Revenue growth has decelerated to 14.0% in 2026Q1, while gross margins have sharply contracted from 86.4% in 2024Q4 to 24.2% in 2026Q1.
| Sales/Revenue | 1.05B | 1.02B | 1.01B | 771.6M | 443.8M | 245.3M | 307.5M | 334.1M | 164.9M | 100K | 0 |
| Revenue Growth % | 5.84% | 1.01% | 30.97% | 73.86% | 80.92% | -20.23% | -7.96% | 102.61% | 164800% | - | - |
| Cost of Goods Sold | 567.9M | 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 | 483.3M | 372.2M | 879.4M | 654.2M | 327.3M | 125.7M | 189.6M | 212.5M | 61.2M | -36.1M | 0 |
| Gross Margin % | 45.98% | 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 | 175.3M | 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 | 53.1M | 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 | 308M | 321.8M | 374.2M | 250.4M | -101.9M | -88.3M | -188M | -150.8M | -131.4M | -109.7M | -753K |
| Operating Margin % | 29.3% | 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 | 420.1M | 469.8M | 505.4M | 367.8M | 14.6M | 31.3M | -70.1M | -49.4M | -51.9M | -88.5M | 1.17M |
| EBITDA Margin % | 39.96% | 46.02% | 50.01% | 47.67% | 3.29% | 12.76% | -22.8% | -14.79% | -31.47% | -88500% | - |
| EBITDA Growth % | -13.33% | -7.04% | 37.41% | 2419.18% | -53.35% | 144.65% | -41.9% | 4.82% | 41.36% | -7683.55% | - |
| D&A (Non-Cash Add-back) | 112.1M | 148M | 131.2M | 117.4M | 116.5M | 119.6M | 117.9M | 101.4M | 79.5M | 21.2M | 1.92M |
| EBIT | 305.3M | 321.8M | 341.8M | 214.5M | -149M | -90.4M | -214M | -217.5M | -174.7M | -87.5M | -753K |
| Net Interest Income | -233.4M | -224.7M | -212.4M | -174.6M | -146.5M | -92.9M | -97M | -83.7M | -16M | 2.7M | 0 |
| Interest Income | 3.1M | 3.7M | 6.4M | 4.9M | 5.4M | 0 | 200K | 1.5M | 1.2M | 3.2M | 0 |
| Interest Expense | 236.5M | 228.4M | 218.8M | 179.5M | 151.9M | 92.9M | 97.2M | 85.2M | 17.2M | 500K | 0 |
| Other Income/Expense | -235.7M | -235.9M | -233.9M | -194.3M | -172.5M | -95M | -113.4M | -137.1M | -57M | 21.7M | 0 |
| Pretax Income | 72.3M | 85.9M | 140.3M | 56.1M | -274.4M | -183.3M | -301.4M | -287.9M | -188.4M | -88M | -735K |
| Pretax Margin % | 6.88% | 8.42% | 13.88% | 7.27% | -61.83% | -74.72% | -98.02% | -86.17% | -114.25% | -88000% | - |
| Income Tax | 39.4M | 40.9M | 58.2M | 34M | 18.4M | 9.7M | 16.2M | 11.2M | 2.5M | 0 | 1.95K |
| Effective Tax Rate % | 54.5% | 47.61% | 41.48% | 60.61% | -6.71% | -5.29% | -5.37% | -3.89% | -1.33% | 0% | -0.27% |
| Net Income | 35.9M | 45M | 82.1M | 22.1M | -292.8M | -193M | -317.6M | -297.6M | -190.5M | -88M | -755K |
| Net Margin % | 3.42% | 4.41% | 8.12% | 2.86% | -65.98% | -78.68% | -103.28% | -89.08% | -115.52% | -88000% | - |
| Net Income Growth % | -29.33% | -45.19% | 271.49% | 107.55% | -51.71% | 39.23% | -6.72% | -56.22% | -116.48% | -11555.63% | - |
| Net Income (Continuing) | 32.9M | 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) | 0.12 | 0.17 | 0.32 | 0.09 | -1.64 | -1.43 | -4.06 | -5.59 | -3.70 | -3.31 | -0.01 |
| EPS Growth % | -23.23% | -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 | 307.92M | 264.55M | 254.46M | 248.15M | 178.41M | 134.73M | 75.18M | 53.74M | 51.44M | 26.56M | 101M |
| Basic Shares Outstanding | 307.92M | 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% | - | - | - | - | - | - | - | - |
High non-operating expense volatility
As reported in recent financial filings, Borr Drilling's revenue growth has decelerated significantly, shifting from a 48.5% year-over-year increase in 2023Q4 to a modest 14.0% in 2026Q1, suggesting that the initial post-restructuring momentum is encountering resistance from contract timing and potential market saturation in key regions.
The transition from high double-digit growth to low-teens expansion indicates that the company is struggling to maintain its previous pace of rig activations. Investors should monitor whether this deceleration reflects a lack of new contract opportunities or simply the natural plateauing of a fleet nearing full technical utilization.
Based on the provided income statement data, Borr's gross margin experienced a sharp contraction from 86.4% in 2024Q4 to 24.2% by 2026Q1, highlighting a significant vulnerability in the company's ability to maintain pricing power against rising operational costs and potential rig maintenance requirements.
The dramatic collapse in gross margins suggests that the cost of maintaining and operating the fleet is rising faster than the dayrates the company can command. This trend warrants further investigation into whether the company is facing unexpected inflationary pressures on specialized labor or if recent contract renewals are failing to cover the full cost of rig reactivation.
According to the company's quarterly income statements, a persistent gap exists between operating income and net income, with the latter swinging into a $29.0 million loss in 2026Q1 despite positive operating income, suggesting that non-operating items are consistently eroding the value generated by core drilling activities.
The volatility in net income, which frequently deviates from the operating profit trend, implies that interest expenses or other non-operating charges are exerting significant pressure on the bottom line. This disconnect suggests that the company's capital structure may be inefficiently absorbing the gains from its operational performance.
While management emphasizes the premium nature of the fleet, the recent income statement data suggests that Borr's profitability is highly sensitive to cost fluctuations, as evidenced by the rapid margin erosion observed between 2025Q3 and 2026Q1, which may undermine the long-term viability of its current business model.
Short-sellers would likely focus on the inability of the company to sustain high gross margins, which suggests that the 'premium' fleet may not provide the pricing power previously assumed. If the company cannot pass through rising maintenance and labor costs to its NOC clients, the current valuation may be based on overly optimistic assumptions regarding future cash flow generation.
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.