Borr Drilling Limited (BORR) AI Stock Analysis

Borr Drilling Limited, headquartered in Hamilton, Bermuda, operates globally as an offshore drilling contractor dedicated to serving the oil and gas industry. The company specializes in owning, contracting, and operating jack-up rigs designed for shallow-water exploration and production. Its rigs are outfitted with specialized equipment and skilled work crews to conduct drilling and workover operations. Borr Drilling serves a customer base consisting of integrated oil companies, state-owned national oil companies, and independent producers. As of December 31, 2021, the company maintained an operational fleet of 23 jack-up drilling rigs positioned worldwide.

Revenue expanded from $245.3M in FY2021 to $443.8M in FY2022, $771.6M in FY2023, and $1.01B in FY2024, before reaching $1.02B in FY2025, achieving a 5-year revenue CAGR of 27.1%. Operating margin recovered from -36.0% in FY2021 to 37.0% in FY2024 and 31.5% in FY2025. Net income also rebounded from -$193.0M in FY2021 to positive earnings of $82.1M in FY2024 and $45.0M in FY2025. Over the trailing twelve months, revenue stood at $1.02B with an operating margin of 0.1% and a profit margin of -24.0%. In the latest quarter ended June 30, 2026, quarterly revenue fell 13.2% year-over-year while quarterly earnings grew 155.7%.

As of June 30, 2026, Borr Drilling held $224.6M in cash and short-term investments against total debt of $2.49B, resulting in net debt of $2.26B. The company closed the quarter with a current ratio of 2.42, a debt-to-equity ratio of 2.58, and shareholders' equity of $961.6M. Operating cash flow improved to $251.9M in FY2025, generating positive free cash flow of $127.4M. Capital expenditures totaled $124.5M in FY2025, alongside $4.7M in dividends paid and $200,000 allocated to share buybacks.

Borr Drilling carries a market capitalization of $1.40B and an enterprise value of $3.61B at a last close of $4.54. Its forward P/E multiple is 28.2x, compared to the median of its US-listed Energy peers of 12.7x. The company trades at an EV/EBITDA of 19.1x, above the peer median of 8.0x, and a price-to-sales multiple of 1.4x, below the peer median of 1.8x. Over the past year, the stock gained 75.3%, outperforming the S&P 500 return of 16.8%, and delivered a 5-year return of 109.5% versus 83.0% for the index.

Wall Street analysts hold 3 Strong Buy, 1 Buy, and 3 Hold ratings on Borr Drilling, with no Sell or Strong Sell ratings. The mean price target of $4.97 indicates a 9.4% upside relative to the last close of $4.54. For the fiscal year ending December 31, 2026, consensus estimates call for an EPS of -$0.74 on revenue of $996.5M. For the next fiscal year, 7 analysts project EPS of $0.08 and revenue of $1.22B. The company beat EPS estimates in 2 of the last 4 quarters, with its next earnings release scheduled for November 4, 2026.

This page is an AI-written research summary of Borr Drilling Limited (BORR). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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