#financial results #Bermuda #Hamilton #Borr Drilling #jack-up rigs

Borr Drilling Limited Reports Fourth Quarter 2025 Results

Borr Drilling Limited (NYSE: BORR), has recently shared its unaudited results for the final quarter of 2025, providing insights into the company’s performance and future expectations. Despite facing a decline in both revenue and net income compared to previous quarters, the company remains optimistic about the market's recovery and their operational capabilities.

Financial Highlights

In the fourth quarter of 2025, Borr Drilling reported total operating revenues of $259.4 million, marking a decrease of $17.7 million or approximately 6% from the prior quarter. Additionally, the company faced a net loss of $1.0 million, which reflects a decline of $28.8 million compared to Q3 of 2025. This operational downturn was attributed largely to contract terminations linked to sanctions and transitions of rigs to contracts with lower average day rates.

However, the Adjusted EBITDA for the quarter stood at $105.2 million, showing a decrease of $30.4 million or 22% sequentially. For 2025, the annual net income decreased significantly to $45.0 million, a 45% drop as compared to 2024. Adjusted EBITDA for the year totaled $470.1 million, indicating a 7% decrease from the previous year.

Strategic Acquisitions and Future Plans

In a strategic maneuver, Borr Drilling entered into an agreement to acquire five premium jack-up rigs from Noble Corporation for $360 million. This acquisition was completed in January 2026 and is viewed as a significant step in retaining their competitive edge in the market.

In addition, the company completed a successful equity offering, raising $84 million through the issuance of 21 million shares priced at $4.00 each. Notably, they also secured an additional $165 million from 10.375% senior secured notes due in 2030, underscoring investor confidence in Borr’s long-term viability.

For the full year, Borr Drilling achieved 24 new contract commitments, equating to over 5,000 days and a Dayrate Equivalent Backlog of $649 million. These contracts are vital in navigating the surprised volatility in the energy sector.

Operational Performance and Market Outlook

Speaking on the company’s recent performance, CEO Bruno Morand underscored that operational performance was solid, boasting a technical utilization rate of 98.8% alongside an economic utilization rate of 97.8%. However, the revenue decline was a concern, primarily impacted by market sanctions and lower-day rate contracts but still aligned with internal expectations.

Looking forward, Morand is keen on the prospects of improving market conditions. The forecasts indicate that the jack-up market's previous lows may now be behind, with increased demand, particularly in the Middle East and Mexico. The recently bolstered contract visibility raises optimism for securing further contracts, enhancing both pricing and earnings visibility.

Morand commented, “This performance reflects the resilience of our organization, which has effectively maneuvered through various headwinds. The economic landscape shows signs of recovery, and we are entering a phase where further growth and enhanced fundamentals are expected.”

Upcoming Events

Borr Drilling will host a conference call and webcast to discuss their fourth-quarter results on February 19, 2026, at 0900 New York time. Stakeholders and interested parties can register online to access both the live presentation and participate in Q&A sessions.

This quarterly report highlights not only the challenges faced by Borr Drilling but also their strategic initiatives aimed at sustaining operation and market competitiveness. As they remain focused on enhancing fleet capacity and navigating dynamic market conditions, the upcoming quarters will be crucial for Borr Drilling’s trajectory in the ever-evolving energy sector.