Noble Q2 adjusted net income misses estimates; guidance cut on Brazil rig suspensions

Overview

• Adjusted EPS and adjusted net income for Q2 missed analyst expectations

• US offshore drilling contractor's Q2 revenue beat analyst expectations

• Quarterly results impacted by Brazil rig suspensions; full-year revenue and EBITDA guidance cut

Outlook

• Noble lowers 2026 revenue guidance to $2.8-$2.9 bln from $2.8-$3.0 bln

• Company cuts 2026 adjusted EBITDA guidance to $850-$925 mln from $940-$1,020 mln

• Noble expects 2027 and beyond market outlook to be promising for deepwater and harsh environment rigs

Result Drivers

• BRAZIL RIG SUSPENSIONS - Co said Q2 was adversely impacted by $43 mln due to operational suspension of two rigs in Brazil

• CONTRACT CONCLUSION - Sequential revenue decrease driven by conclusion of Noble Globetrotter Is contract in the Black Sea

• LOWER FLEET UTILIZATION - Utilization of marketed rigs fell to 64% in Q2 from 68% in prior qtr

Company press release: ID:nPn1Y69XXa

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 9 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the oil gas drilling peer group is "buy."

• Wall Street's median 12-month price target for Noble Corporation PLC is $50.00, about 15.6% above its July 24 closing price of $43.26

• The stock recently traded at 24 times the next 12-month earnings vs. a P/E of 34 three months ago

Reuters Recommended Reads

• July 27 - Baker Hughes flags lower spending by oil and gas producers in 2026

• July 27 - Apollo Global to invest $1.5 billion in Keppel oil rig fund

• July 27 - Kazakhstan's daily oil output halves after export terminal closure, source says

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)