Seadrill Limited (SDRL) Stock: Q1 EBITDA Rises as Backlog Tops $3.1 Billion

TLDR

• Seadrill’s Q1 EBITDA climbs as contract backlog rises above $3.1 billion.

• SDRL stock gains 3.05% after Seadrill raises its 2026 EBITDA outlook.

  

• New rig contracts in Brazil, Angola, and U.S. Gulf boost Seadrill backlog.

• Seadrill narrows Q1 loss as stronger dayrates support offshore rig demand.

• SDRL fades from early highs despite stronger EBITDA and higher guidance.

Seadrill Limited reported stronger first-quarter earnings momentum as new contracts lifted backlog above $3.1 billion. SDRL stock traded at $49.79, up 3.05%, although gains faded after an early move near $53. The results showed better rig demand, higher guidance, and improved visibility into 2026 cash flow.

Seadrill Limited, SDRL

Seadrill Raises 2026 Guidance After Stronger EBITDA

Seadrill posted first-quarter operating revenue of $358 million, down from $362 million in the previous quarter. However, adjusted EBITDA rose to $97 million from $88 million. The company also improved its adjusted EBITDA margin, excluding reimbursables, to 27.9%.

The company reported a net loss of $7 million, narrower than the $10 million loss in the prior quarter. Diluted loss per share improved to 11 cents from 16 cents. Operating expenses also fell to $334 million as project preparation costs shifted into capitalized spending.

Seadrill raised its 2026 operating revenue guidance to $1.43 billion to $1.48 billion. It also increased adjusted EBITDA guidance to $370 million to $420 million. Meanwhile, the company kept capital expenditure and long-term maintenance guidance at $200 million to $240 million.

Contract Wins Push Backlog Above $3.1 Billion

Seadrill added more than $860 million to contract backlog after its February fleet status report. The new awards came from the U.S. Gulf, Brazil, and Angola. As a result, total contract backlog now stands at $3.1 billion.

West Polaris secured a three-year Petrobras extension in Brazil, starting in January 2028. That contract added about $480 million to backlog. West Neptune and West Vela also won U.S. Gulf work with LLOG, adding $260 million combined.

Sonangol Quenguela extended its Angola contract with TotalEnergies for about 480 days. The extension keeps the rig committed into July 2028. Besides that, West Carina extended its Brazil contract into June 2026.

SDRL Stock Gains Despite Early Pullback

SDRL stock rose 3.05% to $49.79 after the company released its first-quarter results. However, the chart showed fading momentum after an early spike near $53. The price later settled near the lower end of the session.

The market reaction followed Seadrill’s higher EBITDA, stronger guidance, and larger backlog. The intraday pullback showed traders took profits after the early surge. The move still left SDRL in positive territory by the session update.

Seadrill operates in offshore drilling, with deepwater rigs serving major energy markets. The company benefits when oil producers commit capital to long-cycle offshore projects. Its latest contracts improve revenue visibility into late 2026, 2027, and parts of 2028.

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