BORR Borr Drilling Ltd
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Executive Summary
Borr Drilling reported Q1 2026 results with total operating revenues of $247.0 million, down 5% QoQ from $259.4 million, and a net loss of $29.0 million compared to a $1.0 million loss in Q4 2025. Adjusted EBITDA fell 16% to $88.5 million, impacted by an $8.4 million credit loss provision and delayed start-up of the Odin rig. The company completed a $360 million acquisition of five rigs from Noble and entered a $287 million JV for five more, while subsequent to quarter-end it issued $300 million in convertible notes to repurchase existing 2028 bonds. Despite the weak quarter, management expressed confidence in a 2027-2028 recovery, and full-year 2026 contract coverage improved to 71%.
Actionable Insight
The sequential deterioration in revenue and EBITDA, combined with a widening net loss and significant cash burn, signals operational headwinds from the Odin delay and credit loss provision. The $300M convertible refinancing extends maturities but adds leverage. Monitor Q2 2026 results for Odin start-up (now expected late June) and whether the 71% contract coverage translates into revenue growth. The stock's 67% win rate on prior reports suggests the market has been forgiving, but this quarter's miss may test that patience.
Key Facts
- Q1 2026 total operating revenues of $247.0 million, down 5% QoQ from $259.4 million
- Q1 2026 net loss of $29.0 million vs. net loss of $1.0 million in Q4 2025
- Q1 2026 Adjusted EBITDA of $88.5 million, down 16% QoQ from $105.2 million
- Completed $360 million acquisition of five jack-up rigs from Noble Corporation in January 2026
- Entered agreement to acquire five rigs via 50/50 JV for $287 million, expected to close H2 2026
- Subsequent to quarter-end, issued $300 million of 3.5% convertible notes due 2033, used to repurchase $195.2 million of 2028 convertible bonds
- Cash and cash equivalents fell to $246.0 million from $379.7 million at year-end 2025
- Total debt outstanding of $2,360.0 million as of March 31, 2026
- Full-year 2026 contract coverage increased to 71% at average dayrate of ~$137,000
- Technical utilization of 99.4% and economic utilization of 97.0% in Q1 2026
- Dayrate Equivalent Backlog of $1.17 billion as of March 31, 2026
Financial Impact
Revenue declined $12.4M QoQ (-5%), net loss widened by $28.0M, Adjusted EBITDA fell $16.7M (-16%). Cash burn of $133.7M in the quarter.
Risk Factors
- Further delays in Odin rig start-up beyond June 2026
- Inability to contract the 5 available rigs at attractive dayrates
- High debt load of $2.36B with maturities concentrated in 2028-2030
- Potential for additional credit losses or customer suspensions in the Middle East
- Dilution risk from convertible notes if converted
Market Snapshot
Documents Analyzed
This report is based on 7 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 6-K Filing (Primary) | 0001140361-26-022412 |
| Document: ef20074577_ex99-3.htm | 0001140361-26-022412 |
| Document: ef20074577_ex99-1.htm | 0001140361-26-022412 |
| Document: ef20074577_6k.htm | 0001140361-26-022412 |
| Document: 0001140361-26-022412-index-headers.html | 0001140361-26-022412 |
| Document: 0001140361-26-022412-index.html | 0001140361-26-022412 |
| Document: 0001140361-26-022412.txt | 0001140361-26-022412 |
Filters
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Jun 11, 2026
2d ago
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6-K
| $4.60 awaiting T+5 | awaiting T+5 | — | $4.58 (−0.43%) |
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Jun 10, 2026
3d ago
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Insider Cluster
| $4.55 awaiting T+5 | awaiting T+5 | — | $4.58 (−0.66%) |
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Jun 9, 2026
3d ago
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6-K
| $4.54 awaiting T+5 | awaiting T+5 | — | $4.58 (+0.99%) |
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May 28, 2026
16d ago
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6-K
| $5.07 $5.05 | ▼ −0.39% | ▼ −0.71% | $4.58 (−9.66%) |
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May 26, 2026
17d ago
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6-K
| $5.33 $5.20 | ▼ −2.44% | ▼ −3.52% | $4.58 (−14.07%) |
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May 26, 2026
17d ago
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6-K
| $5.33 $5.20 | ▼ −2.44% | ▼ −3.52% | $4.58 (−14.07%) |
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May 26, 2026
17d ago
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6-K
| $5.33 $5.20 | ▼ −2.44% | ▼ −3.52% | $4.58 (−14.07%) |
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May 21, 2026
22d ago
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6-K
| $5.64 $5.07 | ▲ +10.11% | ▲ +11.71% | $4.58 (+18.79%) |
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May 21, 2026
22d ago
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6-K
| $5.64 $5.07 | ▲ +10.11% | ▲ +11.71% | $4.58 (+18.79%) |
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May 20, 2026
23d ago
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6-K
| $6.18 $5.04 | ▼ −18.45% | ▼ −19.68% | $4.58 (−25.89%) |
US Market Status
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