Fundamentals Hub
▼ FY 2025 Summary Analysis
Annual report ending Dec 31, 2025Overview and Growth
Valaris Ltd generated $2.37B of revenue in fiscal 2025, with net income of $982.80M and an operating cash inflow of $546.20M. At $2.37B, the top line establishes the operating scale supporting the company’s profit and cash-flow profile. Revenue was 0.3% above fiscal 2024 revenue of $2.36B, marking a year-over-year increase. On a per-share basis, diluted EPS was $13.86, which connects the reported earnings outcome with the company’s diluted share count. Diluted EPS increased by 170.7% from $5.12 in fiscal 2024, showing how the earnings change reached shareholders on a per-share basis. Asset turnover was 0.45x, relating the company’s annual revenue directly to the total assets reported at the period end.Profitability
The first profit layer was $739.30M of gross profit, the amount available after reported direct revenue costs to absorb operating expenses. Gross margin was 31.2%, so that share of each revenue unit remained after the cost of revenue reported for the period. The reported operating result was $477.00M, capturing profitability after direct costs and the operating expenses reflected in the statements. Operating margin measured 20.1%, showing the portion of revenue preserved after the full set of operating costs. The bottom-line result was net income of $982.80M, after the operating, financing, tax, and other items recognized for the period. The final earnings result represented 41.5% of revenue, connecting the absolute net income figure with the company’s top-line scale. Before income taxes, the company reported $552.30M of earnings, providing a bridge between the operating result and final net income. Pretax income represented 23.3% of revenue, placing earnings before tax in the context of the company’s operating scale. The reported tax benefit was $426.80M, favorably bridging the pretax and after-tax results. The effective tax-benefit relationship was 77.3% of positive pretax income.Liquidity and Capital Structure
The company held $5.30B of assets against $2.13B of liabilities and $3.17B of equity, revealing how the asset base was financed. The near-term balance sheet paired $1.23B of current assets with $691.60M of current liabilities at the reporting date. Current assets covered current liabilities by 1.77x, leaving a positive buffer for near-term obligations. Cash and equivalents totaled $599.40M, identifying the most liquid reported component available within the broader current-asset balance. Measured only with cash and equivalents, coverage of current liabilities was 86.7%, excluding receivables and other current assets. The company carried $1.09B of total debt at period end, which frames its leverage and debt-service burden. Against book equity, debt measured 0.34x, placing the company’s financial leverage in clear balance-sheet terms. The debt-to-assets relationship was 20.5%, comparing borrowing with the total asset balance. Relative to total assets, liabilities measured 40.2%, complementing the separate equity-based view of the company’s capital structure. Cash and equivalents equaled 11.3% of total assets, showing the liquid cash component within the company’s broader resource base.Cash Flow and Earnings Quality
Cash flow from operations was $546.20M, a reported cash inflow that can be compared directly with net income and capital spending. Operating cash flow equaled 0.56x of net income, showing how strongly accounting earnings converted into cash from operations. The cash-flow statement records $343.50M of capital expenditures, the investment amount considered after operating cash generation. Capital spending absorbed 62.9% of operating cash flow, quantifying the share of cash from operations directed to investment. After capital spending, free cash flow was $202.70M, leaving cash available for debt reduction, shareholder returns, or further investment. The free-cash-flow margin was 8.6%, measuring cash remaining after capital spending against revenue. The free-cash-flow-to-assets relationship was 3.8%, comparing post-investment cash with the balance-sheet asset base.
Based on the annual report for the fiscal year ending Dec 31, 2025.
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