Borr Drilling Limited (BORR) Company Overview

US | Energy | Oil & Gas Drilling | NYSE

What does Borr Drilling do?

Borr Drilling Limited is a Bermuda-incorporated offshore contractor that supplies modern jack-up rigs to oil and gas producers in shallow water. It does not own petroleum reserves; it earns fees by providing rigs, crews and operating systems to integrated, national and independent producers. BORR trades primarily on the New York Stock Exchange and also on Euronext Oslo Børs. The official company overview emphasizes safe and efficient global jack-up service.

29 rigs
Fleet size after the January 2026 Noble acquisition
9.4 years
Average fleet age stated at December 31, 2025, including acquired rigs
24 rigs
Contracted or committed as of the May 2026 fleet update
5 regions
Americas, Southeast Asia, West Africa, MENA and Europe

Why shallow-water jack-ups matter

A jack-up is a mobile platform whose legs are lowered to the seabed so the hull can be raised above the water. Borr’s rigs generally work in depths of up to 400 feet. Shallow-water projects often have lower costs and shorter development cycles than deepwater projects, creating demand for rigs that can move between basins and drill development, workover or exploration wells.

Who buys Borr’s services?

Customers include Eni, PTTEP, Saudi Aramco-linked operations, Petrobras-linked programs and PEMEX-linked projects. Concentration remains material: Eni represented 18% of FY2025 operating revenue and PTTEP 11%. Borr is therefore best analyzed as a global industrial service provider with customer, country and contract exposure.

Research lens Borr-specific answer Why it matters
Industry Offshore contract drilling, shallow-water jack-ups Demand depends on customer drilling budgets and oil-market conditions.
Asset base Premium jack-up rigs, all built in or after 2008 Age, specification and condition affect tender eligibility and dayrates.
Core customer Integrated, national and independent oil companies Long programs can add visibility but also sovereign and payment risk.
Operating model Single reported operating segment with geographic disclosure Revenue type and geography matter more than a segment-profit split.

How does Borr Drilling make money?

Borr’s main commercial mechanism is the dayrate: a customer pays an agreed amount for each day a rig is available under contract. Pricing reflects rig specification, location, mobilization, duration, options and market tightness. Borr also earns bareboat charter revenue and fees for managing or supporting rigs. The 2025 Form 20-F reports one operating segment, so revenue type, geography and fleet status are the practical analytical building blocks.

Which revenue stream is largest?

Dayrate revenue
$209.5M
Q1 2026
The core business: rig time sold to drilling customers, including reimbursable items and contract-related fees.
Bareboat charter revenue
$26.6M
Q1 2026
Lease-like revenue from six rigs operating under bareboat charters during the quarter.
Management contract revenue
$10.9M
Q1 2026
Fees for managing or supporting drilling assets and related operations.
Operating revenue mix — Q1 2026
Dayrate — $209.5M — 84.8%
Bareboat charter — $26.6M — 10.8%
Management contracts — $10.9M — 4.4%
Calculated from $247.0M of Q1 2026 operating revenue. Dayrate revenue remains the dominant economic engine.

What determines profit from a rig contract?

A contracted rig is not automatically profitable. Revenue depends on operating days and earned dayrate, while cash costs include crews, insurance, supplies, repairs and shore support. Mobilization, surveys, approvals and upgrades can consume cash before earnings begin. Economic utilization therefore matters alongside technical uptime: contract transitions can create non-billable days even when equipment performs reliably.

Contract award
Dayrate, term, options, mobilization and reimbursement terms establish potential revenue.
Preparation
Crew, inspections, upgrades and mobilization require working capital before full earnings begin.
Operating days
Technical reliability and customer acceptance convert contracted time into billable time.
Cash conversion
Collections must cover rig costs, interest, maintenance capital and corporate overhead.
Recontracting
Future value depends on renewal dayrates, idle gaps and the cost of moving to the next basin.

What does Borr Drilling’s latest quarter show?

The quarter ended March 31, 2026 showed a larger asset base absorbing transition costs. The Q1 2026 earnings release reported $247.0M of operating revenue, down 5% from Q4 2025 but up 14% from Q1 2025. Adjusted EBITDA was $88.5M and net loss was $29.0M. Results included the five-rig Noble acquisition, Odin’s delayed contract start and an $8.4M credit-loss provision.

$247.0M
Operating revenue, Q1 2026
$46.0M
Operating income, Q1 2026
$88.5M
Adjusted EBITDA, Q1 2026
$246.0M
Cash and cash equivalents, March 31, 2026

How did revenue and costs move?

Metric Q1 2026 Comparison Interpretation
Operating revenue $247.0M $216.6M in Q1 2025 More operating and charter days offset lower earned dayrates.
Rig operating and maintenance expense $144.7M $109.8M in Q1 2025 Fleet activity, acquired rigs and the credit provision raised costs.
Operating income $46.0M $60.2M in Q1 2025 Higher operating and depreciation costs compressed profit.
Interest expense $63.2M $58.1M in Q1 2025 Debt added for fleet expansion increased the financing burden.
Net cash from operations $48.1M $138.7M in Q1 2025 Q1 2025 included Mexico settlements that did not recur.
Investing cash outflow $182.9M Quarter ended March 31, 2026 $175.1M related to completing the five-rig acquisition.

Why did higher revenue produce a larger loss?

The quarter shows why utilization, accounting profit and cash flow must be separated. Operating income was about 18.6% of revenue, but interest expense exceeded operating income. The Q1 2026 Form 6-K makes financing costs the central constraint. Adjusted EBITDA measures operations before depreciation, financing and tax, but does not fund acquisitions, maintenance or debt service.

$480.0MTotal liquidity at March 31, 2026, combining $246.0M of cash with $234.0M of undrawn revolving facilities. Liquidity was substantial, but the capital structure remained highly leveraged.

Which strategic turning points shaped Borr Drilling?

Borr’s history is compressed. Incorporated in 2016, it assembled a fleet when offshore assets were available from distressed owners and shipyards. Rather than operate across every water depth, it concentrated on premium jack-ups. That decision still defines its customer proposition, cost structure and cycle sensitivity.

How did the fleet reach its current scale?

  1. 2016
    Borr incorporated in Bermuda. It began as an acquisition-led platform rather than a legacy driller.
  2. 2017
    Large purchases from Hercules, Transocean and PPL. These deals created scale and fleet standardization.
  3. 2018–2019
    Further acquisitions from Paragon, Seatrium-related entities and BOTL. Borr deepened its premium jack-up focus.
  4. 2019
    NYSE listing. U.S. market access broadened the investor base and financing options.
  5. 2024
    Vali and Var delivered. The fleet reached 24 rigs and shifted toward deployment and contract coverage.
  6. Jan. 2026
    Five Noble rigs acquired for $360.0M. The fleet reached 29 rigs, increasing capacity and debt risk.
  7. Mar. 2026
    Five-rig Fontis transaction agreed through a 50/50 joint venture. The structure adds exposure with seller financing.

What changed with the 2026 acquisitions?

Noble transaction
5 rigs / $360.0M
Completed January 2026; financed with cash, a $150.0M seller credit and earlier equity/debt issuance.
Fontis joint venture
5 rigs / $287.0M
Announced March 2026; Borr’s expected cash contribution is $25.0M, subject to closing conditions.

The 2026 deals sharpen Borr’s strategic tension. Scale can improve customer relevance, overhead absorption and optionality in a tighter market, but every additional rig needs contracts, maintenance and capital. The reports and presentations archive shows how quickly fleet deployment and financing can change the earnings picture.

Why do modern rigs, backlog and utilization define Borr’s economics?

Offshore drilling is a utilization business. A modern rig on a strong dayrate with little downtime can produce attractive cash contribution; the same rig between contracts still incurs insurance, maintenance and preservation costs. Borr’s economics therefore depend on technical utilization, economic utilization, contract coverage, backlog and dayrate.

How strong was operating execution in Q1 2026?

97.0%
Economic utilization, Q1 2026. Technical utilization was even higher at 99.4%. The 2.4-percentage-point gap shows that reliable equipment does not eliminate non-billable time caused by contract mechanics or transitions.

Borr reported $1.17B of dayrate-equivalent backlog at March 31, 2026 and $1.08B at the May report date. FY2026 coverage was 71% at an average dayrate near $137,000, with second-half coverage at 65%. Backlog improves visibility but remains exposed to options, suspensions, sanctions, start-up delays and termination clauses.

Where is the contracted fleet deployed?

Contracted or committed rigs by region — May 2026
Americas7 rigs
Southeast Asia5 rigs
West Africa5 rigs
Middle East & North Africa4 rigs
Europe3 rigs
Bars are scaled to the largest regional count. The company’s May 2026 fleet status report provides rig-level contracts and options.
KPI Latest disclosed value How to interpret it
Technical utilization 99.4%, Q1 2026 Measures operational uptime for working rigs; high performance supports customer trust.
Economic utilization 97.0%, Q1 2026 Captures the proportion of potential earnings days actually billed.
2026 contract coverage 71%, May 2026 Coverage reduces idle risk but limits near-term spot upside.
Average covered dayrate About $137,000, FY2026 coverage A useful revenue anchor before reimbursables, downtime and contract-specific adjustments.
YTD contract awards 13 commitments / $274.0M Shows conversion of open days into future revenue.

Who competes with Borr Drilling, and what is its moat?

Jack-up contracts are awarded through tenders or negotiations. Customers assess price, location, water-depth capability, safety, crew quality, equipment condition and operating history. Borr competes with jack-up specialists and diversified offshore contractors including ADES, Shelf Drilling, Valaris and Noble. Barriers are capital, fleet quality, customer qualification, local capability and the time needed to build or reactivate compliant rigs.

How is Borr positioned against major rivals?

Competitor Official positioning Competitive implication for Borr
ADES Large global jack-up and onshore fleet Scale and Middle East relationships intensify NOC competition.
Shelf Drilling Shallow-water specialist with a broad international jack-up fleet Competes on regional coverage and cost discipline.
Valaris Diversified offshore fleet with modern shallow-water jack-ups Can leverage relationships across jack-ups and floating rigs.
Noble High-specification jack-up and ultra-deepwater contractor Technical reputation supports premium tenders.

What gives Borr a defensible advantage?

Borr’s strongest resource is its combination of fleet age, uniformity and uptime. All rigs were built in or after 2008 and most after 2013. Similar designs can simplify training, spares and maintenance while supporting multi-rig bids. The advantage is valuable but not permanent: competitors can buy modern assets, customers retain bargaining power and idle rigs destroy value.

Fleet qualityStrong
Operational executionStrong
Customer switching costsModerate
Balance-sheet flexibilityConstrained
Borr’s moat is operational rather than technological: modern standardized assets and reliable execution improve tender eligibility, but leverage and contract gaps can overwhelm those advantages during a weak cycle.

How financially strong is Borr Drilling through the cycle?

Borr produced meaningful operating earnings in FY2025, but EBITDA alone does not define financial strength. The business is capital intensive, debt financed and exposed to working-capital swings. FY2025 revenue was $1,020.8M, adjusted EBITDA $470.1M and operating cash flow $251.9M. Rig additions were $88.2M and cash interest was $205.1M, illustrating the financing burden.

What does the three-year revenue trend show?

Annual operating revenue — FY2023 to FY2025
$771.6MFY2023
$1,010.6MFY2024
$1,020.8MFY2025
Revenue expanded sharply in FY2024, then grew only 1.0% in FY2025 as higher dayrate revenue was offset by lower related-party and bareboat revenue.

Where is the balance-sheet pressure?

Financial indicator Period value Research implication
FY2025 operating income $322.1M The fleet produced healthy operating earnings before financing costs.
FY2025 net income $45.0M Interest and tax absorbed most operating profit.
Cash $246.0M at March 31, 2026 Cash declined after the Noble acquisition but remained part of a $480.0M liquidity position.
Gross borrowings $2,360.0M at March 31, 2026 Debt is the main financial risk and creates sensitivity to refinancing terms.
Near-term maturities $143.6M within 12 months of March 31, 2026 Manageable relative to liquidity, but larger 2028 and 2030 maturities still matter.
Q1 2026 shareholders’ equity $1,197.2M Provides capital, though rig values remain cyclical.
$251.9M
FY2025 operating cash flow
$88.2M
FY2025 additions to jack-up rigs
$163.7M
Simple operating cash flow less rig additions, before acquisition deposits and financing
$205.1M
FY2025 cash interest paid, showing why EBITDA is not equivalent to distributable cash

In April 2026, Borr issued $300.0M of 3.5% convertible notes due 2033 and repurchased $195.2M of 2028 convertibles. The transaction extended maturities and reduced coupon cost, but convertibles can dilute shareholders. Borr therefore combines valuable assets and meaningful liquidity with a capital structure that requires sustained utilization and disciplined refinancing.

Who owns Borr Drilling stock, and how does governance affect the story?

Borr has one class of common shares, but ownership is concentrated. The 2025 Form 20-F identifies three holders above 5%, and directors and officers collectively own a significant stake. This can support long-term decisions, while related-party relationships and board affiliations require scrutiny. As a Bermuda foreign private issuer, Borr’s governance framework differs from that of a domestic Delaware corporation.

Holder or group Beneficial ownership Source date Why it matters
Thiago Mordehachvili / Granular Capital 46,145,132 shares / 15.0% March 17, 2026 Largest disclosed holder and board member.
Azvalor Asset Management 28,606,167 shares / 9.3% March 17, 2026 Large external stake supports capital-discipline scrutiny.
Tor Olav Trøim / Drew Holding 25,150,263 shares / 8.2% March 17, 2026 Founder-linked ownership makes conflict controls important.
Directors and officers as a group 78,433,028 shares / 25.1% March 17, 2026 Insider exposure aligns outcomes but concentrates influence.

What signals come from leadership and incentives?

Bruno Morand became chief executive officer in September 2025 and Magnus Vaaler serves as chief financial officer. Their task combines commercial execution with balance-sheet management: filling open days, integrating acquisitions, collecting receivables and refinancing debt. Executive performance units include relative total-shareholder-return criteria, while the board maintains audit, compensation and nominating committees with independent directors under NYSE standards.

What opportunities and risks could change Borr Drilling’s outlook?

Borr’s upside and downside are amplified by operating leverage. A tighter jack-up market can raise dayrates and reduce idle time, allowing incremental revenue to flow through after variable costs. Suspensions, sanctions, lower oil prices or project delays can remove revenue faster than crews, maintenance and financing costs can be reduced. The strategy is to convert acquired capacity into contracted days before holding costs erode returns.

Contract coverage and renewal dayrates
Coverage protects cash flow; renewal dayrates determine upside.
Odin start-up and transition days
A contracted rig can still miss revenue while approvals and preparation continue.
Middle East tender activity
Scale is offset by geopolitical, customer and suspension risk.
Mexico receivables and joint ventures
Collections and partner structures can create cash-flow and credit risk.
Debt refinancing
2028 and 2030 maturities make covenants and refinancing terms critical.
Fleet maintenance and impairment
Surveys consume cash and weaker dayrates can pressure rig values.
High impact / higher probability
Contract coverage, dayrates, transition timing and interest expense are the most immediate drivers of 2026–2027 cash flow.
High impact / lower probability
Major contract cancellation, sanctions exposure, refinancing stress or a severe offshore incident could rapidly impair value.
Moderate impact / higher probability
Crew inflation, equipment costs, customer options and routine mobilization delays can pressure margins quarter by quarter.
Moderate impact / lower probability
Newbuild supply is limited, but reactivations or competitor consolidation could still alter regional tender dynamics.

Longer-term opportunity comes from shallow-water economics and limited newbuild supply. Borr reported 11 jack-ups under construction globally at March 31, 2026, equal to 2.5% of the marketed fleet, while modern marketed utilization was 90.1%. A young fleet is positioned for stronger customer budgets, but tender timing can lag supportive oil prices.

Why does Borr Drilling’s business model matter for valuation?

Borr should be valued from rig-level capacity rather than a simple revenue growth rate. The key variables are active rigs, contracted days, earned dayrate, economic utilization and operating cost. Revenue can rise sharply when an idle rig starts work and fall abruptly when a contract ends. Maintenance capital, mobilization, working capital and debt service determine how much EBITDA becomes equity cash flow.

Valuation driver Borr-specific input DCF or comparable-company effect
Contracted rigs 24 of 29 contracted or committed in May 2026 Sets near-term revenue and idle-fleet optionality.
Dayrate About $137,000 average on FY2026 coverage Small changes materially affect EBITDA because costs are partly fixed.
Economic utilization 97.0% in Q1 2026 Converts contracted capacity into earned revenue.
Operating cost $144.7M rig operating expense in Q1 2026 Determines margin and idle-period downside.
Maintenance and activation capital Contract and survey dependent Must be deducted; EBITDA overstates equity cash flow.
Net debt and refinancing Large secured and convertible debt stack Raises equity and discount-rate sensitivity.
Terminal fleet value Young modern rigs, but cyclical resale values Requires conservative residual-value and dayrate assumptions.

Which valuation mistake is easiest to make?

The easiest mistake is applying a stable industrial margin to a cyclical fleet. Backlog can make revenue appear predictable, but contract roll-offs create discrete exposure. A robust model should forecast rigs or rig groups by status, include downtime between contracts, separate sustaining maintenance from acquisitions and treat convertible securities consistently in enterprise value and diluted shares.

Analytical implication
Use scenarios: sustained high utilization and stronger recontracting; flat dayrates with normal gaps; and lower utilization with refinancing pressure. The spread between cases matters more than a precise terminal-growth assumption.

What is the key takeaway from Borr Drilling analysis?

Borr Drilling is a concentrated case study in modern shallow-water drilling. It has assembled a young large fleet, achieved high technical performance and built a global customer base. Q1 2026 also showed why fleet quality is only part of the story: delayed starts, transitions, credit losses and interest can offset revenue growth.

The strategy is to convert expanded capacity into long contracts at attractive dayrates. The Noble acquisition and proposed Fontis joint venture increase exposure to a tighter market, but also to idle days, maintenance and financing. Concentrated ownership provides experienced, invested sponsors, while related-party links and repeated capital-market activity require governance discipline.

Watch contract coverage
The fastest indicator of whether fleet expansion is turning into revenue visibility.
Watch economic utilization
A small decline can signal unpaid transition days even when technical uptime remains excellent.
Watch cash interest and debt maturities
Financing cost determines how much rig-level EBITDA reaches shareholders.
Watch maintenance and acquisition cash
Capital intensity explains the gap between accounting earnings, EBITDA and free cash flow.
Final synthesis
Borr’s strengths are its modern fleet, high utilization and exposure to short-cycle shallow-water projects. Its main constraint is leverage: rigs must remain contracted and cash collections must cover maintenance, interest and refinancing. The central lesson is that technologically attractive assets can remain financially risky when cash flows are cyclical and debt funded. For valuation, contracted rig count, dayrate, economic utilization, operating cost, capital spending and debt terms matter more than headline revenue growth.

    5-Year Financial Model

    40+ Charts & Metrics

    DCF & Multiple Valuation

    Free Email Support


People behind the resources

Meet the team

About DCF Analyst
Henry Sheykin
Henry SheykinProduct and model editorial reviewLinkedIn ↗
Oleksii Ryzhkov
Oleksii RyzhkovArticle editorial reviewLinkedIn ↗

(BORR) Borr Drilling Limited Bundle

Get Full Bundle:
$17 $9
$9 $5
$9 $5
$9 $5
$9 $5
$9 $5
$9 $5
$9 $5
$9 $5