Borr Drilling Limited Announces Fourth Quarter 2025 Results

Core Insights - Borr Drilling Limited reported a decrease in annual net income and Adjusted EBITDA for 2025, while securing new contracts and expanding its fleet through acquisitions [1] Financial Performance - For the full year 2025, the company was awarded 24 new contract commitments, representing over 5,000 days and $649 million of Dayrate Equivalent Backlog [1] - Annual Adjusted EBITDA for 2025 was $470.1 million, a decrease of $35.3 million or 7% compared to 2024 [1] - Annual net income for 2025 was $45.0 million, a decrease of $37.1 million or 45% compared to 2024 [1] - Fourth Quarter Adjusted EBITDA was $105.2 million, a decrease of $30.4 million or 22% compared to the third quarter of 2025 [1] - Fourth Quarter total operating revenues were $259.4 million, a decrease of $17.7 million or 6% compared to the third quarter of 2025 [1] Operational Highlights - The company achieved a technical utilization rate of 98.8% and an economic utilization rate of 97.8% in the fourth quarter of 2025 [1] - The jack-up market is showing signs of recovery, particularly in the Middle East, with multiple tenders for long-term contracts for an estimated 13 rigs [1] - Contracted marketed premium rig utilization remains steady at approximately 90.3% [1] Strategic Moves - The company completed an equity offering of 21 million shares at $4.00 per share, raising total gross proceeds of $84 million [1] - An additional offering of $165 million principal amount of 10.375% senior secured notes due 2030 was completed [1] - The acquisition of five premium jack-up rigs from Noble Corporation was finalized for a total purchase price of $360 million, enhancing the company's fleet capacity [1] Future Outlook - The company expects market conditions to improve into the second half of 2026, setting the stage for better fundamentals and earnings visibility into 2027 [1] - Recent awards and extensions have increased 2026 coverage to 80% in the first half and 48% in the second half, adjusted for the newly acquired rigs [1]