Borr Drilling Limited

For Q2 2026, Borr reported total operating revenues of $232.3 million, down $14.7 million or 6% versus Q1. Adjusted EBITDA was $43.8 million, down $44.7 million sequentially, and net loss was $241.4 million, which included a $176.3 million loss on extinguishment of debt from the quarter’s refinancing. Technical utilization was 98.4% and economic utilization was 96.4%. Management did not provide full formal quarterly revenue or EPS guidance, but said Q3 should average approximately 23 active rigs and that adjusted EBITDA should improve significantly from Q2; it also said Odin should begin its U.S. Gulf contract after preparations and that Q3 still includes $6 million to $9 million of incremental Odin operating expenses. Full-year 2026 contract coverage was said to be 73% at an average dayrate of approximately $134,000 a day, with second-half coverage at 70%.

Bruno Morand framed Q2 as a difficult execution quarter, driven by Odin’s delayed startup, multiple contract transitions, and higher fuel and insurance costs, but emphasized that these issues are now mostly behind the company. He said the U.S. Gulf entry for Odin was strategic, that customer discussions leave him optimistic about regional demand, and that the rig has firm work into mid-2027 with options potentially extending into 2029. He also stressed that the company has secured 21 contract commitments year to date, added $541 million of dayrate equipment backlog, and is positioned to benefit from a stronger jack-up cycle over time.

Magnus Vaaler said Q2 operating revenues were $232.3 million, operating expenses were $232.1 million, and adjusted EBITDA was $43.8 million. He broke out the quarter’s pressure points: $22.5 million of Odin costs, $10.8 million of credit losses tied to a former West Africa customer, $5.1 million higher fuel costs, and $2.2 million higher insurance costs; he also said Odin’s regular operating OpEx should be in the mid-$70,000 per day range once fully operational, with another $6 million to $9 million of incremental OpEx expected in Q3. On liquidity, he cited $223.6 million of cash and cash equivalents plus $250 million of undrawn revolver capacity, for total liquidity of $473.6 million, and he highlighted the refinancing: $300 million of 3.5% convertible notes due 2033, $2.035 billion of new senior secured notes due 2032 and 2034, and an amended RCF expanded to $250 million with a 3% base margin and 2031 maturity.

Analysts focused on how much EBITDA could improve in Q3, with management declining to give a numeric range but saying active rigs should average about 23 and that results should move substantially higher as Odin normalizes. Questions also centered on the Fontis acquisition and whether the remaining rigs could be put to work; management said three of the five rigs are already contracted or working, one is stacked, and it sees a pathway for a fourth rig to resume later this year or early next year, but needs more time before commenting on the fifth. Other questions covered fuel and insurance costs, where management said fuel should ease as fewer rigs transition and insurance remains elevated until Middle East conditions improve, plus balance sheet priorities, where management said the refinancing is largely done and near-term M&A is not a priority.