Borr Drilling (BORR) Q4 2025 earnings summary

Executive summary

• Achieved strong operational performance in Q4 2025, with technical utilization at 98.8% and economic utilization at 97.8%.

• FY 2025 Adjusted EBITDA reached $470.1 million, at the top end of guidance despite industry headwinds.

• Completed acquisition of five premium rigs from Noble, immediately accretive to Adjusted EBITDA and strengthening the platform.

• Maintained a global fleet of 29 modern rigs, with 25 active and contract coverage of 85% for 2025.

• Secured several safety milestones and industry recognition for safety excellence.

Financial highlights

• Q4 2025 operating revenues were $259.4 million, down 6.4% from Q3, with Adjusted EBITDA of $105.2 million, a 22% decrease sequentially.

• Q4 net loss was $1 million; full year 2025 net income was $45 million.

• Cash and cash equivalents at year-end were $379.7 million, with total liquidity of $613.7 million including undrawn credit.

• Total equity increased to $1,222.6 million at December 31, 2025.

• Full-year 2025 operating revenues were $1,020.8 million, up slightly from 2024.

Outlook and guidance

• 2026 contract coverage stands at 64%, rising to 80% for the first half with new rigs included.

• Constructive market outlook expected to support utilization and dayrates into 2027, with tendering pipeline at multiyear highs.

• Management expects market conditions to improve in the second half of 2026, with fundamentals and earnings visibility strengthening into 2027.

• No formal EBITDA guidance for 2026 yet, but consensus of $440 million seen as achievable if market trends continue.

• The jack-up rig market is showing signs of recovery, with increased tendering activity and longer-term contracts, especially in the Middle East.