Borr Drilling (NYSE:BORR) Posts Earnings Results

Key Points

• Borr Drilling missed quarterly expectations: It reported an adjusted loss of $0.79 per share versus the $0.21 consensus estimate, while revenue of $232.3 million also fell short of forecasts.
• Near-term profitability weakened, but management expects improvement: Q2 adjusted EBITDA declined to $43.8 million due to rig-transition expenses, Odin preparation costs and a credit-loss provision. EBITDA is expected to improve in Q3 as about 23 rigs become active, although Odin may generate an additional $6 million–$9 million in preparation costs.
• Backlog and liquidity remain key positives: Borr refinanced most of its debt through 2032–2034, increased its revolving credit facility to $250 million and ended the quarter with $473.6 million in liquidity. The company now has 24 of 29 rigs contracted or committed, with 73% of 2026 capacity covered.

Borr Drilling (NYSE:BORR - Get Free Report) released its earnings results on Wednesday. The company reported ($0.79) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.21) by ($0.58), FiscalAI reports. The business had revenue of $232.30 million for the quarter, compared to analysts' expectations of $245.96 million. Borr Drilling had a net margin of 3.13% and a return on equity of 2.88%.

Here are the key takeaways from Borr Drilling's conference call:

• Q2 adjusted EBITDA fell to $43.8 million, down $44.7 million sequentially, due largely to $22.5 million of Odin preparation costs, six rigs transitioning between contracts, higher fuel and insurance expenses, and a $10.8 million credit-loss provision tied to a former West African customer.
• Management expects a significant sequential improvement in Q3, with approximately 23 active rigs as contract transitions conclude and Odin begins its U.S. Gulf contract; however, Odin may incur another $6 million–$9 million of preparation costs in Q3.
• Borr refinanced substantially all of its debt, extending maturities through 2032–2034, while increasing its revolving credit facility to $250 million and ending Q2 with total liquidity of $473.6 million.
• The company secured eight new contract commitments since its prior earnings report and now has 24 of 29 rigs contracted or committed; 2026 coverage stands at 73% at an average day rate of approximately $134,000 per day, with Mexico extensions for Galar and Gersemi running through 2030.
• Jackup demand remains resilient globally, but the Middle East conflict continues to delay tendering and reduce near-term visibility; management remains constructive on longer-term demand, citing low inventories and the role of modern jackups in supplying short-cycle, low-cost oil.

Borr Drilling Stock Performance

BORR stock traded down $0.17 during trading on Wednesday, reaching $4.09. The stock had a trading volume of 8,780,129 shares, compared to its average volume of 7,036,812. The firm has a market cap of $1.29 billion, a PE ratio of 27.27 and a beta of 1.02. The company has a current ratio of 1.63, a quick ratio of 1.63 and a debt-to-equity ratio of 1.82. The stock's 50 day moving average is $4.31 and its two-hundred day moving average is $5.12. Borr Drilling has a 52 week low of $2.28 and a 52 week high of $6.66.

Analysts Set New Price Targets

BORR has been the subject of several analyst reports. Zacks Research upgraded Borr Drilling to a "hold" rating in a report on Thursday, July 2nd. Fearnley Fonds raised shares of Borr Drilling from a "hold" rating to a "strong-buy" rating in a research report on Tuesday, April 21st. Wall Street Zen cut Borr Drilling from a "sell" rating to a "strong sell" rating in a research report on Saturday. Weiss Ratings reissued a "sell (d+)" rating on shares of Borr Drilling in a report on Wednesday, June 24th. Finally, Capital One Financial set a $6.00 price target on Borr Drilling and gave the company an "overweight" rating in a report on Wednesday, July 1st. Two research analysts have rated the stock with a Strong Buy rating, two have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $4.88.

Insiders Place Their Bets

In other Borr Drilling news, Director Thiago Mordehachvili sold 8,000,000 shares of the stock in a transaction that occurred on Tuesday, June 9th. The shares were sold at an average price of $4.70, for a total value of $37,600,000.00. Following the transaction, the director directly owned 38,199,677 shares in the company, valued at approximately $179,538,481.90. This trade represents a 17.32% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Insiders own 7.90% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in BORR. Sona Asset Management US LLC purchased a new position in Borr Drilling during the third quarter valued at approximately $17,180,000. Marshall Wace LLP increased its stake in shares of Borr Drilling by 9,222.0% in the fourth quarter. Marshall Wace LLP now owns 4,573,837 shares of the company's stock worth $18,433,000 after purchasing an additional 4,524,772 shares in the last quarter. State Street Corp raised its position in shares of Borr Drilling by 4.5% during the 4th quarter. State Street Corp now owns 4,212,987 shares of the company's stock valued at $16,978,000 after purchasing an additional 180,141 shares during the period. Millennium Management LLC raised its position in shares of Borr Drilling by 1,025.5% during the 1st quarter. Millennium Management LLC now owns 3,810,556 shares of the company's stock valued at $8,345,000 after purchasing an additional 3,471,979 shares during the period. Finally, Geode Capital Management LLC lifted its stake in shares of Borr Drilling by 7.0% during the 4th quarter. Geode Capital Management LLC now owns 3,218,535 shares of the company's stock valued at $12,971,000 after buying an additional 211,314 shares in the last quarter. Institutional investors own 83.12% of the company's stock.

Borr Drilling Company Profile

Borr Drilling is an international offshore drilling contractor providing premium jack-up drilling services to the oil and gas industry. Established in 2016 and incorporated in Bermuda with headquarters in Hamilton, the company is listed on the New York Stock Exchange under the ticker symbol BORR. Borr Drilling focuses exclusively on the ownership and operation of mobile offshore jack-up rigs, catering to exploration and production drilling projects in both mature and emerging hydrocarbon regions.

The company's core business activities encompass the long-term contracting of high-specification jack-up rigs suitable for shallow-to-intermediate water depths.

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