Borr Drilling (BORR) AI Stock Analysis

• Market Cap: $909.08M
• Dividend Yield: 7.1%
• Average Volume (3M): 4.73M
• Price to Earnings (P/E): 10.8
• Beta (1Y): 1.43
• Revenue Growth: 5.83%
• EPS Growth: -11.86%
• Country: US
• Employees: 2,087
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Drilling
• EPS (TTM): 0.10
• Shares Outstanding: 285,872,800
• 10 Day Avg. Volume: 5,613,220
• 30 Day Avg. Volume: 4,728,801
• PEG Ratio: 0.05
• Price to Book (P/B): 0.99
• Price to Sales (P/S): 0.97
• P/FCF Ratio: -2.95
• Enterprise Value/Market Cap: 2.93
• Enterprise Value/Revenue: 2.60
• Enterprise Value/Gross Profit: 3.55
• Enterprise Value/Ebitda: 5.56
• 1Y Price Target: $3.43
• Price Target Upside: 6.85% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: $3.50 ▲(9.03% Upside)

Borr Drilling's overall score is driven by strong technical indicators and attractive valuation, supported by a positive earnings call. However, financial performance is weighed down by high leverage and cash flow challenges, which slightly dampen the overall outlook.

Borr Drilling Business Overview & Revenue Model

Company Description

Borr Drilling Limited operates as an offshore drilling contractor to the oil and gas industry worldwide. It owns, contracts, and operates jack-up rigs for operations in shallow-water areas, including the provision of related equipment and work crews to conduct oil and gas drilling and workover operations for exploration and production. The company serves oil and gas exploration and production companies, such as integrated oil companies, state-owned national oil companies, and independent oil and gas companies. As of December 31, 2021, it operated a fleet of 23 jack-up drilling rigs. The company was formerly known as Magni Drilling Limited and changed its name to Borr Drilling Limited in December 2016. Borr Drilling Limited was incorporated in 2016 and is based in Hamilton, Bermuda.

How the Company Makes Money

Borr 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 Financial Statement Overview

Summary

Borr Drilling shows strong revenue growth and gross profit margins, but faces challenges with declining net profit margins and high leverage. The balance sheet reflects significant debt levels, impacting financial flexibility. Cash flow issues are evident, with negative free cash flow growth and insufficient coverage of net income by operating cash flow.

Income Statement

Borr Drilling has shown a positive trend in revenue growth with a TTM growth rate of 3.59%. The gross profit margin is strong at 74.31% for TTM, indicating efficient cost management. However, the net profit margin has decreased to 5.48% from 8.12% in the previous year, suggesting increased expenses or other financial pressures. EBIT and EBITDA margins have also declined slightly, indicating potential challenges in operational efficiency.

Balance Sheet

The company has a high debt-to-equity ratio of 2.03, reflecting significant leverage, which could pose risks in volatile market conditions. Return on equity has decreased to 5.46% in TTM from 8.27% in the previous year, indicating reduced profitability for shareholders. The equity ratio stands at 32.37%, suggesting a moderate level of financial stability.

Cash Flow

Borr Drilling's cash flow position is concerning, with a negative free cash flow growth rate of -75.37% in TTM. The operating cash flow to net income ratio is 0.49, indicating that operating cash flow is not fully covering net income. The free cash flow to net income ratio is negative, highlighting challenges in generating sufficient cash flow to support operations and growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.02B	1.01B	771.60M	443.80M	245.30M	307.50M
Gross Profit	750.10M	879.40M	654.20M	327.30M	125.70M	189.60M
EBITDA	479.40M	473.00M	331.90M	-32.50M	29.20M	-96.10M
Net Income	75.30M	82.10M	22.10M	-292.80M	-193.00M	-317.60M
Balance Sheet
Total Assets	3.52B	3.42B	3.08B	3.00B	3.08B	3.17B
Cash, Cash Equivalents and Short-Term Investments	228.80M	61.60M	102.50M	108.00M	34.90M	19.20M
Total Debt	2.06B	2.11B	1.70B	1.60B	1.92B	1.91B
Total Liabilities	2.38B	2.43B	2.10B	2.10B	2.19B	2.13B
Stockholders Equity	1.14B	993.30M	984.00M	897.80M	889.90M	1.04B
Cash Flow
Free Cash Flow	-58.44M	-332.10M	-164.70M	-20.80M	-77.80M	-97.10M
Operating Cash Flow	205.20M	77.30M	-50.70M	62.50M	-58.90M	-54.70M
Investing Cash Flow	-263.63M	-409.40M	-104.20M	-82.60M	40.90M	-119.80M
Financing Cash Flow	105.83M	292.00M	139.00M	92.60M	44.80M	65.20M

Borr Drilling Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.21
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 3.21 is above the 20-day moving average (MA) of 2.99, above the 50-day MA of 2.94, and above the 200-day MA of 2.42, indicating a bullish trend. The MACD of 0.12 indicates Negative momentum. The RSI at 64.92 is Neutral, neither overbought nor oversold. The STOCH value of 72.58 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HLX	71 Outperform	$954.56M	23.87	2.71%	―	-1.95%	530.91%
BORR	69 Neutral	$909.08M	10.78	7.08%	7.10%	5.83%	-11.86%
SDRL	67 Neutral	$1.77B	56.87	1.18%	―	-9.31%	-91.57%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
NBR	64 Neutral	$750.63M	5.40	47.77%	―	6.52%	―
PTEN	64 Neutral	$2.31B	―	-4.00%	4.73%	-16.59%	83.95%
RIG	60 Neutral	$4.38B	―	-32.05%	―	16.93%	-335.82%

Borr Drilling Corporate Events

Borr Drilling Releases Q3 2025 Results

On November 6, 2025, Borr Drilling Limited announced its third quarter 2025 results, which were presented in a webcast and conference call. The presentation provided insights into the company’s operational performance and financial standing, potentially impacting its market positioning and stakeholder interests.

Borr Drilling Reports Q3 2025 Revenue Growth and Strategic Expansions

Borr Drilling Limited announced its third-quarter 2025 results, reporting a 4% increase in total operating revenues to $277.1 million and a 2% rise in adjusted EBITDA to $135.6 million. Despite a 21% decrease in net income, the company secured 22 new contract commitments, enhancing its market position. The company also announced contract extensions in Mexico and new commitments in the Gulf of America and Angola, reflecting its strategic focus on expanding its market footprint and maintaining high utilization rates. The company anticipates a tightening market with higher utilization and day rates, driven by increased demand in major markets like Saudi Arabia and Mexico.

Borr Drilling Enhances Financial Stability with Credit Facility Amendments and Share Offering

Borr Drilling Limited has released its unaudited interim financial report for the nine months ending September 30, 2025, highlighting significant financial and operational developments. The company completed a public offering in July 2025, issuing 50 million shares at $2.05 each, raising $102.5 million in gross proceeds. Additionally, Borr Drilling amended its super senior revolving credit facility and senior secured revolving credit facility agreements on September 25, 2025, involving key financial institutions such as DNB Bank ASA and Goldman Sachs Bank USA. These financial maneuvers are aimed at enhancing liquidity and financial stability, potentially impacting its market positioning and stakeholder confidence.

Borr Drilling Secures Rig Contract Extensions and Payment Progress in Mexico

Borr Drilling Limited announced on October 27, 2025, that it has secured contract extensions for three of its premium jack-up rigs, Galar, Gersemi, and Njord. The extensions, valued at approximately $213 million, include improved commercial terms and options for further extension. Additionally, the company reported receiving $19 million in payments for its operations with Pemex in Mexico, indicating a positive trend towards the normalization of payment activities.

Borr Drilling Terminates Contracts Amid Sanctions

On October 24, 2025, Borr Drilling Limited announced the termination of two drilling contracts due to international sanctions affecting a counterparty. The contracts for the rigs Odin and Hild in Mexico, which were set to last until November 2025 and March 2026 respectively, were impacted. This decision underscores the company’s dedication to compliance with international regulations, potentially affecting its operations and stakeholder relations.

Borr Drilling to Announce Q3 2025 Financial Results

Borr Drilling Limited announced plans to release its financial results for the third quarter of 2025 on November 5, 2025, after the New York Stock Exchange closes. A conference call and webcast are scheduled for November 6, 2025, to discuss the results, which will be accessible via the company’s website. This announcement is part of Borr Drilling’s ongoing efforts to maintain transparency with stakeholders and provide insights into its financial health and operational performance.

Borr Drilling Secures New Contracts in North Sea and West Africa

On August 27, 2025, Borr Drilling Limited announced new contract commitments for its jack-up rigs, Prospector 1 and Natt, in the North Sea and West Africa, respectively. These contracts, with Dana Petroleum, ONE-Dyas, and New Age, cover a combined duration of 300 days and are expected to generate over $43 million in revenue backlog. Additionally, a previously announced contract for the rig Odin in Mexico has commenced operations, highlighting Borr Drilling’s expanding operational footprint and strengthening its position in the offshore drilling market.

Borr Drilling Reports Robust Q2 2025 Results and Strengthens Financial Position

Borr Drilling Limited reported strong financial results for the second quarter of 2025, with a 24% increase in operating revenues to $267.7 million and a net income of $35.1 million, reversing a loss from the previous quarter. The company secured 14 new contract commitments, enhancing its contract coverage and financial liquidity through a $102.5 million equity offering and improved credit facilities, positioning itself for future growth and potential industry consolidation.

Borr Drilling Releases Q2 2025 Financial Results

Borr Drilling Limited announced its second quarter 2025 financial results, which were presented during a webcast and conference call on August 14, 2025. The presentation provided insights into the company’s financial performance and operational updates, potentially impacting its market positioning and stakeholder interests.

Borr Drilling Completes $102.5 Million Public Offering to Boost Liquidity

On July 3, 2025, Borr Drilling conducted a public offering of 50,000,000 shares at $2.05 per share, raising $102.5 million in gross proceeds. The offering was completed in two settlements, with the first settlement of 30,000,000 shares on July 7, 2025, and the final settlement of 20,000,000 shares on August 7, 2025. This capital raise is expected to impact the company’s liquidity positively and support its operations in the competitive offshore drilling industry.