Valaris Limited (NYSE:VAL) ("Valaris" or the "Company") today reported fourth quarter 2025 results.

President and Chief Executive Officer Anton Dibowitz said, "Our fourth quarter results capped another year of strong execution by the Valaris team. We delivered revenue efficiency of 98% for the quarter and 96% for full year 2025, marking our fifth consecutive year of revenue efficiency at or above 96%. Our employees' unwavering focus on operational excellence continues to be acknowledged by customers and is a core driver of our overall results."

Dibowitz added, "Our strong operating performance continues to translate into significant contracting success. Since our last quarterly report, we secured nearly $900 million of additional backlog, further strengthening our robust contract coverage across 2026 and 2027. After addressing the white space on our open drillship capacity earlier this year, we recently announced contract awards for VALARIS DS-7 and DS-9, and we expect all ten of our active drillships to be working as we enter 2027, which was a key objective for us."

Dibowitz concluded, "Earlier this month, we were pleased to announce an all-stock transaction with Transocean that delivers meaningful value to Valaris shareholders, who will benefit from associated synergies and have the opportunity to participate in the future upside potential of the combined company. We believe the outlook for the offshore drilling industry remains positive, with customers continuing to emphasize the need for sustained upstream investment to help ensure secure, reliable and affordable energy supply."

Financial and Operational Highlights

Total operating revenues of $537 million, with revenue efficiency of 98%
Net income of $717 million, which includes a tax benefit of $680 million
Adjusted EBITDA of $97 million
VALARIS 115 awarded Shell's 2025 Jackup Rig of the Year
Secured nearly $900 million of new contract backlog since reporting third quarter 2025 results, including for drillships VALARIS DS-7, DS-8 and DS-9, increasing total backlog to approximately $4.7 billion
Further high-graded fleet with sale of jackups VALARIS 102 and 145 for recycling and classified semisubmersible VALARIS DPS-1 as held for sale with the intent to recycle
Repurchased $25 million of shares during the fourth quarter and $100 million during the year

Fourth Quarter Review

Net income of $717 million compared to $187 million in the third quarter 2025. Net income included a tax benefit of $680 million, which is further described below, compared to tax expense of $29 million in the third quarter. Net income also included a gain on sale of assets of $1 million compared to $90 million in the third quarter. Adjusted EBITDA of $97 million compared to $163 million in the third quarter.

Revenues exclusive of reimbursable items decreased to $502 million from $556 million in the third quarter 2025 primarily due to fewer operating days for the floater fleet, the sale of jackup VALARIS 247, which contributed one month of revenue in the third quarter, and lower bareboat charter revenues from rigs leased to ARO Drilling.

Exclusive of reimbursable items, contract drilling expenses increased to $380 million from $368 million in the third quarter 2025 primarily due to higher repair costs associated with planned maintenance projects, an increase in accruals related to certain claims and higher mobilization expenses. These items were partially offset by lower costs due to fewer operating days for the floater fleet and the sale of jackup VALARIS 247 during the third quarter.

Fourth quarter 2025 included a $20 million loss on impairment primarily related to the classification of semisubmersible VALARIS DPS-1 as held for sale. Depreciation expense increased to $41 million from $37 million in the third quarter 2025 primarily due to new assets placed in service following shipyard projects. General and administrative expenses of $27 million were in line with the third quarter.

Other expense of $3 million compared to other income of $85 million in the third quarter 2025 primarily due to a gain on the sale of jackup VALARIS 247 in the third quarter.

Tax benefit of $680 million compared to tax expense of $29 million in the third quarter 2025. The fourth quarter tax provision included $691 million of tax benefit related to changes in deferred tax asset valuation allowances in certain operating jurisdictions and a $7 million discrete tax benefit primarily attributable to rig impairments. Adjusted for these items, tax expense decreased to $18 million from $29 million in the third quarter.

Capital expenditures increased to $106 million from $70 million in the third quarter 2025 primarily due to shipyard projects for two rigs leased to ARO that commenced during the fourth quarter, as well as higher maintenance and upgrade spending across the fleet.

Cash and cash equivalents decreased to $599 million as of December 31, 2025, from $663 million as of September 30, 2025. The decrease was due to capital expenditures and share repurchases, partially offset by cash flow from operations.

Fourth Quarter Segment Review

Floaters

Revenues exclusive of reimbursable items decreased to $255 million from $293 million in the third quarter 2025 primarily due to drillships VALARIS DS-15 and DS-18 completing contracts mid-third quarter without immediate follow-on work and semisubmersibles VALARIS MS-1 and DPS-1 completing contracts mid-fourth quarter. Both drillships are scheduled to commence new contracts in the second half of 2026, while both semisubmersibles have been mobilized to Malaysia and are currently stacked.

Exclusive of reimbursable items, contract drilling expenses increased to $198 million from $188 million in the third quarter 2025. The increase was primarily due to higher repair costs associated with planned maintenance projects, an increase in accruals related to certain claims and higher mobilization expenses for VALARIS DPS-1 and MS-1 given their mobilization to Malaysia. These items were partially offset by cost reductions for VALARIS DS-15 and DS-18, which completed contracts mid-third quarter and were idle during the fourth quarter.

Jackups

Revenues exclusive of reimbursable items decreased to $209 million from $217 million in the third quarter 2025 primarily due to the sale of VALARIS 247, which contributed one month of revenue in the third quarter.

Exclusive of reimbursable items, contract drilling expenses decreased to $121 million from $125 million in the third quarter 2025 primarily due to the sale of VALARIS 247 during the third quarter.

ARO Drilling

Revenues decreased to $140 million from $157 million in the third quarter 2025 primarily due to more out of service time related to planned shipyard projects for VALARIS 116 and 250. Contract drilling expenses decreased to $87 million from $92 million in the third quarter 2025 primarily due to lower bareboat charter expenses.

Other

Revenues exclusive of reimbursable items decreased to $38 million from $46 million in the third quarter 2025 primarily due to lower bareboat charter revenues from rigs leased to ARO, resulting from the above-mentioned out of service time. Exclusive of reimbursable items, contract drilling expenses increased to $21 million from $16 million in the third quarter primarily due to higher costs related to the above-mentioned shipyard projects for leased rigs.

			Three Months Ended (Unaudited)
	Floaters						Jackups						ARO ⁽¹⁾							Other						Reconciling Items^{(1) (2)}						Consolidated Total
(in millions, except %)	Q4 2025		Q3 2025		Chg		Q4 2025		Q3 2025		Chg		Q4 2025			Q3 2025		Chg		Q4 2025		Q3 2025		Chg		Q4 2025			Q3 2025			Q4 2025		Q3 2025		Chg
Operating revenues:
Revenues (exclusive of reimbursable revenues)	$	255.4	$	293.0	(13	)%	$	208.8	$	216.7	(4	)%	$	139.6		$	156.8	(11	)%	$	38.0	$	45.9	(17	)%	$	(139.6	)	$	(156.8	)	$	502.2	$	555.6	(10	)%
Reimbursable revenues		10.5		9.9	6	%		15.3		20.4	(25	)%		—			—	—	%		9.4		9.8	(4	)%		—			—			35.2		40.1	(12	)%
Total operating revenues		265.9		302.9	(12	)%		224.1		237.1	(5	)%		139.6			156.8	(11	)%		47.4		55.7	(15	)%		(139.6	)		(156.8	)		537.4		595.7	(10	)%
Operating expenses:
Contract drilling (exclusive of depreciation and reimbursable expense)		197.6		187.7	(5	)%		120.7		124.8	3	%		87.1			91.6	5	%		20.9		16.3	(28	)%		(46.0	)		(52.8	)		380.3		367.6	(3	)%
Reimbursable expenses		9.9		9.4	(5	)%		13.9		18.9	26	%		—			—	—	%		9.3		9.7	4	%		—			—			33.1		38.0	13	%
Total contract drilling (exclusive of depreciation)		207.5		197.1	(5	)%		134.6		143.7	6	%		87.1			91.6	5	%		30.2		26.0	(16	)%		(46.0	)		(52.8	)		413.4		405.6	(2	)%
Loss on impairment		15.8		—	nm			3.7		—	nm			—			—	—	%		—		—	—	%		—			—			19.5		—	nm
Depreciation		16.2		15.5	(5	)%		16.0		15.3	(5	)%		28.3			28.4	—	%		4.6		3.0	(53	)%		(24.5	)		(25.1	)		40.6		37.1	(9	)%
General and admin.		—		—	—	%		—		—	—	%		10.4			5.5	(89	)%		—		—	—	%		16.6			21.4			27.0		26.9	—	%
Equity in earnings of ARO		—		—	—	%		—		—	—	%		—			—	—	%		—		—	—	%		2.5			4.4			2.5		4.4	(43	)%
Operating income	$	26.4	$	90.3	(71	)%	$	69.8	$	78.1	(11	)%	$	13.8		$	31.3	(56	)%	$	12.6	$	26.7	(53	)%	$	(83.2	)	$	(95.9	)	$	39.4	$	130.5	(70	)%

Net income (loss)	$	26.4	$	90.0	(71	)%	$	69.9	$	166.9	(58	)%	$	(1.4	)	$	2.4	(158	)%	$	13.0	$	26.8	(51	)%	$	608.9		$	(98.8	)	$	716.8	$	187.3	283	%

Adjusted EBITDA	$	58.4	$	105.8	(45	)%	$	89.5	$	93.4	(4	)%	$	42.1		$	59.7	(29	)%	$	17.2	$	29.7	(42	)%	$	(110.2	)	$	(125.4	)	$	97.0	$	163.2	(41	)%

nm - Not meaningful

⁽¹⁾ The full operating results included above for ARO are not included within our consolidated results and thus deducted under "Reconciling Items" and replaced with our equity in earnings of ARO.

⁽²⁾ Our onshore support costs included within contract drilling expenses are not allocated to our operating segments for purposes of measuring segment operating income (loss) and as such, these costs are included in "Reconciling Items." Further, general and administrative expense and depreciation expense incurred by our corporate office are not allocated to our operating segments for purposes of measuring segment operating income (loss) and are included in "Reconciling Items."

FY 2026 Financial Guidance

Total operating revenues of $2,125 - 2,205 million
Adjusted EBITDA of $485 - 565 million, which excludes costs associated with the pending business combination with Transocean Ltd. announced on February 9, 2026
Capital expenditures of $425 - 475 million
Upfront payments from customers related to contract-specific upgrades of approximately $110 million

Senior Vice President and Chief Financial Officer Chris Weber said, "We expect that our financial results will improve meaningfully across the year as our currently idle drillships return to work. Two drillships are expected to return to work in the second quarter, one in the third quarter and one in the fourth quarter."

Weber added, "Given our strong commercial execution, approximately 97% of full-year 2026 revenue at the midpoint of our revenue guidance range is secured by firm contracts."

Weber continued, "Approximately $260 million of our 2026 capex guidance is for maintenance and upgrade work, including deferred maintenance projects for drillships returning to work after idle periods and special periodic surveys for several jackups. The remaining capex relates to contract-specific upgrades, including for jackups VALARIS 116 and 250 prior to continuing long-term bareboat charters with ARO and for three drillships being upgraded with Managed Pressure Drilling systems, two of which will be the advanced CML design. These contract-specific upgrades are expected to be partially offset by upfront payments from customers of approximately $110 million."

Conference Call

In light of the pending business combination with Transocean Ltd., which was announced on February 9, 2026, Valaris has previously cancelled its fourth quarter 2025 conference call and does not intend to hold future earnings conference calls or provide updates to forward-looking guidance.

About Valaris Limited

Valaris Limited (NYSE:VAL) is an industry leader in offshore drilling services across all water depths and geographies. Operating a high-quality rig fleet of ultra-deepwater drillships, versatile semisubmersibles, and modern shallow-water jackups, Valaris has experience operating in nearly every major offshore basin. Valaris maintains an unwavering commitment to safety, operational excellence, and customer satisfaction, with a focus on technology and innovation. Valaris Limited is a Bermuda exempted company limited by shares (Bermuda No. 56245). To learn more, visit the Valaris website at www.valaris.com.

Forward-Looking Statements

Statements contained in this press release that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include words or phrases such as "anticipate," "believe," "estimate," "expect," "intend," "likely," "outlook," "plan," "project," "could," "may," "might," "should," "will" and similar words and specifically include statements regarding expected financial performance; expected utilization, day rates, revenues, operating expenses, cash flows, contract status, terms and duration, contract backlog, capital expenditures, insurance, financing and funding; the offshore drilling market, including supply and demand, customer drilling programs and the attainment of requisite permits for such programs, stacking of rigs, effects of new rigs on the market and effect of the volatility of commodity prices; expected work commitments, awards, contracts and letters of intent; scheduled delivery dates for rigs; performance and expected benefits of our joint ventures, including our joint venture with Saudi Aramco; timing of the delivery of the Saudi Aramco Rowan Offshore Drilling Company ("ARO") newbuild rigs and the timing of additional ARO newbuild orders; the availability, delivery, mobilization, contract commencement, availability, relocation or other movement of rigs and the timing thereof; rig reactivations; suitability of rigs for future contracts; divestitures of assets; general economic, market, business and industry conditions, trends and outlook; general political conditions, including political tensions, conflicts and war; cybersecurity attacks and threats; uncertainty around the use and impacts of artificial intelligence applications; impacts and effects of public health crises, pandemics and epidemics; future operations; ability to renew expiring contracts or obtain new contracts; increasing regulatory complexity; targets, progress, plans and goals related to sustainability matters; the outcome of tax disputes; assessments and settlements; and expense management. The forward-looking statements contained in this press release are subject to numerous risks, uncertainties and assumptions that may cause actual results to vary materially from those indicated, including risks associated with the pending proposed transaction with Transocean Ltd., including, among others, the completion of the proposed transaction on the anticipated terms and timing, or at all, the risk that disruptions from the transaction will harm our business, including current plans and operations, the diversion of management's time and attention from ordinary course operations to completion of the proposed transaction and certain restrictions during the pendency of the proposed transaction that may impact our business; cancellation, suspension, renegotiation or termination of drilling contracts and programs; our ability to obtain financing, service our debt, fund capital expenditures and pursue other business opportunities; adequacy of sources of liquidity for us and our customers; future share repurchases; actions by regulatory authorities, or other third parties; actions by our security holders; internal control risk; commodity price fluctuations and volatility, customer demand, loss of a significant customer or customer contract, downtime and other risks associated with offshore rig operations; adverse weather, including hurricanes; changes in worldwide rig supply; and demand, competition and technology; supply chain and logistics challenges; consumer preferences for alternative fuels and forecasts or expectations regarding the global energy transition; increased scrutiny of our sustainability targets, initiatives and reporting and our ability to achieve such targets or initiatives; changes in customer strategy; future levels of offshore drilling activity; governmental action, civil unrest and political and economic uncertainties, including recessions, inflation, volatility affecting financial markets and the banking system, changing tariff policies, trade disputes, and adverse changes in the level of international trade activity; terrorism, piracy and military action; risks inherent to shipyard upgrade, repair, maintenance, enhancement or rig reactivation; our ability to enter into, and the terms of, future drilling contracts; suitability of rigs for future contracts; the cancellation of letters of intent or letters of award or any failure to execute definitive contracts following announcements of letters of intent, letters of award or other expected work commitments; the outcome of litigation, legal proceedings, investigations or other claims or contract disputes; governmental regulatory, legislative and permitting requirements affecting drilling operations; our ability to attract and retain skilled personnel on commercially reasonable terms; the use of artificial intelligence by us, third-party service providers or our competitors; environmental or other liabilities, risks or losses; compliance with our debt agreements and debt restrictions that may limit our liquidity and flexibility, including in any return of capital plans; cybersecurity risks and threats; and changes in foreign currency exchange rates. In addition to the numerous factors described above, you should also carefully read and consider "Item 1A. Risk Factors" in Part I and "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations" in Part II of our most recent annual report on Form 10-K, which is available on the Securities and Exchange Commission's website at www.sec.gov or on the Investor Relations section of our website at www.valaris.com. Each forward-looking statement speaks only as of the date of the particular statement, and we undertake no obligation to update or revise any forward-looking statements, except as required by law.

VALARIS LIMITED AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In millions, except per share amounts)
(Unaudited)

	Three Months Ended
	Dec 31, 2025			Sep 30, 2025			Jun 30, 2025			Mar 31, 2025			Dec 31, 2024
OPERATING REVENUES
Revenues (exclusive of reimbursable revenues)	$	502.2		$	555.6		$	572.3		$	577.8		$	548.0
Reimbursable revenues		35.2			40.1			42.9			42.9			36.4
Total operating revenues		537.4			595.7			615.2			620.7			584.4

OPERATING EXPENSES
Contract drilling expenses (exclusive of depreciation and reimbursable expenses)		380.3			367.6			355.2			374.0			380.5
Reimbursable expenses		33.1			38.0			40.5			41.0			34.8
Total contract drilling expenses (exclusive of depreciation)		413.4			405.6			395.7			415.0			415.3

Loss on impairment		19.5			—			—			7.8			—
Depreciation		40.6			37.1			35.5			33.1			33.9
General and administrative		27.0			26.9			18.8			24.4			26.7
Total operating expenses		500.5			469.6			450.0			480.3			475.9
EQUITY IN EARNINGS (LOSSES) OF ARO		2.5			4.4			(1.1	)		2.6			10.7
OPERATING INCOME		39.4			130.5			164.1			143.0			119.2

OTHER INCOME (EXPENSE)
Interest income		18.7			22.6			15.1			14.4			16.6
Interest expense, net		(24.8	)		(24.9	)		(24.8	)		(24.3	)		(22.1	)
Other, net		3.1			87.7			(8.7	)		21.2			10.1
Total other income (expense)		(3.0	)		85.4			(18.4	)		11.3			4.6

INCOME BEFORE INCOME TAXES		36.4			215.9			145.7			154.3			123.8

PROVISION (BENEFIT) FOR INCOME TAXES		(680.4	)		28.6			31.5			193.5			(6.8	)

NET INCOME (LOSS)		716.8			187.3			114.2			(39.2	)		130.6

NET LOSS ATTRIBUTABLE TO NONCONTROLLING INTERESTS		0.7			0.8			0.9			1.3			3.1

NET INCOME (LOSS) ATTRIBUTABLE TO VALARIS	$	717.5		$	188.1		$	115.1		$	(37.9	)	$	133.7

EARNINGS (LOSS) PER SHARE
Basic	$	10.32		$	2.66		$	1.62		$	(0.53	)	$	1.88
Diluted	$	10.26		$	2.65		$	1.61		$	(0.53	)	$	1.88
WEIGHTED-AVERAGE SHARES OUTSTANDING
Basic		69.5			70.7			71.1			71.0			71.1
Diluted		69.9			71.0			71.3			71.0			71.2

VALARIS LIMITED AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In millions)

	As of
	Dec 31, 2025		Sep 30, 2025		Jun 30, 2025		Mar 31, 2025		Dec 31, 2024
			(Unaudited)		(Unaudited)		(Unaudited)
ASSETS

CURRENT ASSETS
Cash and cash equivalents	$	599.4	$	662.7	$	503.4	$	441.4	$	368.2
Accounts receivable, net		474.8		513.7		554.2		557.7		571.2
Assets held-for-sale		6.4		—		—		7.0		—
Other current assets		144.7		167.2		169.8		151.7		139.3
Total current assets		1,225.3		1,343.6		1,227.4		1,157.8		1,078.7

PROPERTY AND EQUIPMENT, NET		2,088.8		2,034.4		2,021.6		1,977.1		1,932.9

LONG-TERM NOTES RECEIVABLE FROM ARO		345.0		314.7		308.5		302.3		296.2

INVESTMENT IN ARO		121.8		119.3		114.9		116.0		113.4

DEFERRED TAX ASSETS		1,364.2		673.9		675.5		679.0		849.5

OTHER ASSETS		159.7		152.1		155.4		154.6		149.1

Total assets	$	5,304.8	$	4,638.0	$	4,503.3	$	4,386.8	$	4,419.8


LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES
Accounts payable - trade	$	348.2	$	327.1	$	332.3	$	329.3	$	328.5
Accrued liabilities and other		343.4		390.9		346.4		365.3		351.0
Total current liabilities		691.6		718.0		678.7		694.6		679.5

LONG-TERM DEBT		1,086.0		1,085.2		1,084.3		1,083.5		1,082.7

DEFERRED TAX LIABILITIES		29.7		27.0		29.4		29.4		30.1

OTHER LIABILITIES		325.8		357.2		377.6		367.8		383.2

TOTAL LIABILITIES		2,133.1		2,187.4		2,170.0		2,175.3		2,175.5

TOTAL EQUITY		3,171.7		2,450.6		2,333.3		2,211.5		2,244.3

Total liabilities and shareholders' equity	$	5,304.8	$	4,638.0	$	4,503.3	$	4,386.8	$	4,419.8

VALARIS LIMITED AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)

	Years Ended December 31,
		2025			2024
OPERATING ACTIVITIES
Net income	$	979.1		$	369.8
Adjustments to reconcile net income to net cash provided by operating activities:
Deferred income tax expense (benefit)		(515.1	)		5.8
Depreciation expense		146.3			122.1
Net (gain) loss on sale of property		(118.6	)		0.2
Loss on impairment		27.3			—
Share-based compensation expense		25.2			27.7
Accretion of discount on notes receivable from ARO		(24.7	)		(40.0	)
Equity in losses (earnings) of ARO		(8.4	)		11.0
Changes in contract liabilities		(41.0	)		(31.7	)
Changes in deferred costs		16.1			39.3
Changes in contract assets		(10.3	)		(1.0	)
Other		8.0			6.9
Changes in operating assets and liabilities		78.9			(133.2	)
Contributions to pension plans and other post-retirement benefits		(16.6	)		(21.5	)
Net cash provided by operating activities		546.2			355.4

INVESTING ACTIVITIES
Additions to property and equipment		(343.5	)		(455.1	)
Proceeds from disposition of assets		137.9			2.8
Net cash used in investing activities		(205.6	)		(452.3	)

FINANCING ACTIVITIES
Payments for share repurchases		(100.0	)		(126.4	)
Payments related to tax withholdings for share-based awards		(3.6	)		(29.9	)
Debt issuance costs		—			(0.8	)
Other		—			(1.2	)
Net cash used in financing activities		(103.6	)		(158.3	)

INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH		237.0			(255.2	)
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF PERIOD ⁽¹⁾		380.5			635.7
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD ⁽¹⁾	$	617.5		$	380.5

⁽¹⁾	Restricted cash balances were $18.1 million, $12.3 million and $15.2 million as of December 31, 2025, 2024, and 2023, respectively.

VALARIS LIMITED AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
(Unaudited)

	Three Months Ended
	Dec 31, 2025			Sep 30, 2025			Jun 30, 2025			Mar 31, 2025			Dec 31, 2024
OPERATING ACTIVITIES
Net income (loss)	$	716.8		$	187.3		$	114.2		$	(39.2	)	$	130.6
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Deferred income tax expense (benefit)		(687.6	)		(0.8	)		3.5			169.8			(13.5	)
Depreciation expense		40.6			37.1			35.5			33.1			33.9
Loss on impairment		19.5			—			—			7.8			—
Share-based compensation expense		6.8			6.8			6.0			5.6			5.3
Accretion of discount on notes receivable from ARO		(6.2	)		(6.2	)		(6.2	)		(6.1	)		(6.2	)
Equity in losses (earnings) of ARO		(2.5	)		(4.4	)		1.1			(2.6	)		(10.7	)
Net gain on sale of property		(1.2	)		(89.5	)		(0.8	)		(27.1	)		(0.1	)
Changes in deferred costs		7.0			4.8			4.5			(0.2	)		6.7
Changes in contract assets		(4.7	)		(5.3	)		0.1			(0.4	)		7.2
Changes in contract liabilities		(1.7	)		(5.9	)		(15.6	)		(17.8	)		(18.2	)
Other		1.9			1.7			2.1			2.3			1.9
Changes in operating assets and liabilities		(13.0	)		77.3			(21.1	)		35.7			(10.4	)
Contributions to pension plans and other post-retirement benefits		(3.5	)		(4.8	)		(3.3	)		(5.0	)		(1.9	)
Net cash provided by operating activities		72.2			198.1			120.0			155.9			124.6

INVESTING ACTIVITIES
Additions to property and equipment		(106.3	)		(69.8	)		(67.2	)		(100.2	)		(111.7	)
Proceeds from disposition of assets		1.6			108.7			9.8			17.8			2.6
Net cash provided by (used in) investing activities		(104.7	)		38.9			(57.4	)		(82.4	)		(109.1	)

FINANCING ACTIVITIES
Payments for share repurchases		(25.0	)		(75.0	)		—			—			(25.0	)
Payments related to tax withholdings for share-based awards		(0.5	)		(2.7	)		(0.1	)		(0.3	)		(0.2	)
Other		—			—			—			—			(2.0	)
Net cash used in financing activities		(25.5	)		(77.7	)		(0.1	)		(0.3	)		(27.2	)

INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH		(58.0	)		159.3			62.5			73.2			(11.7	)
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF PERIOD ⁽¹⁾		675.5			516.2			453.7			380.5			392.2
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD⁽¹⁾	$	617.5		$	675.5		$	516.2		$	453.7		$	380.5

⁽¹⁾	Restricted cash balances were $18.1 million, $12.8 million, $12.8 million, $12.3 million, $12.3 million, and $12.9 million as of December 31, 2025, September 30, 2025, June 30, 2025, March 31, 2025, December 31, 2024, and September 30, 2024, respectively.

VALARIS LIMITED AND SUBSIDIARIES
OPERATING STATISTICS
(In millions)
(Unaudited)

	Three Months Ended
	Dec 31, 2025		Sep 30, 2025		Jun 30, 2025		Mar 31, 2025		Dec 31, 2024
REVENUES
Floaters
Drillships	$	231.1	$	253.8	$	282.7	$	317.3	$	285.5
Semisubmersibles		24.3		39.2		37.0		38.7		42.2
		255.4		293.0		319.7		356.0		327.7
Reimbursable Revenues ⁽¹⁾		10.5		9.9		7.2		8.9		15.7
Total Floaters	$	265.9	$	302.9	$	326.9	$	364.9	$	343.4

Jackups
Harsh Environment	$	98.2	$	110.5	$	115.0	$	106.3	$	113.5
Benign Environment		91.5		91.2		81.4		64.8		59.5
Legacy		19.1		15.0		15.6		14.8		14.8
		208.8		216.7		212.0		185.9		187.8
Reimbursable Revenues ⁽¹⁾		15.3		20.4		26.0		27.7		15.3
Total Jackups	$	224.1	$	237.1	$	238.0	$	213.6	$	203.1

Other
Leased and Managed Rigs	$	38.0	$	45.9	$	40.6	$	35.9	$	32.5
Reimbursable Revenues ⁽¹⁾		9.4		9.8		9.7		6.3		5.4
Total Other	$	47.4	$	55.7	$	50.3	$	42.2	$	37.9

Total Operating Revenues	$	537.4	$	595.7	$	615.2	$	620.7	$	584.4

Total Reimbursable Revenues ⁽¹⁾	$	35.2	$	40.1	$	42.9	$	42.9	$	36.4

Revenues Exclusive of Reimbursable Revenues	$	502.2	$	555.6	$	572.3	$	577.8	$	548.0

⁽¹⁾	Reimbursable revenues represent reimbursements from our customers for purchases of supplies, equipment and incremental services provided at their request.

VALARIS LIMITED AND SUBSIDIARIES
OPERATING STATISTICS
(In millions)
(Unaudited)

	Three Months Ended
	Dec 31, 2025			Sep 30, 2025		Jun 30, 2025		Mar 31, 2025		Dec 31, 2024
ADJUSTED EBITDA⁽¹⁾
Floaters
Drillships	$	60.4		$	94.7	$	137.3	$	145.9	$	108.4
Semisubmersibles		(2.0	)		11.1		6.6		6.7		8.3
	$	58.4		$	105.8	$	143.9	$	152.6	$	116.7

Jackups
Harsh Environment	$	38.6		$	48.8	$	49.4	$	38.6	$	50.0
Benign Environment		43.2			43.0		36.3		26.6		19.5
Legacy		7.7			1.6		3.7		5.3		6.0
	$	89.5		$	93.4	$	89.4	$	70.5	$	75.5

Total	$	147.9		$	199.2	$	233.3	$	223.1	$	192.2

Other
Leased and Managed Rigs	$	17.2		$	29.7	$	23.4	$	19.9	$	15.0

Total	$	165.1		$	228.9	$	256.7	$	243.0	$	207.2

Support costs
General and administrative expense	$	27.0		$	26.9	$	18.8	$	24.4	$	26.7
Onshore support costs		41.1			38.8		37.2		37.3		38.1
	$	68.1		$	65.7	$	56.0	$	61.7	$	64.8

Valaris Total	$	97.0		$	163.2	$	200.7	$	181.3	$	142.4

⁽¹⁾	Adjusted EBITDA is earnings before interest, tax, depreciation, loss on impairment, and gain on sale of assets. Adjusted EBITDA for asset categories also excludes onshore support costs and general and administrative expense.

VALARIS LIMITED AND SUBSIDIARIES
OPERATING STATISTICS
(In millions)
(Unaudited)

	As of
	Feb 17, 2026		Oct 23, 2025		Jul 24, 2025		Apr 30, 2025		Feb 18, 2025
CONTRACT BACKLOG ⁽¹⁾
Floaters
Drillships	$	3,030.8	$	2,617.8	$	2,708.8	$	2,114.7	$	1,944.6
Semisubmersibles		—		7.3		35.4		56.2		79.4
	$	3,030.8	$	2,625.1	$	2,744.2	$	2,170.9	$	2,024.0
Jackups

Valaris Reports Fourth Quarter 2025 Results