Free cash flow remains highly unstable, recording a negative $134.8 million in 2026Q1 as capital expenditures consumed 74.0% of total revenue.
| Cash from Operations | 163.2M | 251.9M | 77.3M | -50.7M | 62.5M | -58.9M | -54.7M | -89M | -135.2M | -32.6M | -79.03K |
| Operating CF Margin % | - | 24.68% | 7.65% | -6.57% | 14.08% | -24.01% | -17.79% | -26.64% | -81.99% | -32600% | - |
| Operating CF Growth % | 257.38% | 225.87% | 252.47% | -181.12% | 206.11% | -7.68% | 38.54% | 34.17% | -314.72% | -41149.64% | - |
| Net Income | 35.9M | 45M | 82.1M | 22.1M | -292.8M | -193M | -305.2M | -308.1M | -190.9M | -88M | -736.65K |
| Depreciation & Amortization | 112.1M | 148M | 131.2M | 117.4M | 116.5M | 119.6M | 117.9M | 101.4M | 79.5M | 47.9M | 0 |
| Stock-Based Compensation | 2.6M | 0 | 9.1M | 5.6M | 2.6M | 900K | 700K | 3.9M | 3.7M | 8.2M | 0 |
| Deferred Taxes | -2.57M | -3.2M | 700K | -17.12M | -2.1M | -500K | 1.2M | 1.4M | -500K | -4.4M | 0 |
| Other Non-Cash Items | 73.57M | 35.2M | -23.4M | -16.58M | 167.3M | -4M | 63.6M | 93.9M | 32.5M | 100K | 181.48K |
| Working Capital Changes | -58.4M | 26.9M | -122.4M | -162.1M | 71M | 18.1M | 67.1M | 18.5M | -59.5M | 3.6M | 238.07K |
| Change in Receivables | 900K | 79.4M | 4M | 0 | 0 | -13.7M | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | 18.7M | -22.4M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 20.31M | 238.07K |
| Cash from Investing | -284.47M | -124.5M | -409.4M | -104.2M | -82.6M | 40.9M | -119.8M | -271.1M | -560.1M | -1.45B | -13.63M |
| Capital Expenditures | -284.47M | -124.5M | -409.4M | -114M | -83.3M | -18.9M | -42.4M | -271.6M | -393.6M | -1.06B | -2.93K |
| CapEx % of Revenue | 27.06% | 12.2% | 40.51% | 14.77% | 18.77% | 7.7% | 13.79% | 81.29% | 238.69% | 1057300% | - |
| Acquisitions | 0 | 0 | 0 | 0 | 686.58K | 10.6M | -25.6M | -30.9M | -195.1M | -324.5M | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 0 | 0 | 0 | 9.8M | 13.42K | 49.2M | 37.7M | 7M | 41.6M | -39.1M | -13.62M |
| Cash from Financing | 205.02M | 190.8M | 292M | 139M | 92.6M | 44.8M | 65.2M | 397.3M | 583.5M | 1.51B | 148.47M |
| Debt Issued (Net) | 20.94M | 17.8M | 385.9M | 80.9M | -205.5M | 0 | 5M | 348.1M | 412.8M | 99.7M | 0 |
| Equity Issued (Net) | 184.04M | 177.7M | -19.9M | -800K | 298.1M | 44.8M | 60.2M | 49.2M | -19.7M | 1.41B | 135.78M |
| Dividends Paid | -135.94K | -4.7M | -76.3M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -5.78K | -200K | -19.9M | -800K | 0 | 0 | 0 | 0 | -19.7M | -8.4M | 0 |
| Other Financing | 182.06K | 0 | 2.3M | 58.9M | 0 | 0 | 0 | 0 | 190.4M | 0 | 12.68M |
| Net Change in Cash | 75.7M | 318.2M | -40.1M | -15.9M | 72.5M | 26.8M | -109.3M | 37.2M | -111.8M | 25.9M | 134.76M |
| Free Cash Flow | -121.27M | 127.4M | -332.1M | -164.7M | -20.8M | -77.8M | -97.1M | -360.6M | -528.8M | -1.09B | -81.96K |
| FCF Margin % | -11.54% | 12.48% | -32.86% | -21.35% | -4.69% | -31.72% | -31.58% | -107.93% | -320.68% | -1089900% | - |
| FCF Growth % | 46.69% | 138.36% | -101.64% | -691.83% | 73.26% | 19.88% | 73.07% | 31.81% | 51.48% | -1329725.77% | - |
| FCF per Share | -0.39 | 0.48 | -1.31 | -0.66 | -0.12 | -0.58 | -1.29 | -6.71 | -10.28 | -41.03 | -0.00 |
| FCF Conversion (FCF/Net Income) | -3.38x | 5.60x | 0.94x | -2.29x | -0.21x | 0.31x | 0.17x | 0.30x | 0.71x | 0.37x | 0.10x |
| Interest Paid | 104.3M | 0 | 186.9M | 217.4M | 83.9M | 57.2M | 40.1M | 69M | 8.6M | 0 | 0 |
| Taxes Paid | 27.5M | 0 | 55.2M | 38.2M | 16.2M | 0 | 8.6M | 1.3M | 3.2M | 0 | 0 |
High capital intensity volatility
According to quarterly financial data, the relationship between net income and operating cash flow is highly erratic, evidenced by an OCF/NI ratio that swung from -8.21 in 2025Q1 to -1.66 in 2026Q1, indicating that reported earnings frequently fail to translate into actual cash generation.
The persistent divergence between net income and operating cash flow suggests that accounting accruals and non-cash adjustments are masking the underlying volatility of the business. Investors should monitor this disconnect, as it implies that the company's reported profitability may not be reflective of its ability to fund operations internally.
As reported in recent filings, Borr Drilling's free cash flow trajectory is characterized by significant instability, with the company recording a negative $134.8 million in 2026Q1, a sharp reversal from the positive $39.8 million observed in 2025Q3, highlighting the difficulty in sustaining positive cash flow.
The inability to maintain consistent positive free cash flow suggests that the company's current operational scale is insufficient to cover its heavy capital requirements. This trend warrants further investigation into whether the business model can achieve self-sustaining cash generation without recurring external financing.
Based on the company's reported figures, capital expenditures remain aggressively high, reaching 74.0% of revenue in 2026Q1, which significantly outpaces the industry norm and suggests that the company is forced to reinvest heavily just to maintain its current fleet's operational readiness.
The high ratio of CapEx to revenue indicates that the company is trapped in a cycle of intensive maintenance spending, which appears to be a structural drag on cash flow. This level of capital intensity may limit the company's flexibility to navigate cyclical downturns or pursue strategic growth initiatives.
Data from recent financial statements reveals extreme volatility in working capital changes, ranging from a $104.6 million inflow in 2025Q1 to a $76.7 million outflow in 2024Q4, suggesting that the company's cash position is highly sensitive to the timing of customer payments and operational payables.
These erratic working capital movements may indicate challenges in managing receivables from key National Oil Company clients, which often have extended payment cycles. Such unpredictability in cash conversion cycles complicates liquidity planning and suggests that the company's cash flow is vulnerable to external payment delays.
Quick answers to the most common questions about buying BORR stock.
Borr Drilling Limited (BORR) generated $251.9M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Borr Drilling Limited (BORR) generated $127.4M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Borr Drilling Limited (BORR) spent $124.5M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Borr Drilling Limited (BORR) returned $4.7M to shareholders via cash dividends and spent $0.2M on share repurchases. This shows the company's commitment to returning capital to its equity investors.