Borr Drilling (BORR) Q2 2025 earnings summary

Executive summary

• Q2 2025 delivered strong operational and financial performance, with operating revenues up 24% to $267.7 million and adjusted EBITDA rising 39% to $133.2 million, reversing a prior quarter loss and achieving a 49.8% margin.

• Net income improved to $35.1 million in Q2 2025, up $52 million sequentially from a Q1 loss.

• Liquidity was strengthened by a $102.5 million equity raise and expanded revolving credit facilities, boosting pro forma liquidity to $425 million post-July transactions.

• CEO succession announced: Bruno Morand to become CEO on September 1, 2025, with Patrick Schorn transitioning to Executive Chairman.

• 14 new contract commitments year-to-date represent $318 million in potential revenue and 2,584 days of work.

Financial highlights

• Q2 2025 operating revenues reached $267.7 million, up 24% from Q1, with adjusted EBITDA of $133.2 million and operating income of $96.5 million, up 60% sequentially.

• Net income was $35.1 million, up $52 million from Q1 2025's net loss.

• Q2 operating expenses were $171.2 million, up 9% from Q1.

• Cash and cash equivalents at quarter-end were $92.4 million.

• Free cash flow generation year-to-date was $106.5 million.

Outlook and guidance

• Q3 2025 activity and performance expected to be comparable to Q2.

• 2025 adjusted EBITDA guidance aligns with Bloomberg consensus of approximately $470 million.

• 2025 fleet contract coverage at 84% (average day rate $145,000); 2026 coverage at 47% (average day rate $139,000).

• Continued focus on increasing 2026 coverage, which is up 12 percentage points quarter-on-quarter.

• Positive outlook for increased drilling activity in Mexico due to government support for Pemex.