Borr Drilling Limited Announces Second Quarter 2026 Results

Rhea-AI Summary

Borr Drilling (NYSE/OSE: BORR) reported unaudited Q2 2026 operating revenues of $232.3 million, down 6% sequentially, and a net loss of $241.4 million, versus a $29.0 million loss in Q1. The larger loss was mainly driven by a $176.3 million debt extinguishment charge linked to refinancing senior secured notes and convertible bonds.

Adjusted EBITDA fell 51% quarter-on-quarter to $43.8 million, impacted by higher Odin rig preparation costs, increased fuel and insurance expenses, and $10.8 million of credit losses from a former West African customer. According to Borr Drilling, it refinanced substantially all debt via $2,035 million of senior secured notes, $300 million of convertible notes and an upsized $250 million super senior revolving credit facility, extending maturities and lowering financing costs.

Year-to-date, the company has secured 21 contract commitments totaling about 4,350 days and $541 million of backlog. A 50/50 joint venture subsequently acquired five premium jack-up rigs for $287 million, with three already contracted.

Positive

• Year-to-date contract backlog of $541 million over ~4,350 days
• Refinancing with $2,035m senior secured notes and $300m convertible notes
• Super senior revolving credit facility upsized to $250 million
• Acquisition of five premium jack-up rigs for $287 million via 50/50 JV
• High Q2 technical utilization of 98.4% and economic utilization of 96.4%

Negative

• Q2 2026 net loss widened to $241.4 million
• Debt extinguishment charge recorded at $176.3 million
• Adjusted EBITDA declined 51% QoQ to $43.8 million
• Operating revenues fell 6% QoQ to $232.3 million
• Odin preparation costs $22.5 million, up $11.1 million QoQ
• Credit losses of $10.8 million related to former West Africa customer
• Rig operating expenses rose $7.3 million QoQ from higher fuel and insurance

News Explained

The completed joint venture expands the fleet, while Odin and a third acquired rig remain key third-quarter start-up milestones.

The completed five-rig joint-venture acquisition is now an operating fleet addition: two rigs are operating, a third is expected to start in Q3 2026, and deployment of the remaining rigs is still pending.

Separately, six rigs that had been transitioning are now fully operational, while Odin is preparing to mobilize after receiving regulatory approvals in mid-July 2026.

Management expects approximately 23 active rigs in Q3 2026 and reports 73% 2026 contract coverage at an average dayrate of $134,000 per day.

The next concrete milestones are Odin commencing its two-well firm contract and the third acquired rig commencing operations in Q3 2026.

Market Context

The five earnings-tagged events averaged a -0.63% 24-hour move, framing this release against a mixed...

Analysis

The five earnings-tagged events averaged a -0.63% 24-hour move, framing this release against a mixed historical record. Refinancing and backlog support were balanced by Middle East uncertainty, weaker EBITDA, and recent net selling.

Key Figures

Operating Revenue: $232.3 million Revenue Decline: $14.7 million or 6% Net Loss: $241.4 million +5 more

8 metrics

Operating Revenue $232.3 million Q2 2026

Revenue Decline $14.7 million or 6% Compared with Q1 2026

Net Loss $241.4 million Q2 2026

Debt Extinguishment Charge $176.3 million Related to refinancing transactions

Adjusted EBITDA $43.8 million Q2 2026

Refinancing Issuance $300 million convertible notes; $2,035 million senior secured notes Q2 2026 refinancing

Revolving Credit Facility $250.0 million Amended super senior facility commitments

Dayrate Equivalent Backlog $541 million 21 contract commitments representing approximately 4,350 days

Previous Earnings Reports

5 past events · Latest: May 20 (Negative)

Same Type Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
May 20	Q1 2026 earnings	Negative	-8.7%	Revenue and EBITDA declined while the company reported a net loss.
Feb 18	Q4 2025 earnings	Positive	+3.6%	Positive full-year earnings and fleet financing accompanied acquisition activity.
Nov 5	Q3 2025 earnings	Positive	+5.9%	Revenue and EBITDA increased, with backlog awards and 2026 coverage disclosed.
Aug 13	Q2 2025 earnings	Positive	-6.9%	Revenue, net income, EBITDA, utilization, and contract awards improved year-over-year.
Aug 14	Q2 2024 earnings	Positive	+2.9%	Revenue, earnings, EBITDA, utilization, and liquidity all improved during the quarter.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

BORR's earnings-linked reactions aligned with the release sentiment in four of five tag-specific events, with one positive-news divergence.

Key Terms

adjusted ebitda, senior secured notes, convertible notes, dayrate equivalent backlog, +1 more

5 terms

adjusted ebitda financial

"Second Quarter Adjusted EBITDA of $43.8 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 secured notes financial

"issuance of senior secured notes due 2032 and 2034"

Senior secured notes are loans a company sells to investors that are backed by specific assets and given first priority for repayment if the company defaults. Because they have a claim on collateral and are paid before other debts, they usually offer lower risk and correspondingly lower interest than unsecured debt; investors use them to judge how safe repayment and recovery of principal might be, like holding a mortgage instead of an unsecured credit card balance.

convertible notes financial

"convertible notes due 2033"

Convertible notes are a type of short-term loan that a company receives from investors, which can later be turned into company shares instead of being paid back in cash. They matter to investors because they offer a way to support a company early on while giving the potential to own a stake in its success if the company grows and later raises more funding.

dayrate equivalent backlog financial

"representing approximately 4,350 days and $541 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

"economic utilization of 96.4%"

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.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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HAMILTON, Bermuda, August 11, 2026 /PRNewswire/ -- Borr Drilling Limited (NYSE: BORR) (OSE: BORR) ("Borr", "Borr Drilling" or the "Company") announces unaudited results for the three and six months ended June 30, 2026.

Highlights:

• Second Quarter total operating revenues of $232.3 million, a decrease of $14.7 million or 6% compared to the first quarter of 2026.
• Second Quarter net loss of $241.4 million compared to net loss of $29.0 million in the first quarter of 2026, primarily driven by a $176.3 million debt extinguishment charge related to the refinancing of our senior secured notes due 2028 and 2030 and convertible bonds due 2028.
• Second Quarter Adjusted EBITDA of $43.8 million, a decrease of $44.7 million or 51% compared to the first quarter of 2026.
• Refinanced substantially all existing debt through the issuance of senior secured notes due 2032 and 2034 and convertible notes due 2033, extending debt maturities and reducing financing costs.
• Amended super senior revolving credit facility, increasing the commitments to $250.0 million, reducing the margin, extending the maturity date, and further strengthening liquidity.
• Subsequent to quarter end, completed the acquisition of five premium jack-up rigs via new 50/50 joint venture for a total purchase price of $287 million.
• Year-to-date 2026, the Company has been awarded 21 contract commitments, representing approximately 4,350 days and $541 million of Dayrate Equivalent Backlog.

Chief Executive Officer Bruno Morand commented:
"Our operational performance in the second quarter of 2026 resulted in technical utilization of 98.4% and economic utilization of 96.4%. Revenue for the period was $232.3 million, as the average number of rigs operating declined from 22.4 in Q1 to 21.2 in Q2.

Second Quarter Adjusted EBITDA was $43.8 million, a decline of $44.7 million compared with Q1. The sequential decrease was primarily driven by four factors. First, we incurred additional preparation work and regulatory approval activities for the Odin ahead of its contract in the U.S., with $22.5 million of operating expenses during the quarter, a $11.1 million quarter-on-quarter increase. Second, six rigs were transitioning between contracts during the quarter, leading to reduced revenue; however, this impact is now largely behind us as these rigs have now commenced their contracts. Third, the conflict in the Middle East drove incrementally higher insurance and fuel costs, with fuel costs also impacted by the rigs transitioning contracts, which together resulted in a $7.3 million quarter-on-quarter increase in rig operating expenses. Finally, we also recognized $10.8 million of credit losses related to a former customer in West Africa, an increase of $4.8 million compared to the prior quarter. Following this additional provision, we carry no net receivables from this customer on our balance sheet.

Contract preparation for the Odin took longer than anticipated with regulatory approvals received in mid-July. In light of operating constraints during the hurricane season, we agreed with our customers to revise the rig's deployment sequence to improve overall operating efficiency. The Odin is currently preparing to mobilize to its first location, where it will commence the previously announced two-well firm contract with an undisclosed customer. Upon completion of this contract, the rig is expected to transition directly to Cantium. We are disappointed with the delays for the Odin, and the initial start-up requirements were greater than we would typically expect when entering a new market. This resulted in higher cost and delays in revenue.

The elevated rig transition activity experienced during Q2 is now substantially complete. The Idun, Gunnlod, Skald, Sif, Natt and Prospector 5, which were transitioning into or between contracts during the quarter, are now fully operational. Together with the commencement of the Odin contract, we expect to average approximately 23 active rigs during Q3. Based on this projected activity level, we expect Adjusted EBITDA for Q3 to improve significantly from the second quarter.

Since the last earnings report, we have secured eight contract commitments, representing over 2,100 days of additional firm work. 2026 contract coverage is now at 73% at an average dayrate of approximately $134,000 per day with coverage in the second half of the year of 70%.

During the quarter, we successfully refinanced substantially all of our debt through the issuance of $300 million of convertible notes and $2,035 million of senior secured notes, while also upsizing our super senior RCF to $250 million. These transactions extended our maturities, reduced financing costs, and further strengthened our liquidity.

Subsequent to quarter end, our 50/50 joint venture with our long-term Mexican well construction partner completed the purchase of five premium jack-ups from Fontis at an attractive valuation and with limited equity committed. Currently, three of these rigs are contracted, with two of them operating and the third expected to commence operations later in Q3 2026. Our focus now is deploying the remaining rigs and converting the opportunity pipeline into contracted work.

In closing, the Middle East conflict has reduced near-term visibility, delaying tenders, contract start dates, and the region's recovery. This uncertainty is also affecting several other offshore markets, though not all, making it difficult to provide a crisp outlook for our activity. What is clear, however, is that the prolonged disruption in the Strait of Hormuz has driven global inventories to exceptionally low levels. Rebuilding those inventories, even under a moderate demand outlook, will require sustained production drilling, both onshore and offshore. We therefore expect the market to strengthen as stability returns. Our priorities are clear: deploy our expanded premium jack-up fleet, use its scale and quality to navigate changing market conditions, and deliver value to shareholders as the cycle improves."

Conference Call:
A conference call and webcast are scheduled for 09:00 New York time (15:00 CEST) on Wednesday, August 12, 2026.

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

a) Webcast
To access the webcast, please use the following link: https://edge.media-server.com/mmc/p/69yr7kfu

b) Conference Call
To register for the conference call, please use the following link: https://register-conf.media-server.com/register/BI9a8feba2bec24305a13e1ae81e2cf8eb

Participants will 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.  

About Borr Drilling Limited

Borr Drilling Limited is an international drilling contractor incorporated in Bermuda in 2016 and listed on the New York Stock Exchange since July 31, 2019 and on Euronext Oslo Børs since May 21, 2026 under the ticker "BORR." The Company owns and operates jack-up rigs of modern and high specification designs and provides services focused on the shallow-water segment to the offshore oil and gas industry worldwide. Please visit our website at www.borrdrilling.com.

This information is subject to the disclosure requirements pursuant to Section 5-12 of the Norwegian Securities Trading Act.

CONTACT:
Questions should be directed to: Magnus Vaaler, CFO, +44 1224 289208, ir@borrdrilling.com 

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-2026-results,c4382281

The following files are available for download:

https://mb.cision.com/Public/16983/4382281/a82b63596617fd2c.pdf	Borr Drilling Limited Q2 2026 Earnings Release
https://mb.cision.com/Public/16983/4382281/959d76c59c463f97.pdf	Borr Drilling Limited Q2 2026 Fleet Status Report

 

View original content:https://www.prnewswire.com/news-releases/borr-drilling-limited-announces-second-quarter-2026-results-302849111.html

SOURCE Borr Drilling Limited

FAQ

How did Borr Drilling (NYSE: BORR) perform in its Q2 2026 earnings results?

Borr Drilling reported Q2 2026 operating revenues of $232.3 million, a 6% sequential decline, and a net loss of $241.4 million. According to Borr Drilling, Adjusted EBITDA was $43.8 million, down 51% quarter-on-quarter, reflecting higher rig preparation costs, increased fuel and insurance, and credit losses.

Why did Borr Drilling report a $241.4 million net loss in Q2 2026?

The Q2 2026 net loss of $241.4 million was mainly driven by a $176.3 million debt extinguishment charge. According to Borr Drilling, this charge arose from refinancing senior secured notes due 2028 and 2030 and convertible bonds due 2028, significantly increasing the quarterly loss versus Q1 2026.

What refinancing did Borr Drilling (BORR) complete in Q2 2026 and how does it affect debt?

Borr Drilling refinanced substantially all existing debt by issuing $2,035 million of senior secured notes and $300 million of convertible notes. According to Borr Drilling, it also increased its super senior revolving credit facility to $250 million, extending debt maturities, reducing financing costs, and strengthening liquidity.

What new contracts and backlog has Borr Drilling secured in 2026 year-to-date?

Year-to-date 2026, Borr Drilling has been awarded 21 contract commitments, totaling about 4,350 days and $541 million of Dayrate Equivalent Backlog. According to Borr Drilling, 2026 contract coverage is 73% at an average dayrate of approximately $134,000 per day, with 70% coverage for H2 2026.

How did the Odin rig delays impact Borr Drilling’s Q2 2026 results (BORR)?

Odin-related preparation and regulatory approval activities generated $22.5 million of Q2 2026 operating expenses, an $11.1 million increase quarter-on-quarter. According to Borr Drilling, longer-than-expected preparations and revised deployment during hurricane season raised costs and delayed revenue, contributing to weaker Adjusted EBITDA in the quarter.

What is Borr Drilling’s 2026 jack-up rig acquisition via its Mexican joint venture?

After Q2 2026, Borr Drilling’s 50/50 joint venture with a Mexican partner acquired five premium jack-up rigs from Fontis for $287 million. According to Borr Drilling, three rigs are already contracted, with two operating and the third expected to begin operations later in Q3 2026.

What are Borr Drilling’s utilization rates and contract coverage for 2026 (BORR)?

Borr Drilling reported Q2 2026 technical utilization of 98.4% and economic utilization of 96.4%. According to Borr Drilling, 2026 contract coverage stands at 73% at an average dayrate of about $134,000 per day, with second-half 2026 coverage of 70%.