| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 41 | — | 17.8x | Around median | |
Growth | 32 | 2.7% | 7.1% | Bottom tier | |
Quality | 32 | 5.2% | 4.5% | Bottom tier | |
Safety | 27 | 6.1x | 2.6x | Bottom tier | |
Capital Return | 11 | 0.47% | 2.12% | Bottom tier | |
Momentum | 37 | 37.1% | 2.9% | Bottom tier | |
Sentiment | 67 | 4 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Borr Drilling Limited is an offshore drilling company that operates a fleet of modern jack-up rigs and generates revenue from rig charters at dayrates, bareboat charters, and management contracts. In Q2 FY2026, revenue of $232.3 million consisted of $187.7 million in dayrate revenue, $32.9 million from bareboat charters, and $11.7 million from management contracts. As of August 12, 2026, 24 of 29 rigs were contracted or committed, and FY2026 contract coverage was approximately 73% at an average dayrate of about $134 thousand, including 70% coverage in the second half of FY2026.
In Q2 FY2026, the company reported revenue of $232.3 million, down 6% or $14.7 million from the previous quarter due to fewer operating days, lower average dayrates for certain rigs, and numerous contract transitions. Operating expenses were $232.1 million, while adjusted EBITDA fell to $43.8 million, down $44.7 million from the previous quarter. The quarter ended with a net loss of $241.4 million and negative earnings per share of $0.79, affected by a non-cash and financing loss of $176.3 million related to the extinguishment of prior debt, in addition to Odin costs, credit losses, and higher fuel and insurance expenses.
The year-over-year comparison shows that Q2 FY2026 revenue declined from $267.7 million in Q2 FY2025 to $232.3 million, or by approximately 13.2%, while net income shifted from a profit of $35.1 million to a loss of $241.4 million. For FY2025, the company generated revenue of $1.0 billion and net income of $45.0 million, compared with revenue of $1.0 billion and net income of $82.1 million in FY2024. The provided data does not include a gross profit figure or gross margin, so adjusted EBITDA and operating expenses are the available indicators for assessing operating profitability.
Automated analysis for informational purposes only — not investment advice.
The average analyst price target is $4.78, within a wide range of $3.55 to $6, and even the upper end of the target range is below the 52-week high of $6.655; the consensus is also Neutral. No usable price-to-earnings ratio is available following the Q2 FY2026 loss, so the valuation depends more heavily on an operating earnings recovery, the conversion of backlog into cash flows, and the company's ability to bear the cost of its new debt.
Figures in the text are as of 2026-09-02; the live price is shown at the top of the page.
The net loss was $241.4 million and negative earnings per share were $0.79 in Q2 FY2026. The largest factor was a debt extinguishment loss of $176.3 million, including $123.7 million of redemption premiums and $52.6 million from the write-off of deferred financing fees. Odin also incurred costs of $22.5 million, and the company recorded a credit loss of $10.8 million for a former customer in West Africa. Adjusted EBITDA declined to $43.8 million, down $44.7 million from the previous quarter.
Management expects an average of approximately 23 active rigs in Q3 FY2026 after most contract transitions were completed. Idun, Gunnlod, Skald, Sif, Natt, and Prospector 5 became fully operational, while Odin approached the start of its contract after obtaining regulatory approvals in July 2026. Management expects a significant sequential improvement in adjusted EBITDA but did not provide a numerical range. Fuel pressure may ease as the number of rig transitions declines, while some insurance costs and Odin preparation costs of $6 million to $9 million are expected to persist.
Since the beginning of FY2026, the company has added 21 contractual commitments representing approximately 4,350 operating days and $541 million of dayrate and equipment-related backlog. As of August 12, 2026, 24 of 29 rigs were contracted or committed. FY2026 coverage was approximately 73% at an average dayrate of about $134 thousand, while coverage for the second half of FY2026 was approximately 70%. Notable contracts include the extensions of Galar and Gersemi in Mexico through 2030 and Gunnlod's work through April 2027.
The 50%-owned joint venture completed the acquisition of five premium jack-up rigs in Mexico in July 2026 for $287 million. The transaction was financed with $237 million of non-recourse seller credit, in addition to a $25 million contribution from each partner. Two rigs were operating and a third was contracted, while management saw a potential path to deploying a fourth rig near the end of 2026 or the beginning of 2027 without providing a firm commitment. Borr Drilling expects to provide approximately $15 million as a shareholder loan to fund working capital in Q3 FY2026, with the goal of making the venture self-sustaining.
Total liquidity was $473.6 million as of June 30, 2026, consisting of $223.6 million in cash and $250 million available and undrawn under the revolving credit facility. The company issued $2.035 billion of secured notes maturing in 2032 and 2034, along with $300 million of convertible notes maturing in 2033. It also extended the revolving facility's maturity to 2031 and reduced its base margin to 3%. In contrast, the new secured notes carry interest rates of 8.75% and 9% and include annual amortization of $101.75 million on a full-year basis.
The conflict in the Middle East has delayed tenders and contracting, and regional backlog additions during the first half of FY2026 reached their lowest level in more than 25 years, according to S&P Global data cited on the call. Conflict-related insurance expenses increased by $2.2 million from the previous quarter, in addition to a $5.1 million increase in fuel costs. In the North Sea, permitting challenges continue to reduce visibility into new commitments, while increased supply in Southeast Asia is pressuring the pricing of short- and long-term opportunities. Nevertheless, global marketed utilization for modern jack-up rigs remained at approximately 90%, according to management's presentation.
