Noble Corporation Plc

Second-quarter 2026 contract drilling services revenue was $679 million, adjusted EBITDA was $212 million, and adjusted EBITDA margin was 30%. Q2 cash flow from operations was $144 million, capital expenditures were $205 million, and free cash flow was negative $59 million. Results were hurt by a $43 million operational suspension impact in Brazil, a $18 million Blackships BOP lease buy-out, and a $42 million impairment tied to the Ocean Apex scrap sale, which closed in early July for net proceeds of $5 million. Noble refinanced legacy Diamond bonds and part of its existing Noble bonds with $800 million of 6.25% senior unsecured notes due 2034, which management said should unlock $35 million in annual cash benefits. Full-year 2026 revenue guidance is now $2.8 billion to $2.9 billion, down from $2.8 billion to $3 billion previously, and full-year adjusted EBITDA guidance is now $850 million to $925 million, down from $940 million to $1.02 billion previously. Capex guidance remains $615 million to $665 million, including about $25 million of customer reimbursable capex.

Robert Eifler framed the quarter as one with a discrete Brazil headwind but otherwise strong fleet execution and commercial momentum. He emphasized that recent contract awards, improving utilization, and rising deepwater demand support a meaningful earnings inflection in the second half of next year, with cash flow expected to improve further in the second half of 2027. His tone was constructive and confident, especially on Asia Pacific, West Africa, and the broader deepwater cycle.

Richard Barker led with the key figures: $679 million of revenue, $212 million of adjusted EBITDA, 30% adjusted EBITDA margin, $144 million of operating cash flow, $205 million of capex, and negative $59 million of free cash flow. He detailed the quarter’s unusual items, including the $43 million Brazil suspension impact, an $18 million BOP lease buy-out, and a $42 million impairment on Ocean Apex. He also noted the new debt financing, the resulting $35 million of annual cash benefits, and the updated 2026 guidance that reflects the Brazil issue, the Intrepid/Innovator swap, and the Viking options slipping into 2027.

Analysts focused on regional demand shifts, especially whether Noble may move more rigs toward Asia Pacific and West Africa, and management said those regions are increasingly attractive and could support additional Noble presence over time, though it is too early to be definitive. Questions also centered on the timing and pricing of 2027 work; management said gap-filler jobs should still price at a discount, while longer-term work should command better rates, and they see a path to full industry utilization by late 2027. Analysts also pressed on Brazil and the Lafosse resequencing, and management said the Petrobras-related matter remains unresolved, the revised guide includes at least $15 million of revenue reduction through January 2027, and the Lafosse shift may increase the chance that rig works elsewhere.