Revenue rose 21.6% year over year to $428.0M in 2026Q3, yet the net margin of -7.0% and gross margin volatility between 4.8% and 42.8% suggest that top-line growth has not yet produced consistent bottom-line results.
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 | 1.6B | 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 % | 18.03% | 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 | 1.26B | 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 | 338M | 173M | 293M | 565M | 281M | -38M | -323M | -239M | 383M | 1.21B | 1.95B | 2.5B | 2.74B | 2.96B | 2.65B |
| Gross Margin % | 21.16% | 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 | 178M | 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 | 160M | 70M | 412M | 329M | 72M | -156M | -4.48B | -295M | -360M | 135M | 936M | 1.48B | 1.75B | 1.97B | 1.8B |
| Operating Margin % | 10.02% | 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 | 449M | 308M | 580M | 484M | 224M | -29M | -4.16B | 131M | 304M | 890M | 1.68B | 2.15B | 2.31B | 2.62B | 2.43B |
| EBITDA Margin % | 28.12% | 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 % | 72.03% | -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) | 289M | 238M | 168M | 155M | 152M | 127M | 319M | 426M | 664M | 755M | 745M | 663M | 562M | 646M | 627M |
| EBIT | 69M | 10M | 394M | 339M | 3.77B | -463M | -4.03B | -339M | -360M | 135M | 936M | 1.48B | 1.75B | 1.97B | 1.75B |
| Net Interest Income | -50M | -47M | -36M | -24M | -91M | -108M | -390M | -386M | -240M | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 12M | 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 | -153M | -121M | -79M | -12M | 3.61B | -416M | 50M | -465M | -3.67B | -2.31B | -982M | -1.45B | 1.83B | 842M | -366M |
| Pretax Income | 7M | -51M | 333M | 317M | 3.68B | -572M | -4.43B | -760M | -4.45B | -3.04B | 44M | -427M | 4.11B | 2.94B | 1.44B |
| Pretax Margin % | 0.44% | -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 | 25M | 26M | -113M | 17M | 12M | 0 | -1M | -40M | 38M | 66M | 199M | 208M | 19M | 154M | 232M |
| Effective Tax Rate % | 357.14% | -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 | -18M | -77M | 446M | 300M | 3.91B | -587M | -4.66B | -1.22B | -4.48B | -2.97B | -181M | -634M | 3.97B | 2.65B | 1.11B |
| Net Margin % | -1.13% | -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 % | -152.94% | -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) | -18M | -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) | -0.29 | -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 % | -152.73% | -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 | 61.22M | 62.1M | 71M | 74M | 50M | 100M | 100M | 100M | 301.45M | 505M | 501M | 493M | 493M | 492M | 490M |
| Basic Shares Outstanding | 61.22M | 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
Thin margins amid cyclicality
Metrics are mathematically derived from official filings.
Revenue Growth Recovering from Volatile Base
Based on reported quarterly figures, SDRL's revenue reached $428.0M in 2026Q3, up 21.6% year over year, though quarterly results have swung widely across the ten-quarter window and the durability of this recovery remains uncertain.
The 21.6% year-over-year gain in 2026Q3 follows a period of near-flat to negative growth in 2025, suggesting a cyclical upturn in utilization or dayrates rather than a structural expansion. Because the reported figures do not separate volume from pricing effects, investors should monitor whether subsequent quarters sustain this pace. Revenue in the 2024Q2 period of $360.0M was not exceeded until well into the later periods, which reinforces the view that top-line gains have been episodic.
Gross Margin Volatility Undermines Pricing Power
As reported in financial statements, SDRL's gross margin swung from 42.8% in 2024Q2 to 4.8% in 2024Q4 and 38.5% in 2026Q2, indicating highly unstable unit economics tied to contract timing and cost events.
Such extreme quarter-to-quarter variation suggests that reactivation, stacking, or reimbursable pass-through items may be distorting reported gross profit, and the data alone cannot isolate which effect dominates. The absence of consistent gross margin levels argues against classifying the company as having durable pricing power relative to peers. Investors may wish to examine segment disclosures to determine whether the 2026Q2 spike reflects a sustainable dayrate step-up or a temporary timing benefit.
Operating Leverage Hinges on Cost Discipline
Based on SDRL's reported figures, operating margin moved from 16.0% in 2026Q2 to 10.3% in 2026Q3 while revenue rose, suggesting that operating income is not scaling consistently with top-line growth.
Operating income of $44.0M in 2026Q3 on $428.0M of revenue implies margins compressed despite higher sales, which may indicate rising operating costs or unfavorable mix. The lack of consistent SG&A disclosure in several recent quarters limits assessment of overhead efficiency. This pattern warrants further investigation before concluding that the company benefits from meaningful operating leverage.
Net Losses Persist Despite Operating Gains
As reported in financial statements, SDRL posted a net loss of $30.0M in 2026Q3 despite positive operating income of $44.0M, a gap that may reflect non-operating charges or financing costs that merit closer review.
The divergence between operating income and net income in 2026Q3 and in 2026Q1 suggests that below-the-line items, such as interest expense, depreciation, or tax effects, are consuming a large share of operating profit. EPS swings from -0.49 to 0.47 across adjacent quarters further indicate that reported earnings are sensitive to one-time or non-recurring items. Investors should treat headline EPS growth with caution until the composition of these charges is clarified.
Recovery Narrative Faces Margin Compression Risk
Based on reported figures, the bull case rests on a 2026Q2 EPS beat, yet SDRL's net margin of -7.0% in 2026Q3 and recurring losses challenge the view that recent momentum has translated into bottom-line durability.
A bear analyst would argue that a single strong quarter, such as 2026Q2 with its 6.5% net margin, does not offset repeated negative net margins across most of the recent window. If dayrate gains stall or reactivation costs rise, the thin operating margin of roughly 10% could quickly turn unprofitable at the net level. The analysis suggests the recovery case requires several consecutive quarters of positive net income before it can be considered established.