- In February 2026, Borr Drilling reported fourth-quarter 2025 revenue of US$259.4 million and a net loss of US$1.0 million, alongside new and extended jack-up rig contracts across Mexico, Brunei, the U.S., Gabon, Congo, and offshore Germany that enhance fleet utilization and revenue visibility.
- An interesting angle is how this mix of lower quarterly profitability but fuller rig calendars could reshape views on Borr Drilling’s risk profile and earnings quality.
- Next, we’ll examine how these fresh contract wins and extensions might influence Borr Drilling’s investment narrative and future earnings assumptions.
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Borr Drilling Investment Narrative Recap
To own Borr Drilling, you generally need to believe that tight supply of modern jack-up rigs and healthy shallow-water activity will support high utilization and improving earnings quality. The latest quarter’s small net loss, against a backdrop of fresh contracts across several regions, does not appear to materially change that near term catalyst, but it does sharpen focus on execution risk and the company’s ability to convert its growing backlog into more consistent profitability.
The recent set of contract awards and extensions, including Ran in Mexico and Saga in Brunei, looks most relevant here because it underpins Borr’s backlog and visibility just as quarterly earnings softened. These rigs now have clearer work calendars, which ties directly into the core catalyst of maintaining high utilization at attractive dayrates, while also highlighting the concentration risk in key regions like Mexico that investors may want to monitor closely.
Yet behind the contract wins, there is a less visible risk investors should be aware of, particularly around payment reliability and policy shifts in Mexico and other key markets...
Read the full narrative on Borr Drilling (it's free!)
Borr Drilling’s narrative projects $1.0 billion revenue and $3.4 million earnings by 2028. This implies revenues declining by 0.7% per year and an earnings decrease of $50.8 million from $54.2 million today.
Uncover how Borr Drilling's forecasts yield a $4.64 fair value, a 24% downside to its current price.
Exploring Other Perspectives
Some of the lowest ranked analysts were assuming revenue would actually shrink about 1.2% per year and still reach only around US$952.6 million by 2028, which is a far more pessimistic take than the consensus and may look different once this latest mix of contract wins and softer quarterly earnings is fully reflected.
Explore 6 other fair value estimates on Borr Drilling - why the stock might be worth 24% less than the current price!
The Verdict Is Yours
Don't just follow the ticker - dig into the data and build a conviction that's truly your own.
- A great starting point for your Borr Drilling research is our analysis highlighting 2 key rewards and 3 important warning signs that could impact your investment decision.
- Our free Borr Drilling research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Borr Drilling's overall financial health at a glance.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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