Borr Drilling Limited Announces Second Quarter 2025 Results

Rhea-AI Summary

Borr Drilling (NYSE: BORR) reported strong Q2 2025 results with total operating revenues of $267.7 million, up 24% quarter-over-quarter. The company achieved a net income of $35.1 million, marking a significant improvement from Q1's net loss, while Adjusted EBITDA increased 39% to $133.2 million.

The company demonstrated robust operational performance with 99.6% technical utilization and 22 out of 24 rigs active. In July 2025, Borr strengthened its financial position through a $102.5 million equity offering and secured bank commitments, increasing liquidity by over $200 million. The company also announced Bruno Morand as the new CEO effective September 1, 2025, with current CEO Patrick Schorn transitioning to Executive Chair.

Year-to-date, Borr secured 14 new contracts worth approximately $318 million, achieving 84% contract coverage for 2025 at an average day rate of $145,000.

Positive

• Revenue increased 24% to $267.7 million in Q2 2025
• Net income of $35.1 million, a $52.0 million improvement from Q1 2025
• Adjusted EBITDA grew 39% to $133.2 million
• Secured $200+ million in additional liquidity through equity offering and bank commitments
• Achieved 99.6% technical utilization with 22 of 24 rigs active
• 84% contract coverage for 2025 at $145,000 average day rate
• Secured 14 new contracts worth $318 million YTD

Negative

• Only 47% contract coverage for 2026, lower than 2025's coverage
• Lower average day rate of $139,000 for 2026 contracts compared to 2025
• Dilution from $102.5 million equity offering

Insights

Energy Industry Financial Analyst

Borr Drilling's Q2 shows strong financial rebound with 39% EBITDA growth and significant liquidity boost from refinancing.

Borr Drilling delivered exceptional Q2 2025 results, with $267.7 million in operating revenues, representing a 24% increase quarter-over-quarter. The company's financial performance improved dramatically, swinging from a Q1 loss to a $35.1 million net income, while Adjusted EBITDA jumped to $133.2 million, up 39% from Q1.

The operational metrics demonstrate remarkable efficiency, with technical utilization at 99.6% and economic utilization of 97.8%. These high utilization rates, combined with 22 of 24 rigs in active service, directly contributed to the substantial revenue growth. The company's contract backlog has strengthened considerably, with 14 new contract commitments year-to-date adding $318 million in potential revenue across 2,584 days.

Most notably, Borr has secured solid forward visibility with 84% contract coverage for 2025 at an average day rate of $145,000, and 47% coverage for 2026 at $139,000 per day. These rates reflect strong market conditions in the offshore drilling sector.

The $200+ million liquidity enhancement in July through a $102.5 million equity offering and expanded credit facilities represents prudent financial management, providing Borr with flexibility for growth opportunities and potential industry consolidation. The company's comfort with analyst consensus estimates of approximately $470 million in 2025 Adjusted EBITDA suggests continued strong performance through year-end.

The leadership transition to Bruno Morand as CEO, with current CEO Patrick Schorn becoming Executive Chair, appears to be a planned succession rather than a disruptive change. The outlook remains positive, with Q3 expected to maintain similar activity levels and performance as Q2.

HAMILTON, Bermuda, Aug. 13, 2025 /PRNewswire/ -- Borr Drilling Limited (NYSE: BORR) ("Borr", "Borr Drilling" or the "Company") announces unaudited results for the six months ended June 30, 2025.

Highlights 

• Total operating revenues of $267.7 million, an increase of $51.1 million or 24% compared to the first quarter of 2025

• Net income of $35.1 million, an increase of $52.0 million compared to the net loss in the first quarter of 2025

• Adjusted EBITDA of $133.2 million, an increase of $37.1 million or 39% compared to the first quarter of 2025

• YTD 2025, the company was awarded 14 new contract commitments, representing approximately 2,584 days and $318 million of potential contract revenue

Other Events

• In July 2025, the Company increased its liquidity by more than $200 million through an equity offering of $102.5 million, and commitments from commercial banks including existing lenders which have the effect of increasing available amounts under revolving credit facilities and more favourable terms for of its financial covenants.

• Appointment of Bruno Morand as CEO, effective September 1, 2025, with Patrick Schorn becoming Executive Chair of the Company's Board of Directors.

CEO, Patrick Schorn commented:
"Our second-quarter results were strong, with technical utilization of 99.6% and economic utilization of 97.8%. As anticipated, our activity rebounded in the second quarter, with 22 out of 24 rigs active. Revenue increased by $51.1 million this quarter, and EBITDA rose by $37.1 million to $133.2 million, up by 39% versus the first quarter of this year, underscoring the profitability of the revenue. 

During the quarter, we secured important new awards, including a multi-rig contract in Asia and a new contract for the Arabia II which is expected to return to our active fleet in September. These contract awards improve our contract coverage to 84% at an average day rate of $145,000 in 2025, and 47% coverage at an average day rate of $139,000 in 2026.

In July, we took a decisive step to strengthen Borr Drilling's longer term financial position through a comprehensive financing package. This initiative, which included a $102.5 million equity raise and commitments from commercial banks to amendments to the size and covenants of our revolving credit facilities, effectively increases our liquidity by $200 million and strengthens our balance sheet. We acted proactively to secure financing while market conditions were favourable, reinforcing our ability to execute our long-term strategy-including disciplined growth and potential industry consolidation.

Looking into the third quarter, we see a comparable level of activity as the second quarter and anticipate a similar performance. As previously indicated, we are comfortable with the current Bloomberg consensus estimate of 2025 Adjusted EBITDA of approximately $470 million.

We are encouraged by the Mexican government's renewed commitment to strengthening Pemex's liquidity and restated goal to achieve 1,800 mbpd in production. Our experience and track record of delivering best-in-class wells, uniquely positions Borr to capture incremental drilling activity, particularly under private investment projects that are expected to play an incremental role in the future of Mexico's oil and gas production."

Conference call
A conference call and webcast is scheduled for 9:00 AM New York Time (15:00 CET) on Thursday August 14, 2025 and participants are encouraged to dial in 10 minutes before the start of the call. 

In order to listen to the presentation, you may also do one of the following:

a)    Webcast

To access the webcast, please go to the following link:
https://edge.media-server.com/mmc/p/g4x5gjyu
 

b)    Conference Call

Please use the below link to register for the conference call, https://register-conf.media-server.com/register/BIa0d72be56dd74bcaadc7275d099212cc

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

CONTACT:

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-second-quarter-2025-results,c4217468

The following files are available for download:

https://mb.cision.com/Public/16983/4217468/9f1ea16af7d127b6.pdf	Borr Drilling Limited Q2 2025 Fleet Status Report
https://mb.cision.com/Public/16983/4217468/b82303c4404f9253.pdf	Borr Drilling Limited Q2 2025 Earnings Release

View original content:https://www.prnewswire.com/news-releases/borr-drilling-limited-announces-second-quarter-2025-results-302529422.html

SOURCE Borr Drilling Limited

FAQ

What were Borr Drilling's (BORR) Q2 2025 earnings results?

Borr Drilling reported $267.7 million in revenue (up 24%), net income of $35.1 million, and Adjusted EBITDA of $133.2 million (up 39%) in Q2 2025.

How much additional liquidity did Borr Drilling secure in July 2025?

Borr Drilling secured over $200 million in additional liquidity through a $102.5 million equity offering and commitments from commercial banks for revolving credit facilities.

Who is the new CEO of Borr Drilling and when does he start?

Bruno Morand will become CEO of Borr Drilling effective September 1, 2025, with current CEO Patrick Schorn transitioning to Executive Chair of the Board.

What is Borr Drilling's contract coverage and day rate for 2025?

Borr Drilling has 84% contract coverage for 2025 at an average day rate of $145,000.

How many new contracts did Borr Drilling win in 2025 YTD?

Borr Drilling was awarded 14 new contract commitments YTD 2025, representing approximately 2,584 days and $318 million in potential contract revenue.

What was Borr Drilling's technical utilization rate in Q2 2025?

Borr Drilling achieved a technical utilization rate of 99.6% with 22 out of 24 rigs active in Q2 2025.