Valaris Ramps Up Its Floater Strategy — Is a 2026–2027 Contract Supercycle on the Horizon?

Valaris Limited’s third quarter 2025 results present a mixed picture for potential investors. The company achieved solid operational performance with a revenue efficiency of 95%, leading to substantial EBITDA and free cash flow generation. Specifically, Valaris reported an adjusted EBITDA of $163 million and generated $237 million in adjusted free cash flow. Additionally, the company repurchased $75 million in shares, highlighting a commitment to returning capital to shareholders. Recent commercial successes also include securing notable contracts such as a drillship agreement with BP in Egypt, marking the contracting of all four of their drillships with near-term availability for work beginning in 2026. The offshore drilling market shows potential for growth as customers increasingly focus on offshore developments for energy needs. Valaris appears well-positioned to capitalize on this trend with its high-specification fleet, predominantly comprising seventh-generation drillships which historically command higher utilization and day rates.