Revenue growth remains highly inconsistent, oscillating between a 63.4% expansion in 2023Q4 and a 25.7% contraction by 2024Q4, while gross margins have fluctuated wildly from a 42.8% peak in 2024Q2 to 8.5% in 2025Q2.
| 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 | 1.45B | 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 % | 8.3% | 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 | 1.21B | 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 | 240M | 173M | 293M | 565M | 281M | -38M | -323M | -239M | 383M | 1.21B | 1.95B | 2.5B | 2.74B | 2.96B | 2.65B |
| Gross Margin % | 16.56% | 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 | 164M | 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 | 78M | 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 | 1000K | 0 | -226M | 162M | 209M | 51M | 4.08B | -39M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | 76M | 70M | 412M | 329M | 72M | -156M | -4.48B | -295M | -360M | 135M | 936M | 1.48B | 1.75B | 1.97B | 1.8B |
| Operating Margin % | 5.24% | 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 | 330M | 308M | 580M | 484M | 224M | -29M | -4.16B | 131M | 304M | 890M | 1.68B | 2.15B | 2.31B | 2.62B | 2.43B |
| EBITDA Margin % | 22.77% | 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 % | -38.32% | -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) | 254M | 238M | 168M | 155M | 152M | 127M | 319M | 426M | 664M | 755M | 745M | 663M | 562M | 646M | 627M |
| EBIT | 31M | 10M | 394M | 339M | 72M | -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 | 12M | 14M | 25M | 35M | 0 | 1M | 8M | 35M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 61M | 61M | 61M | 59M | 91M | 109M | 398M | 421M | 240M | 210M | 414M | 459M | 764M | 288M | 315M |
| Other Income/Expense | -112M | -121M | -79M | -12M | 3.61B | -416M | 50M | -465M | -3.67B | -2.31B | -982M | -1.45B | 1.83B | 842M | -366M |
| Pretax Income | -36M | -51M | 333M | 317M | 3.68B | -572M | -4.43B | -760M | -4.45B | -3.04B | 44M | -427M | 4.11B | 2.94B | 1.44B |
| Pretax Margin % | -2.48% | -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 | -12M | 26M | -113M | 17M | 12M | 0 | -1M | -40M | 38M | 66M | 199M | 208M | 19M | 154M | 232M |
| Effective Tax Rate % | 33.33% | -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 | -24M | -77M | 446M | 300M | 3.91B | -587M | -4.66B | -1.22B | -4.48B | -2.97B | -181M | -634M | 3.97B | 2.65B | 1.11B |
| Net Margin % | -1.66% | -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 % | -106.45% | -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) | -24M | -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) | -0.39 | -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 % | -120.37% | -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% |
Volatile rig utilization rates
According to the provided quarterly financial data, Seadrill's revenue growth has exhibited significant volatility, oscillating between a 63.4% expansion in 2023Q4 and a 25.7% contraction by 2024Q4, suggesting that the company's top-line trajectory is currently struggling to establish a consistent, sustainable upward momentum in the offshore sector.
The erratic revenue performance reflects the inherent lumpiness of project-based offshore drilling contracts where timing of rig mobilizations dictates quarterly outcomes. Investors should monitor whether the recent 6.9% growth in 2026Q1 represents a durable recovery or merely a temporary reprieve from the previous year's sharp declines.
As reported in the company's income statements, gross margins have fluctuated wildly from a peak of 42.8% in 2024Q2 down to 8.5% in 2025Q2, indicating that Seadrill faces substantial challenges in maintaining consistent pricing power amidst the high fixed-cost environment characteristic of ultra-deepwater drilling operations.
The wide variance in gross margins suggests that the company is highly sensitive to operational downtime and the costs associated with maintaining idle or reactivating rigs. This lack of margin stability implies that Seadrill's profitability is currently more dependent on specific contract timing than on a structural competitive advantage in cost management.
Based on the reported figures, Seadrill's operating income has frequently failed to scale alongside revenue, with operating margins dipping as low as -1.0% in 2024Q4, which highlights the difficulty of achieving meaningful operating leverage when fixed rig operating costs remain a dominant component of the expense structure.
The inability to consistently expand operating margins during periods of revenue growth suggests that the company's overhead and rig-specific maintenance costs are not yet optimized for current utilization levels. Analysts should investigate whether the recent 7.0% operating margin in 2026Q1 signals a permanent improvement in cost discipline or a temporary reduction in maintenance spending.
Financial statements reveal that net income has been subject to extreme swings, including a $253 million profit in 2024Q2 followed by a $42 million loss in 2025Q2, suggesting that reported earnings are heavily influenced by non-operating items and accounting adjustments rather than core operational cash generation.
The frequent divergence between operating income and net income warrants further investigation into the impact of non-recurring items and the potential for fresh-start accounting distortions following the 2022 restructuring. Investors should be cautious of relying on headline EPS figures, as they appear to be poor indicators of the company's underlying economic health.
While the company maintains a lean debt-to-equity ratio of 0.21%, the persistent negative net margins observed in several recent quarters suggest that the market's focus on balance sheet strength may be overlooking the fundamental difficulty of achieving sustained profitability in a capital-intensive, high-spec drilling market.
Short-sellers would likely focus on the company's inability to generate consistent net income despite its specialized fleet, arguing that the high cost of rig reactivations may continue to erode shareholder value. The reliance on a small number of high-spec assets creates a binary risk profile where any operational failure could disproportionately impact the bottom line.
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.