Revenue growth has faced significant cyclical headwinds, with quarterly figures contracting 25% year-over-year to $465.4 million in 2026Q1 alongside a decline in gross margin to 0%.
| 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 |
|---|
| Sales/Revenue | 2.21B | 2.37B | 2.36B | 1.78B | 1.6B | 1.23B | 1.43B | 2.05B | 1.71B | 1.84B | 2.78B | 4.06B | 4.56B | 4.32B | 3.64B | 2.84B | 1.7B | 1.95B | 2.45B | 2.14B | 1.81B | 1.05B | 768M | 790.8M | 698.1M | 817.4M | 533.8M | 363.7M | 813.2M | 815.1M | 468.8M |
| Revenue Growth % | -9.95% | 0.27% | 32.42% | 11.34% | 30.03% | -13.65% | -30.49% | 20.39% | -7.47% | -33.62% | -31.67% | -10.98% | 5.58% | 18.81% | 28.01% | 67.53% | -12.8% | -20.59% | 14.3% | 18.21% | 73.23% | 36.32% | -2.88% | 13.28% | -14.6% | 53.13% | 46.77% | -55.28% | -0.23% | 73.87% | 67.97% |
| Cost of Goods Sold | 1.26B | 1.78B | 1.76B | 1.54B | 1.38B | 1.07B | 1.47B | 1.81B | 1.32B | 1.19B | 1.3B | 1.87B | 2.08B | 1.95B | 1.64B | 1.47B | 768.1M | 725.5M | 800.5M | 684.1M | 576.7M | 454.4M | 425.5M | 452.9M | 389.7M | 358.9M | 290.6M | 250.8M | 329.1M | 306.7M | 227.3M |
| COGS % of Revenue | - | 74.97% | 74.53% | 86.52% | 86.32% | 86.65% | 103.03% | 88.05% | 77.37% | 64.54% | 46.86% | 46.01% | 45.5% | 45.04% | 45.15% | 51.74% | 45.27% | 37.28% | 32.67% | 31.91% | 31.8% | 43.4% | 55.4% | 57.27% | 55.82% | 43.91% | 54.44% | 68.96% | 40.47% | 37.63% | 48.49% |
| Gross Profit | 493M | 593M | 601.7M | 240.6M | 219.3M | 164.5M | -43.2M | 245.4M | 386M | 653.5M | 1.48B | 2.19B | 2.49B | 2.38B | 2B | 1.37B | 928.7M | 1.22B | 1.65B | 1.46B | 1.24B | 592.5M | 342.5M | 337.9M | 308.4M | 458.5M | 243.2M | 112.9M | 484.1M | 508.4M | 241.5M |
| Gross Margin % | 22.27% | 25.03% | 25.47% | 13.48% | 13.68% | 13.35% | -3.03% | 11.95% | 22.63% | 35.46% | 53.14% | 53.99% | 54.5% | 54.96% | 54.85% | 48.26% | 54.73% | 62.72% | 67.33% | 68.09% | 68.2% | 56.6% | 44.6% | 42.73% | 44.18% | 56.09% | 45.56% | 31.04% | 59.53% | 62.37% | 51.51% |
| Gross Profit Growth % | - | -1.45% | 150.08% | 9.71% | 33.31% | 480.79% | -117.6% | -36.42% | -40.93% | -55.71% | -32.75% | -11.81% | 4.68% | 19.05% | 45.5% | 47.71% | -23.9% | -26.03% | 13.03% | 18.02% | 108.74% | 72.99% | 1.36% | 9.57% | -32.74% | 88.53% | 115.41% | -76.68% | -4.78% | 110.52% | 96.18% |
| Operating Expenses | 598.6M | 97.1M | 249.4M | 187.1M | 182.1M | 1.06B | 4.29B | 915.2M | 621.9M | 785.5M | 546.1M | 3.44B | 4.89B | 600.9M | 590.5M | 577.5M | 302.4M | 269.9M | 243.3M | 243.8M | 219.6M | 180.6M | 170.4M | 157M | 202.3M | 141.2M | 119M | 119.4M | 109M | 127.7M | 97.2M |
| OpEx % of Revenue | - | 4.1% | 10.56% | 10.49% | 11.36% | 86.17% | 300.68% | 44.57% | 36.47% | 42.62% | 19.67% | 84.59% | 107.1% | 13.9% | 16.23% | 20.32% | 17.82% | 13.87% | 9.93% | 11.37% | 12.11% | 17.25% | 22.19% | 19.85% | 28.98% | 17.27% | 22.29% | 32.83% | 13.4% | 15.67% | 20.73% |
| Selling, General & Admin | 98.3M | 97.1M | 113.9M | 98.4M | 64.5M | 74.8M | 200M | 183.1M | 102.7M | 106.2M | 100.8M | 118.4M | 131.9M | 146.8M | 148.9M | 158.6M | 86.1M | 64M | 53.8M | 59.5M | 44.6M | 25.8M | 26.3M | 22M | 18.6M | 16.8M | 13.3M | 11.2M | 15.4M | 14.3M | 11M |
| SG&A % of Revenue | - | 4.1% | 4.82% | 5.52% | 4.03% | 6.07% | 14.01% | 8.92% | 6.02% | 5.76% | 3.63% | 2.91% | 2.89% | 3.4% | 4.09% | 5.58% | 5.07% | 3.29% | 2.2% | 2.78% | 2.46% | 2.46% | 3.42% | 2.78% | 2.66% | 2.06% | 2.49% | 3.08% | 1.89% | 1.75% | 2.35% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 3M | 0 | 135.5M | 88.7M | 117.6M | 987.1M | 4.09B | 732.1M | 519.2M | 679.3M | 445.3M | 3.32B | 4.76B | 0 | 0 | 418.9M | 216.3M | 205.9M | 189.5M | 184.3M | 175M | 154.8M | 144.1M | 135M | 183.7M | 124.4M | 105.7M | 108.2M | 93.6M | 113.4M | 86.2M |
| Operating Income | 343.8M | 495.9M | 352.3M | 53.5M | 37.2M | -897.4M | -4.33B | -669.8M | -235.9M | -132M | 929.3M | -1.24B | -2.4B | 1.73B | 1.4B | 794.3M | 626.3M | 950.5M | 1.41B | 1.22B | 1.02B | 411.9M | 172.1M | 180.9M | 106.1M | 317.3M | 131.2M | 3.5M | 385.2M | 389.3M | 148.7M |
| Operating Margin % | 15.53% | 20.93% | 14.91% | 3% | 2.32% | -72.82% | -303.71% | -32.62% | -13.83% | -7.16% | 33.47% | -30.6% | -52.6% | 40.09% | 38.56% | 27.94% | 36.91% | 48.85% | 57.4% | 56.72% | 56.09% | 39.34% | 22.41% | 22.88% | 15.2% | 38.82% | 24.58% | 0.96% | 47.37% | 47.76% | 31.72% |
| Operating Income Growth % | - | 40.76% | 558.5% | 43.82% | 104.15% | 79.3% | -547.13% | -183.93% | -78.71% | -114.2% | 174.73% | 48.21% | -238.52% | 23.52% | 76.67% | 26.82% | -34.11% | -32.43% | 15.68% | 19.53% | 146.95% | 139.34% | -4.86% | 70.5% | -66.56% | 141.84% | 3648.57% | -99.09% | -1.05% | 161.8% | 169.38% |
| EBITDA | 457M | 642.2M | 474.4M | 154.6M | 128.4M | -671.7M | -3.79B | -76.9M | 202.8M | 251.2M | 1.23B | -836M | -1.87B | 2.2B | 1.81B | 1.21B | 842.6M | 1.16B | 1.6B | 1.4B | 1.19B | 566.7M | 316.2M | 315.9M | 229.9M | 441.7M | 229.9M | 101.7M | 468.7M | 494.1M | 230.5M |
| EBITDA Margin % | 20.64% | 27.11% | 20.08% | 8.66% | 8.01% | -54.5% | -265.38% | -3.75% | 11.89% | 13.63% | 44.48% | -20.57% | -40.99% | 50.91% | 49.84% | 42.68% | 49.66% | 59.43% | 65.14% | 65.31% | 65.74% | 54.13% | 41.17% | 39.95% | 32.93% | 54.04% | 43.07% | 27.96% | 57.64% | 60.62% | 49.17% |
| EBITDA Growth % | -23.12% | 35.37% | 206.86% | 20.41% | 119.12% | 82.27% | -4825.23% | -137.92% | -19.27% | -79.66% | 247.72% | 55.32% | -185% | 21.37% | 49.48% | 43.98% | -27.14% | -27.55% | 13.99% | 17.45% | 110.38% | 79.22% | 0.1% | 37.41% | -47.95% | 92.13% | 126.06% | -78.3% | -5.14% | 114.36% | 102.9% |
| D&A (Non-Cash Add-back) | 113.2M | 146.3M | 122.1M | 101.1M | 91.2M | 225.7M | 547M | 592.9M | 438.7M | 383.2M | 305.6M | 407.5M | 530M | 467.8M | 410.2M | 418.9M | 216.3M | 205.9M | 189.5M | 184.3M | 175M | 154.8M | 144.1M | 135M | 123.8M | 124.4M | 98.7M | 98.2M | 83.5M | 104.8M | 81.8M |
| EBIT | 466.9M | 651.1M | 365.7M | 41.1M | 63.6M | -136M | -665.9M | -547.4M | -195.6M | 102.5M | 929.3M | 1.5B | 1.82B | 1.73B | 1.4B | 818.6M | 644.5M | 959.3M | 1.4B | 1.26B | 1.03B | 420M | 176.1M | 185.3M | 118.1M | 323.9M | 118.7M | -400K | 371.4M | 361.8M | 126.3M |
| Net Interest Income | -18.1M | -28M | 1.3M | 32.5M | 20.2M | 0 | -270.9M | -400.2M | -268.2M | -198.4M | -215M | -206.4M | -148.4M | -142.2M | -100.8M | -78.7M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 6.3M | 0 | 0 | 0 |
| Interest Income | 73.4M | 70.8M | 86.1M | 101.4M | 65.5M | 0 | 19.7M | 28.1M | 14.5M | 25.8M | 13.8M | 9.9M | 13M | 16.6M | 22.8M | 17.2M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 700K | 0 | 0 | 0 |
| Interest Expense | 50.2M | 98.8M | 84.8M | 68.9M | 45.3M | 0 | 290.6M | 428.3M | 282.7M | 224.2M | 228.8M | 216.3M | 161.4M | 158.8M | 123.6M | 95.9M | 700K | 2.2M | 14M | 1M | 16M | 28M | 36M | 36M | 31M | 32M | -6.3M | 300K | -11.1M | -14M | -16.4M |
| Other Income/Expense | 64.6M | 56.4M | 17.9M | 30.7M | 187.7M | -3.54B | -782.5M | 606M | -303M | -64M | 68.2M | -227.7M | -147.9M | -100.1M | -98.6M | -57.7M | 18.2M | 8.8M | -4.2M | 37.8M | -5.9M | -20.7M | -32.6M | -31.6M | -19M | -51.3M | -6M | 1.7M | -2.7M | -13.5M | -6M |
| Pretax Income | 408.4M | 552.3M | 370.2M | 84.2M | 224.9M | -4.43B | -5.12B | -63.8M | -538.9M | -196M | 997.5M | -1.47B | -2.55B | 1.63B | 1.3B | 736.6M | 644.5M | 959.3M | 1.4B | 1.25B | 1.01B | 391.2M | 139.5M | 149.3M | 87.1M | 291.9M | 125.2M | 5.2M | 382.5M | 375.8M | 142.7M |
| Pretax Margin % | 18.45% | 23.31% | 15.67% | 4.72% | 14.03% | -359.85% | -358.53% | -3.11% | -31.6% | -10.63% | 35.93% | -36.21% | -55.84% | 37.78% | 35.86% | 25.91% | 37.98% | 49.3% | 57.23% | 58.48% | 55.77% | 37.37% | 18.16% | 18.88% | 12.48% | 35.71% | 23.45% | 1.43% | 47.04% | 46.1% | 30.44% |
| Income Tax | -591.9M | -426.8M | 400K | -782.6M | 43.1M | 52.6M | -259.4M | 128.4M | 89.6M | 109.2M | 108.5M | -13.9M | 140.5M | 203.1M | 228.6M | 131M | 96M | 158M | 240M | 261M | 236M | 105M | 12M | 14M | 21M | 59M | 39.8M | -2.9M | 123.8M | 137.8M | 44M |
| Effective Tax Rate % | -144.93% | -77.28% | 0.11% | -929.45% | 19.16% | -1.19% | 5.07% | -201.25% | -16.63% | -55.71% | 10.88% | 0.94% | -5.51% | 12.44% | 17.52% | 17.78% | 14.9% | 16.47% | 17.11% | 20.82% | 23.34% | 26.84% | 8.6% | 9.38% | 24.11% | 20.21% | 31.79% | -55.77% | 32.37% | 36.67% | 30.83% |
| Net Income | 1B | 982.8M | 373.4M | 865.4M | 176.5M | -4.49B | -4.86B | -198M | -639.7M | -303.7M | 890.2M | -1.59B | -3.9B | 1.41B | 1.06B | 600.4M | 579.5M | 779.4M | 1.15B | 992M | 769.7M | 294.2M | 102.8M | 108.3M | 59.3M | 207.3M | 85.4M | 6.7M | 253.9M | 233.9M | 95.4M |
| Net Margin % | 45.37% | 41.49% | 15.8% | 48.5% | 11.01% | -364.69% | -340.21% | -9.64% | -37.51% | -16.48% | 32.06% | -39.25% | -85.5% | 32.5% | 29.04% | 21.12% | 34.15% | 40.05% | 46.96% | 46.27% | 42.44% | 28.1% | 13.39% | 13.69% | 8.49% | 25.36% | 16% | 1.84% | 31.22% | 28.7% | 20.35% |
| Net Income Growth % | 223.97% | 163.2% | -56.85% | 390.31% | 103.93% | 7.44% | -2352.27% | 69.05% | -110.64% | -134.12% | 155.82% | 59.13% | -377.71% | 32.98% | 76.02% | 3.61% | -25.65% | -32.27% | 16.01% | 28.88% | 161.62% | 186.19% | -5.08% | 82.63% | -71.39% | 142.74% | 1174.63% | -97.36% | 8.55% | 145.18% | 98.34% |
| Net Income (Continuing) | 1B | 979.1M | 369.8M | 866.8M | 181.8M | -4.49B | -4.86B | -192.2M | -628.5M | -305.2M | 889M | -1.46B | -2.69B | 0 | 0 | 607.8M | 548.5M | 780.9M | 1.16B | 992M | 758.6M | 283.9M | 103.5M | 108.3M | 59.3M | 207.3M | 85.4M | 6.7M | 253.9M | 233.9M | 95.4M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -8.1M | 1M | 8.1M | -128.6M | -1.2B | 0 | 0 | -4M | -1.2M | 15.4M | 14.3M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 500K | 2.1M | 5.8M | 9.4M | 8M | 2.7M | -4.3M | -1.3M | -2.6M | -2.1M | 4.4M | 4.3M | 7.9M | 7.3M | 5.7M | 5.2M | 5.5M | 7.9M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 14.51 | 13.86 | 5.12 | 11.51 | 2.33 | -59.91 | -64.77 | -2.09 | -5.89 | -3.35 | 11.61 | -27.55 | -46.83 | 24.32 | 18.40 | 12.46 | 16.42 | 22.21 | 32.42 | 26.96 | 20.15 | 7.72 | 2.73 | 2.89 | 1.68 | 6.01 | 2.45 | 0.19 | 7.21 | 6.55 | 2.86 |
| EPS Growth % | 235.21% | 170.7% | -55.52% | 393.99% | 103.89% | 7.5% | -2999.04% | 64.52% | -75.82% | -128.85% | 142.14% | 41.17% | -292.56% | 32.17% | 47.67% | -24.12% | -26.07% | -31.49% | 20.25% | 33.8% | 161.01% | 182.78% | -5.54% | 72.02% | -72.05% | 145.31% | 1189.47% | -97.36% | 10.08% | 129.02% | 79.87% |
| EPS (Basic) | - | 13.92 | 5.18 | 11.67 | 2.35 | -59.91 | -64.77 | -2.09 | -5.89 | -3.35 | 11.55 | -27.56 | -46.83 | 24.32 | 18.43 | 12.46 | 16.42 | 22.21 | 32.42 | 26.96 | 20.15 | 7.72 | 2.73 | 2.89 | 1.68 | 6.01 | 2.45 | 0.19 | 7.21 | 6.55 | 2.86 |
| Diluted Shares Outstanding | 69.2M | 70.9M | 72.9M | 75.2M | 75.6M | 75M | 75M | 92.1M | 108.9M | 90.94M | 75.15M | 58.13M | 57.9M | 57.77M | 57.42M | 48.2M | 35.3M | 35.1M | 35.5M | 36.8M | 38.2M | 38.1M | 37.7M | 37.5M | 35.4M | 34.5M | 34.8M | 34.4M | 35.2M | 35.7M | 33.3M |
| Basic Shares Outstanding | 69.2M | 70.6M | 72.1M | 74.13M | 75.1M | 75M | 75M | 92.1M | 108.9M | 90.94M | 75.55M | 58.09M | 57.9M | 57.78M | 57.35M | 48.2M | 35.3M | 35.1M | 35.5M | 36.8M | 38.2M | 38.1M | 37.7M | 37.5M | 35.4M | 34.5M | 34.8M | 34.4M | 35.2M | 35.7M | 33.3M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | 1.3% | - | - | 37.4% | 32.94% | 48.68% | 26.52% | 1.82% | 1.24% | 1.49% | 1.99% | 5.17% | 14.69% | 13.85% | 23.61% | 6.27% | 15.22% | 194.03% | - | - | - |
Cyclical Revenue Volatility
As reported in recent financial filings, Valaris experienced a sharp revenue contraction, with quarterly figures declining to $465.4 million in 2026Q1 from a peak of $643.1 million in 2024Q3, signaling a significant deceleration in top-line momentum as the offshore drilling cycle faces renewed market uncertainty.
The transition from double-digit growth in 2024 to a 25% year-over-year decline in the most recent quarter suggests that the company is struggling to maintain contract volume. Investors should monitor whether this trend reflects a broader industry slowdown or specific challenges in securing new high-spec rig assignments.
Based on the provided income statement data, Valaris has seen its gross margin fluctuate significantly, dropping to zero in 2026Q1, which highlights the extreme sensitivity of the company's high fixed-cost structure to changes in rig utilization and the associated costs of maintaining idle assets.
The inability to sustain the 35.7% gross margin achieved in 2025Q2 suggests that the company lacks the pricing power to offset the burden of idle rig maintenance. This volatility implies that profitability is highly dependent on maintaining high utilization rates, which appears increasingly difficult in the current environment.
According to historical income statements, Valaris has frequently reported net income figures that diverge sharply from operating results, such as the 2025Q4 net income of $717.5 million against an operating income of only $56.4 million, indicating heavy reliance on non-operating gains or accounting adjustments.
The massive discrepancy between net and operating margins warrants further investigation into the nature of these non-recurring items, which likely include equity earnings from the ARO JV or tax-related adjustments. Relying on these figures to gauge core operational health may lead to an overestimation of the company's underlying profitability.
As indicated by the recent shift to negative operating income in 2026Q1, the company's reliance on a project-based revenue model appears increasingly vulnerable to the recent decision by Saudi Aramco to halt capacity expansion, which threatens the stability of the ARO Drilling joint venture.
Short-term observers may focus on the potential for further margin compression if the company is forced to absorb higher reactivation costs without a corresponding increase in dayrates. The current trajectory suggests that the company's most reliable revenue stream may be facing a period of prolonged stagnation.
Quick answers to the most common questions about buying VAL stock.
For fiscal year 2025, Valaris Limited (VAL) reported total revenue of $2.37B. This represents a 405.3% increase compared to $468.8M in 1996.
Valaris Limited (VAL) is profitable, generating $982.8M in net income for the fiscal year ending 2025 with a net profit margin of 41.5%.
Valaris Limited (VAL) reported an operating income of $495.9M, resulting in an operating profit margin of 20.9%. This margin reflects the operational efficiency of the business before interest and taxes.
Valaris Limited (VAL) generated $593.0M in gross profit for the year, representing a gross profit margin of 25.0%. This demonstrates the company's core pricing power and production efficiency.