Anticipated Financial Review for Borr Drilling in Q2 2025
Borr Drilling (NYSE: BORR) is set to announce its Q2 earnings results on August 13th, after market close. However, the company has been facing challenging market conditions, leading market analysts to downgrade Borr Drilling's rating.
Despite these challenges, Borr Drilling has shown solid recent earnings and revenue growth. For the trailing twelve months (TTM) ending around mid-2025, the company reported revenue of approximately $989 million and earnings of about $54.2 million, with a gross margin close to 55% and a net profit margin of 5.48%.
The company’s earnings per share (EPS) for Q2 2025 was $0.14, beating consensus estimates of $0.11, with quarterly revenue about $267.7 million. The consensus Revenue Estimate for Q2 earnings is $262.24M, and the consensus EPS Estimate is $0.10. Over the last 3 months, there have been 2 upward revisions to EPS estimates for Borr Drilling.
From a valuation perspective, Borr Drilling trades at a trailing price-to-earnings (PE) ratio of about 11.8 and forward PE around 15.4, with a price-to-sales ratio near 0.58, which suggests moderate valuation levels relative to its earnings and sales.
In terms of recent trends, liquidity has significantly improved, with cash and undrawn credit facilities totaling over $240 million after Q2 2025, later boosted to $425 million following a July 2025 equity raise and credit line increase. This enhanced liquidity provides flexibility for debt management, strategic growth, and potential industry consolidation.
However, Borr Drilling carries considerable debt with a debt/equity ratio above 200%, reflecting high leverage, and the offshore drilling industry faces regulatory and operational risks, including reliance on specific geographic regions such as Mexico, where receivables are significant but expected to be supported by government funding.
Historically, the stock has declined about 38.8% in price during 2025 (from $3.90 to $2.385), despite solid earnings beats, reflecting possible investor concerns about sector risks, high leverage, or market volatility.
In other news, Borr Drilling has announced a $100M stock offering, and the company has appointed Morand as the new CEO. Borr Drilling plans for 80% to 85% fleet coverage by 2025, shifting its focus to 2026 amid a dividend suspension.
| Metric | Figure/Trend | Notes | |--|--|--| | Revenue (TTM mid 2025) | ~$989 million | Up from $771.6M (2023), ~$1.01B in 2024 | | Earnings (TTM mid 2025) | ~$54.2 million | EPS of 0.14 in Q2 2025 beating estimates | | Gross margin | ~55% | Indicates efficient cost management | | Net margin | 5.48% | Profitability modest but positive | | Debt/Equity ratio | 202.6% | High leverage, key risk factor | | Liquidity | $242M rising to $425M | Strong cash/credit position post equity raise | | Stock price trend | -38.8% in 2025 | Despite earnings beats, stock faced downward pressure | | Valuation PE | Trailing ~11.8, Forward ~15.4 | Moderate valuation region |
In conclusion, Borr Drilling’s recent financial results show improving earnings and revenue, supported by stronger liquidity and operational performance, though the historically high debt and industry risks have weighed on stock price performance and investor sentiment in 2025.
The financial results of Borr Drilling have shown significant improvements, as evidenced by the rising revenue and earnings over the past few years, reaching approximately $989 million and $54.2 million, respectively, for the trailing twelve months ending mid-2025. Despite this, the company's stock has declined by about 38.8% during 2025, indicating investor concerns about sector risks, high leverage, or market volatility.
