Borr Drilling Limited Announces First Quarter 2026 Results

Rhea-AI Summary

Borr Drilling (NYSE:BORR) reported unaudited Q1 2026 results with total operating revenues of $247.0 million, down 5% quarter-on-quarter, and a net loss of $29.0 million. Adjusted EBITDA was $88.5 million, down 16%.

The company acquired five jack-up rigs from Noble for $360 million and agreed to buy five more via a 50/50 joint venture for $287 million. It issued $300 million of 2033 convertible notes, mainly to repurchase 2028 bonds. Year-to-date, Borr Drilling secured 13 contract commitments totaling over 2,250 days and $274 million of Dayrate Equivalent Backlog, plus 772 days from the Noble acquisition. Technical utilization reached 99.4% and economic utilization 97.0%.

AI-generated analysis. Not financial advice.

Positive

• Q1 2026 technical utilization 99.4% and economic utilization 97.0%
• Year-to-date 13 contract commitments, >2,250 days and $274m backlog plus 772 days
• Acquired five premium jack-up rigs from Noble for $360m in January 2026
• Agreed 50/50 JV to acquire five premium jack-up rigs for $287m
• $300m 2033 convertible notes largely repurchased 2028 bonds, extending maturities
• 2026 contract coverage 71% at ~$137,000 average dayrate; H2 coverage 65%

Negative

• Q1 2026 total operating revenues down 5% quarter-on-quarter to $247.0m
• Q1 net loss widened to $29.0m from $1.0m in Q4 2025
• Adjusted EBITDA fell 16% quarter-on-quarter to $88.5m
• Odin contract start delay impacted Q1 and is expected to affect Q2 results
• Middle East conflict causing near-term uncertainty and some tender delays

News Market Reaction – BORR

-8.74%

44 alerts

-8.74% News Effect

-22.9% Trough in 17 hr 42 min

-$182M Valuation Impact

$1.90B Market Cap

0.9x Rel. Volume

On the day this news was published, BORR declined 8.74%, reflecting a notable negative market reaction. Argus tracked a trough of -22.9% from its starting point during tracking. Our momentum scanner triggered 44 alerts that day, indicating elevated trading interest and price volatility. This price movement removed approximately $182M from the company's valuation, bringing the market cap to $1.90B at that time.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Q1 2026 operating revenues: $247.0 million Revenue decrease: $12.4 million (5%) Q1 2026 net loss: $29.0 million +5 more

8 metrics

Q1 2026 operating revenues $247.0 million Three months ended March 31, 2026; down vs Q4 2025

Revenue decrease $12.4 million (5%) Change vs Q4 2025 total operating revenues

Q1 2026 net loss $29.0 million Compared with $1.0 million net loss in Q4 2025

Q1 2026 Adjusted EBITDA $88.5 million Down $16.7 million or 16% vs Q4 2025

Noble rig acquisition $360 million Purchase price for five premium jack‑up rigs in January 2026

JV rig acquisition $287 million Price for five jack‑up rigs via new 50/50 joint venture

Convertible notes offering $300 million Senior unsecured convertible notes due 2033 completed after quarter‑end

New backlog $274 million Dayrate Equivalent Backlog from 13 contract commitments YTD 2026

Market Reality Check

Price: $4.82 Vol: Volume 6,065,663 shares i...

normal vol

$4.82 Last Close

Volume Volume 6,065,663 shares is slightly below the 20-day average of 6,744,203, suggesting no major repositioning ahead of the Q1 release. normal

Technical Shares at $6.18 are trading above the 200-day MA of $4.21 and about 7.14% below the 52-week high of $6.655.

Peers on Argus

BORR was modestly positive pre‑results (+0.32%), while key drilling peers like P...

BORR was modestly positive pre‑results (+0.32%), while key drilling peers like PTEN, PDS, NBR, SDRL, and HP showed declines between about 0.94% and 3.35%, pointing to stock‑specific positioning rather than a sector‑wide move.

Previous Earnings Reports

4 past events · Latest: Feb 18 (Positive)

Same Type Pattern 4 events

Date	Event	Sentiment	Move	Catalyst
Feb 18	Q4 2025 earnings	Positive	+3.6%	Higher 2025 earnings and fleet expansion with strong backlog support.
Nov 05	Q3 2025 earnings	Positive	+5.9%	Revenue and EBITDA growth with solid margins and 2026 coverage.
Aug 13	Q2 2025 earnings	Positive	-6.9%	Strong revenue, EBITDA, and utilization alongside equity raise and CEO change.
Aug 14	Q2 2024 earnings	Positive	+2.9%	Double‑digit revenue and EBITDA growth plus new contracts and dividend.

Pattern Detected

Earnings releases have usually triggered modestly positive moves, with one notable selloff after strong Q2 2025 results.

Recent Company History

Recent earnings history shows Borr reporting rising revenues and Adjusted EBITDA through 2024–2025, including Q2 2024 revenue of $271.9M and Q4 2025 revenue of $259.4M. Profitability has fluctuated, from net income of $35.1M in Q2 2025 to a Q4 2025 net loss of $1.0M. The company has simultaneously expanded its jack‑up fleet and backlog. Against that backdrop, the Q1 2026 update extends the narrative of growth investments alongside near‑term earnings volatility.

Historical Comparison

+1.4% avg move · Over the past four earnings releases, BORR’s average move was about 1.4%, typically modest even on s...

earnings

+1.4%

Average Historical Move earnings

Over the past four earnings releases, BORR’s average move was about 1.4%, typically modest even on strong reports. Q1 2026 combines weaker metrics with strategic growth, so any large move would mark a departure from that pattern.

Earnings updates from Q2 2024 through Q4 2025 show a company scaling revenue and Adjusted EBITDA while expanding its jack‑up fleet and backlog. The Q1 2026 report fits into this progression by adding further rig acquisitions and contract coverage, though with a step back in quarterly profitability and higher reported net loss.

Market Pulse Summary

The stock moved -8.7% in the session following this news. A negative reaction despite the backlog an...

Analysis

The stock moved -8.7% in the session following this news. A negative reaction despite the backlog and fleet growth would fit a pattern where the market occasionally sold off after earnings, as seen following Q2 2025 despite strong numbers. The larger Q1 2026 net loss of $29.0 million and lower Adjusted EBITDA of $88.5 million could dominate sentiment. Risks include timing delays like the Odin start‑up and the balance between leverage, convertible notes, and future cash generation.

Key Terms

adjusted ebitda, senior unsecured convertible notes, dayrate equivalent backlog, economic utilization, +1 more

5 terms

adjusted ebitda financial

"First Quarter Adjusted EBITDA of $88.5 million, a decrease of $16.7 million..."

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

senior unsecured convertible notes financial

"completed an offering of $300 million aggregate principal amount of senior unsecured convertible notes due 2033..."

A senior unsecured convertible note is a type of loan a company issues that pays interest and ranks ahead of common shareholders if the company fails, but has no specific assets pledged as collateral. Holders can convert the loan into the company’s stock under agreed terms, so the instrument offers regular income plus potential upside like an option to own shares; investors care because it balances bond-like safety and possible equity gains while bearing higher risk than secured debt.

dayrate equivalent backlog financial

"representing more than 2,250 days and $274 million of Dayrate Equivalent Backlog."

Dayrate equivalent backlog is the total value of a company’s firm future work converted into the number of standard billable days at the company’s typical daily rate, so it expresses upcoming contracted revenue as ‘days of work’ rather than lump-sum dollars. For investors, it makes future cash flow and utilization easier to judge—similar to knowing how many paid workdays remain on a calendar—so you can assess revenue visibility, pricing pressure, and how busy the company will be in coming months.

economic utilization technical

"technical utilization of 99.4% and economic utilization of 97.0%."

Economic utilization measures how much of a company’s productive capacity—machines, facilities, staff or other resources—is actually being used to produce goods or services compared with what could be produced at full potential. Investors watch it because higher utilization often means resources are being used efficiently and can boost profits, while low utilization can signal excess cost, weak demand or the need for investment, like a factory running below full speed or a restaurant with many empty tables.

convertible bonds financial

"used to repurchase existing convertible bonds due 2028"

A convertible bond is a loan a company issues that pays regular interest and can be exchanged for a fixed number of the company’s shares under specified terms. It matters to investors because it combines the steady income and lower downside risk of a bond with the upside potential of owning stock—like holding a ticket that can be cashed for equity if the share price rises—affecting returns, risk, and shareholder dilution.

AI-generated analysis. Not financial advice.

See more from StockTitan in Google Search and AI answers. Adds StockTitan as a preferred source · opens Google

Add on Google Not now

HAMILTON, Bermuda, May 20, 2026 /PRNewswire/ -- Borr Drilling Limited (NYSE: BORR) ("Borr", "Borr Drilling" or the "Company") announces unaudited results for the three months ended March 31, 2026.

Highlights

• First Quarter total operating revenues of $247.0 million, a decrease of $12.4 million or 5% compared to the fourth quarter of 2025
• First Quarter net loss of $29.0 million compared to net loss of $1.0 million in the fourth quarter of 2025
• First Quarter Adjusted EBITDA of $88.5 million, a decrease of $16.7 million or 16% compared to the fourth quarter of 2025
• Completed the acquisition of five premium jack-up rigs from Noble Corporation in January 2026 for a total purchase price of $360 million
• Entered into agreements to acquire five premium jack-up rigs via new 50/50 joint venture for a total purchase price of $287 million
• Subsequent to quarter-end, completed an offering of $300 million aggregate principal amount of senior unsecured convertible notes due 2033, with proceeds primarily used to repurchase existing convertible bonds due 2028
• Year-to-date 2026, the Company has been awarded 13 contract commitments, representing more than 2,250 days and $274 million of Dayrate Equivalent Backlog. In addition, the Company recognized contract commitments of a further 772 days upon completing its acquisition from Noble Corporation.

Chief Executive Officer Bruno Morand commented:

"Our operational performance in the first quarter of 2026 resulted in technical utilization of 99.4% and economic utilization of 97.0%. Revenue for the period was $247.0 million, while first-quarter Adjusted EBITDA was $88.5 million, primarily impacted by the late contract start-up of the Odin, in addition to a credit loss provision of $8.4 million.

In the quarter, the Odin completed its mobilization from Mexico to the U.S. Gulf where operations were expected to start in February. However, start-up was delayed by additional contract preparation work and regulatory approvals. Looking ahead, we expect second quarter results to continue to be affected by the delayed start-up of the Odin, now anticipated to commence late June, as well as rigs transitioning between contracts.

Our contracting strategy continues to focus on covering near-term uncontracted days, balancing dayrates with contract tenor. Since our last earnings report, we have secured eight contract commitments, representing over 1,100 days of additional firm work. Our full-year 2026 contract coverage increased to 71% at an average dayrate of approximately $137,000 and coverage in the second half of the year now stands at 65%, as compared to 48% in our prior earnings report.

In the first quarter, we entered into an agreement for the acquisition of five premium jack-up rigs through a new joint venture in Mexico with an attractive valuation and financing structure. Upon closing, our fleet will in effect expand to 34 modern rigs. In April, we strengthened our capital structure through a $300 million convertible note offering, used to largely repurchase our existing 2028 convertible bonds. This transaction extended our maturity profile, lowered our financing cost, and increased the conversion price.

While the Middle East conflict has created near-term uncertainty, key tenders in the region continue to progress, with some modest delays. More broadly, in our view, recent events have strengthened the longer-term outlook for the sector providing for a higher oil price and a renewed focus on energy security. Shallow-water basins continue to represent an attractive resource, offering low-cost, short-cycle barrels that enable our customers to respond rapidly to the market backdrop. Due to the planning and budgeting processes of our customers, we expect that improved activity and dayrates will lag the oil price development by 6 to 12 months, as evidenced after the military invasion of Ukraine, when dayrates strongly increased. Therefore, we are increasingly confident about the Company's prospects for 2027 and 2028 as we expect the disruptions from the conflict in the Middle East to be both substantial and long lasting. With this backdrop, Borr Drilling's expanded fleet is well placed to support our customers' demand and deliver long-term shareholder value as the cycle develops."

Conference Call

A conference call and webcast are scheduled for 09:00 New York time (15:00 CEST) on Thursday, May 21, 2026.

In order to listen to the live presentation, participants may do one of the following:

a) Webcast

To access the webcast, please go to the following link:
https://edge.media-server.com/mmc/p/inc8qdus

b) Conference Call

Please use the below link to register for the conference call: https://register-conf.media-server.com/register/BIce9fcdcdcdf44d4d947622b4da3afbd6

Participants will then receive dial-in details on screen and via email and may choose to dial in with their unique pin or select "Call me" and provide telephone details for the system to link them automatically.

Participants are encouraged to dial in 10 minutes before the start of the call.  

Questions should be directed to: Magnus Vaaler, CFO, +44 1224 289208

This information was brought to you by Cision http://news.cision.com

https://news.cision.com/borr-drilling-limited/r/borr-drilling-limited-announces-first-quarter-2026-results,c4351300

The following files are available for download:

https://mb.cision.com/Public/16983/4351300/914f52090f5316ae.pdf	Borr Drilling Limited Q1 2026 Earnings Release
https://mb.cision.com/Public/16983/4351300/bf191e118727a116.pdf	Borr Drilling Limited Q1 2026 Fleet Status Report

 

View original content:https://www.prnewswire.com/news-releases/borr-drilling-limited-announces-first-quarter-2026-results-302778425.html

SOURCE Borr Drilling Limited

FAQ

What were Borr Drilling’s (BORR) Q1 2026 revenues and net loss?

Borr Drilling reported Q1 2026 operating revenues of $247.0 million and a net loss of $29.0 million. According to Borr Drilling, this compares with a $1.0 million net loss in Q4 2025 and reflects lower revenue and specific operational factors.

How did Borr Drilling’s Q1 2026 Adjusted EBITDA (BORR) compare to Q4 2025?

Borr Drilling’s Q1 2026 Adjusted EBITDA was $88.5 million, down $16.7 million or 16% versus Q4 2025. According to Borr Drilling, the decline was mainly due to the delayed Odin contract start and an $8.4 million credit loss provision.

What rig acquisitions did Borr Drilling (BORR) announce for early 2026?

Borr Drilling completed the acquisition of five premium jack-up rigs from Noble for $360 million in January 2026. It also entered agreements to acquire five additional premium jack-up rigs via a new 50/50 joint venture for a total purchase price of $287 million.

What is the impact of Borr Drilling’s $300 million 2033 convertible notes offering (BORR)?

Borr Drilling issued $300 million of senior unsecured convertible notes due 2033, mainly to repurchase 2028 bonds. According to Borr Drilling, this transaction extended its maturity profile, lowered financing costs, and increased the conversion price, supporting its capital structure.

How strong is Borr Drilling’s 2026 contract coverage and backlog (BORR)?

Borr Drilling states its full-year 2026 contract coverage is 71% at an average dayrate of about $137,000. Year-to-date 2026, it secured 13 commitments totaling over 2,250 days and $274 million of backlog, plus 772 additional days from the Noble acquisition.

How is the Odin rig delay affecting Borr Drilling’s (BORR) financial results?

The Odin’s contract start was delayed after mobilization to the U.S. Gulf, impacting Q1 2026 Adjusted EBITDA. According to Borr Drilling, second-quarter results are also expected to be affected, with operations now anticipated to commence in late June after additional preparations and approvals.

What utilization rates did Borr Drilling (BORR) achieve in Q1 2026?

Borr Drilling achieved Q1 2026 technical utilization of 99.4% and economic utilization of 97.0%. According to Borr Drilling, these metrics reflect operational performance across its jack-up fleet and underpin revenue generation despite some contract transition periods and the Odin startup delay.