# Valaris Limited (VAL)

> Source: Nexqual · https://nexqual.com/VAL · data as of 2026-10-22 20:00 UTC · cite as "Nexqual, Valaris Limited (VAL), nexqual.com/VAL" · informational, not investment advice.

**Price:** USD 92.19 (+0.51% on the day) · last close of Oct 22, 2026; US market pre market, not a live price. Prev close 91.72 · day 87.42–92.78 · 52w 48.09–114.12 · market cap $6.40B · NYQ

## Key facts
- Last four reported quarters (through Jun 30, 2026): revenue $2.14B, net income $940M (44.0% margin), free cash flow -$24.1M (SEC filings).
- Valuation: P/E 6.8x (avg 6.1x at the last 3 fiscal year-ends), net debt $546M.
- Earnings quality: non-operating income $102M vs operating income $241M over the last four quarters; P/E excluding non-operating income ≈7.6x (estimate: non-operating income taxed at the company's 0% effective rate).
- 1 of 80 tracked superinvestors hold VAL (13F, Q2 2026): 0 new, 1 added, 0 reduced, 0 unchanged.
- Analysts: Hold (mean 3.11 on a 1–5 scale) (9 analysts), mean target USD 69 (range 45–104).
- Total return with dividends: 1Y +63.7% vs S&P 500 +14.9%; 5Y +155.4% vs S&P 500 +80.3%.
- Next earnings: 2026-11-02, EPS estimate USD 1.06, revenue estimate $573M.

## Financials (SEC 10-K; TTM = last four 10-Q/10-K quarters)
| USD | FY2020 | FY2022 | FY2023 | FY2024 | FY2025 | TTM |
|---|---|---|---|---|---|---|
| Revenue | $1.43B | $1.60B | $1.78B | $2.36B | $2.37B | $2.14B |
| Gross profit | — | $219M | $241M | $602M | $739M | — |
| Operating income | -$4.33B | $37.2M | $53.5M | $352M | $477M | $241M |
| Net income | -$4.86B | $177M | $865M | $373M | $983M | $940M |
| EPS (diluted) | -$24.42 | $2.33 | $11.51 | $5.12 | $13.86 | — |
| Free cash flow | -$346M | -$80.0M | -$429M | -$99.7M | $203M | -$24.1M |
| Gross margin | — | 13.7% | 13.5% | 25.5% | 31.2% | — |
| Operating margin | -303.7% | 2.3% | 3.0% | 14.9% | 20.1% | 11.3% |
| Net margin | -340.2% | 11.0% | 48.5% | 15.8% | 41.5% | 44.0% |
| Revenue growth | -30.5% | — | +11.3% | +32.4% | +0.3% | — |
| Cash + short-term investments | — | — | — | $368M | $599M | — |
| Total debt | $0K | $542M | $1.08B | $1.08B | $1.09B | — |
Fiscal years end Dec. EPS is split-adjusted.

## Valuation (price ÷ last four quarters, through Jun 30, 2026)
P/E 6.8x · P/E ex non-operating (est.) ≈7.6x · P/S 3.0x · EV/Sales 3.3x · P/B 2.0x · FCF yield -0.38% · Earnings yield 14.68% · Net debt $546M · EV $6.95B
P/E at fiscal year-ends: Dec 2025 3.6x, Dec 2024 8.6x, Dec 2023 6.0x.

## Superinvestors (SEC 13F-HR, Q2 2026)
1 of 80 tracked investors hold VAL. Each row is the investor's latest 13F; change is vs their prior-quarter share count.
| Investor | Firm | % of portfolio | Value | Change |
|---|---|---|---|---|
| Third Avenue Management |  | 5.99% | $37.5M | Added +1.6% |

## Analysts
Consensus Hold (mean 3.11 on a 1–5 scale), 9 analysts; mean target USD 69 (low 45, high 104).
Rating changes, last 120 days:
| Date | Firm | Action | Rating | Price target |
|---|---|---|---|---|
| 2026-10-05 | Susquehanna | Target raised | Neutral | $80 → $86 |
| 2026-08-07 | Susquehanna | Target raised | Neutral | $75 → $80 |
| 2026-07-08 | Susquehanna | Target lowered | Neutral | $98 → $75 |

## Total return (dividends reinvested)
|  | 1Y (from 2025-10-23) | 5Y (from 2021-10-18) |
|---|---|---|
| Total return | +63.7% | +155.4% |
| S&P 500 (SPY) | +14.9% | +80.3% |
| Per year | +64.0% | +20.6% |
| Volatility (annualized) | 56.0% | 48.5% |
| Max drawdown | -36.1% (May 2026→Jul 2026) | -63.0% (Jul 2024→Mar 2025) |

## Peers (Oil & Gas Drilling)
RIG (Transocean Ltd (Switzerland)) USD 6.08 +0.66% · NE (Noble Corporation plc A) USD 43.95 -0.14% · PTEN (Patterson-UTI Energy, Inc.) USD 11.34 -2.91% · HP (Helmerich & Payne, Inc.) USD 37.13 -2.93% · SDRL (Seadrill Limited) USD 49.19 +0.04% · BORR (Borr Drilling Limited) USD 4.08 -3.32%

## More
Full page: https://nexqual.com/VAL · Free keyless MCP server with the same data and citations: https://mcp.nexqual.com/mcp · Guide for agents: https://nexqual.com/agents · https://nexqual.com/llms.txt

## Supply chain and relationships (SEC annual reports)

Named in VAL's own 10-K filed 2026-02-20 (https://www.sec.gov/Archives/edgar/data/314808/000031480826000029/val-20251231.htm):

| Relationship | Company | Sentence in the filing |
|---|---|---|
| Partner | Saudi Aramco | "•our ability to realize the expected benefits of our joint venture with Saudi Aramco, including our ability to fund any required capital contributions or to enforce any payment obligations of the joint venture pursuant t…" |
| Partner | Financial Services | "Additionally, we are required to pay a quarterly commitment fee to the lenders under the 2028 Credit Agreement with respect to the average daily unutilized commitments thereunder at a rate ranging from 0.375% to 0.75% de…" |

## Revenue by business segment (quarter ended 2026-06-30)

| Line | Revenue | Share | YoY | Operating income | Op. margin |
|---|---|---|---|---|---|
| Floaters | $290.0M | 53.8% | -11.3% | $94.4M | 32.6% |
| Jackups | $197.2M | 36.6% | -17.1% | $24.4M | 12.4% |
| ARO | $126.9M | 23.5% | -9.3% | $22.7M | 17.9% |
| Other | $52.0M | 9.6% | +3.4% | $6.6M | 12.7% |
| Total revenue | $539.2M | 100% | — | $51.1M | 9.5% |
The lines above cover 123.5% of total revenue.

## Customer concentration

Period ended 2026-06-30: 16%, 10%, 9%, 5% of revenue from unnamed direct customers (10-Q, filed 2026-08-06).

## Company outlook (8-K filed 2026-08-05)

- "Based on information currently available, we expect these adverse impacts to moderate in the second half of 2026, as VALARIS 250 recommenced its bareboat charter contract in July and VALARIS 116 is expected to recommence its bareboat charter in the third quarter."
- "In addition, insurance costs to maintain war-related coverage are expected to be lower than those incurred in the first half of the year primarily due to the sale of VALARIS 104 and lower premiums from securing longer term coverage."

## Analyst estimates and revisions

| Period | EPS est. | 90d ago | Change | Revenue est. | Analysts |
|---|---|---|---|---|---|
| Current quarter (ends 2026-09-30) | $1.06 | $1.37 | -22.2% | $572.8M | 5 |
| Next quarter (ends 2026-12-31) | $1.72 | $1.95 | -11.7% | $634.9M | 4 |
| Current fiscal year (ends 2026-12-31) | $3.45 | $3.47 | -0.4% | $2.20B | 6 |
| Next fiscal year (ends 2027-12-31) | $6.68 | $7.24 | -7.8% | $2.48B | 7 |