Transocean reported contract drilling revenues of $3.965 billion for 2025, up 13% year-over-year, with adjusted EBITDA rising 19% to $1.37 billion and an adjusted EBITDA margin of 34.6%. Net loss attributable to controlling interest was $2.915 billion, or $3.04 per share, driven by $3.036 billion of asset impairments partially offset by discrete tax items.

Operating cash flows increased 68% to $749 million, supporting free cash flow of $626 million. The company reduced total debt principal by $1.258 billion to $5.686 billion, lowering annualized interest expense by nearly $90 million, and ended the year with liquidity of $1.507 billion including available revolving credit.

Transocean added $839 million of contract backlog at a weighted average dayrate of $453,000, alongside record revenue efficiency of 96.5%. Fourth quarter drilling revenues reached $1.043 billion with 96.2% efficiency, while Q4 net income was $25 million, or $0.02 per share, and adjusted EBITDA stood at $385 million.

A definitive agreement to merge with Valaris will expand the combined fleet with high-specification rigs and strengthen pro forma cash flow for accelerated debt reduction and technology investments. As the company marks its centennial in 2026, management aims to leverage scale to deliver safe, efficient operations and enhance shareholder value.