Borr Drilling (NYSE:BORR) Posts Quarterly Earnings Results, Misses Expectations By $0.58 EPS

Borr Drilling (NYSE:BORR) announced its earnings results on Wednesday. The company reported ($0.79) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.21) by ($0.58), FiscalAI reports. Borr Drilling had a negative net margin of 23.98% and a negative return on equity of 5.67%. The firm had revenue of $232.30 million during the quarter, compared to analyst estimates of $245.96 million.

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 Up 9.3%

Shares of BORR stock traded up $0.38 on Friday, hitting $4.42. The stock had a trading volume of 3,223,934 shares, compared to its average volume of 7,055,733. The company has a debt-to-equity ratio of 1.82, a quick ratio of 1.63 and a current ratio of 1.63. The stock’s 50 day moving average is $4.27 and its 200-day moving average is $5.11. The firm has a market capitalization of $1.39 billion, a price-to-earnings ratio of -5.63 and a beta of 1.02. Borr Drilling has a 52-week low of $2.28 and a 52-week high of $6.66.

Insider Activity at Borr Drilling

In other Borr Drilling news, Director Jeffrey Currie bought 125,000 shares of the company’s stock in a transaction on Thursday, August 13th. The shares were bought at an average cost of $4.01 per share, with a total value of $501,250.00. Following the completion of the acquisition, the director owned 479,423 shares of the company’s stock, valued at approximately $1,922,486.23. This trade represents a 35.27% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Thiago Mordehachvili sold 8,000,000 shares of Borr Drilling 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 completion of the transaction, the director owned 38,199,677 shares of the company’s stock, valued at approximately $179,538,481.90. The trade was a 17.32% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 7.90% of the stock is owned by insiders.

Institutional Investors Weigh In On Borr Drilling

A number of hedge funds have recently made changes to their positions in the business. Caitong International Asset Management Co. Ltd boosted its position in Borr Drilling by 2,837.4% during the 4th quarter. Caitong International Asset Management Co. Ltd now owns 9,811 shares of the company’s stock worth $40,000 after acquiring an additional 9,477 shares during the period. Oxford Asset Management LLP acquired a new position in shares of Borr Drilling in the 2nd quarter worth approximately $43,000. Abel Hall LLC bought a new position in shares of Borr Drilling in the third quarter valued at $43,000. Inspire Advisors LLC acquired a new position in shares of Borr Drilling in the 4th quarter valued at $44,000. Finally, Focus Partners Wealth purchased a new position in shares of Borr Drilling in the third quarter worth approximately $45,000. Institutional investors own 83.12% of the company’s stock.

Analysts Set New Price Targets

Several research analysts have issued reports on BORR shares. 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 shares of Borr Drilling from a “sell” rating to a “strong sell” rating in a report on Saturday, August 8th. Weiss Ratings downgraded Borr Drilling from a “sell (d+)” rating to a “sell (d)” rating in a research note on Wednesday. Zacks Research raised Borr Drilling to a “hold” rating in a research note on Thursday, July 2nd. Finally, Capital One Financial set a $6.00 price objective on shares of Borr Drilling and gave the company an “overweight” rating in a research report on Wednesday, July 1st. Two analysts have rated the stock with a Strong Buy rating, two have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, Borr Drilling has a consensus rating of “Moderate Buy” and an average target price of $4.88.

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.