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Borr Drilling
(NYSE:BORR)
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Rating:52Neutral
Price Target:
$4.50
▲(6.38% Upside)
Action:Reiterated
Date:08/18/26
BORR’s score is held back primarily by weak recent financial outcomes (TTM net loss, negative free cash flow, and elevated leverage), which raise balance-sheet and cash-generation risk. The earnings call adds support via guidance for a Q3 EBITDA rebound and solid contract coverage/backlog, while technicals are mixed (short-term strength but weaker longer-term trend). Valuation is also mixed: an attractive ~5% yield is offset by a negative P/E tied to losses.
Positive Factors
Backlog and Contract Coverage
High contracted coverage provides meaningful revenue visibility and reduces reliance on immediate spot-market awards. The sizeable backlog and continued commitments support fleet utilization and future cash generation over the next several quarters.
Negative Factors
Elevated Leverage
High and rising leverage leaves the company more exposed to lower dayrates, utilization declines and refinancing costs. Even with extended maturities, substantial debt can constrain capital allocation and amplify earnings volatility across the cycle.
Read all positive and negative factors
Positive Factors
Negative Factors
Backlog and Contract Coverage
High contracted coverage provides meaningful revenue visibility and reduces reliance on immediate spot-market awards. The sizeable backlog and continued commitments support fleet utilization and future cash generation over the next several quarters.
Read all positive factors
Borr Drilling (BORR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.35B
Dividend Yield5.02%
Average Volume (3M)4.82M
Price to Earnings (P/E)―
Beta (1Y)1.04
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. Volume3,444,737
30 Day Avg. Volume4,818,017
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$3.55Price Target Upside-16.08% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering2
EPS Forecast (FY)-0.65
Revenue Forecast (FY)$1.00B
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 makes money primarily by contracting its jack-up rigs to oil and gas companies under drilling contracts. Revenue is largely generated from (1) dayrate-based contract drilling, where the customer pays a daily rate for the rig and crew...
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
4.23
Price Trends
4.25
Positive
4.94
Negative
4.75
Negative
Market Momentum
0.06
Negative
56.76
Neutral
73.82
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 4.23 is above the 20-day moving average (MA) of 4.18, below the 50-day MA of 4.25, and below the 200-day MA of 4.75, indicating a neutral trend. The MACD of 0.06 indicates Negative momentum. The RSI at 56.76 is Neutral, neither overbought nor oversold. The STOCH value of 73.82 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 |
|---|---|---|---|---|---|---|---|
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
64 Neutral | $7.34B | 48.40 | 3.30% | 5.78% | -11.10% | -52.07% | |
61 Neutral | $2.91B | 2,338.00 | 0.03% | ― | 13.06% | -98.53% | |
60 Neutral | $6.44B | -3.14 | -20.24% | ― | 8.54% | -3.69% | |
56 Neutral | $5.96B | 6.37 | 31.33% | ― | -13.22% | 249.28% | |
52 Neutral | $1.35B | -5.74 | -21.28% | ― | 2.71% | -447.50% | |
48 Neutral | $934.40M | -1.37 | -102.11% | ― | ― | 52.41% |
* Energy Sector Average
BORR
Borr Drilling
4.46
1.63
57.60%
RIG
Transocean
5.75
2.71
89.14%
SOC
Sable Offshore
4.71
-23.69
-83.42%
VAL
Valaris
85.72
36.87
75.48%
NE
Noble Corporation
45.86
19.34
72.91%
SDRL
Seadrill Limited
47.09
16.14
52.15%
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...
Borr Drilling Sets Pricing Terms for Tender Offer on 2028 and 2030 Senior Secured Notes
Jun 11, 2026
On June 9, 2026, Borr Drilling announced pricing terms for its previously launched cash tender offer and related consent solicitation by subsidiary Borr IHC Limited for any and all of its 10.000% Senior Secured Notes due 2028 and 10.375% Senior Se...
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.