Skip to content
    NE
    Earnings call· Mar 2026(Q1 FY26)

    Noble Corp Q1 FY26 earnings call NE

    Apr 27, 2026 Source

    Executive summary

    Noble Corporation plc Q1 FY26 — Strong Backlog Growth and Tightening Deepwater Market

    Noble Corporation delivered a solid Q1 FY26, marked by strong financial performance and significant contract wins, including a substantial extension for the Noble Courage and a reactivation contract for the Noble Deliver. The deepwater market is showing robust demand, with utilization rates tightening and open demand expanding, leading to optimistic outlooks for day rates. The company is focused on executing a large slate of upcoming rig start-ups and maintaining its capital return program, despite minor operational disruptions and supply chain pressures.

    Highlights

    6

    • Achieved adjusted EBITDA of $277 million in Q1 FY26.

    • Generated free cash flow of $169 million in Q1 FY26.

    • Declared a $0.50 per share dividend for Q2 FY26, maintaining consistent cash return.

    • Secured new contract awards totaling approximately $565 million.

    • Increased current backlog to $7.5 billion as of April 26, 2026.

    • Reported UDW contracted utilization at 95% (105 rigs), approaching peak demand levels.

    Concerns

    3

    • Experienced limited operational disruption to the Mak O'Brien jackup due to the Iran conflict, resulting in an estimated negative impact of $15 million.

    • Noted a lower near-term day rate revision for the Noble Courage due to a blend and extend contract.

    • Anticipated slightly later estimated contract commencement dates for the Jerry DSUs and Endeavor due to customer schedules.

    Guidance & targets

    5
    CategoryTargetConfidence
    Full-year 2026 Total Revenue
    $2.8 billion to $3 billion
    high materiality
    High
    Full-year 2026 Adjusted EBITDA
    $940 million to $1.02 billion
    high materiality
    High
    Full-year 2026 Capital Expenditures
    Increased by $25 million
    medium materiality
    High
    Floater Day Rates
    Move higher
    high materiality
    Medium
    EBITDA and Free Cash Flow Inflection
    Healthy inflection
    high materiality
    High

    Operational metrics

    12
    Adjusted EBITDA
    $277 million
    Q1 FY26

    Reported for the first quarter.

    Capital Expenditures
    $104 million
    Q1 FY26

    Reported for the first quarter.

    Dividend per Share
    $0.50Maintaining consistent
    Q2 FY26

    Declared for the second quarter, maintaining consistent return of cash strategy.

    BOP Systems Lease Buyout
    $36.5 million
    Q1 FY26

    Completed for the first two of four black ships BOP systems. This is part of financing activities, not capex.

    Senior Secured Notes Redeemed
    $55 million
    Q1 FY26

    Principal amount of 8.5% senior secured notes redeemed at 103 as an opportunistic and efficient use of capital.

    UDW Contracted Utilization
    95%
    Current

    Approaching recent peak contracted demand levels of 2 years ago.

    UDW Future Contracts
    14 rigs
    Future

    These rigs are not yet working today but have future contracts, expected to ramp up over the next 6 to 12 months.

    UDW Fixtures
    32 rig yearsDouble average quarterly run rate of last year
    Q1 FY26

    Reported for the first quarter, indicating a significant increase in contracting activity.

    UDW Fixtures
    40+ additional rig yearsSignificantly above entirety of last year's contracting volumes
    April 2026

    Reported for April alone, with Petrobras comprising over half of 2026 year-to-date deepwater rig years fixed.

    Open Floater Demand
    110+ rig years55% higher compared to previous high watermark 2 years ago
    Current

    This figure has eclipsed 110 rig years, indicating an expanding pipeline of demand.

    BOP Lease Buyouts Annual EBITDA Benefit
    $25 million
    Annualized

    The annualized benefit to EBITDA from buying in the BOP leases. Approximately half of this will be realized in 2026.

    Mak O'Brien Early Termination Impact
    negative $15 million
    Near-term

    Due to remaining bareboat obligation through early December and stacking costs for the rig after early release notice from customer ELNG.

    Industry KPIs

    4
    MetricValueDetails
    Rpo backlog$7.5 billionUSD
    Book to bill ratio—
    FCF CAPEX leverage$169 million FCF; $104 million CapexUSD
    Orders bookings by segment$565 millionUSD

    Orderbook & backlog

    6
    Total Backlog$7.5 billionApril 26, 2026

    Excludes reimbursable revenue and revenue from ancillary services.

    Backlog for Remainder of 2026$1.8 billionApril 26, 2026

    Scheduled for revenue conversion during the remainder of 2026.

    Backlog for 2027$2.4 billionApril 26, 2026

    Scheduled for revenue conversion during 2027.

    New Contract Awards$565 millionQ1 FY26

    Total value of new contract awards secured over the past 3 months.

    Noble Courage Net Incremental Backlog$339 millionQ1 FY26

    Resulting from an extension with Petrobras for slightly more than 3 years.

    Noble Deliver Contract Value$121 millionQ1 FY26

    Based on an estimated 300 days of firm scope, excluding options and additional services/upgrades.

    Deals & partnerships

    7
    PetrobrasExtension of Noble Courage contract$339 millionSlightly more than 3 years

    The extension will keep the Noble Courage committed in Brazil through the end of 2030.

    Woodside5-well contract for Noble Deliver$121 millionEstimated 300 days of firm scope

    The contract is for the Noble Deliver in Australia and will support the rig's reactivation.

    ExxonMobil1-well contract for Noble Developer

    The contract is for the Noble Developer in Guyana, scheduled to slot in after the rig's current program around year-end.

    BeaconExercised option well for Noble BlackRhinoEstimated 100 days

    The Noble BlackRhino has recently commenced an exercised option well in the U.S. Gulf.

    Planet 11-well contract for Noble VentureEstimated 45 days

    The Noble Venture has been awarded a 1-well contract in Ghana, expected to commence late this year, with 2 unpriced options.

    Undisclosed1-well contract for Noble Viking

    The Noble Viking has received an additional 1-well contract in Malaysia, expected to extend the rig through October this year.

    Borr DrillingSale of jackup rig$210 million cash proceeds + $150 million seller note

    Noble closed the sale of all drilling in January, continuing to manage the rig (Mak O'Brien) under a bareboat agreement through its contract completion in Qatar.

    Capital programs

    2
    BOP Systems Lease Buyoutunderway$73 million
    Period spend: $36.5 million
    Spent to date: $36.5 million

    Benefit: Ownership of 4 BOP systems

    Completed the lease buyout on the first 2 of 4 black ships BOP systems for $36.5 million in Q1. The buyout of the remaining 2 BOP systems is expected to occur during Q2 and Q4 this year for approximately $18 million each.

    Noble Deliver Reactivationunderway$25 million
    Period spend: $25 million

    Benefit: Rig ready for Woodside contract

    Capital expenditures guidance for 2026 increased by $25 million due to contract awards supporting the reactivation of the Noble Deliver for the Woodside contract. This is the total cost for the Woodside contract.

    Risks & headwinds

    5
    Operational disruption from Iran conflictNear-term

    Estimated negative impact of $15 million

    Mitigation: Safely evacuated crew and personnel; managing wind-down of operations for Mak O'Brien.

    Early contract termination for Mak O'BrienNear-term (effective after 30 days)

    Negative impact of approximately $15 million

    Mitigation: Impact includes remaining bareboat obligation through early December and stacking costs for the rig. Rig will move to Borr Drilling in early December.

    Lower near-term day rate for Noble CourageApril 1, 2026, through late 2027

    Day rate reduced from $290,000 to $280,000

    Mitigation: Part of a blend and extend contract, offset by a higher rate of $309,000+ for the extension period through 2030.

    Later estimated contract commencement dates

    Slightly later

    Mitigation: Affects Jerry DSUs and Endeavor, driven by customer schedules.

    Strained logistics and increased fuel pricesOngoing

    Adding cost into the system

    Mitigation: Actively tracking equipment and ensuring timely delivery for upcoming projects to mitigate timing pressures.

    What to watch in Q2 FY26

    5

    Noble BlackRhino Work

    Next couple of quarters
    CurrentCommenced exercised option well in US Gulf (100 days)
    TargetSecure additional 2026 or 2027 work in US Gulf or elsewhere

    Why it matters

    Securing additional work for this rig would provide upside to 2026 results and ensure continued utilization.

    So Black Brado could very easily stay in the U.S. that's most likely to be 27 work. But like I said, our fingers are crossed about potentially some 26 work popping up. It is bid outside of the region as well.

    Q&A highlights

    7

    How will rising energy security concerns and higher oil prices impact deepwater demand, particularly for projects majors have been sitting on?

    Robert Eifler stated that positive deepwater indicators predated the Iran conflict. While no direct tangible evidence of new projects linked to the conflict yet, the narrative is positive. He noted that regions like the US Gulf of Mexico traditionally respond quickly to oil prices, and expressed hope that energy security concerns will solidify existing demand trends.

    “I don't know that we can put our finger on a specific example that has a direct cause an effect related to Iran. But I think that generally, we're seeing conversations gain momentum.”

    asked by Arun Jayaram · answered by Robert Eifler

    2 min read6 chapters

    Detailed Narrative

    01

    Q1 Financial Highlights and Capital Allocation

    Noble Corporation reported Q1 FY26 adjusted EBITDA of $277 million and free cash flow of $169 million, maintaining its $0.50 per share dividend for Q2. The company received $210 million in cash from a jackup sale and completed a $36.5 million lease buyout for two BOP systems. Additionally, Noble opportunistically redeemed $55 million principal amount of 8.5% senior secured notes at 103, signaling efficient capital management and future refinancing plans.

    02

    Significant Contract Awards and Backlog Growth

    The company secured new contract awards totaling approximately $565 million, boosting its backlog to $7.5 billion. Key awards include a 3-year extension for the Noble Courage with Petrobras, valued at $339 million, and a 5-well contract for the Noble Deliver with Woodside in Australia, valued at $121 million, which will support its reactivation. Other awards include contracts for the Noble Developer, Noble BlackRhino, Noble Venture, and Noble Viking, demonstrating broad market activity.

    03

    Tightening Deepwater Market Dynamics

    Deepwater rig demand indicators are 'flashing green,' with UDW contracted utilization reaching 95% (105 rigs). The first quarter saw 32 rig years of UDW fixtures, doubling the average quarterly rate of the previous year, with an additional 40+ rig years fixed in April. Despite this surge, the pipeline of open floater demand has expanded to over 110 rig years, indicating a comprehensively tight market and upward day rate pressure expected through the rest of the year.

    04

    Focus on Project Execution and Supply Chain Management

    Noble is preparing for a significant slate of rig start-ups, including the Voyager, Jerry DeSouza, Interceptor, Valiant, Endeavor, Great White, Deliver, and Venture, spanning major non-OPEC offshore basins. Management emphasized a sharp organizational focus on project execution, acknowledging strained logistics and increased fuel prices. The company is actively managing supply chains to ensure timely equipment delivery and project commencement despite external pressures🌐.

    05

    Technology and Automation as Enablers

    The company highlighted its advanced rig technology, with all drillships having or soon to have MPD and extensive NOV automation equipment. Management views technology and automation as critical enablers for deepwater work, driving efficiency and safety. Collaborative efforts with service companies and customers on shared technologies are seen as key to maximizing efficiency and expanding the deepwater market by lowering the cost curve.

    06

    Regional Demand Outlook and Rig Status

    Beyond Brazil, Asia and West Africa are identified as regions with strengthening demand, potentially solidified by renewed energy security concerns. The US Gulf is also noted for its potential quick response to higher oil prices. The Noble Fayes is being bid for opportunities in South America and elsewhere, while the older Apex unit's options are under evaluation. The Globetrotter I remains focused on intervention work with news expected in upcoming quarters.

    AI-generated summary of the company’s earnings call. Not investment advice.