Borr Drilling Ltd: A Plain-English Investor Guide

This guide helps you understand Borr Drilling’s performance over the past year so you can decide if it fits your investment goals.

1. What does this company do?

Borr Drilling is an offshore drilling contractor. Think of them as a landlord for the energy industry. They own 22 high-specification "jack-up" rigs—massive platforms that stand on the seafloor—which oil and gas companies rent to drill for energy. They operate globally, with their biggest presence in the Middle East, Southeast Asia, West Africa, and the Americas. Their fleet is young, with an average age of about six years, making them a premium choice for complex projects.

2. Financial performance

The company earns money through "dayrates," the daily fee clients pay to use their rigs. For 2024, Borr Drilling reported $914.7 million in revenue, up from $745.2 million in 2023. As of late 2025, they had over 307 million shares outstanding. They achieved a 92% utilization rate throughout the year, keeping their modern fleet active.

You may see them report "Adjusted EBITDA." For 2024, this reached $455.5 million, up from $335.8 million in 2023. This figure shows how much cash their operations generate before interest, taxes, and equipment maintenance costs. It is a helpful snapshot of business health, though it does not account for the cash needed to pay back loans or fix equipment.

3. Major wins and challenges

The company is currently refining its corporate structure. They are restructuring joint ventures in Mexico to resolve outstanding billing matters and launched "BC Ventures Limited" in early 2026 to improve regional operations. They are also expanding, agreeing to buy five additional premium rigs for about $1.5 billion. While this grows their footprint, it adds complexity and requires significant capital investment to prepare these rigs for active service.

4. Financial health

Borr carries about $1.7 billion in long-term debt, with major payments due between 2028 and 2030. For investors, the most important metric is "free cash flow." In 2024, they generated enough cash to cover interest and roughly $120 million in maintenance costs. Their ability to meet the 2028–2030 debt deadlines is a critical factor; if they cannot generate sufficient cash, they may need to refinance at higher rates or issue more shares, which would dilute your ownership percentage.

5. Key risks

The biggest risk is "customer concentration." They rely on a few massive clients. If those clients, such as Saudi Aramco, slow down or cancel contracts, Borr’s revenue is directly impacted. Other risks include:

• Industry Cycles: The drilling market is a rollercoaster. When oil prices drop, demand for drilling often disappears.
• Operational Costs: If maintenance costs spike, Borr may be unable to pass those costs to customers due to fixed-price contracts.
• Geopolitical Tension: Operating in the Middle East leaves them vulnerable to regional conflicts and policy shifts.

6. Future outlook

Borr is currently focused on efficiency and proving they can run a lean operation that survives energy market swings. They aim to lower their debt relative to their earnings by the end of 2026. They remain cautious, noting that unexpected events—like new environmental rules or shifts in energy demand—could change their path.

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Investor Takeaway: Borr Drilling offers exposure to the offshore energy market through a modern, high-spec fleet. When deciding whether to invest, weigh their growth through new rig acquisitions against the pressure of their upcoming debt maturity schedule and their reliance on a small group of major clients.