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

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

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

NYSE:BORR traded up $0.38 on Friday, reaching $4.42. 3,528,817 shares of the company’s stock were exchanged, compared to its average volume of 7,059,547. The firm has a market cap of $1.40 billion, a price-to-earnings ratio of -5.67 and a beta of 1.02. The company has a debt-to-equity ratio of 1.82, a current ratio of 1.63 and a quick ratio of 1.63. The stock has a fifty day simple moving average of $4.27 and a 200-day simple moving average of $5.11. Borr Drilling has a 52 week low of $2.28 and a 52 week high of $6.66.

Analysts Set New Price Targets

Several analysts have issued reports on the company. Wall Street Zen cut Borr Drilling from a “sell” rating to a “strong sell” rating in a research note on Saturday, August 8th. Fearnley Fonds upgraded shares of Borr Drilling from a “hold” rating to a “strong-buy” rating in a research note on Tuesday, April 21st. Capital One Financial set a $6.00 price target on shares of Borr Drilling and gave the stock an “overweight” rating in a research report on Wednesday, July 1st. Zacks Research raised Borr Drilling to a “hold” rating in a report on Thursday, July 2nd. Finally, Weiss Ratings downgraded shares of Borr Drilling from a “sell (d+)” rating to a “sell (d)” rating in a research report on Wednesday. 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. Based on data from MarketBeat.com, Borr Drilling currently has a consensus rating of “Moderate Buy” and an average target price of $4.88.

Insider Buying and Selling at Borr Drilling

In other news, Director Jeffrey Currie purchased 125,000 shares of the stock in a transaction on Thursday, August 13th. The shares were acquired at an average price of $4.01 per share, for a total transaction of $501,250.00. Following the completion of the transaction, the director directly 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 position. The acquisition was disclosed in a filing with the SEC, which is available through this link. Also, Director Thiago Mordehachvili sold 8,000,000 shares of the company’s stock in a transaction on Tuesday, June 9th. The shares were sold at an average price of $4.70, for a total transaction of $37,600,000.00. Following the completion of the sale, the director directly owned 38,199,677 shares of the company’s stock, valued at $179,538,481.90. This trade represents a 17.32% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 7.90% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Borr Drilling

Several institutional investors have recently modified their holdings of the business. Caitong International Asset Management Co. Ltd grew its stake in shares of 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 valued at $40,000 after purchasing an additional 9,477 shares during the period. Oxford Asset Management LLP bought a new stake in Borr Drilling during the second quarter worth approximately $43,000. Abel Hall LLC bought a new stake in shares of Borr Drilling in the 3rd quarter valued at approximately $43,000. Inspire Advisors LLC bought a new stake in shares of Borr Drilling in the 4th quarter worth about $44,000. Finally, Focus Partners Wealth bought a new stake in Borr Drilling in the third quarter worth about $45,000. 83.12% of the stock is owned by hedge funds and other institutional investors.

About Borr Drilling

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.