Revenue growth accelerated to 19.1% YoY in 2026Q2, lifting gross margin to 38.5% and operating margin to 16.0%, though the trailing four-quarter average gross margin is only 16.8%, indicating volatility.
Seadrill Limited (SDRL) annual income statement — 14-year revenue, gross profit & net income history
| 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 |
|---|
| Sales/Revenue | 1.52B | 1.44B | 1.39B | 1.47B | 936M | 907M | 961M | 1.39B | 1.18B | 2B | 2.97B | 4.11B | 4.68B | 4.94B | 4.31B |
| Revenue Growth % | 12.25% | 3.75% | -5.78% | 57.05% | 3.2% | -5.62% | -30.76% | 17.43% | -40.87% | -32.67% | -27.69% | -12.21% | -5.3% | 14.59% | - |
| Cost of Goods Sold | 1.14B | 1.26B | 1.09B | 905M | 655M | 945M | 1.28B | 1.63B | 799M | 792M | 1.01B | 1.61B | 1.94B | 1.98B | 1.66B |
| COGS % of Revenue | - | 87.96% | 78.84% | 61.56% | 69.98% | 104.19% | 133.61% | 117.22% | 67.6% | 39.62% | 34.19% | 39.21% | 41.44% | 40.03% | 38.42% |
| Gross Profit | 381M | 173M | 293M | 565M | 281M | -38M | -323M | -239M | 383M | 1.21B | 1.95B | 2.5B | 2.74B | 2.96B | 2.65B |
| Gross Margin % | 25.05% | 12.04% | 21.16% | 38.44% | 30.02% | -4.19% | -33.61% | -17.22% | 32.4% | 60.38% | 65.81% | 60.79% | 58.56% | 59.97% | 61.58% |
| Gross Profit Growth % | - | -40.96% | -48.14% | 101.07% | 839.47% | 88.24% | -35.15% | -162.4% | -68.27% | -38.23% | -21.71% | -8.87% | -7.53% | 11.61% | - |
| Operating Expenses | 239M | 103M | -119M | 236M | 209M | 118M | 4.16B | 56M | 277M | 4.03B | 1.5B | 2.46B | 2.13B | 266M | 902M |
| OpEx % of Revenue | - | 7.17% | -8.59% | 16.05% | 22.33% | 13.01% | 432.67% | 4.03% | 23.43% | 201.75% | 50.39% | 60.01% | 45.56% | 5.39% | 20.93% |
| Selling, General & Admin | 81M | 103M | 107M | 74M | 0 | 67M | 74M | 95M | 90M | 277M | 234M | 249M | 315M | 300M | 250M |
| SG&A % of Revenue | - | 7.17% | 7.73% | 5.03% | - | 7.39% | 7.7% | 6.84% | 7.61% | 13.86% | 7.88% | 6.06% | 6.74% | 6.07% | 5.8% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 2M | 0 | -226M | 162M | 209M | 51M | 4.08B | -39M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | 142M | 70M | 412M | 329M | 72M | -156M | -4.48B | -295M | -360M | 135M | 936M | 1.48B | 1.75B | 1.97B | 1.8B |
| Operating Margin % | 9.34% | 4.87% | 29.75% | 22.38% | 7.69% | -17.2% | -466.29% | -21.25% | -30.46% | 6.75% | 31.53% | 36.09% | 37.4% | 39.93% | 41.83% |
| Operating Income Growth % | - | -83.01% | 25.23% | 356.94% | 146.15% | 96.52% | -1418.98% | 18.06% | -366.67% | -85.58% | -36.84% | -15.27% | -11.31% | 9.37% | - |
| EBITDA | 412M | 308M | 580M | 484M | 224M | -29M | -4.16B | 131M | 304M | 890M | 1.68B | 2.15B | 2.31B | 2.62B | 2.43B |
| EBITDA Margin % | 27.09% | 21.43% | 41.88% | 32.93% | 23.93% | -3.2% | -433.09% | 9.44% | 25.72% | 44.52% | 56.62% | 52.24% | 49.41% | 53.01% | 56.38% |
| EBITDA Growth % | 54.89% | -46.9% | 19.83% | 116.07% | 872.41% | 99.3% | -3277.1% | -56.91% | -65.84% | -47.06% | -21.63% | -7.18% | -11.73% | 7.74% | - |
| D&A (Non-Cash Add-back) | 270M | 238M | 168M | 155M | 152M | 127M | 319M | 426M | 664M | 755M | 745M | 663M | 562M | 646M | 627M |
| EBIT | 92M | 10M | 394M | 339M | 3.77B | -463M | -4.03B | -339M | -360M | 135M | 936M | 1.48B | 1.75B | 1.97B | 1.75B |
| Net Interest Income | -49M | -47M | -36M | -24M | -91M | -108M | -390M | -386M | -240M | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 13M | 14M | 25M | 35M | 14M | 1M | 8M | 35M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 62M | 61M | 61M | 59M | 105M | 109M | 398M | 421M | 240M | 210M | 414M | 459M | 764M | 288M | 315M |
| Other Income/Expense | -124M | -121M | -79M | -12M | 3.61B | -416M | 50M | -465M | -3.67B | -2.31B | -982M | -1.45B | 1.83B | 842M | -366M |
| Pretax Income | 18M | -51M | 333M | 317M | 3.68B | -572M | -4.43B | -760M | -4.45B | -3.04B | 44M | -427M | 4.11B | 2.94B | 1.44B |
| Pretax Margin % | 1.18% | -3.55% | 24.04% | 21.56% | 392.95% | -63.07% | -461.08% | -54.75% | -376.73% | -151.88% | 1.48% | -10.4% | 87.79% | 59.53% | 33.34% |
| Income Tax | 17M | 26M | -113M | 17M | 12M | 0 | -1M | -40M | 38M | 66M | 199M | 208M | 19M | 154M | 232M |
| Effective Tax Rate % | 94.44% | -50.98% | -33.93% | 5.36% | 0.33% | 0% | 0.02% | 5.26% | -0.85% | -2.17% | 452.27% | -48.71% | 0.46% | 5.24% | 16.14% |
| Net Income | 1M | -77M | 446M | 300M | 3.91B | -587M | -4.66B | -1.22B | -4.48B | -2.97B | -181M | -634M | 3.97B | 2.65B | 1.11B |
| Net Margin % | 0.07% | -5.36% | 32.2% | 20.41% | 417.41% | -64.72% | -484.81% | -87.82% | -379.27% | -148.72% | -6.1% | -15.44% | 84.95% | 53.72% | 25.71% |
| Net Income Growth % | -98.7% | -117.26% | 48.67% | -92.32% | 765.59% | 87.4% | -282.2% | 72.81% | -50.79% | -1542.54% | 71.45% | -115.96% | 49.76% | 139.44% | - |
| Net Income (Continuing) | 1M | -77M | 446M | 300M | 3.67B | -572M | -4.43B | -720M | -4.49B | -3.1B | -155M | -635M | 4.09B | 2.79B | 1.11B |
| Discontinued Operations | 0 | 0 | 0 | 0 | 241M | -15M | -233M | -502M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 151M | 190M | 399M | 542M | 615M | 626M | 690M | 521M |
| EPS (Diluted) | 0.02 | -1.24 | 6.37 | 4.05 | 73.32 | -5.85 | -46.59 | -12.19 | -14.87 | -5.89 | -0.36 | -1.29 | 8.06 | 5.39 | 2.26 |
| EPS Growth % | -97.52% | -119.47% | 57.28% | -94.48% | 1353.33% | 87.44% | -282.2% | 18.02% | -152.46% | -1536.11% | 72.09% | -116% | 49.54% | 138.5% | - |
| EPS (Basic) | - | -1.24 | 6.56 | 4.23 | 73.32 | -5.85 | -46.59 | -12.19 | -14.87 | -5.89 | -0.36 | -1.29 | 8.30 | 5.47 | 2.34 |
| Diluted Shares Outstanding | 62.1M | 62.1M | 71M | 74M | 50M | 100M | 100M | 100M | 301.45M | 505M | 501M | 493M | 493M | 492M | 490M |
| Basic Shares Outstanding | 62.1M | 62.1M | 68M | 71M | 50M | 100M | 100M | 100M | 301.45M | 504.75M | 501M | 491.47M | 478.9M | 485.05M | 474.17M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | 35.62% | 48.51% | 133.16% |
Quick answers to the most common questions about buying SDRL stock.
For fiscal year 2025, Seadrill Limited (SDRL) reported total revenue of $1.44B. This represents a 66.7% decline compared to $4.31B in 2012.
Seadrill Limited (SDRL) reported a net loss of $77.0M for the fiscal year ending 2025.
Seadrill Limited (SDRL) reported an operating income of $70.0M, resulting in an operating profit margin of 4.9%. This margin reflects the operational efficiency of the business before interest and taxes.
Seadrill Limited (SDRL) generated $173.0M in gross profit for the year, representing a gross profit margin of 12.0%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Margin sustainability amid cost inflation
Metrics are mathematically derived from official filings.
Revenue Recovery Gains Momentum
SDRL's revenue jumped 19.1% YoY in 2026Q2 to $449M, the strongest growth in the series, driven by improved utilization and contract coverage in the U.S. Gulf, according to the latest quarterly report.
The sequential acceleration from 6.9% in 2026Q1 to 19.1% in 2026Q2 suggests a cyclical upturn in demand for high-spec floaters. The company's raised full-year guidance implies management expects this momentum to persist, though the durability depends on dayrate trends and fleet utilization. Investors should monitor whether this growth is broad-based or concentrated in specific basins.
Gross Margin Volatility Signals Cost Pressures
Gross margin swung from 8.5% in 2025Q2 to 38.5% in 2026Q2, reflecting the lumpy nature of reactivation costs and reimbursable expenses, as reported in the income statement data.
The wide fluctuation in gross margin—from 4.8% in 2024Q4 to 42.8% in 2024Q2—indicates that the company's cost structure is highly sensitive to the timing of rig mobilizations and stacking costs. The 2026Q2 margin of 38.5% is a positive outlier, but the average over the past year is closer to 15%, suggesting that sustainable margin expansion requires a sustained increase in dayrates. The negative net margin in several quarters highlights that depreciation and interest costs continue to weigh on profitability.
Operating Leverage Emerges in Q2 2026
In 2026Q2, operating income of $72M on $449M revenue yielded a 16.0% operating margin, up from 7.0% in the prior quarter, demonstrating significant operating leverage as revenue scales, per the latest financials.
The jump in operating margin from 7.0% to 16.0% on a 25.4% sequential revenue increase indicates that fixed costs are being absorbed more efficiently. However, SG&A expenses also rose to $29M, the highest in the series, which may temper future leverage if not controlled. The company's lean cost base post-restructuring appears to be amplifying the impact of incremental revenue, but investors should watch for cost inflation in labor and maintenance.
Net Income Distorted by One-Time Gains
Net income swung from a $42M loss in 2025Q2 to a $29M profit in 2026Q2, but the 2024Q4 net income of $101M on negative operating income suggests significant non-operating items, as per the income statement.
The 2024Q4 quarter reported a net income of $101M despite an operating loss of $3M, implying a large non-operating gain, possibly from debt restructuring or asset sales. Similarly, 2024Q2's operating income of $288M far exceeded gross profit, indicating a one-time gain. These anomalies suggest that reported net income is not a clean reflection of operational performance. Stock-based compensation has been modest, averaging around $5M per quarter, which is not a major drag, but the tax rate and other non-operating items warrant scrutiny.
COGS Volatility Masks Underlying Cost Trends
COGS as a percentage of revenue ranged from 57.2% in 2024Q2 to 95.2% in 2024Q4, reflecting the impact of reactivation and stacking costs, as reported in the quarterly data.
The extreme variability in COGS—from $206M to $345M—indicates that the company's cost structure is not stable, with periods of high expenses likely tied to rig mobilizations or maintenance. The 2026Q2 COGS of $276M is the lowest in absolute terms since 2024Q1, suggesting improved cost discipline. However, the lack of R&D spending is typical for a drilling contractor, and SG&A has remained relatively controlled, averaging around $26M per quarter. The key cost driver remains the fixed nature of rig operating costs, which do not decline proportionally with revenue.
2026Q2 Marks a Turning Point
The 2026Q2 quarter stands out as a clear inflection, with revenue up 19.1% YoY, gross margin at 38.5%, and positive net income of $29M, breaking a streak of losses, based on the latest financials.
This quarter represents the first time in the series that revenue growth accelerated above 10% while gross margin exceeded 30% and net income turned positive. The raised guidance and enhanced U.S. Gulf contract coverage suggest that the company is benefiting from a tightening deepwater market. However, the sustainability of this inflection depends on whether dayrates continue to rise and whether the company can avoid further reactivation cost spikes. The negative net margins in prior quarters highlight the fragility of the recovery.
Margin Recovery May Be Unsustainable
Despite the strong 2026Q2, the average gross margin over the last four quarters is only 16.8%, and net margin remains negative in three of the last five quarters, per the income statement data.
Short-sellers could argue that the 38.5% gross margin in 2026Q2 is an outlier, driven by favorable contract mix and low reactivation costs, and that the company's high fixed-cost base will continue to produce volatile results. The persistent negative net margins, even in quarters with positive operating income, suggest that depreciation and interest expenses are a heavy burden. Additionally, peer consolidation (e.g., Noble and Diamond Offshore) may reduce SDRL's bargaining power with clients, potentially capping dayrate growth. Investors should monitor whether the raised guidance translates into sustained profitability or if it is a one-quarter phenomenon.