Borr Drilling (NYSE:BORR) Releases 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) EPS for the quarter, missing the consensus estimate of ($0.21) by ($0.58), FiscalAI reports. The company had revenue of $232.30 million during the quarter, compared to analysts’ expectations of $245.96 million. Borr Drilling had a return on equity of 2.88% and a net margin of 3.13%.

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 Price Performance

NYSE:BORR traded down $0.16 during trading hours on Wednesday, reaching $4.10. The stock had a trading volume of 10,420,534 shares, compared to its average volume of 7,049,207. The company has a debt-to-equity ratio of 1.82, a quick ratio of 1.63 and a current ratio of 1.63. Borr Drilling has a 52 week low of $2.28 and a 52 week high of $6.66. The company has a 50 day moving average price of $4.31 and a two-hundred day moving average price of $5.12. The stock has a market capitalization of $1.29 billion, a PE ratio of 27.33 and a beta of 1.02.

Analyst Upgrades and Downgrades

A number of research firms have recently weighed in on BORR. Capital One Financial set a $6.00 price objective on Borr Drilling and gave the company an “overweight” rating in a research report on Wednesday, July 1st. Wall Street Zen lowered shares of Borr Drilling from a “sell” rating to a “strong sell” rating in a report on Saturday. Fearnley Fonds raised shares of Borr Drilling from a “hold” rating to a “strong-buy” rating in a report on Tuesday, April 21st. Zacks Research raised shares of Borr Drilling to a “hold” rating in a research note on Thursday, July 2nd. Finally, Weiss Ratings restated a “sell (d+)” rating on shares of Borr Drilling in a research note on Wednesday, June 24th. Two research analysts have rated the stock with a Strong Buy rating, two have given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, Borr Drilling has an average rating of “Moderate Buy” and a consensus price target of $4.88.

Key Stories Impacting Borr Drilling

Here are the key news stories impacting Borr Drilling this week:

• Positive Sentiment: Insider activity has been supportive: company executives and directors made several open-market purchases during the past six months, including purchases by CEO Bruno Morand and board member Tor Olav Trøim. Borr Drilling Limited Stock Falls on Q2 2026 Earnings
• Positive Sentiment: Options activity was unusually bullish ahead of the results, with investors purchasing approximately 5,700 call options—about 330% above the average daily call volume. However, this positioning did not prevent the post-earnings decline.
• Neutral Sentiment: Borr Drilling filed its unaudited interim financial report on Form 6-K with the SEC for the three and six months ended June 30, 2026. Borr Drilling Limited Filing of Interim Financial Report on Form 6-K
• Negative Sentiment: Second-quarter operating revenue was $232.3 million, down $14.7 million, or 6%, from the first quarter and below analyst expectations of roughly $246 million to $253 million. Revenue was also reported down 13.2% from the prior year. Borr Drilling Limited Announces Second Quarter 2026 Results
• Negative Sentiment: Profitability deteriorated sharply. Gross profit fell to $57.2 million, operating profit was approximately $300,000, and the net loss attributable to common shareholders widened to $241.4 million. Diluted EPS was negative $0.79, missing the consensus estimate of negative $0.21 by $0.58. Borr Drilling Earnings Report
• Negative Sentiment: Cash generation remained weak, with operating cash flow of negative $21.8 million. Borr ended the quarter with $223.6 million in cash and total liabilities of $2.73 billion, reinforcing concerns about leverage and financial flexibility.

Insider Activity at Borr Drilling

In related news, Director Thiago Mordehachvili sold 8,000,000 shares of the firm’s stock in a transaction on Tuesday, June 9th. The shares were sold at an average price of $4.70, for a total value of $37,600,000.00. Following the completion of the transaction, the director directly owned 38,199,677 shares of the company’s stock, valued at approximately $179,538,481.90. This trade represents a 17.32% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Corporate insiders own 7.90% of the company’s stock.

Hedge Funds Weigh In On Borr Drilling

Several institutional investors have recently bought and sold shares of the business. Sona Asset Management US LLC bought a new position in shares of Borr Drilling during the 3rd quarter valued at approximately $17,180,000. Marshall Wace LLP boosted its stake in Borr Drilling by 9,222.0% during the fourth quarter. Marshall Wace LLP now owns 4,573,837 shares of the company’s stock worth $18,433,000 after buying an additional 4,524,772 shares during the period. Millennium Management LLC increased its position in Borr Drilling by 1,025.5% during the first quarter. Millennium Management LLC now owns 3,810,556 shares of the company’s stock valued at $8,345,000 after acquiring an additional 3,471,979 shares during the last quarter. Balyasny Asset Management L.P. purchased a new stake in shares of Borr Drilling in the fourth quarter valued at $9,806,000. Finally, Adage Capital Partners GP L.L.C. bought a new stake in shares of Borr Drilling in the 4th quarter worth about $5,996,000. Institutional investors own 83.12% of the company’s stock.

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.