Borr Drilling Limited Q1 2026 Earnings Recap

Shares fell 8.7% after Borr Drilling reported a disappointing quarter marked by lower-than-expected revenues and an $8.4 million credit loss provision, compounded by a delayed start-up of the key Odin rig that suppressed near-term earnings and increased operating expenses.

Key Takeaways

• Q1 revenue declined 4.8% sequentially to $247 million, driven by a $15.5 million drop in dayrate revenue due to fewer operating days and lower dayrates on some rigs.
• Adjusted EBITDA fell $16.7 million quarter-on-quarter to $88.5 million, negatively impacted by the $8.4 million credit loss provision and ongoing expenses related to Odin’s delayed mobilization.
• Odin rig’s start-up delayed to late June, resulting in no earnings from the rig this quarter but ongoing preparatory costs including a forecasted $10 million in Q2 contract preparation expenses.
• Operating expenses increased 4.6% versus Q4, partly from higher depreciation following recent rig acquisitions and elevated rig OpEx related to the credit loss provision.
• Despite operational and geopolitical headwinds, full-year 2026 contract coverage improved to 71% at an average $137,000 dayrate, supported by new contract wins and fleet expansion through acquisition.