Borr Drilling (BORR) Q3 2025 earnings summary

Executive summary

• Achieved strong Q3 2025 results with 23 of 24 rigs active, high operational execution, and robust global presence, supporting a diversified portfolio.

• Secured 22 new commitments year-to-date, adding $625 million to backlog, and expanded into the Gulf of America and Angola, diversifying the customer base.

• Adjusted EBITDA guidance for 2025 is $450–$470 million, reflecting recent contract terminations and market transitions.

• Modern jack-up demand remains resilient, with utilization near 90% despite industry headwinds and volatility.

• Net income for Q3 2025 was $27.8 million, down 21% from Q2 2025 due to higher expenses.

Financial highlights

• Q3 2025 revenue increased by 4% sequentially to $277.1 million, driven by higher dayrate and charter revenues.

• Adjusted EBITDA rose 2% to $135.6 million, with a margin of 48.9%.

• Operating income reached $98 million, up 2% from the prior quarter.

• Free cash at quarter-end was $227.8 million, with total available liquidity of $461.8 million.

• Total equity increased to $1,140.1 million as of Q3 2025.

Outlook and guidance

• Q4 2025 results expected to reflect fewer operating days due to rig transitions and sanction-induced contract terminations.

• Full-year 2025 adjusted EBITDA expected in the range of $450–$470 million.

• 2025 fleet coverage at 85% at an average day rate of $145,000; 2026 coverage at 62%, with 79% in the first half.

• Utilization levels for H1 2026 expected to increase, with a constructive outlook for H2 2026.

• Management anticipates a tightening market in the near to medium term, supporting higher utilization and dayrates.