Borr Drilling Limited (BORR)
NYSE:BORR
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Borr Drilling
(NYSE:BORR)
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Rating:67Neutral
Price Target:
$5.50
▼(-6.78% Downside)
Action:ReiteratedDate:02/20/26
The score is driven by strong technical momentum and a generally constructive earnings-call outlook (high utilization, liquidity, and improving contract coverage). This is tempered by a higher-risk financial profile—especially leverage and revenue/free-cash-flow volatility—and a less compelling valuation due to the elevated P/E despite the solid dividend yield.
Positive Factors
High fleet utilization
Sustained near‑full technical and economic utilization demonstrates durable operational execution and fleet demand for jack‑up services. High utilization compresses unit costs, supports long‑term contract leverage and backlog conversion, and underpins stable dayrate negotiating power across cycles.
Negative Factors
Elevated leverage
Debt materially exceeding equity leaves the company exposed to downturns and refinancing risk. High leverage increases interest obligations and limits flexibility for capex or tendering, making the firm more sensitive to rate moves and cyclical drops in utilization or dayrates over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
High fleet utilization
Sustained near‑full technical and economic utilization demonstrates durable operational execution and fleet demand for jack‑up services. High utilization compresses unit costs, supports long‑term contract leverage and backlog conversion, and underpins stable dayrate negotiating power across cycles.
Read all positive factors
Borr Drilling (BORR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.82B
Dividend Yield5.99%
Average Volume (3M)7.65M
Price to Earnings (P/E)―
Beta (1Y)1.27
Revenue Growth5.83%
EPS Growth-11.86%
CountryUS
Employees2,087
SectorEnergy
Sector Strength52
IndustryOil & Gas Drilling
Share Statistics
EPS (TTM)0.00
Shares Outstanding307,701,080
10 Day Avg. Volume5,805,595
30 Day Avg. Volume7,653,046
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 Cap1.80
Enterprise Value/Revenue3.20
Enterprise Value/Gross Profit5.41
Enterprise Value/Ebitda7.13
Forecast
1Y Price Target
$5.77Price Target Upside-2.20% Downside
Rating ConsensusHold
Number of Analyst Covering3
EPS Forecast (FY)-0.04
Revenue Forecast (FY)$1.06B
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 cre...
How the Company Makes Money
Borr Drilling makes money by contracting its jack-up drilling rigs to customers for offshore drilling campaigns under drilling contracts. The core revenue stream is dayrate-based rig hire, where the customer pays a negotiated daily rate for use of...
Borr Drilling Earnings Call Summary
Earnings Call Date:Feb 18, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 27, 2026
Earnings Call Sentiment Positive
The call conveyed a constructive operational and financial position: very high utilization, strong liquidity, successful capital markets activity, accretive acquisition of five premium rigs, and tangible contracting momentum (seven commitments and ~$145M backlog additions). These positives were balanced against short-term headwinds — a Q4 revenue decline (-6.4% QoQ), higher operating costs (+7.4% QoQ), a small Q4 net loss, outstanding Pemex receivables (~$90–100M), and material uncontracted exposure in H2 2026 (48% coverage) including several idle rigs that may require reactivation capital. Management’s outlook is optimistic, expecting tender awards by mid-2026 and a dayrate recovery into 2027, and actions taken in 2025 strengthened liquidity and strategic flexibility.Positive Updates
Strong Operational Utilization
Technical utilization of 98.8% and economic utilization of 97.8% in Q4, indicating high fleet productivity and effective operations.
Negative Updates
Quarterly Revenue Decline
Q4 operating revenues were $259.4M, down $17.7M or 6.4% vs Q3, primarily driven by a $16.0M decrease in dayrate revenue as rigs transitioned into lower-dayrate contracts.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Operational Utilization
Technical utilization of 98.8% and economic utilization of 97.8% in Q4, indicating high fleet productivity and effective operations.
Read all positive updates
Company Guidance
Management reiterated that full‑year 2025 adjusted EBITDA finished at $470.1m (top of guidance) with Q4 operational revenues of $259.4m, technical utilization 98.8% and economic utilization 97.8%, Q4 adjusted EBITDA ~ $105m and a Q4 net loss of $1m; looking to 2026 they stopped short of formal EBITDA guidance but said fleet coverage stands at 64% for 2026 (80% in H1 and 48% in H2, noting H1 would have been ~85% before the five‑rig acquisition), they have secured seven new commitments since the last report (five YTD adding ~ $145m to backlog), expect contracting days in 2026 to modestly exceed 2025 and to lift coverage above 70% in coming months, and see awards from a ~120 rig‑year Petrodata tender pipeline by mid‑2026 with dayrate recovery expected into 2027; they also highlighted balance‑sheet strength to support this (cash $379.7m, undrawn RCF $234.0m, total liquidity $613.7m), the accretive five‑rig purchase (paid $174m cash + $150m L/C), and recent capital market activity (issued $165m bonds, raised ~$84m equity).Borr Drilling Financial Statement Overview
Summary
Income Statement
66
Positive
Balance Sheet
48
Neutral
Cash Flow
52
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.02B | 1.01B | 771.60M | 443.80M | 245.30M |
| Gross Profit | 372.20M | 879.40M | 654.20M | 327.30M | 125.70M |
| EBITDA | 469.80M | 473.00M | 331.90M | -32.50M | 29.20M |
| Net Income | 45.00M | 82.10M | 22.10M | -292.80M | -193.00M |
Balance Sheet | |||||
| Total Assets | 3.63B | 3.42B | 3.08B | 3.00B | 3.08B |
| Cash, Cash Equivalents and Short-Term Investments | 380.70M | 61.60M | 102.50M | 108.00M | 34.90M |
| Total Debt | 2.15B | 2.11B | 1.70B | 1.60B | 1.92B |
| Total Liabilities | 2.40B | 2.43B | 2.10B | 2.10B | 2.19B |
| Stockholders Equity | 1.22B | 993.30M | 984.00M | 897.80M | 889.90M |
Cash Flow | |||||
| Free Cash Flow | 127.40M | -332.10M | -164.70M | -20.80M | -77.80M |
| Operating Cash Flow | 251.90M | 77.30M | -50.70M | 62.50M | -58.90M |
| Investing Cash Flow | -124.50M | -409.40M | -104.20M | -82.60M | 40.90M |
| Financing Cash Flow | 190.80M | 292.00M | 139.00M | 92.60M | 44.80M |
Borr Drilling Technical Analysis
Positive
5.90
Price Trends
5.53
Positive
4.72
Positive
3.66
Positive
Market Momentum
0.16
Negative
58.49
Neutral
58.62
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 5.9 is above the 20-day moving average (MA) of 5.51, above the 50-day MA of 5.53, and above the 200-day MA of 3.66, indicating a bullish trend. The MACD of 0.16 indicates Negative momentum. The RSI at 58.49 is Neutral, neither overbought nor oversold. The STOCH value of 58.62 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 |
|---|---|---|---|---|---|---|---|
68 Neutral | $1.18B | 2.88 | 57.72% | ― | 6.52% | ― | |
67 Neutral | $1.82B | -293.11 | 4.41% | 5.99% | 5.83% | -11.86% | |
67 Neutral | $1.41B | 30.17 | 1.97% | ― | -1.95% | 530.91% | |
66 Neutral | $3.81B | -25.02 | -2.83% | 5.42% | -16.59% | 83.95% | |
66 Neutral | $7.22B | -1.36 | -32.62% | ― | 16.93% | -335.82% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
56 Neutral | $2.96B | -54.06 | -2.68% | ― | -9.31% | -91.57% |
* Energy Sector Average
BORR
Borr Drilling
5.96
4.03
208.81%
HLX
Helix Energy
9.79
3.29
50.62%
NBR
Nabors Industries
84.62
56.02
195.87%
PTEN
Patterson-UTI
10.56
5.11
93.90%
RIG
Transocean
6.64
4.42
199.10%
SDRL
Seadrill Limited
48.25
29.24
153.81%
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.