VAL

Valaris is a leading offshore driller with a modern, high-spec fleet — 12 of its 13 drillships are seventh-generation units, the assets customers favor for complex deepwater work. The market backdrop is increasingly favorable: the MD&A reports global marketed drillship utilization near 88% and jackup utilization around 89%, with a decade of rig attrition having shrunk the benign-environment floater fleet more than 45% from its 2014 peak and Saudi Aramco recalling seven suspended jackups for 2026. Tight supply plus reviving deepwater demand underpins rising day rates and utilization.

The operating results show the upcycle taking hold. Per the MD&A, total operating revenue was $2,369.0M (revenue ex-reimbursables of $2,207.9M, roughly flat year over year), but operating income jumped 35.4% to $477M as contract drilling expenses fell 9% — evidence of improving margins and four idle drillships scheduled to return to work in 2026. Operating cash flow rose 53.7% to $546M while capex was cut 24.5% to $344M, generating solid free cash flow. (Note: the structured revenue field of $11.9M is a data-tagging error; the audited revenue is the ~$2.37B figure from the MD&A, and the headline net/operating 'margins' in the data summary should be disregarded.)