Borr Drilling (NYSE:BORR) Releases Quarterly Earnings Results, Misses Estimates By $0.58 EPS

Borr Drilling (NYSE:BORR) released 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 for the quarter, compared to the consensus estimate of $245.96 million. Borr Drilling had a net margin of 3.13% and a return on equity of 2.88%.

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 Trading Down 4.0%

Shares of Borr Drilling stock traded down $0.17 on Wednesday, hitting $4.09. 8,780,129 shares of the company traded hands, compared to its average volume of 7,036,812. Borr Drilling has a 52 week low of $2.28 and a 52 week high of $6.66. The company has a market cap of $1.29 billion, a PE ratio of 27.27 and a beta of 1.02. The stock’s 50 day moving average price is $4.31 and its 200-day moving average price is $5.12. The company has a current ratio of 1.63, a quick ratio of 1.63 and a debt-to-equity ratio of 1.82.

Wall Street Analysts Forecast Growth

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

Insiders Place Their Bets

In other Borr Drilling news, Director Thiago Mordehachvili sold 8,000,000 shares of Borr Drilling stock in a transaction on Tuesday, June 9th. The stock was sold at an average price of $4.70, for a total transaction of $37,600,000.00. Following the completion of the sale, the director directly owned 38,199,677 shares of the company’s stock, valued at $179,538,481.90. The trade was a 17.32% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. 7.90% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in BORR. AQR Capital Management LLC bought a new position in Borr Drilling in the first quarter worth approximately $476,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its position in Borr Drilling by 4.5% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 140,927 shares of the company’s stock valued at $309,000 after acquiring an additional 6,012 shares in the last quarter. Millennium Management LLC boosted its position in Borr Drilling by 1,025.5% during the 1st 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 in the last quarter. Dynamic Technology Lab Private Ltd purchased a new position in shares of Borr Drilling in the 1st quarter valued at $186,000. Finally, Creative Planning raised its position in shares of Borr Drilling by 13.1% in the 2nd quarter. Creative Planning now owns 229,786 shares of the company’s stock worth $421,000 after acquiring an additional 26,541 shares in the last quarter. Hedge funds and other institutional investors own 83.12% of the company’s stock.

Borr Drilling Company Profile

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.