Borr Drilling Ltd

Latest Results (20.01.2026):

Borr Drilling Ltd — Third quarter 2025 (Q3 2025): The company reported total operating revenues of $277.1 million (up 4% q/q), net income of $27.8 million (down 21% q/q), and Adjusted EBITDA of $135.6 million (up 2% q/q) with an Adjusted EBITDA margin of 48.9%. Operational utilization was strong (technical 97.9%, economic 97.4%), cash and cash equivalents rose to $227.8 million with total liquidity of $461.8 million, and the contract backlog was $1.11 billion at September 30, 2025 (reported as $1.25 billion as of the report date). Management reiterated a full‑year 2025 Adjusted EBITDA range of $455–$470 million while noting near-term volatility from contract transitions and sanctions-related impacts in Mexico.

Revenue and Adjusted EBITDA

Total operating revenues were $277.1m in Q3 2025 (+$9.4m, +4% q/q). Adjusted EBITDA rose to $135.6m (+$2.4m, +2% q/q) yielding a 48.9% margin, reflecting higher dayrate and bareboat charter contributions.

Net income and tax swing

Net income was $27.8m in Q3 2025, down $7.3m (21%) versus Q2; the quarter saw an $11.3m tax charge (up $6.5m q/q) after a one‑off deferred tax benefit in the prior quarter.

Operational performance

Fleet activity remained high: 23 of 24 rigs active in the quarter, technical utilization 97.9% and economic utilization 97.4%, supporting disciplined execution and margin strength.

Cash, liquidity and working capital

Cash and cash equivalents increased to $227.8m (from $92.4m at June 30), and undrawn revolving facilities totaled $234.0m, giving total liquidity of $461.8m. Operating cash provided was $72.1m but trade receivables increased notably (≈$42m Mexico; $13m relating to Vali).

Contracting, backlog and 2026 coverage

YTD 2025 the company secured 22 new contract commitments (4,820+ days, ~$625m potential). Backlog was $1.11bn at Sept 30 and $1.25bn at report date. Post‑quarter 2026 coverage stands at 62% with an average dayrate of ~$140,000 (including priced options).

Debt, equity and financing

Principal debt outstanding was $2,112.3m at Sept 30, 2025. The company upsized and added revolving facilities (SSRCF $200m and new SRCF $34m, undrawn at quarter end). In Q3 the company issued 50m new shares for gross proceeds of $102.5m (net $96.9m).

Mexico, sanctions and receivables

Collections from Mexico restarted in September with ≈$19m received in Sept–Oct and additional receipts in October (≈$17m) and $10m related to the Vali. The company issued termination notices for two Mexico contracts after sanctions, expecting an adverse revenue backlog impact of ≈$20m.

Guidance and outlook

Management expects fewer operating days in Q4 2025 due to rig transitions and sanction impacts but maintained full‑year 2025 Adjusted EBITDA guidance of $455–$470m. Management highlighted improving demand signals (notably Saudi Arabia and Mexico) and an anticipated tightening market supporting higher utilization and dayrates. Summarized from source with an LLMView Source