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Borr Drilling
(NYSE:BORR)
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Rating:50Neutral
Price Target:
$4.00
▼(-10.31% Downside)
Action:Reiterated
Date:10/09/26
The score is held back primarily by weak financial performance in the TTM period—net losses, negative free cash flow, and high leverage. Partially offsetting this are a modestly improving technical setup and earnings-call signals of near-term operational improvement with solid 2026 contract coverage and backlog growth, though recent quarter volatility and geopolitical/operational headwinds keep risk elevated.
Positive Factors
Backlog and Contract Coverage
High fleet coverage and substantial dayrate backlog provide meaningful forward revenue visibility and reduce reliance on immediate tendering. This supports utilization over the next several quarters, helps underpin cash generation, and gives management a stronger base for absorbing normal contract timing changes.
Negative Factors
Elevated Leverage
Rising leverage reduces financial flexibility in a cyclical drilling market and leaves more operating cash flow committed to debt service. If utilization or dayrates weaken, the heavier capital structure can constrain investment, limit resilience, and increase pressure on future refinancing.
Read all positive and negative factors
Positive Factors
Negative Factors
Backlog and Contract Coverage
High fleet coverage and substantial dayrate backlog provide meaningful forward revenue visibility and reduce reliance on immediate tendering. This supports utilization over the next several quarters, helps underpin cash generation, and gives management a stronger base for absorbing normal contract timing changes.
Read all positive factors
Borr Drilling (BORR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.36B
Dividend Yield5.63%
Average Volume (3M)8.34M
Price to Earnings (P/E)―
Beta (1Y)1.06
Revenue Growth2.71%
EPS Growth-447.50%
CountryUS
Employees2,030
SectorEnergy
Sector Strength52
IndustryOil & Gas Drilling
Share Statistics
EPS (TTM)-0.78
Shares Outstanding308,512,730
10 Day Avg. Volume11,590,364
30 Day Avg. Volume8,337,398
Financial Highlights & Ratios
PEG Ratio-0.49
Price to Book (P/B)0.86
Price to Sales (P/S)1.04
P/FCF Ratio8.30
Enterprise Value/Market Cap2.60
Enterprise Value/Revenue3.48
Enterprise Value/Gross Profit11.41
Enterprise Value/Ebitda9.69
Forecast
1Y Price Target
$4.62Price Target Upside3.51% Upside
Rating ConsensusHold
Number of Analyst Covering4
EPS Forecast (FY)-0.73
Revenue Forecast (FY)$981.15M
Borr Drilling Business Overview & Revenue Model
Company Description
Borr Drilling Limited operates as an offshore shallow-water drilling contractor to the oil and gas industry in the Americas, Southeast Asia, West Africa, the Middle East, North Africa, and Europe. It owns, contracts, and operates jack-up rigs for ...
How the Company Makes Money
Borr Drilling primarily makes money by contracting its jack-up rigs to oil and gas companies under drilling contracts (typically dayrate-based). Under these agreements, the customer pays a daily fee (the dayrate) for the rig and crew while the rig...
Borr Drilling Earnings Call Summary
Earnings Call Date:Aug 11, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 18, 2026
Earnings Call Sentiment Neutral
Balanced: the quarter showed strong operational metrics (very high technical/economic utilization, extensive safety milestones), meaningful backlog growth and a strengthened liquidity and maturity profile through refinancing and the Fontis acquisition. However, near-term financials were negatively impacted by Odin start-up delays and related preparation costs, higher operating expenses (fuel, insurance), a $10.8M credit loss, and large one-time financing losses that produced a substantial net loss and a ~50% decline in adjusted EBITDA. Management expects Q3 operational improvement (average ~23 rigs) and the refinancing to reduce future financing costs, but uncertainty persists from the Middle East conflict and short-term mobilization timing.Positive Updates
Strong Safety and Operational Utilization
Multiple rigs achieved multiyear LTI- and recordable-free milestones (Groa and Gersemi 7 years LTI-free; Ran 6 years; Skald 5 years; plus Hild, Galar, Natt, Arabia III and Grid). Technical utilization was 98.4% and economic utilization 96.4% in Q2.
Negative Updates
Sequential Revenue Decline
Total operating revenues in Q2 were $232.3M, down $14.7M or 6% sequentially versus Q1, primarily driven by a $21.8M reduction in dayrate revenue due to fewer operating days and lower average dayrates on several rigs.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Safety and Operational Utilization
Multiple rigs achieved multiyear LTI- and recordable-free milestones (Groa and Gersemi 7 years LTI-free; Ran 6 years; Skald 5 years; plus Hild, Galar, Natt, Arabia III and Grid). Technical utilization was 98.4% and economic utilization 96.4% in Q2.
Read all positive updates
Company Guidance
The company guided that Q3 should average approximately 23 active rigs and drive a “significant” sequential improvement in adjusted EBITDA from Q2’s $43.8 million (which fell $44.7 million QoQ), with the Odin now mobilizing to start a two‑well firm U.S. Gulf contract (firm into mid‑2027 with options to 2029) after regulatory approvals in mid‑July; normalized rig OpEx is expected around the mid‑$70,000/day range (with $6–9 million of incremental prep OpEx still expected in Q3). They reiterated 2026 contract coverage of 73% at an average dayrate of ~$134,000/day (70% coverage in H2), 24 of 29 rigs contracted/committed, YTD 21 commitments adding ~4,350 days and $541 million of dayrate backlog (since the last report 8 commitments adding >2,100 days), and noted the Fontis JV (5 jack‑ups) closed for $287 million with ~$15 million of JV working capital to be funded in Q3. On liquidity and capital structure the company closed refinancings (a $300 million 3.5% convertible due 2033 and $2.035 billion of senior secured notes — $1.1 billion at 8.75% due 2032 and $935 million at 9% due 2034 amortizing 5% p.a. or ~$101.75 million/year), upsized the RCF to $250 million at a 3% base margin (maturity 2031), and ended Q2 with $223.6 million cash, $250 million undrawn RCF (total liquidity $473.6 million); they cautioned that insurance/fuel costs (Q2 fuel +$5.1m, insurance +$2.2m) and credit losses (Q2 provision $10.8m) related to the Middle East conflict and transition activity remain near‑term headwinds.Borr Drilling Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
41
Neutral
Cash Flow
46
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.02B | 1.02B | 1.01B | 771.60M | 443.80M | 245.30M |
| Gross Profit | 309.50M | 372.20M | 879.40M | 654.20M | 327.30M | 125.70M |
| EBITDA | 364.50M | 462.30M | 473.00M | 331.90M | -32.50M | 29.20M |
| Net Income | -240.60M | 45.00M | 82.10M | 22.10M | -292.80M | -193.00M |
Balance Sheet | ||||||
| Total Assets | 3.70B | 3.63B | 3.42B | 3.08B | 3.00B | 3.08B |
| Cash, Cash Equivalents and Short-Term Investments | 224.60M | 380.70M | 61.60M | 102.50M | 108.00M | 34.90M |
| Total Debt | 2.49B | 2.15B | 2.11B | 1.70B | 1.60B | 1.92B |
| Total Liabilities | 2.73B | 2.40B | 2.43B | 2.10B | 2.10B | 2.19B |
| Stockholders Equity | 961.60M | 1.22B | 993.30M | 984.00M | 897.80M | 889.90M |
Cash Flow | ||||||
| Free Cash Flow | -146.43M | 127.40M | -332.10M | -164.70M | -20.80M | -77.80M |
| Operating Cash Flow | 133.59M | 251.90M | 77.30M | -50.70M | 62.50M | -58.90M |
| Investing Cash Flow | -273.92M | -124.50M | -409.40M | -104.20M | -82.60M | 40.90M |
| Financing Cash Flow | 269.24M | 190.80M | 292.00M | 139.00M | 92.60M | 44.80M |
Borr Drilling Technical Analysis
Positive
4.46
Price Trends
4.39
Positive
4.34
Positive
4.90
Negative
Market Momentum
<0.01
Positive
50.85
Neutral
20.89
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BORR, the sentiment is Positive. The current price of 4.46 is above the 20-day moving average (MA) of 4.33, above the 50-day MA of 4.39, and below the 200-day MA of 4.90, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 50.85 is Neutral, neither overbought nor oversold. The STOCH value of 20.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BORR.
Borr Drilling Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $6.76B | 7.23 | 31.33% | 0.68% | -13.22% | 249.28% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
64 Neutral | $7.61B | 50.21 | 3.30% | 4.19% | -11.10% | -52.07% | |
61 Neutral | $3.26B | 2,617.50 | 0.03% | 14.83% | 13.06% | -98.53% | |
58 Neutral | $7.16B | -3.48 | -20.24% | 14.08% | 8.54% | -3.69% | |
50 Neutral | $1.36B | -5.66 | -21.28% | 5.63% | 2.71% | -447.50% | |
43 Neutral | $625.49M | -0.95 | -102.11% | ― | ― | 52.41% |
* Energy Sector Average
BORR
Borr Drilling
4.40
1.26
40.13%
RIG
Transocean
6.41
2.55
66.06%
SOC
Sable Offshore
3.26
-9.59
-74.63%
VAL
Valaris
97.33
40.70
71.87%
NE
Noble Corporation
47.70
18.68
64.39%
SDRL
Seadrill Limited
52.35
21.01
67.04%
Borr Drilling Corporate Events
Borr Drilling Releases Q2 2026 Results Presentation and Investor Webcast Details
Aug 13, 2026
Borr Drilling Limited has released a presentation detailing its financial results for the three- and six-month periods ended June 30, 2026. The company scheduled a webcast and conference call to discuss its second-quarter 2026 performance on Augus...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.