Valaris Q4 net income surges

Valaris

19/02/2026 21:39

Overview

Offshore driller's Q4 revenue fell 10% yr/yr to $537 mln

Net income for Q4 surged to $717 mln, aided by a $680 mln tax benefit

Outlook

Valaris projects 2026 operating revenues of $2.125 - 2.205 bln

Company expects 2026 adjusted EBITDA of $485 - 565 mln

Valaris anticipates 2026 capex of $425 - 475 mln

Result Drivers

CONTRACT BACKLOG - Valaris secured nearly $900 mln in new contract backlog, enhancing contract coverage for 2026 and 2027

ASSET SALES - Sale of jackups VALARIS 102 and 145 for recycling and semisubmersible VALARIS DPS-1 classified as held for sale

MAINTENANCE COSTS - Higher repair costs and mobilization expenses increased contract drilling expenses

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Net Income
$717 mln
Q4 Adjusted EBITDA
$97 mln


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 9 "hold" and 1 "sell" or "strong sell"

The average consensus recommendation for the oil & gas drilling peer group is "buy."

Wall Street's median 12-month price target for Valaris Ltd is $52.50, about 42.3% below its February 18 closing price of $91.00

The stock recently traded at 28 times the next 12-month earnings vs. a P/E of 17 three months ago

Press Release: ID:nBw6DmWBHa

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)