The sequential deterioration in revenue and EBITDA, combined with a widening net loss and significant cash burn, signals operational headwinds from the Odin delay and credit loss provision. The $300M convertible refinancing extends maturities but adds leverage. Monitor Q2 2026 results for Odin start-up (now expected late June) and whether the 71% contract coverage translates into revenue growth.
Price Chart
Executive Summary
Borr Drilling reported Q1 2026 results with total operating revenues of $247.0 million, down 5% QoQ from $259.4 million, and a net loss of $29.0 million compared to a $1.0 million loss in Q4 2025. Adjusted EBITDA fell 16% to $88.5 million, impacted by an $8.4 million credit loss provision and delayed start-up of the Odin rig. The company completed a $360 million acquisition of five rigs from Noble and entered a $287 million JV for five more, while subsequent to quarter-end it issued $300 million in convertible notes to repurchase existing 2028 bonds. Despite the weak quarter, management expressed confidence in a 2027-2028 recovery, and full-year 2026 contract coverage improved to 71%.
Key Facts
- Q1 2026 total operating revenues of $247.0 million, down 5% QoQ from $259.4 million
- Q1 2026 net loss of $29.0 million vs. net loss of $1.0 million in Q4 2025
- Q1 2026 Adjusted EBITDA of $88.5 million, down 16% QoQ from $105.2 million
- Completed $360 million acquisition of five jack-up rigs from Noble Corporation in January 2026
- Entered agreement to acquire five rigs via 50/50 JV for $287 million, expected to close H2 2026
- Subsequent to quarter-end, issued $300 million of 3.5% convertible notes due 2033, used to repurchase $195.2 million of 2028 convertible bonds
- Cash and cash equivalents fell to $246.0 million from $379.7 million at year-end 2025
- Total debt outstanding of $2,360.0 million as of March 31, 2026
- Full-year 2026 contract coverage increased to 71% at average dayrate of ~$137,000
- Technical utilization of 99.4% and economic utilization of 97.0% in Q1 2026
- Dayrate Equivalent Backlog of $1.17 billion as of March 31, 2026
Financial Impact
Revenue declined $12.4M QoQ (-5%), net loss widened by $28.0M, Adjusted EBITDA fell $16.7M (-16%). Cash burn of $133.7M in the quarter.
Risk Factors
- Further delays in Odin rig start-up beyond June 2026
- Inability to contract the 5 available rigs at attractive dayrates
- High debt load of $2.36B with maturities concentrated in 2028-2030
- Potential for additional credit losses or customer suspensions in the Middle East
- Dilution risk from convertible notes if converted
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 7 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 6-K Filing (Primary) | 0001140361-26-022412 |
| Document: ef20074577_ex99-3.htm | 0001140361-26-022412 |
| Document: ef20074577_ex99-1.htm | 0001140361-26-022412 |
| Document: ef20074577_6k.htm | 0001140361-26-022412 |
| Document: 0001140361-26-022412-index-headers.html | 0001140361-26-022412 |
| Document: 0001140361-26-022412-index.html | 0001140361-26-022412 |
| Document: 0001140361-26-022412.txt | 0001140361-26-022412 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 26, 2026 1d ago | 6-K | $3.96 | awaiting T+5 | — | $4.09 (−3.28%) |
Oct 16, 2026 11d ago | Insider Cluster | $4.54 $4.40 | ▼ −3.08% | ▼ −2.65% | $4.09 (−9.91%) |
Oct 16, 2026 11d ago | 6-K | $4.54 $4.40 | ▼ −3.08% | ▼ −3.18% | $4.09 (−9.91%) |
Oct 15, 2026 11d ago | SC 13D/A | $4.54 $4.40 | ▼ −3.08% | ▼ −2.65% | $4.09 (−9.91%) |
Oct 13, 2026 14d ago | SC 13D | $4.68 $4.22 | ▼ −9.83% | ▼ −10.28% | $4.09 (−12.61%) |
Oct 1, 2026 26d ago | 6-K | $4.05 $4.61 | ▲ +13.83% | ▲ +12.53% | $4.09 (+0.99%) |
Sep 21, 2026 5w ago | Insider Cluster | $4.43 $4.01 | ▼ −9.48% | ▼ −8.46% | $4.09 (−7.67%) |
Sep 16, 2026 5w ago | 6-K | $4.23 $4.36 | ▲ +3.07% | ▲ +1.25% | $4.09 (−3.31%) |
Sep 15, 2026 5w ago | Press Release | $4.23 $4.36 | ▲ +3.07% | ▲ +1.25% | $4.09 (−3.31%) |
Sep 15, 2026 6w ago | 6-K | $4.36 $4.46 | ▲ +2.29% | ▲ +1.48% | $4.09 (−6.19%) |
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