Education
About Us
Working with TipRanks
Follow Us
Borr Drilling Limited (BORR)
NYSE:BORR
Top Page
Borr Drilling
(NYSE:BORR)
Rating:67Neutral
Price Target:
$2.50
▼(-17.76% Downside)
Borr Drilling (BORR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$801.34M
Dividend Yield7.89%
Average Volume (3M)5.32M
Price to Earnings (P/E)13.6
Beta (1Y)1.36
Revenue Growth7.73%
EPS Growth-25.36%
CountryUS
Employees2,087
SectorEnergy
Sector Strength59
IndustryOil & Gas Drilling
Share Statistics
EPS (TTM)0.14
Shares Outstanding266,224,850
10 Day Avg. Volume5,071,917
30 Day Avg. Volume5,317,383
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap3.07
Enterprise Value/Revenue2.49
Enterprise Value/Gross Profit3.35
Enterprise Value/Ebitda5.43
Forecast
1Y Price Target
$2.45Price Target Upside-19.41% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering3
Borr Drilling Business Overview & Revenue Model
Company DescriptionBorr Drilling Limited (BORR) is a leading offshore drilling contractor based in Bermuda, specializing in the provision of drilling services to the oil and gas industry. The company operates a fleet of high-specification jack-up rigs designed to meet the demands of various offshore drilling projects. Borr Drilling focuses on both the exploration and production phases of oil and gas development, serving clients globally with a commitment to operational excellence and safety.
How the Company Makes MoneyBorr Drilling generates revenue primarily through the day rate charged for the use of its drilling rigs, which is influenced by factors such as rig specifications, contract duration, and market demand for drilling services. Key revenue streams include contracts with major oil and gas companies for exploration and production drilling operations, as well as additional services such as rig mobilization and maintenance. The company may also enter into strategic partnerships and long-term agreements that provide stable revenue flow. Market conditions, including crude oil prices and the overall health of the offshore drilling sector, significantly impact Borr's earnings potential.
Borr Drilling Earnings Call Summary
Earnings Call Date:Aug 13, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 27, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong financial performance with significant revenue and EBITDA growth, high utilization rates, and successful contract acquisitions. However, challenges remain with delayed collections in Mexico, increased operating expenses, and uncertainty in Saudi operations. Overall, the company shows a positive outlook with strengthened financial positions and strategic leadership transitions.Q2-2025 Updates
Positive Updates
Strong Revenue and EBITDA Growth
Revenue increased by $51.1 million or 24% to $267.7 million compared to the first quarter. EBITDA rose by $37 million to $133 million, up by 39% versus the first quarter.
High Utilization Rates
Technical utilization was 99.6% and economic utilization was 97.8%, with 22 out of 24 rigs active.
Significant Free Cash Flow Generation
$106.5 million free cash flow was generated in the first 6 months of the year.
New Contracts and Future Coverage
Secured 14 new contract commitments adding $318 million to backlog, with 84% fleet coverage at an average day rate of $145,000 for 2025.
Financial Position Strengthened
Liquidity increased by $200 million through a $102.5 million equity raise and revolving credit facilities, with a pro forma liquidity of approximately $425 million.
CEO Succession Plan
Bruno Morand to succeed Patrick Schorn as CEO effective September 1, with Schorn transitioning to Executive Chairman.
Negative Updates
Challenges in Mexico
Delays in collections in Mexico and outstanding receivables of $60 million to $65 million.
Saudi Arabia Operational Uncertainty
Saudi suspensions have pressured day rates, and although there are positive signs, clear commitments are not yet confirmed.
Increased Operating Expenses
Total operating expenses increased by $14.4 million or 9% compared to the first quarter, primarily due to rig operating expenses.
Cash Flow Impacted by Interest Payments
Cash flow from operations impacted by $98.3 million in cash interest payments.
Company Guidance
During the Borr Drilling Limited Second Quarter 2025 Earnings Call, CEO Patrick Schorn highlighted the company's robust performance and future outlook. The second quarter saw technical utilization at 99.6% and economic utilization at 97.8%, with 22 out of 24 rigs active, resulting in a $51.1 million revenue increase and a 39% rise in EBITDA to $133 million compared to the first quarter. The company generated $106.5 million in free cash flow in the first half of the year. New contract awards improved 2025 contract coverage to 84% at an average day rate of $145,000, and 47% coverage at $139,000 for 2026. A $102.5 million equity raise and credit facility amendments boosted liquidity by $200 million. Borr Drilling is on track with the Bloomberg consensus for 2025 adjusted EBITDA of $470 million. The Mexican government's efforts to strengthen Pemex's liquidity should benefit Borr, positioning it to capitalize on increased drilling activity. Looking ahead, the company expects consistent third-quarter performance and remains optimistic about its strategic initiatives under new CEO Bruno Morand.Borr Drilling Financial Statement Overview
Summary
Borr Drilling's financial performance is mixed. Strong gross profit margins and operational efficiency are offset by declining revenue, high leverage, and negative free cash flow, posing liquidity and financial stability risks.Income Statement
Borr Drilling's income statement shows a mixed performance. The TTM gross profit margin is strong at 74.31%, indicating efficient cost management. However, the net profit margin is relatively low at 5.48%, and revenue has decreased by 60.3% compared to the previous period, which is concerning. The EBIT and EBITDA margins are healthy at 31.62% and 45.78%, respectively, suggesting operational efficiency. Despite these strengths, the significant revenue decline poses a risk to future profitability.55
Neutral
Balance Sheet
The balance sheet reveals a high debt-to-equity ratio of 2.03, indicating significant leverage, which could be risky in volatile markets. The return on equity is modest at 5.46%, reflecting limited profitability relative to shareholder equity. The equity ratio stands at 30.21%, suggesting a moderate level of equity financing. While the company maintains a stable asset base, the high leverage could impact financial stability.50
Neutral
Cash Flow
Cash flow analysis shows challenges, with negative free cash flow and a free cash flow to net income ratio of -1.33, indicating cash outflows exceeding net income. The operating cash flow to net income ratio is 0.49, suggesting limited cash generation from operations. Although there is some improvement in free cash flow growth, the negative free cash flow remains a concern for liquidity.40
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 989.00M | 1.01B | 771.60M | 443.80M | 245.30M | 307.50M |
| Gross Profit | 734.90M | 423.00M | 654.20M | 327.30M | 125.70M | 189.60M |
| EBITDA | 452.80M | 505.00M | 361.24M | -2.00M | 29.20M | -96.10M |
| Net Income | 54.20M | 82.10M | 22.10M | -292.80M | -193.00M | -317.60M |
Balance Sheet | ||||||
| Total Assets | 3.35B | 3.42B | 3.08B | 3.00B | 3.08B | 3.18B |
| Cash, Cash Equivalents and Short-Term Investments | 92.40M | 61.60M | 102.50M | 108.00M | 34.90M | 19.20M |
| Total Debt | 2.05B | 2.11B | 1.70B | 1.64B | 1.92B | 1.91B |
| Total Liabilities | 2.34B | 2.43B | 2.10B | 2.10B | 2.19B | 2.13B |
| Stockholders Equity | 1.01B | 993.30M | 984.00M | 897.80M | 889.90M | 1.05B |
Cash Flow | ||||||
| Free Cash Flow | -237.20M | -332.10M | -164.70M | -20.80M | -77.80M | -97.10M |
| Operating Cash Flow | 178.60M | 77.30M | -50.70M | 62.50M | -58.90M | -54.70M |
| Investing Cash Flow | -415.80M | -409.40M | -104.20M | -82.60M | 40.90M | -119.80M |
| Financing Cash Flow | 136.10M | 292.00M | 139.00M | 92.60M | 44.80M | 65.20M |
Borr Drilling Technical Analysis
Positive
3.04
Price Trends
2.27
Positive
2.07
Positive
2.60
Positive
Market Momentum
0.21
Negative
68.59
Neutral
79.69
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 3.04 is above the 20-day moving average (MA) of 2.62, above the 50-day MA of 2.27, and above the 200-day MA of 2.60, indicating a bullish trend. The MACD of 0.21 indicates Negative momentum. The RSI at 68.59 is Neutral, neither overbought nor oversold. The STOCH value of 79.69 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
Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | $801.34M | 13.56 | 5.39% | 7.89% | 7.73% | -25.36% | |
67 Neutral | $2.03B | 28.08 | 2.60% | ― | -13.36% | -82.21% | |
65 Neutral | $15.01B | 7.39 | 3.19% | 5.33% | 4.10% | -61.80% | |
64 Neutral | $970.10M | 19.64 | 3.27% | ― | -8.19% | ― | |
58 Neutral | $2.92B | ― | -14.99% | ― | 23.26% | -284.22% | |
54 Neutral | $594.54M | ― | -49.08% | ― | 3.49% | 18.16% | |
54 Neutral | $2.18B | ― | -27.16% | 5.64% | -7.98% | -1011.04% |
* Energy Sector Average
Performance Comparison
BORR
Borr Drilling
3.04
-2.32
-43.28%
HLX
Helix Energy
6.35
-3.26
-33.92%
NBR
Nabors Industries
38.41
-29.48
-43.42%
PTEN
Patterson-UTI
5.67
-2.08
-26.84%
RIG
Transocean
3.07
-1.09
-26.20%
SDRL
Seadrill Limited
32.76
-5.16
-13.61%
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.