M | 124M | 172M | 314M | 329M | 457M | 347M | 338M | 493M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
High Debt Maturity Profile
According to recent financial disclosures, Transocean's operating cash flow frequently decouples from net income, as evidenced by the 2025Q3 period where the company reported a $1.9 billion net loss while simultaneously generating $246 million in operating cash flow, highlighting significant non-cash accounting distortions.
The persistent divergence between net income and operating cash flow suggests that GAAP earnings are heavily impacted by non-cash impairments and financial charges rather than operational performance. Investors should monitor this gap, as it indicates that the company's reported bottom line is a poor proxy for its actual ability to generate liquidity from drilling operations.
As reported in quarterly filings, Transocean has demonstrated a positive free cash flow trajectory, moving from a negative 22.1% margin in 2024Q1 to a 12.6% margin by 2026Q1, reflecting the successful deployment of high-spec assets into a tightening ultra-deepwater market environment.
The transition toward consistent positive free cash flow suggests that the company is finally beginning to harvest the benefits of its high-spec fleet investments. However, the sustainability of this trend remains contingent on maintaining high utilization rates and avoiding the heavy capital outlays that previously depressed cash generation.
Based on historical data, Transocean's capital intensity has significantly declined, with CapEx as a percentage of revenue dropping from a peak of 29.7% in 2023Q4 to just 2.6% in 2026Q1, indicating a shift from aggressive fleet expansion toward maintenance-focused capital allocation strategies.
This reduction in capital intensity appears to be a deliberate effort to preserve liquidity and manage the company's debt burden. While this supports near-term cash flow, it warrants further investigation into whether the current level of maintenance CapEx is sufficient to sustain the long-term operational integrity of the ultra-deepwater fleet.
Data from recent statements reveals that Transocean's working capital remains highly erratic, with a $154 million cash outflow in 2026Q1 following an $81 million inflow in 2025Q4, suggesting that the timing of contract payments and mobilization fees creates significant quarter-to-quarter liquidity fluctuations.
The volatility in working capital appears to be driven by the lumpy nature of offshore drilling contracts and the associated mobilization costs. Investors should monitor these swings closely, as they can temporarily obscure the underlying cash-generating efficiency of the core drilling business.
Quick answers to the most common questions about buying RIG stock.
Transocean Ltd. (RIG) generated $749.0M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Transocean Ltd. (RIG) generated $626.0M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Transocean Ltd. (RIG) spent $123.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.