Transocean Reports $3.965B 2025 Revenues, $1.37B EBITDA and $626M Cash Flow
Transocean reported full-year 2025 contract drilling revenues of $3.965 billion with adjusted EBITDA up 13% to $1.37 billion and free cash flow of $626 million despite a $2.915 billion net loss ($3.04/share). Jim Cramer flagged elevated debt levels and said Transocean is not among his preferred offshore drilling names.
1. Full-Year 2025 Financial Results
Transocean reported contract drilling revenues of $3.965 billion in 2025, drove adjusted EBITDA up 13% to $1.37 billion, and generated $749 million in operating cash flow and $626 million in free cash flow despite a net loss of $2.915 billion, or $3.04 per diluted share.
2. Fourth-Quarter Highlights
In Q4, Transocean posted contract drilling revenues of $1.043 billion, net income of $25 million, or $0.02 per diluted share, and adjusted EBITDA of $385 million, with operating cash flow of $349 million and capital expenditures of $28 million, while backlog stood at $6.1 billion.
3. Balance Sheet and Liquidity
The company reduced total debt to $5.686 billion, closed 2025 with $1.507 billion in liquidity, and guided 2026 contract drilling revenues between $3.8 billion and $3.95 billion, supporting continued cash generation and debt management.
4. Market Commentary
Jim Cramer highlighted Transocean’s elevated debt levels and stated it is not among his preferred oil services stocks, ranking it behind Halliburton and SLB based on comparative fundamentals.