Can Seadrill's (SDRL) 2025 Guidance Reveal More About Offshore Drilling's Resilience?

• On August 7, 2025, Seadrill Limited released updated full-year 2025 earnings guidance, projecting operating revenues between US$1.32 billion and US$1.38 billion, excluding US$50 million in reimbursable revenues.
• This earnings update provides clearer revenue expectations amid evolving market conditions and is a key indicator of Seadrill's near-term operational outlook.
• We'll review how Seadrill's updated 2025 revenue guidance may influence expectations of future growth and resilience in offshore drilling.

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Seadrill Investment Narrative Recap

To be a Seadrill shareholder right now, you need to believe in the eventual recovery of offshore drilling markets and the company’s ability to secure utilization and pricing power for its high-spec fleet. The updated 2025 revenue guidance, while more specific, remains broadly within previous expectations and does not materially shift the current short-term catalyst: securing new, high-value contracts to offset softer dayrates and rising competition. The most pressing risk continues to be market-driven pressure on utilization and dayrates through 2025.

Among recent announcements, the December 2024 Petrobras contract for the West Tellus drillship stands out, adding US$498 million to Seadrill’s backlog and sharpening the company’s ability to withstand sector volatility. This contract directly connects to the key catalyst: the accumulation of long-term, high-value backlog, which has the potential to buffer revenue against nearer-term swings in demand or pricing.

However, despite these positive contract wins, investors should be aware that ongoing softness in rig utilization could still pose challenges if...

Read the full narrative on Seadrill (it's free!)

Seadrill's narrative projects $1.5 billion in revenue and $263.5 million in earnings by 2028. This requires 6.2% yearly revenue growth and a $186.5 million earnings increase from $77.0 million today.

Uncover how Seadrill's forecasts yield a $42.83 fair value, a 47% upside to its current price.

Exploring Other Perspectives

Four fair value estimates from the Simply Wall St Community range widely from US$42.83 to US$355.43 per share. While many see long-term upside, ongoing risks around utilization and dayrates remain central for those weighing Seadrill's outlook, explore the different viewpoints for a fuller picture.

Explore 4 other fair value estimates on Seadrill - why the stock might be worth just $42.83!

Build Your Own Seadrill Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Seadrill research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Seadrill research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Seadrill's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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