VALValaris Ltd
Earnings Recap
Valaris expects 2026 capital expenditures to approximate $425M to $475M, primarily for maintenance and upgrade projects, including contract-specific capital expenditures. Valaris also anticipates contributing approximately $19.2M to its pension plans in 2026.
Bullish
Valaris reported strong financial results in 2025, with significant net income and EPS growth. The company's backlog substantially increased, driven by new floater contracts, and market conditions for its advanced drillship fleet are expected to improve.
Bearish
Valaris faces risks from its pending Business Combination, including potential delays and a $173M termination fee. The company's business is also exposed to volatile oil prices and competitive, cyclical offshore drilling markets, alongside joint venture funding obligations.