Borr Drilling Q2 revenue falls q-o-q on lower rig count

Overview

• The offshore driller's Q2 revenue fell 6% sequentially as active rig count declined

• Q2 adjusted EBITDA dropped 51% due to higher costs, rig transitions, and credit losses

• Company refinanced debt, extended maturities, and acquired five jack-up rigs post-quarter end

Outlook

• Borr Drilling expects to average about 23 active rigs in Q3 2026

• Company expects Q3 Adjusted EBITDA to improve significantly from Q2

Result Drivers

• RIG PREPARATION COSTS - Additional preparation work and regulatory approval activities for the Odin rig increased operating expenses

• RIG TRANSITIONS - Six rigs transitioning between contracts led to reduced revenue and lower utilization

• HIGHER COSTS CREDIT LOSSES - Middle East conflict drove up insurance and fuel costs, and credit losses increased due to a former customer in West Africa, per CEO Bruno Morand

Company press release: ID:nWkr455jMX

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

• The stock recently traded at 65 times the next 12-month earnings vs. a P/E of 85 three months ago

Reuters Recommended Reads

• Aug 10 - Seadrill Q2 revenue tops estimates on increased operating days

• Aug 10 - National Energy Services Q2 revenue beats estimates on higher activity levels

• Aug 11 - Pason Systems Q2 adjusted core profit beats amid increased Canadian drilling activity

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)