Transocean

RIG · NYSE · Energy · Financials, fiscal 2016 to 2025

RIG · Last close · October 26, 2026

$6.53

Transocean's revenue rose 12.5% to $4.0 billion in fiscal 2025. Its operating margin was −58.9%, down from −11.8% a year earlier. Free cash flow was $626 million, up 224.3%. The diluted share count rose 3.8%.

Transocean Ltd. Latest fiscal year ended December 31, 2025 10-K filed February 23, 2026 · 0001451505-26-000018 Updated October 11, 2026

Revenue

$4.0B

12.5%

Operating margin

−58.9%

47.1 pts

Net income

−$2.9B

Free cash flow

$626M

224.3%

Return on capital

−12.4%

10.4 pts

Market cap

$7.8B

Oct 26 close

P/E

—

Loss: no P/E

Operating margin is operating income as a share of revenue. Free cash flow is cash from operations minus capital spending. Return on capital is after-tax operating income as a share of the money invested in the business: debt plus equity, minus cash. Market cap is the last closing share price times the latest diluted share count, so it is approximate. P/E is the last close divided by diluted earnings per share over the last four quarters, or the latest fiscal year where the quarters aren't available; there is none when the company made a loss.

About these figures. Transocean's short-term investments matured in 2018 and its balance sheets show none after that, so they count as zero. Transocean's 2025 operating loss made its EBITDA negative, so net debt to EBITDA is blank for that year.

What Transocean does

Transocean is an offshore drilling contractor, based in Switzerland. It rents out mobile offshore drilling rigs, together with equipment and crews, to oil and gas companies that drill wells under the sea. It reports one operating segment, contract drilling.

As of February 17, 2026 it owned, or partly owned, and operated 27 mobile offshore drilling units: 20 ultra-deepwater drillships and seven harsh environment semisubmersibles. It focuses on technically demanding regions, mainly very deep water and harsh environments. Its customers are oil and gas companies, and it relies on a fairly small number of them.

Its revenue comes from contracts to hire out its rigs. On February 9, 2026 it agreed to buy Valaris, another offshore driller, in an all-share deal. The 10-K says its business depends on offshore oil and gas activity, which is cyclical, and that it has a substantial amount of debt.

Its biggest risks, as it describes them

Falling activity in offshore oil and gas drilling, a cyclical industry with intense price competition.
Backlog of contract revenue that may not be fully realized.
Not renewing expiring contracts, or having contracts terminated.
Relying on a small number of customers.
The pending business combination with Valaris may be delayed or not happen.

From Transocean's annual report on Form 10-K, filed February 23, 2026, in our words; the 10-K has the full description and every risk factor. Updated with each new 10-K.

Charts show fiscal years, from the 10-K filings.

Revenue and margins

Revenue

US$ billions, fiscal years

Margins

Percent of revenue

GrossOperatingNetFree cash flow

Net income and earnings per share

Transocean lost money in fiscal 2025: a net loss of $2.9 billion.

Net income

US$ billions, fiscal years; loss years in red.

Diluted earnings per share

US$ per share, fiscal years, restated for any stock splits; loss years in red.

Returns on capital

Return on capital and on equity

Percent. Return on capital is after-tax operating income over the money invested in the business (debt plus equity, minus cash); return on equity is net income over shareholders' equity. Both use the average of opening and closing balances.

Return on capitalReturn on equity

Cash flow

Free cash flow

US$ billions. Cash from operations minus capital expenditure; negative years in red.

Payouts and share count

Dividends and buybacks

US$ billions, cash paid in each fiscal year

DividendsShare buybacks

Diluted share count

Weighted-average diluted shares, millions

Valuation

Two ways to value Transocean yourself, both starting from its filings: a discounted cash flow model and the price-to-earnings method.

Discounted cash flow (DCF)

A discounted cash flow (DCF) model values a business as the cash it may generate in future, discounted back to today. The starting figures come from Transocean's 10-K (or, for net cash and shares, its latest 10-Q) and the assumptions are yours: start from one of three example scenarios, then change any figure to see what it implies for a share, and how that compares with the last share price.

Value per share on three example scenarios, from Transocean's fiscal 2025 free cash flow of $626M, net cash of −$5.0B at December 31, 2025 and 960 million diluted shares, from its filings. The scenarios are fitted to Transocean: the base scenario's growth in years 1 to 5 is its revenue growth over the last 3 years, 15.5% a year; the cautious and optimistic ones are lower and higher, and growth in years 6 to 10 is halfway to the long-run rate. The base scenario's discount rate is 13%: 11% for a cyclical or higher-risk business (Oil & Gas Drilling), plus 1 point as a smaller company, worth $7.8B, plus 1 point for unsteady results (a loss in fiscal 2025); the cautious and optimistic ones use a point more and a point less. Select one to load it into the calculator. These are the model's arithmetic on those assumptions, not a forecast or a price target.

From the filings

Starting free cash flow, US$ millions

Cash from operations minus capital spending in fiscal 2025.

Net cash, US$ millions

Cash and short-term investments minus debt and finance leases at December 31, 2025. Negative means net debt.

Diluted shares, millions

Weighted-average diluted shares in fiscal 2025.

Your assumptions

Start from

Fitted to Transocean's own revenue growth, as above. Cautious: growth of 7.5% then 5% a year, 2% after year 10, a 14% discount rate. Base: growth of 15.5% then 9% a year, 2.5% after year 10, a 13% discount rate. Optimistic: growth of 23% then 13% a year, 3% after year 10, a 12% discount rate.

Free cash flow growth, years 1 to 5 (% a year)

Free cash flow growth, years 6 to 10 (% a year)

Growth after year 10 (% a year)Long-run growth forever after year 10. Usually close to inflation, and always below the discount rate.

Discount rate (% a year)The yearly return an investor wants for the risk. A higher rate gives a lower value.

Value per share on these assumptions

—

Last close, October 26, 2026: $6.53
Value on these assumptions, against the last close: —

Cash flows in years 1 to 10, valued today: —
Everything after year 10, valued today: —
Plus net cash: —
Share of value from after year 10: —

Projected free cash flow

US$ billions. Each column is one year's projected free cash flow, split into what it is worth today and the part removed by discounting.

Value todayRemoved by discounting

How the value changes with two assumptions

Value per share in US$, with the growth rates above. The highlighted cell matches the current assumptions.

How the model works. Free cash flow grows at the first rate for five years and the second rate for five more, and each year is discounted at the discount rate. Everything after year 10 is valued as year-10 cash flow × (1 + growth after year 10) ÷ (discount rate − growth after year 10), discounted back ten years. Net cash is added and the total is divided by diluted shares. The result depends entirely on the assumptions. It is not a forecast, a price target or a recommendation. The last close is the consolidated US closing price, from Databento.

Price-to-earnings (P/E) method

Another common way to value a company is to multiply its earnings per share by a price-to-earnings (P/E) multiple: the number of years of today's earnings an investor pays for a share. A higher multiple usually means investors expect earnings to grow. Choose a multiple, for example from similar companies, to see the value it gives.

The P/E method needs positive earnings, and Transocean's latest diluted earnings per share were negative or zero.

Balance sheet

Fiscal year end	FY21	FY22	FY23	FY24	FY25
Cash and short-term investments	976	683	762	560	620
Debt incl. finance leases	7,170	7,347	7,413	6,881	5,657
Net debt (negative means net cash)	6,194	6,664	6,651	6,321	5,037
Net debt to EBITDA	9.8x	9.5x	15.9x	19.6x	—
Debt to equity	0.6x	0.7x	0.7x	0.7x	0.7x
Interest coverage	−0.2x	−0.1x	−0.5x	−1.1x	−4.2x
Current ratio	1.9x	1.3x	1.5x	1.5x	1.6x
Quick ratio	1.9x	1.3x	1.5x	1.5x	1.6x

US$ millions unless stated, at each fiscal year end. Net debt to EBITDA is debt minus cash, divided by operating income before depreciation and amortization: roughly how many years of those earnings the net debt equals. Debt to equity is debt as a multiple of shareholders' equity. Interest coverage is operating income divided by interest expense. The current ratio is current assets over current liabilities; the quick ratio leaves out inventory.

Insider trades

Over the 12 months between October 27, 2025 and October 26, 2026, 2 insiders bought $6.2 million of Transocean shares on the open market, and 5 insiders sold $5.0 million, $1.3 million of it under trading plans set up in advance.

Date	Insider	Trade	Shares	Price	Value	Filing
Jul 2, 2026	Chad C DeatonDirector	Bought	35,000	$4.95	$173,250	Form 4
May 21, 2026	Brady K LongEVP & Chief Legal Officer	Sold	81,741	$7.45	$608,970	Form 4
Mar 4, 2026	Roderick James MackenzieEVP, Chief Commercial Officer	Sold	78,370	$6.36	$498,433	Form 4
Jan 27, 2026	Brady K LongEVP & Chief Legal Officer	Sold plan	99,293	$5.00	$496,465	Form 4
Jan 27, 2026	Keelan AdamsonPresident and CEO, Director	Sold plan	58,687	$5.00	$293,435	Form 4
Jan 26, 2026	Keelan AdamsonPresident and CEO, Director	Sold plan	22,846	$5.00	$114,230	Form 4
Jan 26, 2026	Brady K LongEVP & Chief Legal Officer	Sold plan	16,085	$5.00	$80,425	Form 4
Dec 5, 2025	Keelan AdamsonPresident and CEO, Director	Sold plan	57,968	$4.50	$260,856	Form 4
Dec 4, 2025	Keelan AdamsonPresident and CEO, Director	Sold plan	8,469	$4.50	$38,110	Form 4
Dec 3, 2025	Roderick James MackenzieEVP, Chief Commercial Officer	Sold	35,000	$4.48	$156,800	Form 4
Nov 26, 2025	Jeremy D ThigpenExecutive Chair, Director	Sold	500,000	$4.32	$2.2 million	Form 4
Nov 26, 2025	Robert Thaddeus VaydaEVP, Chief Financial Officer	Sold	30,000	$4.29	$128,700	Form 4

The latest 12 of 14 trades. Open-market purchases and sales by officers, directors and 10% owners, from their Form 4 filings with the SEC: one row per person, day and filing, at the day's average price. Grants, option exercises and shares withheld for tax aren't counted. Insiders buy and sell for many reasons, such as taxes, spreading their savings or a plan set up months earlier, so a trade on its own says little about where a company is heading. For information only, not investment advice. Insider trades at all companies

Piotroski F-score

The F-score counts how many of nine simple tests of profitability, funding and efficiency a company passed in a year (Piotroski, 2000). The more tests passed, the stronger the year: 8 or 9 is strong, 0 to 2 weak. Companies that report no gross profit are scored on the other eight.

Test	FY23	FY24	FY25
Net income is positive	Fail	Fail	Fail
Cash from operations is positive	Pass	Pass	Pass
Return on assets rose	Fail	Pass	Fail
Cash from operations exceeds net income	Pass	Pass	Pass
Debt fell relative to assets	Fail	Pass	Pass
Current ratio rose	Pass	Fail	Pass
Share count didn't rise	Fail	Fail	Fail
Gross margin rose	Fail	Pass	Pass
Revenue rose relative to assets	Pass	Pass	Pass
F-score	4 of 9	6 of 9	6 of 9
Accruals ratio	−5.5%	−4.8%	−20.9%

The accruals ratio is net income minus cash from operations, over average total assets.

Compare

Put Transocean side by side with any other company we cover: revenue, growth, margins, cash flow and returns, with ten years of charts.

Similar companies

Company	Year	Revenue growth	Operating margin	Free cash flow margin	Return on capital	Net debt to EBITDA	F-score	Compare
Transocean	FY25	12.5%	−58.9%	15.8%	−12.4%	—	6
Helmerich & Payne	FY25	35.9%	0.1%	3.1%	0.1%	2.9x	4	Compare
Noble	FY25	7.5%	12.7%	13.2%	5.2%	—	5	Compare
Patterson-UTI Energy	FY25	−10.2%	−0.8%	7.7%	−0.8%	—	6	Compare
Valaris	FY25	0.3%	20.1%	8.6%	14.4%	0.8x	7	Compare

Each company's latest fiscal year. Fiscal years end in different months, so the periods don't line up exactly. Free cash flow margin is free cash flow as a share of revenue. Net debt to EBITDA is explained under the balance sheet, and the F-score above.

10 years of figures

Fiscal year	FY16	FY17	FY18	FY19	FY20	FY21	FY22	FY23	FY24	FY25
Income statement
Revenue	4,161	2,973	3,018	3,088	3,152	2,556	2,575	2,832	3,524	3,965
Revenue growth	−43.7%	−28.6%	1.5%	2.3%	2.1%	−18.9%	0.7%	10.0%	24.4%	12.5%
Gross profit	2,260	1,584	1,219	948	1,152	859	896	846	1,325	1,559
Research and development	—	—	—	—	—	—	—	—	—	—
Operating income	1,106	−2,505	−1,251	−721	−493	−112	−31	−325	−417	−2,337
Net income	778	−3,127	−1,996	−1,255	−567	−592	−621	−954	−512	−2,915
Diluted EPS (US$)	2.08	−8.00	−4.27	−2.05	−0.92	−0.93	−0.89	−1.24	−0.76	−3.04
Diluted shares (millions)	367	391	468	612	615	637	699	768	925	960
Cash flow
Cash from operations	1,980	1,170	558	340	398	575	448	164	447	749
Capital expenditure	1,344	497	184	387	265	208	717	427	254	123
Free cash flow	636	673	374	−47	133	367	−269	−263	193	626
Dividends paid	0	0	0	0	0	0	0	0	0	0
Share buybacks	0	0	0	0	0	0	0	0	0	0
Acquisitions	0	0	883	0	0	0	0	0	0	0
Stock-based compensation	42	41	45	37	31	28	29	40	47	35
Balance sheet at fiscal year end
Cash and short-term investments	3,052	2,969	2,160	1,790	1,154	976	683	762	560	620
Debt incl. finance leases	8,464	7,396	9,978	9,740	7,807	7,170	7,347	7,413	6,881	5,657
Total assets	26,889	22,410	25,665	24,105	21,804	20,681	20,436	20,254	19,371	15,642
Total liabilities	11,084	9,699	12,551	12,238	10,369	9,475	9,644	9,838	9,086	7,534
Shareholders' equity	15,802	12,707	13,107	11,862	11,432	11,205	10,791	10,415	10,284	8,108
Margins and ratios
Gross margin	54.3%	53.3%	40.4%	30.7%	36.5%	33.6%	34.8%	29.9%	37.6%	39.3%
Operating margin	26.6%	−84.3%	−41.5%	−23.4%	−15.6%	−4.4%	−1.2%	−11.5%	−11.8%	−58.9%
Net margin	18.7%	−105.2%	−66.1%	−40.6%	−18.0%	−23.2%	−24.1%	−33.7%	−14.5%	−73.5%
Free cash flow margin	15.3%	22.6%	12.4%	−1.5%	4.2%	14.4%	−10.4%	−9.3%	5.5%	15.8%
Return on capital	4.6%	−10.3%	−5.2%	−2.8%	−2.0%	−0.5%	−0.1%	−1.5%	−2.0%	−12.4%
Return on equity	5.1%	−21.9%	−15.5%	−10.1%	−4.9%	−5.2%	−5.7%	−9.0%	−5.0%	−31.7%
Return on assets	2.9%	−12.7%	−8.3%	−5.0%	−2.5%	−2.8%	−3.0%	−4.7%	−2.6%	−16.6%
Net debt to EBITDA	2.7x	—	—	59.3x	23.1x	9.8x	9.5x	15.9x	19.6x	—

US$ millions unless stated. Where a later 10-K restated a year, the latest filed figure is shown. Download all figures (CSV, US$ millions)

Source: Transocean's Form 10-K filings, from SEC EDGAR. For information only, not investment advice. The Filing Desk is not affiliated with Transocean.