Noble Plc (NE 6.84%), a leading offshore drilling contractor operating a global fleet of drillships, semisubmersibles, and jackups, released its second quarter results on August 5, 2025. The company reported GAAP revenue of $849 million in Q2 2025, GAAP revenue was slightly ahead of analyst expectations, and maintained its quarterly dividend. However, profitability (non-GAAP) fell short of forecasts, as adjusted earnings per share (non-GAAP EPS) came in at $0.13, well below the $0.47 consensus estimate. Net income (GAAP) declined year over year. Overall, the period saw successful contract wins, but weaker-than-expected profits underscored persistent market softness and higher costs.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS (Non-GAAP) | $0.13 | $0.47 | N/A | N/A |
| Revenue (GAAP) | $849 million | $844.6 million | $693 million | 22.5 % |
| Adjusted EBITDA | $282 million | $271 million | 4.1% | |
| Net Income (GAAP) | $43 million | $195 million | -77.9 % | |
| Free Cash Flow (Non-GAAP) | $107 million | ($26 million) | N/A |
Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report.
About Noble Plc and Its Business Model
Noble is a major player in offshore oil and gas drilling. It operates a modern fleet of 40 drilling units, including drillships, semisubmersible rigs (“floaters”), and jackup rigs, which are used to drill wells in both deepwater and more accessible locations worldwide. The company specializes in challenging environments, serving oil companies seeking to develop or explore large offshore fields.
Over the last few years, Noble has focused on expanding its fleet and scale through acquisitions, notably Maersk Drilling and Diamond Offshore Drilling. These moves aimed to improve fleet attractiveness to top customers like ExxonMobil and Shell, capture operational efficiencies, and secure more long-term contracts. Key to its business is maintaining a competitive fleet, managing contract wins and dayrates (the amount earned per day per rig), and integrating acquired assets successfully. Revenue stability also depends on good customer relationships and balancing market pressures through periods of industry volatility.
Quarter in Review: Results and Key Developments
Noble delivered GAAP revenue of $849 million, up 22.5% year over year compared to Q2 2024. This continued growth was driven by contract wins, a diversified fleet, and new contract drilling service revenue of $812 million. Adjusted EBITDA, a non-GAAP measure of core profitability before interest, taxes, depreciation, and amortization, reached $282 million—up from Q2 2024 but down compared to Q1 2025.
Adjusted EPS (non-GAAP) fell well short of expectations, dropping to $0.13. Analysts were expecting non-GAAP EPS of $0.47, and the prior year period (Q2 2024) saw adjusted diluted earnings per share (non-GAAP) of $0.72. The earnings miss reflected a combination of lower rig utilization and higher costs. Cost pressures saw contract drilling services expenses climb, while rig usage rates dropped, especially in the jackup segment, which declined to 61% utilization versus 74% in Q1 2025. Floaters utilized 70%, down from 80% in Q1 2025.
Despite profitability pressure, Noble showed strong contract momentum, with approximately $380 million in new contract awards and backlog standing at $6.9 billion as of August 5, 2025. The company added approximately $380 million in new contract backlog since April 2025, covering both traditional oil drilling and newer energy-transition opportunities such as carbon capture and storage (CCS) well projects. Backlog, representing future revenue commitments, now stands at $6.9 billion as of August 5, 2025—still high, even as some contracts rolled off. Recent awards included performance-based contracts with bonuses tied to operational efficiency or speed of drilling. Recent contract rates for top-end drillships ranged from the low to mid-$400,000s per day (as reported in the August 2025 earnings release).
The company continued to reshape its fleet, selling two older cold-stacked drillships in June and July 2025, reducing stacking costs and bringing in $41 million. No further rig expansion was announced this period, with management signaling that near-term growth is limited more by market demand than available equipment.
Free cash flow (non-GAAP) rebounded to $107 million, compared to a negative result in the prior year quarter. Net income (GAAP) declined to $43 million. The maintained dividend and ongoing share buybacks underscored management’s focus on returning capital to shareholders. The company declared a $0.50 per share dividend for Q3 2025, to be paid on September 25, 2025. The company repurchased $20 million in shares during Q1 2025.
Operationally, segment results were mixed. The floater fleet posted an average dayrate of $400,802, up from the prior quarter, though total operating days fell. Jackup rigs saw dayrates increase, but utilization rates and total days worked declined compared to Q1 2025. The softness in the spot market, particularly for jackup rigs in the North Sea and other “benign environment” locations, was flagged as a headwind, with management acknowledging that near-term rates and utilization would likely remain under pressure.
Noble’s environmental and regulatory disclosures this quarter were limited to statements of ongoing commitment, but it did report winning CCS-related contracts in the UK. These contracts support broader energy transition goals, although oil and gas drilling remains the core business. Customer concentration remains top-of-mind, with contracts from major oil companies dominated by names like Shell, TotalEnergies, and bp. The company highlighted that a few large customers drive much of the backlog. One risk is a lack of contract renewals, as large oil companies display discipline in their capital spending and allow extension options to lapse more frequently.
Outlook and What to Watch Next
Turning to guidance, management revised its expectations for fiscal 2025. Total revenue guidance was lowered to $3,200–$3,300 million (from $3,250–$3,450 million) for full year 2025, in response to continued market softness. Meanwhile, the low end of adjusted EBITDA guidance was raised to $1,075 million for 2025. The company expects to spend $400–$450 million on capital expenditures (net of reimbursements) in 2025, up from previous forecasts, to support upgrade needs on recently awarded contracts. Management commented that “deepwater market is characterized by tangible, encouraging indicators of increasing demand levels by late 2026 and into 2027” but flagged that the current environment remains volatile.
Integration of large acquisitions continues to progress on schedule. For investors and stakeholders, key areas to monitor will be further developments in rig utilization rates, progress toward converting backlog into earnings, and how effectively cost control efforts offset inflationary and market cost pressures. Customer renewal patterns and new contract signings with top-tier energy customers will also be important signals of market health. The quarterly dividend was maintained at $0.50 per share for the quarter, and free cash flow continues to cover these shareholder returns.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
