Borr Drilling Limited Q2 2026 Earnings Recap

Shares fell 5.2% as investors reacted negatively to the clear deceleration in EBITDA driven by higher costs associated with Odin’s delayed contract start, rig transition disruptions, escalating operating expenses in a volatile geopolitical environment, and a material credit loss provision.

Key Takeaways

• Adjusted EBITDA declined sharply by $44.7 million sequentially to $43.8 million, pressured by $22.5 million in Odin-related operating expenses before revenue generation.
• Six rigs transitioned between contracts, reducing utilization and revenue recognition during the quarter; this elevated transition activity is now largely resolved.
• Operating expenses jumped $31.1 million quarter-over-quarter, including $7.3 million in increased insurance and fuel costs linked to Middle East conflict and contract transitions.
• A $10.8 million credit loss on a former West African customer was recognized, fully provisioning receivables from this counterparty.
• Despite the challenges, the company expects Q3 EBITDA to improve significantly as rig utilization stabilizes and Odin commences contracted operations.