MarketPR
MACROLockheed Martin Integrates Satellites and Interceptors for Layered DefenseOct 22REGULATORYHealthcare Triangle to Execute 1-for-20 Reverse Split for Nasdaq ComplianceOct 22TSLAMusk says SpaceX and Tesla are exploring a mergerOct 22MACROSearch expands in Sea of Cortez after fishing boat vanishes in stormOct 22TSLATesla Q3 2026 cash flow beats expectations despite revenue missOct 22MACROBob Huggins has progressive cognitive condition, family saysOct 22CIVBCivista Bancshares declares 18-cent quarterly dividendOct 22CACICACI Raises Fiscal 2027 Outlook After 8.2% Revenue GrowthOct 22WORLDDCCC Redboxes Instruct Super PACs to Boost Spoiler CandidatesOct 21OPENOpendoor CEO Kaz Nejatian to Take Over as President After Matheson DepartureOct 21MACROLockheed Martin Integrates Satellites and Interceptors for Layered DefenseOct 22REGULATORYHealthcare Triangle to Execute 1-for-20 Reverse Split for Nasdaq ComplianceOct 22TSLAMusk says SpaceX and Tesla are exploring a mergerOct 22MACROSearch expands in Sea of Cortez after fishing boat vanishes in stormOct 22TSLATesla Q3 2026 cash flow beats expectations despite revenue missOct 22MACROBob Huggins has progressive cognitive condition, family saysOct 22CIVBCivista Bancshares declares 18-cent quarterly dividendOct 22CACICACI Raises Fiscal 2027 Outlook After 8.2% Revenue GrowthOct 22WORLDDCCC Redboxes Instruct Super PACs to Boost Spoiler CandidatesOct 21OPENOpendoor CEO Kaz Nejatian to Take Over as President After Matheson DepartureOct 21
NewsEarnings

Valaris returns to profit in Q2 as drillship reactivations lift floater revenue, with Transocean close ahead

Two drillship reactivations pushed Valaris (NYSE: VAL) from an $18 million net loss in the first quarter to $47 million in net income for the second, with adjusted EBITDA reaching $97 million on $539 million in revenue. The recovery is real, but Middle East conflict-related costs cut about $30 million from adjusted EBITDA in the quarter, compared with $8 million the period before. What to watch next: two additional drillship contract starts management expects before year-end, and the planned Valaris-Transocean combination targeting a fourth-quarter 2026 close.

By Renata OstrowskiNewsroomSeptember 6, 20262 min read
Share

Key takeaways

  • Valaris swung to $47 million in net income in the second quarter from an $18 million net loss in the first quarter, with adjusted EBITDA of $97 million on $539 million in revenue.
  • Two drillship reactivations (VALARIS DS-12 and DS-10) plus the DS-17 ramp lifted floater segment revenue to $279 million from $193 million.
  • Middle East conflict-related costs cut about $30 million from adjusted EBITDA in the quarter, up from $8 million the prior period.
  • Jackup segment revenue slipped to $183 million from $196 million, though the North Sea fleet added over $160 million in new backlog through 2027.
  • The planned Valaris-Transocean combination is targeting a fourth-quarter 2026 close.

Two drillship reactivations pushed Valaris (NYSE: VAL) from an $18 million net loss in the first quarter to $47 million in net income for the second, with adjusted EBITDA reaching $97 million on $539 million in revenue. The recovery is real, but Middle East conflict-related costs cut about $30 million from adjusted EBITDA in the quarter, compared with $8 million the period before. What to watch next: two additional drillship contract starts management expects before year-end, and the planned Valaris-Transocean combination targeting a fourth-quarter 2026 close.

Floater throughput and the order book

VALARIS DS-12 and DS-10 returned to paying work on schedule and within budget, and DS-17 ramped into a new contract during the quarter. That pushed floater segment revenue to $279 million from $193 million. Two more drillships are set to start new contracts before year-end, which, if the schedule holds, would carry the floater revenue line into 2027.

The North Sea jackup fleet added more than $160 million in new backlog, extending coverage the company describes as industry-leading through 2027. Against that, jackup segment revenue slipped to $183 million from $196 million. VALARIS 117 finished its contract early and moved to a shipyard, and softer day rates hit some North Sea accommodation work.

Valaris also cleared two idle jackups, VALARIS 104 and 109, in a combined sale for $74 million across June and July, cutting idle capacity off the balance sheet while adding to the cash position.

Middle East costs and the setup

The war-zone cost line is where consensus runs thin. Contract drilling expenses rose to $380 million company-wide from $340 million, driven by a full quarter of war-related insurance premiums on Middle East jackups and lower revenue from VALARIS 250 and 116 sitting in shipyards rather than earning day rates. Management expects that drag to ease when those rigs return to work, a conditional the next set of quarterly numbers will either confirm or not.

Cash on hand ended the quarter at $541 million, down from $578 million, as capital spending climbed to $106 million from $101 million and the Transocean deal generated $11 million in merger and integration expenses. Tax expense rose to $34 million from $28 million on a shifting mix of income across jurisdictions.

Short interest sits at 11.10% of the float. Hedge fund ownership slipped to 49 funds from 52 the prior quarter. The stock carries a forward price-to-earnings ratio of 29.07 as of September 4, pricing in a recovery the company has begun to build but has not yet delivered in full.

Related reading

About this story

Filed by the newsroom of MarketPR on September 6, 2026. Source: finance.yahoo.com. Indicative figures are not investment advice.

←Back to the news index

More from the Newsroom

All stories →
01Earnings

AT&T raises 2026 profit outlook on fiber growth despite stock drop

AT&T (T) closed at $21.91 on Wednesday, October 21, down 6.45%, after the company announced record internet net additions and raised its 2026 profit outlook. The U.S. telecom carrier reported adjusted earnings per share and revenue that…

Desmond Choi2 min read
02Earnings

Adobe Q3 billings hit $6.71B as analysts see revenue deceleration

Adobe (ADBE) reported third-quarter billings of $6.71 billion, a figure that StockStory analysts describe as underwhelming due to an average year-on-year growth rate of 11.9% over the last four quarters. The firm attributes this…

Miles Broadbent2 min read
03Earnings

L3Harris Q2 free cash flow up 37% amid $238 share price

L3Harris Technologies, Inc. (NYSE: LHX) reported $771 million in free cash flow for the second quarter of 2026, a 37% increase year over year, even as the stock fell approximately 23% from its year-to-date highs. The decline significantly…

Desmond Choi2 min read

Frequently asked

Why did Valaris return to profit in Q2?

Two drillship reactivations (DS-12 and DS-10) returning to paying work and the DS-17 ramp pushed floater segment revenue up to $279 million from $193 million, driving net income of $47 million.

How much did Middle East conflict costs affect results?

Middle East conflict-related costs cut about $30 million from adjusted EBITDA in the quarter, compared with $8 million the prior period, driven partly by war-related insurance premiums and idled rigs VALARIS 250 and 116.

What is happening with the Valaris-Transocean deal?

Valaris and Transocean plan to combine, targeting a fourth-quarter 2026 close, and the deal generated $11 million in merger and integration expenses in the quarter.

What should investors watch next?

Management expects two additional drillship contracts to start before year-end, which if the schedule holds would carry the floater revenue line into 2027.

How did Valaris manage its idle capacity and cash position?

Valaris sold two idle jackups, VALARIS 104 and 109, for a combined $74 million across June and July, while cash on hand ended the quarter at $541 million, down from $578 million.