Revenue growth decelerated to 1.0% YoY in 2026Q1, while gross margin plunged to 24.2% from 86.3% in 2025Q2, and net income swung to a -$29.0M loss despite a $46.0M operating profit.
Borr Drilling Limited (BORR) annual income statement — 10-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 |
|---|
| Sales/Revenue | 1.02B | 1.02B | 1.01B | 771.6M | 443.8M | 245.3M | 307.5M | 334.1M | 164.9M | 100K | 0 |
| Revenue Growth % | 2.71% | 1.01% | 30.97% | 73.86% | 80.92% | -20.23% | -7.96% | 102.61% | 164800% | - | - |
| Cost of Goods Sold | 706.3M | 648.6M | 131.2M | 117.4M | 116.5M | 119.6M | 117.9M | 121.6M | 103.7M | 47.9M | 0 |
| COGS % of Revenue | - | 63.54% | 12.98% | 15.22% | 26.25% | 48.76% | 38.34% | 36.4% | 62.89% | 47900% | - |
| Gross Profit | 309.5M | 372.2M | 879.4M | 654.2M | 327.3M | 125.7M | 189.6M | 212.5M | 61.2M | -36.1M | 0 |
| Gross Margin % | 30.47% | 36.46% | 87.02% | 84.78% | 73.75% | 51.24% | 61.66% | 63.6% | 37.11% | -36100% | - |
| Gross Profit Growth % | - | -57.68% | 34.42% | 99.88% | 160.38% | -33.7% | -10.78% | 247.22% | 269.53% | - | - |
| Operating Expenses | 97.7M | 50.4M | 505.2M | 403.8M | 429.2M | 214M | 377.6M | 363.3M | 192.6M | 57.2M | 753K |
| OpEx % of Revenue | - | 4.94% | 49.99% | 52.33% | 96.71% | 87.24% | 122.8% | 108.74% | 116.8% | 57200% | - |
| Selling, General & Admin | 54.3M | 50.4M | 49.2M | 45.1M | 36.8M | 34.7M | 49.1M | 50.4M | 38.7M | 21M | 753K |
| SG&A % of Revenue | - | 4.94% | 4.87% | 5.85% | 8.29% | 14.15% | 15.97% | 15.09% | 23.47% | 21000% | - |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 1000K | 0 | 456M | 358.7M | 392.4M | 179.3M | 328.5M | 312.9M | 180.1M | 67.6M | 0 |
| Operating Income | 211.8M | 321.8M | 374.2M | 250.4M | -101.9M | -88.3M | -188M | -150.8M | -131.4M | -109.7M | -753K |
| Operating Margin % | 20.85% | 31.52% | 37.03% | 32.45% | -22.96% | -36% | -61.14% | -45.14% | -79.68% | -109700% | - |
| Operating Income Growth % | - | -14% | 49.44% | 345.73% | -15.4% | 53.03% | -24.67% | -14.76% | -19.78% | -14468.39% | - |
| EBITDA | 373.2M | 469.8M | 505.4M | 367.8M | 14.6M | 31.3M | -70.1M | -49.4M | -51.9M | -88.5M | 1.17M |
| EBITDA Margin % | 36.74% | 46.02% | 50.01% | 47.67% | 3.29% | 12.76% | -22.8% | -14.79% | -31.47% | -88500% | - |
| EBITDA Growth % | -22.49% | -7.04% | 37.41% | 2419.18% | -53.35% | 144.65% | -41.9% | 4.82% | 41.36% | -7683.55% | - |
| D&A (Non-Cash Add-back) | 161.4M | 148M | 131.2M | 117.4M | 116.5M | 119.6M | 117.9M | 101.4M | 79.5M | 21.2M | 1.92M |
| EBIT | 203.1M | 314.3M | 341.8M | 214.5M | -149M | -90.4M | -214M | -217.5M | -174.7M | -87.5M | -753K |
| Net Interest Income | -404M | -224.7M | -212.4M | -174.6M | -146.5M | -92.9M | -97M | -83.7M | -16M | 2.7M | 0 |
| Interest Income | 6.7M | 3.7M | 6.4M | 4.9M | 5.4M | 0 | 200K | 1.5M | 1.2M | 3.2M | 0 |
| Interest Expense | 410.7M | 228.4M | 218.8M | 179.5M | 151.9M | 92.9M | 97.2M | 85.2M | 17.2M | 500K | 0 |
| Other Income/Expense | -409.9M | -235.9M | -233.9M | -194.3M | -172.5M | -95M | -113.4M | -137.1M | -57M | 21.7M | 0 |
| Pretax Income | -198.1M | 85.9M | 140.3M | 56.1M | -274.4M | -183.3M | -301.4M | -287.9M | -188.4M | -88M | -735K |
| Pretax Margin % | -19.5% | 8.42% | 13.88% | 7.27% | -61.83% | -74.72% | -98.02% | -86.17% | -114.25% | -88000% | - |
| Income Tax | 45.5M | 40.9M | 58.2M | 34M | 18.4M | 9.7M | 16.2M | 11.2M | 2.5M | 0 | 1.95K |
| Effective Tax Rate % | -22.97% | 47.61% | 41.48% | 60.61% | -6.71% | -5.29% | -5.37% | -3.89% | -1.33% | 0% | -0.27% |
| Net Income | -240.6M | 45M | 82.1M | 22.1M | -292.8M | -193M | -317.6M | -297.6M | -190.5M | -88M | -755K |
| Net Margin % | -23.69% | 4.41% | 8.12% | 2.86% | -65.98% | -78.68% | -103.28% | -89.08% | -115.52% | -88000% | - |
| Net Income Growth % | -543.91% | -45.19% | 271.49% | 107.55% | -51.71% | 39.23% | -6.72% | -56.22% | -116.48% | -11555.63% | - |
| Net Income (Continuing) | -243.6M | 45M | 82.1M | 22.1M | -292.8M | -193M | -317.6M | -299.1M | -190.9M | -88M | -755K |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 200K | 1.7M | 2M | 0 |
| EPS (Diluted) | -0.78 | 0.17 | 0.32 | 0.09 | -1.64 | -1.43 | -4.06 | -5.59 | -3.70 | -3.31 | -0.01 |
| EPS Growth % | -513.2% | -46.88% | 259.15% | 105.43% | -14.69% | 64.78% | 27.37% | -51.08% | -11.78% | - | - |
| EPS (Basic) | - | 0.17 | 0.33 | 0.09 | -1.64 | -1.43 | -4.06 | -5.59 | -3.70 | -3.40 | -0.01 |
| Diluted Shares Outstanding | 307.39M | 264.55M | 254.46M | 248.15M | 178.41M | 134.73M | 75.18M | 53.74M | 51.44M | 26.56M | 101M |
| Basic Shares Outstanding | 307.39M | 262.34M | 250.89M | 244.27M | 178.41M | 134.73M | 75.18M | 53.74M | 51.44M | 26.56M | 101M |
| Dividend Payout Ratio | - | 10.44% | 92.94% | - | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying BORR stock.
For fiscal year 2025, Borr Drilling Limited (BORR) reported total revenue of $1.02B.
Borr Drilling Limited (BORR) is profitable, generating $45.0M in net income for the fiscal year ending 2025 with a net profit margin of 4.4%.
Borr Drilling Limited (BORR) reported an operating income of $321.8M, resulting in an operating profit margin of 31.5%. This margin reflects the operational efficiency of the business before interest and taxes.
Borr Drilling Limited (BORR) generated $372.2M in gross profit for the year, representing a gross profit margin of 36.5%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
High net-to-operating margin gap
Revenue Growth Stalls Amid Transition
Revenue growth decelerated to 1.0% YoY in 2026Q1, down from 14.7% in 2025Q3, suggesting contract transitions or mobilizations may be masking underlying dayrate strength.
The latest quarter's revenue of $247.0M represents a 4.8% sequential decline from 2025Q4, and the YoY growth of 14.0% is misleading given the prior year's low base. The 2025Q3 peak of $277.1M was followed by two consecutive quarterly declines, indicating a potential pause in contract commencements. Investors should monitor whether this is a temporary dip or a sign of softening demand in key regions like Mexico and the Middle East.
Gross Margin Volatility Signals Cost Pressures
Gross margin collapsed to 24.2% in 2026Q1 from 86.3% in 2025Q2, a dramatic swing that appears driven by a spike in COGS to $187.2M, likely reflecting reactivation or maintenance costs.
The gross margin of 24.2% in 2026Q1 is a stark departure from the 80%+ levels seen throughout 2024 and early 2025. This suggests that the company may have incurred significant one-time costs, possibly related to rig mobilizations or repairs. If these costs persist, they could erode the structural margin advantage Borr has historically held over peers like Valaris (25.0%) and Noble (19.7%).
Operating Leverage Fades as Costs Outpace Revenue
Operating income fell to $46.0M in 2026Q1, down 31.6% from 2025Q4, despite only a 4.8% revenue decline, indicating that fixed costs are not being absorbed as efficiently as in prior quarters.
The operating margin of 18.6% in 2026Q1 is the lowest in the provided period, down from 25.9% in 2025Q4 and 35.4% in 2025Q3. This suggests that the company's high fixed-cost base is not scaling down with revenue, and the spike in COGS is not being offset by SG&A efficiencies. The SG&A expense of $13.8M is relatively stable, but the gross profit compression is the primary driver of the operating leverage reversal.
Net Income Masked by Non-Operating Charges
Net income swung to a -$29.0M loss in 2026Q1 despite a $46.0M operating profit, implying non-operating expenses of roughly $75M, likely interest or tax-related, which are consuming all operational gains.
The gap between operating income and net income is stark: in 2026Q1, operating income was $46.0M but net income was -$29.0M, a difference of $75M. This suggests significant interest expense or other financing costs, consistent with the company's high debt levels. The net margin of -11.7% contrasts sharply with the operating margin of 18.6%, indicating that the company's capital structure is a major drag on profitability. Investors should monitor refinancing efforts or potential debt restructuring.
COGS Spike Threatens Cost Discipline
COGS surged to $187.2M in 2026Q1, more than five times the $35.9M reported in 2025Q1, a dramatic increase that appears to be a one-time event but warrants close monitoring.
The COGS figure of $187.2M in 2026Q1 is anomalous compared to the $30-36M range seen in the prior five quarters. This could be due to a change in accounting treatment, a large reactivation cost, or a data error. If this is a genuine cost, it would imply a gross margin of only 24.2%, which is unsustainable for a premium driller. The company's cost structure is typically high fixed, but this spike suggests variable costs may be more volatile than previously thought.
What Could Invalidate the Premium Fleet Thesis
The sharp gross margin compression and persistent net losses suggest that Borr's premium fleet may not be generating sufficient dayrates to cover its cost base, challenging the scarcity value narrative.
Short-sellers could argue that the 2026Q1 gross margin of 24.2% indicates that the company's pricing power is weaker than assumed, and that the high-specification fleet is not commanding the premium dayrates needed to sustain profitability. Additionally, the net loss of $29.0M, despite a $46.0M operating profit, highlights the burden of high debt levels, which could become unsustainable if dayrates do not improve. The company's reliance on a few NOCs, particularly PEMEX, adds concentration risk that could amplify any operational hiccup.