Seadrill Limited (SDRL) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

Seadrill Limited (SDRL) Energy Operations & Outlook

Seadrill Limited, a global offshore drilling contractor, operates a diverse fleet of rigs, including drillships and jack-ups, serving oil super-majors and national oil companies. With a presence in both benign and harsh environments, Seadrill provides essential services for shallow and ultra-deep-water oil and gas exploration and production.

What Is the Investment Thesis for SDRL?

With a modern fleet of 21 rigs, Seadrill is well-positioned to capitalize on rising day rates for drillships and jack-up rigs. The company's focus on operational efficiency and cost management should improve its profit margin, which currently stands at -5.4%. Key catalysts include new contract awards and extensions, particularly in the ultra-deep-water and harsh environment segments. However, investors should be aware of risks such as fluctuating oil prices and potential delays in project execution. The company's beta of 1.48 indicates higher volatility compared to the market.

Based on FMP financials and quantitative analysis

SDRL Key Highlights

Market Cap of $3.03B reflects investor valuation of Seadrill's assets and future earnings potential.

• Negative Profit Margin of -5.4% indicates ongoing challenges in achieving profitability, requiring focus on cost management and operational efficiency.
• Gross Margin of 16.2% demonstrates the company's ability to generate revenue above direct costs, but highlights the need for further margin improvement.
• Beta of 1.48 suggests that Seadrill's stock price is more volatile than the overall market, influenced by oil price fluctuations and industry-specific factors.
• No Dividend Yield reflects the company's current focus on reinvesting earnings to strengthen its balance sheet and fund future growth initiatives.

Who Are SDRL's Competitors?

SDRL is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are SDRL's Key Strengths?

Modern and diverse fleet of drilling rigs.

• Global presence and established customer relationships.
• Technical expertise in offshore drilling operations.
• Ability to operate in harsh environments.

What Are SDRL's Weaknesses?

Exposure to volatile oil prices.

• High capital expenditures for rig maintenance and upgrades.
• Dependence on contract renewals.
• Negative profit margin.

What Could Drive SDRL Stock Higher?

New contract awards and extensions for drilling rigs.

• Rising day rates for offshore drilling rigs due to increased demand.
• Improved operational efficiency and cost management initiatives.
• Potential acquisitions or mergers to expand market share.

What Are the Key Risks for SDRL?

Negative return on equity (-2.4%) — the business is not currently generating profit on shareholder capital.

• Insider selling — insiders were net sellers of roughly $6.6M recently.
• Fluctuations in oil prices impacting demand for drilling services.
• Competition from other offshore drilling contractors.
• Delays in project execution due to technical or logistical challenges.
• Geopolitical risks and regulatory changes affecting offshore drilling operations.
• Environmental concerns and regulations increasing operating costs.

What Are the Growth Opportunities for SDRL?

• Ultra-Deepwater Drilling: Seadrill can expand its presence in the ultra-deepwater drilling market, driven by the increasing need to explore and develop reserves in deeper waters. This segment offers higher day rates and longer-term contracts. The ultra-deepwater drilling market is projected to grow at a CAGR of 5% over the next five years, reaching a market size of $20 billion by 2031. Seadrill's fleet of modern drillships provides a competitive advantage in this segment.
• Harsh Environment Drilling: Seadrill can capitalize on the growing demand for drilling in harsh environments, such as the North Sea and Arctic regions. These environments require specialized rigs and expertise, creating a barrier to entry for competitors. The harsh environment drilling market is expected to grow as oil and gas companies seek to access reserves in these challenging areas. Seadrill's harsh-environment rigs position it well to capture this growth.
• Jack-up Rig Market: Seadrill can leverage its jack-up rig fleet to target shallow-water drilling opportunities, particularly in Southeast Asia and the Middle East. The jack-up rig market is driven by the need to maintain production from existing shallow-water fields and develop new ones. This segment offers stable demand and attractive day rates. Seadrill's jack-up rigs provide a cost-effective solution for shallow-water drilling.
• Operational Efficiency: Seadrill can improve its profitability by focusing on operational efficiency and cost management. This includes optimizing rig utilization, reducing downtime, and streamlining supply chain operations. By improving its operational efficiency, Seadrill can increase its profit margin and generate higher returns for investors. Investing in technology and training programs can further enhance operational efficiency.
• Strategic Partnerships: Seadrill can form strategic partnerships with oil and gas companies and other service providers to expand its market reach and offer integrated solutions. These partnerships can provide access to new markets, technologies, and expertise. By collaborating with other industry players, Seadrill can enhance its competitiveness and create new growth opportunities. Potential partnerships include joint ventures for specific projects or long-term service agreements.

What Are SDRL's Competitive Advantages?

• Specialized Fleet: Owns and operates a modern and diverse fleet of drilling rigs suitable for various environments and water depths.
• Technical Expertise: Possesses extensive technical expertise in offshore drilling operations.
• Long-Term Contracts: Secures long-term contracts with oil and gas companies, providing revenue visibility.
• Global Presence: Operates globally, serving a diverse customer base.

What Does SDRL Do?

Seadrill Limited, incorporated in 2005 and headquartered in London, is a prominent offshore drilling contractor providing services to the oil and gas industry worldwide. The company's operations are structured into three segments: Harsh Environment, Floaters, and Jack-ups Rigs. Seadrill owns and operates a modern fleet of drillships, semi-submersible rigs, and jack-up rigs, enabling it to offer drilling services in both shallow and ultra-deep-water environments, including harsh and benign conditions. As of April 8, 2022, Seadrill's fleet comprised 21 offshore drilling units, including two harsh-environment rigs, two benign-environment semi-submersible rigs, six drill-ships, and 11 jack-up rigs. The company serves a diverse clientele, including oil super-majors, state-owned national oil companies, and independent oil and gas companies. Seadrill also provides operational support and management services to third parties, including related and non-related entities, enhancing its service offerings within the offshore drilling sector. Seadrill's global footprint and versatile fleet position it as a key player in supporting offshore oil and gas exploration and production activities.

What Products and Services Does SDRL Offer?

• Provides offshore contract drilling services to the oil and gas industry.
• Operates a fleet of drillships, semi-submersible rigs, and jack-up rigs.
• Offers drilling services in shallow and ultra-deep-water environments.
• Serves oil super-majors, state-owned national oil companies, and independent oil and gas companies.
• Provides operational support and management services to third parties.
• Operates in harsh and benign environments.

How Does SDRL Make Money?

• Generates revenue through day rates charged for the use of its drilling rigs.
• Contracts with oil and gas companies for specific drilling projects.
• Provides operational support and management services for additional revenue.
• Focuses on maintaining high rig utilization rates to maximize revenue.

What Industry Does SDRL Operate In?

Seadrill operates within the oil and gas drilling industry, which is characterized by cyclical demand driven by oil prices and exploration and production (E&P) spending. The industry is highly competitive, with companies like TRMD: TORM plc and DHT: DHT Holdings, Inc. vying for contracts. The market is currently experiencing a recovery, with rising day rates for offshore drilling rigs due to increased demand and limited supply of modern rigs. Seadrill's focus on modern, high-specification rigs positions it favorably to capitalize on this trend. The global offshore drilling market is projected to grow, driven by the need to access deeper and more challenging oil and gas reserves.

Who Are SDRL's Key Customers?

• Oil super-majors (e.g., ExxonMobil, Shell, BP)
• State-owned national oil companies (e.g., Saudi Aramco, Petrobras)
• Independent oil and gas companies (e.g., Apache, Hess)
• Third-party drilling contractors

Seadrill Limited Financial Trajectory

Seadrill Limited (SDRL) reported $449.0M in revenue for Q2 FY2026, reflecting 25.4% growth compared to the prior quarter. The company recorded net income of $29.0M, with diluted EPS of $0.47. Quarter-over-quarter revenue has been mixed, typical for a mid-cap company operating in Energy. Across the four most recent quarters, SDRL averaged $0.01 in diluted EPS.

Company Profile

Seadrill Limited operates in the Oil & Gas Drilling industry within the Energy sector. It is headquartered in Hamilton, US. The company is led by CEO Samir Ali. SDRL has traded publicly since 2022.

How Seadrill Limited Is Valued

Seadrill Limited carries a market capitalization of $3.03B, placing it in the mid-cap category. Analyst price targets span from $55.00 to $55.00, with a consensus of $55.00. At the current price of $48.46, that implies approximately 13% upside potential. Relative to its peer group, SDRL's quantitative score of 34/100 is below the peer average of 68/100.

Return on equity for Seadrill Limited stands at -2.4%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is -1.8%, showing how much profit it generates from its asset base. Its free cash flow yield is -2.0%, a gauge of the cash the business throws off relative to its market value. A current ratio of 1.94 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is -2.6%, the inverse of the P/E and a quick read on earnings relative to price.

Seadrill Limited's Piotroski F-Score is 5/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 2.36 places it in the grey zone, a middle ground that warrants monitoring.

Seadrill Limited has beaten Wall Street's EPS estimate in 4 of its last 8 reported quarters — more hits than misses. Reported results have landed about 94.2% above estimates on average.

Over the past six months, Seadrill Limited insiders filed 68 SEC Form 4 transactions — 35 sales and 33 purchases. On net that is roughly 38K shares disposed (about $6.6M), a signal worth weighing alongside the fundamentals.

SDRL Financials

SDRL Latest News

SDRL Analyst Consensus

SDRL MoonshotScore

Seadrill Limited Energy Stock: Key Questions Answered

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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