Borr Drilling (BORR)
NYSE:BORR
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Borr Drilling
(NYSE:BORR)
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Rating:55Neutral
Price Target:
$4.50
▼(-19.21% Downside)
Action:Reiterated
Date:05/22/26
The score is driven primarily by improving operating performance but meaningful leverage and volatile/free cash flow (including negative TTM FCF). Technicals add near-term caution as the stock trades below key short-term averages with weak-to-neutral momentum. Valuation is mixed with a decent yield but a non-meaningful negative P/E, while the latest call supports the outlook via stronger coverage/backlog and liquidity actions despite near-term cost and timing pressures.
Positive Factors
Operational Utilization & Safety
Sustained technical and economic utilization near 100% indicates durable operational efficiency and strong contract execution. High utilization limits idle asset time, supports stable dayrate realization, and the long safety record reduces downtime and insurance/incident costs, strengthening long-term service reliability.
Negative Factors
Elevated Leverage
High leverage in a cyclical offshore drilling business amplifies downside during demand shocks and limits strategic optionality. Even with equity improvements, leverage near 2x increases refinancing sensitivity and constrains capital allocation, making the company more vulnerable to oil price-driven demand troughs.
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Positive Factors
Negative Factors
Operational Utilization & Safety
Sustained technical and economic utilization near 100% indicates durable operational efficiency and strong contract execution. High utilization limits idle asset time, supports stable dayrate realization, and the long safety record reduces downtime and insurance/incident costs, strengthening long-term service reliability.
Read all positive factors
Borr Drilling (BORR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.33B
Dividend Yield5.99%
Average Volume (3M)8.91M
Price to Earnings (P/E)36.6
Beta (1Y)1.16
Revenue Growth5.84%
EPS Growth-19.93%
CountryUS
Employees2,087
SectorEnergy
Sector Strength52
IndustryOil & Gas Drilling
Share Statistics
EPS (TTM)0.16
Shares Outstanding307,701,080
10 Day Avg. Volume8,302,613
30 Day Avg. Volume8,908,477
Financial Highlights & Ratios
PEG Ratio-0.48
Price to Book (P/B)0.86
Price to Sales (P/S)1.04
P/FCF Ratio8.30
Enterprise Value/Market Cap2.39
Enterprise Value/Revenue3.02
Enterprise Value/Gross Profit6.58
Enterprise Value/Ebitda6.97
Forecast
1Y Price Target
$6.53Price Target Upside17.15% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)-0.16
Revenue Forecast (FY)$1.04B
Borr Drilling Business Overview & Revenue Model
Company Description
Borr Drilling Limited operates globally as a specialized offshore drilling contractor, serving the needs of the oil and gas sector. The company's core business involves the acquisition, leasing, and operation of jack-up rigs, which are primarily d...
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:May 21, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 12, 2026
Earnings Call Sentiment Positive
The call conveyed a cautiously optimistic strategic outlook: operational performance and safety remain strong (very high utilization and safety milestones), the company materially expanded fleet and improved 2026 coverage, and management strengthened the capital structure (new convertible notes and liquidity). These strategic and contracting gains offset near-term financial headwinds including a Q1 revenue decline, a $29 million net loss, an $8.4 million credit loss provision, and Odin's delayed startup with additional expected prep costs. Management emphasized that sector fundamentals and demand visibility (particularly into 2027–2028) are improving but with timing uncertainty driven by geopolitical events.Positive Updates
Strong Operational Utilization and Safety Track Record
Technical utilization of 99.4% and economic utilization of 97% in Q1 2026; multiple rigs reached long LTI-free milestones (Gerd, Natt, Mist: 7 years; Saga: 6 years; Arabia III: 3 years) and Norve attained 2 years recordable-incident free, signaling strong operational performance and safety culture.
Negative Updates
Quarterly Revenue and EBITDA Pressure
Total operating revenues decreased $12.4 million (down 4.8% quarter-on-quarter) and adjusted EBITDA fell by $16.7 million quarter-on-quarter, reflecting short-term softness versus Q4.
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Q1-2026 Updates
Positive
Negative
Strong Operational Utilization and Safety Track Record
Technical utilization of 99.4% and economic utilization of 97% in Q1 2026; multiple rigs reached long LTI-free milestones (Gerd, Natt, Mist: 7 years; Saga: 6 years; Arabia III: 3 years) and Norve attained 2 years recordable-incident free, signaling strong operational performance and safety culture.
Read all positive updates
Company Guidance
Management guided that Q2 will remain affected by the Odin delayed start (now expected in late June) and about $10M of additional contract‑preparation costs on top of standard OpEx (after an $8.4M credit loss provision in Q1); Q1 metrics were technical utilization 99.4%, economic utilization 97%, revenue $247M, adjusted EBITDA $88.5M and net loss $29M. They said full‑year 2026 coverage has risen to 71% at an average dayrate of ~ $137,000 (H2 coverage 65% vs 48% previously), YTD commitments are 13 adding ~ $274M to backlog (and since the last report 8 commitments representing >1,100 firm days), and the fleet has expanded to 34 rigs (from 29). Liquidity at quarter end was $480M (cash $246M, undrawn revolver $234M); post‑quarter they issued $300M of 2033 convertibles to repurchase ~$195.2M of 2028 notes (new coupon 3.5% vs 5%, conversion price $8). Management expects dayrate/activity upside to lag oil price by 6–12 months, notes 17 visible open tenders in the Middle East, and views the company as well positioned to capture stronger demand into 2027–28.Borr Drilling Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
46
Neutral
Cash Flow
40
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.05B | 1.02B | 1.01B | 771.60M | 443.80M | 245.30M |
| Gross Profit | 483.30M | 372.20M | 879.40M | 654.20M | 327.30M | 125.70M |
| EBITDA | 455.90M | 462.30M | 473.00M | 331.90M | -32.50M | 29.20M |
| Net Income | 35.90M | 45.00M | 82.10M | 22.10M | -292.80M | -193.00M |
Balance Sheet | ||||||
| Total Assets | 3.80B | 3.63B | 3.42B | 3.08B | 3.00B | 3.08B |
| Cash, Cash Equivalents and Short-Term Investments | 246.90M | 380.70M | 61.60M | 102.50M | 108.00M | 34.90M |
| Total Debt | 2.30B | 2.15B | 2.11B | 1.70B | 1.60B | 1.92B |
| Total Liabilities | 2.61B | 2.40B | 2.43B | 2.10B | 2.10B | 2.19B |
| Stockholders Equity | 1.20B | 1.22B | 993.30M | 984.00M | 897.80M | 889.90M |
Cash Flow | ||||||
| Free Cash Flow | -121.00M | 127.40M | -332.10M | -164.70M | -20.80M | -77.80M |
| Operating Cash Flow | 161.30M | 251.90M | 77.30M | -50.70M | 62.50M | -58.90M |
| Investing Cash Flow | -282.30M | -124.50M | -409.40M | -104.20M | -82.60M | 40.90M |
| Financing Cash Flow | 196.70M | 190.80M | 292.00M | 139.00M | 92.60M | 44.80M |
Borr Drilling Technical Analysis
Negative
5.57
Price Trends
5.54
Negative
5.49
Negative
4.44
Negative
Market Momentum
-0.36
Positive
28.57
Positive
8.16
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BORR, the sentiment is Negative. The current price of 5.57 is above the 20-day moving average (MA) of 4.98, above the 50-day MA of 5.54, and above the 200-day MA of 4.44, indicating a bearish trend. The MACD of -0.36 indicates Positive momentum. The RSI at 28.57 is Positive, neither overbought nor oversold. The STOCH value of 8.16 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
66 Neutral | $3.93B | -32.78 | -3.67% | 5.42% | -9.41% | 88.02% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
64 Neutral | $1.35B | 6.09 | 40.63% | ― | 10.21% | ― | |
63 Neutral | $1.36B | 90.97 | 0.91% | ― | -2.91% | -82.51% | |
55 Neutral | $1.33B | 36.62 | 3.14% | 5.99% | 5.84% | -19.93% | |
54 Neutral | $6.24B | -2.24 | -32.79% | ― | 12.90% | -274.70% | |
54 Neutral | $2.51B | -104.04 | -0.84% | ― | 7.91% | -120.67% |
* Energy Sector Average
BORR
Borr Drilling
4.27
2.19
105.29%
HLX
Helix Energy
8.87
1.67
23.19%
NBR
Nabors Industries
89.15
56.54
173.38%
PTEN
Patterson-UTI
10.30
4.17
67.89%
RIG
Transocean
5.58
2.67
91.75%
SDRL
Seadrill Limited
40.21
12.20
43.56%
Borr Drilling Corporate Events
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.