Noble (NE) has just posted its FY 2025 third quarter scorecard, reporting revenue of US$757.4 million and a basic EPS loss of US$0.13, alongside trailing twelve month EPS of US$1.42 on revenue of about US$3.3 billion. The company’s quarterly revenue moved from US$660.7 million in FY 2024 Q2 to US$882.1 million in FY 2024 Q4 and US$832.4 million in FY 2025 Q1. Over the same period, basic EPS shifted from US$1.37 to US$0.60 and then US$0.68, before landing at a small loss this quarter. This sets up a results season where investors are likely to focus squarely on how sustainable the current margin profile really is.

See our full analysis for Noble.

With the headline numbers on the table, the next step is to see how this latest print lines up with the widely followed narratives around Noble’s earnings power, growth potential, and margin resilience.

Margins Compressed From 19% To 6.9%

• Over the last 12 months, Noble’s net profit margin sat at 6.9%, compared with 19% a year earlier, while trailing twelve month net income was US$226.7 million on US$3.3b of revenue.
• Critics highlight this margin compression as a key risk, and the bearish narrative leans on it by pointing to inflation and higher rig upgrade spend. Recent quarterly net income swung from US$108.3 million in FY 2025 Q1 to a loss of US$21.1 million in Q3, which lines up with concerns that higher operating and capital costs can eat into profitability even when revenue remains in the US$757 million to US$882 million range.
  • Bears argue that required rig upgrades of US$60 million to US$70 million per rig, combined with pressure on day rates, could keep margins closer to the recent 6.9% level rather than the earlier 19% reference point.
  • The move from positive quarterly EPS earlier in FY 2025 to a basic EPS loss of US$0.13 in Q3 gives those cautious views more weight, because it shows how quickly earnings can turn when costs or pricing shift.

Skeptics warn that this kind of margin swing can change the whole risk profile, and they argue investors should understand how much earnings rely on day rates holding up before getting comfortable with the story. 🐻 Noble Bear Case

Revenue At 9.7% Growth, Below Market

• Over the last year, revenue grew 9.7% compared with the cited 10.4% for the broader US market, and on a trailing basis Noble generated about US$3.3b in revenue versus US$2.6b to US$3.3b in the prior trailing snapshots.
• Supporters of the bullish narrative point out that this revenue base is backed by multi year contracts worth between US$2.0b and US$2.5b from majors like Shell, which they see as a foundation for future cash flows. However, the fact that recent quarterly revenue stepped down from US$882.1 million in FY 2024 Q4 to US$757.4 million in FY 2025 Q3 shows that even with a large backlog, actual reported revenue can still move around from period to period.
  • Bulls highlight that high spec rigs on long contracts and integration synergies, including at least US$100 million a year of targeted cost savings, are intended to support earnings over time despite shorter term revenue fluctuations.
  • At the same time, the 9.7% revenue growth rate sitting slightly below the 10.4% market reference means the company is not outpacing that broader benchmark in this period, which may soften how compelling that backlog looks to some investors.

Bulls argue that the backlog and cost synergies can matter more than one softer print, and they see this revenue profile as the starting point for their optimistic case. 🐂 Noble Bull Case

P/E Of 29.8x And DCF Gap

• Noble trades on a trailing P/E of 29.8x at a share price of US$42.58, compared with a peer group average of 32.4x and a US Energy Services industry average of 25x, while a DCF fair value figure in the data sits at US$101.79, describing a large gap to the current price.
• Consensus narrative watchers might see mixed signals here, because on one hand the company screens cheaper than its peer set on P/E, and on the other hand margins have moved from 19% to 6.9% and trailing earnings were weak enough that the dividend yield of 4.7% is not covered by earnings. This means the apparent discount to both peers and the DCF fair value needs to be weighed against the recent earnings softness and margin compression.
  • Supporters of the more optimistic views might point to five year profit growth of 79% per year and the fact that Noble has become profitable over that span as reasons to pay a higher multiple than the industry average of 25x.
  • Cautious investors may focus instead on the recent trailing twelve month EPS of US$1.42, the net income of

    Next Steps

    To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Noble on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

    See the numbers differently? If this report points you in a different direction, shape that view into your own narrative in just a few minutes: Do it your way.

    A great starting point for your Noble research is our analysis highlighting 1 key reward and 2 important warning signs that could impact your investment decision.

    See What Else Is Out There

    Noble’s compressed net margins, uncovered dividend, and recent quarterly loss on basic EPS all point to a story where earnings quality is under pressure.

    If those cracks in profitability and income coverage make you cautious, shift your focus to companies in our 85 resilient stocks with low risk scores that aim to keep earnings and risks more contained.

    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.