Borr Drilling (BORR) Q2 2026 earnings summary

Executive summary

• Q2 2026 operating revenues were $232.3M, down 6% sequentially, with adjusted EBITDA falling to $43.8M and a net loss widening to $241.4M, mainly due to a $176.3M debt extinguishment charge, Odin rig startup costs, and higher insurance/fuel expenses.

• Liquidity at quarter-end was $473.6M, including $223.6M in cash and $250M in undrawn revolving credit facility.

• Fleet comprised 29 modern rigs, with 24 active and 73% contract coverage for 2026 at an average dayrate of $134,000.

• Eight new contract commitments since last earnings, adding over 2,100 days and $267M in backlog; 21 contract commitments year-to-date, totaling $541M in backlog.

• Substantial refinancing completed: $2,035M in new senior secured notes (2032/2034), $300M convertible notes (2033), and upsized $250M revolving credit facility, extending maturities and reducing financing costs.

Financial highlights

• Q2 2026 total operating revenues: $232.3M (Q1: $247.0M); dayrate revenue: $187.7M, bareboat charter: $32.9M, management contracts: $11.7M.

• Operating expenses rose to $232.1M, mainly from Odin rig costs, higher fuel/insurance, and credit loss provision.

• Adjusted EBITDA margin for Q2 was between 18.9% and 22.4%.

• Net cash used in operating activities was $21.8M, with $223.6M in cash and equivalents at quarter-end and $250M undrawn RCF.

• Total debt outstanding: $2,529.2M as of June 30, 2026.

Outlook and guidance

• Q3 2026 expected to see improved adjusted EBITDA as rig transitions and Odin startup costs subside, with an average of 23 active rigs.

• 2026 contract coverage at 73% with an average dayrate of $134,000; ongoing efforts to add further coverage for 2026 and 2027.

• Fuel costs expected to decline in Q3 as fewer rigs transition contracts; insurance costs to remain elevated due to Middle East conflict.

• CapEx guidance for 2026 is $60–$70M, or $2–$2.5M per rig.

• Market outlook remains uncertain due to Middle East conflict, but long-term fundamentals support jack-up demand.