Borr Drilling (BORR) Q1 2026 earnings summary

Executive summary

• Achieved strong safety milestones and technical utilization of 99.4%, with economic utilization at 97% in Q1 2026.

• Q1 2026 Adjusted EBITDA was $88.5 million with a margin of 35.8%, impacted by rig delays and credit loss provision.

• Revenue was $247 million, with a net loss of $29 million, reflecting lower day rates, fewer operating days, and higher expenses.

• Secured 13 new contract commitments YTD 2026, adding $274 million to backlog and increasing 2026 coverage to 71% at an average dayrate of $137,000.

• Expanded fleet through acquisitions and joint ventures, with 29–34 rigs reported, strengthening presence in key markets.

Financial highlights

• Q1 2026 operating revenues were $247 million, down 4.8–5% sequentially due to lower day rates and fewer operating days.

• Operating expenses rose due to increased depreciation, rig OpEx, and maintenance costs.

• Net loss of $29 million for Q1 2026; adjusted EBITDA of $88.5 million, down 15.8–16% quarter-on-quarter.

• Cash at quarter-end was $246 million; total liquidity $480 million, including $234 million undrawn credit facilities.

• Significant cash outflows included $175.1 million for rig acquisitions and $7.5 million CapEx for maintenance.

Outlook and guidance

• Q2 2026 results expected to be affected by Odin rig's delayed start and rig transitions.

• Management anticipates improved activity and dayrates in H2 2026 and beyond, with 2027–2028 seen as strong years.

• Focus remains on increasing near-term contract coverage while preserving exposure to future upside.

• Full-year 2026 contract coverage at 71% with average dayrate of $137,000; H2 2026 coverage at 65%.