Noble Corporation PLC (NE) Earnings & Analysis

Latest quarter

Noble reported Q3 FY2026 revenue of $728.8 million, above the $703.1 million consensus but down from $798.0 million a year earlier. Its adjusted loss of −$0.57 per share was below the consensus estimate. On a diluted basis, the company’s loss per share widened to −$0.73 from −$0.13.

The 10-Q shows floater revenue fell to $563.4 million from $630.1 million, mainly because of changes in average dayrates and operating days. Noble said the reduction in operating days included the effect of suspensions in Brazil, where both affected rigs have since resumed operations. Jackup revenue fell to $120.3 million from $127.3 million, with lower average dayrates partly offset by changes in operating days.

Noble’s gross margin declined to 35.7% from 39.9%, while its operating margin rose to 8.24% from 6.32%. The company recorded free cash flow of −$37.9 million, compared with $225.2 million a year earlier.

Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.

What management said on the call

CEO Robert Eifler said several rigs had fewer days on contract as they transitioned between jobs, contributing to a sequential decline in adjusted EBITDA. He said the resumed operation of two rigs in Brazil and the Jerry D’Souza’s contract startup partly offset that effect. The Voyager began its U.S. Gulf contract in late September, although Eifler said commissioning and weather delays pushed its start back by a few weeks.

Eifler said Noble secured approximately $560 million in new awards over the preceding three months, leaving backlog at $6.7 billion. CFO Richard Barker said approximately $2.6 billion of that backlog was scheduled to convert to revenue in 2027. Eifler also pointed to contracts for the Globetrotter 1 in Peru and Angola, and for the Black Hawk in Uruguay.

On demand and pricing, Eifler said recent contracting had confirmed a recovery in high-end drillship dayrates, reaching $500,000 per day. He said 109 out of 110 marketed ultra-deepwater rigs were contracted for current or future work, while 88 rigs were currently working. Based on customer discussions, he expected some improvement in the U.S. Gulf market next year.

Asked about customer urgency, Eifler said it had increased but that Noble was “still a ways away from the urgency we’ve seen in certain past cycles.” He said customers had not yet translated additional cash flow from higher oil prices into more drilling, though he hoped to see additional exploration work in 2027.

On fleet investment, Eifler said upgrades were making the Klaus Bachmann compliant for Norway and that Noble planned managed-pressure drilling capability across its tier-one drillships by the end of 2027. Barker said elevated fleet spending would continue through roughly the middle of next year.

Guidance

Noble narrowed its FY2026 revenue guidance to $2,850-$2,900 million from $2,800-$2,900 million and its adjusted EBITDA guidance to $850-$900 million from $850-$925 million. Barker said higher-than-expected reimbursable revenue drove the revenue revision.

The company raised its capital expenditure guidance to $680-$705 million from $615-$665 million, primarily because of higher customer-reimbursable capital expenditures.