Noble: Upside Is Worth The Rough Waters

Noble Corporation reported disappointing Q2 2026 results, with revenue and EPS missing expectations due to vessel suspensions and contract conclusions. Despite lower guidance for 2026, NE’s backlog remains resilient at $6.8 billion, and average daily rates continue to rise, signaling industry strength. NE trades at attractive single-digit multiples, with leverage at a manageable 1.61x—lower than some peers and not a cause for concern. I maintain a soft ‘buy’ rating, viewing current headwinds as temporary and expecting long-term industry improvements to benefit NE.