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BORR, Borr Drilling Limited

Oilfield Services & Equipment capital-intensive Distress / turnaround

We are an offshore shallow-water drilling contractor providing worldwide offshore drilling services to the oil and gas industry.

Our primary business is the ownership, contracting and operation of jack-up rigs for operations in shallow-water areas (i.e., in water depths up to approximately 400 feet), including the provision of related equipment and work crews to conduct oil and gas drilling and workover operations for exploration and production ("E&P") customers.

We are one of the largest international operators of drilling rigs within the jack-up segment, and the shallow-water market is our operational focus.

Latest annual: FY2025 20-F · US listing is the ordinary share

BORR · Borr Drilling Limited

The business

What it sells, where the money comes from, the kind of company it is.

Revenue · FY2025

$1.0B

+0.5% YoY · 27% 5-yr CAGR

Vital signs · TTM, with 5-yr average

Revenue $1.0B 5-yr avg $698M

Operating margin 20.8% 5-yr avg 8.4%

ROIC 3% 5-yr avg 7%

Owner-earnings margin −3% 5-yr avg −8%

Free cash flow margin −11% 5-yr avg −8%

The business in brief

read the 10-K →

What this business is and what moves its needle, from its own SEC filings.

Situation: Distress / turnaround. Thin interest coverage, or operating cash burned against real debt, across the record. The balance sheet carries this situation; the debt schedule sets the clock.
What moves the needle: Operating margin has reached 37% at its best but run negative through the cycle (median −29%) — so the question is which reading is truer: whether the median was pulled below zero by one-off charges, by the cycle, or by spending it is still growing into, and whether it settles back at a profit. Capital spending runs about 14% of sales, below what it charges for depreciation, so the return earned on what it sinks into that plant weighs as much as the margin. Read this kind of business on the commodity price, and the cost to lift a barrel. On its own account, the filing leans hardest on pricing power & competition, set against the numbers in what the filing emphasizes, below.
Is it a good business?: Return on capital has rarely cleared the cost of capital (median −4%, above 15% in 0 of 5 years). Owner earnings, the cash-based check, have been thin too. This is price-taker territory, where the balance sheet and the cycle matter more than any multiple; the rest is in the 10-K.

Every line is arithmetic on the company's filings, shown in full in the sections below.

Where the money comes from

read the 20-F →

Revenue spreads across 5 regions, the largest Southeast Asia at 29%.

Revenue by geography, FY2025

Southeast Asia29%$296M
West Africa27%$279M
Americas22%$226M
Middle East and North Africa17%$177M
Europe4%$43M

From the segment footnote of the company's own 20-F. Shares are of total revenue; the profit bar shows each segment's share of segment operating profit, before unallocated corporate costs.

The record

Ten years of arithmetic, read across the cycle.

The record, 2017–2025

realized figures from each filing · older years to the left

2017’17	2018’18	2019’19	2020’20	2021’21	2022’22	2023’23	2024’24	2025’25	TTMTTMJun 2026
										Income statement
$100K	$165M	$334M	$308M	$245M	$444M	$772M	$1.0B	$1.0B	$1.0B	RevenueRevenue
($110M)	($131M)	($151M)	($188M)	($88M)	($102M)	$250M	$374M	$322M	$212M	Operating incomeOp. inc.
n/m	−79.7%	−45.1%	−61.1%	−36.0%	−23.0%	32.5%	37.0%	31.6%	20.8%	Operating marginOp. mgn
($88M)	($191M)	($299M)	($318M)	($193M)	($293M)	$22M	$82M	$45M	$22M	Net incomeNet inc.
										Cash flow & returns
($185M)	($135M)	($89M)	($55M)	($59M)	$63M	($51M)	$77M	$252M	$133M	Operating cash flowOp. cash
$21M	$80M	$101M	$118M	$120M	$117M	$117M	$131M	$148M	$161M	DepreciationDeprec.
($118M)	($24M)	$109M	$145M	$15M	$239M	($190M)	($136M)	$59M	($50M)	Working capital & otherWC & other
$120M	$23M	$127M	$37M	$19M	$82M	$111M	$55M	$88M	$241M	CapexCapex
n/m	14.2%	38.1%	12.2%	7.7%	18.4%	14.4%	5.4%	8.6%	23.7%	Capex / revenueCapex/rev
($206M)	($159M)	($190M)	($92M)	($78M)	($19M)	($162M)	$23M	$164M	($28M)	Owner earningsOwner earn.
n/m	−96.2%	−57.0%	−30.0%	−31.7%	−4.3%	−21.0%	2.2%	16.0%	−2.8%	Owner earnings marginOE mgn
($305M)	($159M)	($216M)	($92M)	($78M)	($19M)	($162M)	$23M	$164M	($108M)	Free cash flowFCF
n/m	−96.2%	−64.7%	−30.0%	−31.7%	−4.3%	−21.0%	2.2%	16.0%	−10.6%	Free cash flow marginFCF mgn
—	—	—	—	—	$0	$0	$76M	$5M	$0	Dividends paidDiv. paid
$8M	$20M	$0	$0	$0	$0	$800K	$20M	$200K	—	BuybacksBuybacks
—	-4%	-4%	-5%	—	—	—	7%	6%	3%	ROICROIC
—	-12%	-23%	-31%	—	—	—	8%	5%	2%	Return on equityROE
—	—	—	—	—	—	—	1%	4%	2%	Retained to equityRetained/eq
										Balance sheet
—	$32M	$59M	$19M	$35M	$108M	$103M	$63M	$380M	$225M	Cash & investmentsCash+inv
—	$25M	$40M	$23M	$29M	$43M	$54M	—	—	$54M	ReceivablesReceiv.
—	$10M	$14M	$20M	$35M	$48M	$36M	$82M	$34M	$62M	Accounts payablePayables
—	$16M	$26M	$3M	($6M)	($5M)	$18M	—	—	($8M)	Operating working capitalOper. WC
—	$209M	$278M	$141M	$176M	$350M	$410M	$517M	$768M	$597M	Current assetsCur. assets
—	$119M	$250M	$96M	$118M	$746M	$360M	$410M	$351M	$236M	Current liabilitiesCur. liab.
—	1.7×	1.1×	1.5×	1.5×	0.5×	1.1×	1.3×	2.2×	2.5×	Current ratioCurr. ratio
—	$10M	$7M	$6M	$4M	$4M	$4M	$3M	$2M	$2M	Net PP&ENet PP&E
—	$2.9B	$3.3B	$3.2B	$3.1B	$3.0B	$3.1B	$3.4B	$3.6B	$3.7B	Total assetsAssets
—	$1.2B	$1.7B	$1.9B	$1.9B	$1.6B	$1.7B	$2.1B	$2.2B	$2.5B	Total debtDebt
—	$1.1B	$1.7B	$1.9B	$1.9B	$1.5B	$1.6B	$2.0B	$1.8B	$2.3B	Net debt / (cash)Net debt
-219.4×	-9.6×	-2.1×	-2.2×	-0.9×	-0.7×	1.4×	1.8×	1.4×	1.2×	Interest coverageInt. cov.
—	$1.5B	$1.3B	$1.0B	—	—	—	$993M	$975M	$962M	Shareholders’ equityEquity
										Per share
103M	206M	107M	150M	135M	178M	248M	254M	265M	309M	Shares out (diluted)Shares
$0.00	$0.80	$3.11	$2.05	$1.82	$2.49	$3.11	$3.97	$3.86	$3.29	Revenue / shareRev/sh
$-0.85	$-0.93	$-2.78	$-2.11	$-1.43	$-1.64	$0.09	$0.32	$0.17	$0.07	EPS (diluted)EPS
$-1.99	$-0.77	$-1.77	$-0.61	$-0.58	$-0.11	$-0.65	$0.09	$0.62	$-0.09	Owner earnings / shareOE/sh
$-2.95	$-0.77	$-2.01	$-0.61	$-0.58	$-0.11	$-0.65	$0.09	$0.62	$-0.35	Free cash flow / shareFCF/sh
—	—	—	—	—	$0.00	$0.00	$0.30	$0.02	$0.00	Dividends / shareDiv/sh
$1.16	$0.11	$1.18	$0.25	$0.14	$0.46	$0.45	$0.22	$0.33	$0.78	Cap. spending / shareCapex/sh
—	$7.44	$12.04	$6.90	—	—	—	$3.90	$3.69	$3.12	Book value / shareBVPS

The diluted share count moved ×1.99 into 2018 — shares issued, not a split the totals corroborate — and the per-share figures carry the counts as filed.

The diluted share count moved ×1/1.91 into 2019 — shares retired, not a split the totals corroborate — and the per-share figures carry the counts as filed.

Share counts before 2021 are restated ×2 for a stock split, so per-share figures sit on one basis.

Per-share growththe realized rate an owner's share compounded

	8-yr	5-yr
Revenue / share	+181.9%/yr	+13.5%/yr
Capital spending / share	−14.4%/yr	+6.0%/yr
Book value / share	−9.6%/yr (7-yr)	−11.8%/yr

Where the cash went

ReinvestBuybacksDividendsAcquisitionsRetained

Each year's operating cash, by what management did with it: the mix, and how it drifts.

FY2022FY2025

Owner-earnings bridge

FY2021–FY2025cash-flow statement, SEC EDGAR →

Net income is the accountant's number; owner earnings is the cash an owner could take out. The walk between them, off the cash-flow statement, and whether the gap is widening or holding.

In fiscal 2025 the business turned $45M of profit into $164M of owner earnings: more cash than the profit line showed, after the non-cash charges and the capital it put back in.

Reported net income$45M

Owner earnings$164M · 16% of revenue

	FY2025	FY2024	FY2023	FY2022	FY2021
Reported net income	$45M	$82M	$22M	($293M)	($193M)
Depreciation & amortizationnon-cash charge added back	+$148M	+$131M	+$117M	+$117M	+$120M
Working capital & othertiming of cash in and out, other non-cash items	+$59M	−$136M	−$190M	+$239M	+$15M
Cash from operations	$252M	$77M	($51M)	$63M	($59M)
Capital expenditurecash put back in to keep running and to grow	−$88M	−$55M	−$111M	−$82M	−$19M
Owner earnings	$164M	$23M	($162M)	($19M)	($78M)
Owner-earnings marginowner earnings ÷ revenue	16%	2%	-21%	-4%	-32%

Owner earnings is the cash an owner could pull out without starving the business: operating cash less the capital it must spend to hold its position .

Maintenance capex is estimated as depreciation where a growing business invests above it; free cash flow is the figure the scorecard's free-cash margin reads.

III

Quality & stewardship

Returns, the balance sheet, capital allocation, and pay.

Owner’s Scorecard

FY2025 20-F · source on SEC EDGAR →

Will it survive?

Can it pay its interest? 1.2×

Thin

Operating income $212M ÷ interest expense $177M

What this means
Operating profit covers interest, but with little room. A bad year, a refinancing at higher rates, or a revenue wobble closes the gap fast.
How heavy is the debt, net of cash? $2.3B · 10.7× operating profit

Heavy net debt

Cash $224M + ST investments $2M − debt $2.5B

What this means
Netting $225M of cash and short-term investments against $2.5B of debt leaves $2.3B owed, about 10.7× a year's operating profit (11.7× on the gross debt, before the cash). Net debt is the leverage figure that matters: the cash is already set against the debt. Strategic or illiquid investments aren't counted here.
How long is cash tied up? —

Not enough data

What this means
The filing data didn't include the inputs for this check.

Is it a good business?

Return on invested capital -4%

Below average through the cycle

5-yr median, range -5%–7%; 3% latest = NOPAT $106M ÷ invested capital $3.2B

Industry peers: median 0%

What this means
The rate the business earns on the money tied up in it, Buffett's north star, because over time a stock tracks the ROIC beneath it. Above ~15% sustained hints at a moat; a return below the cost of capital (~8%) erodes value as a business grows rather than building it — the test Buffett weighs most. The headline is the median of the last 5 years (it ran 3% most recently), so one peak or trough year doesn't set the verdict. Asset-light businesses (R&D expensed, little capital) read artificially high, pair this with Owner Earnings.
Owner-earnings margin -25%

Consumes cash through the cycle

8-yr median margin, range -96%–16%; latest ($28M) = operating cash $133M − maintenance capex $161M

Industry peers: median 7%

What this means
What an owner could take out without starving the business: operating cash less the maintenance capital it must spend to hold its position — Buffett's owner earnings. That's -3% of revenue this year, a -25% median across 8 years. It chose to put $79M more into growth, so free cash flow this year was ($108M) — the gap is investment, not weakness.
Are earnings backed by cash? 6.03×

Cash-backed

Cash from ops $133M ÷ net income $22M

What this means
How much of reported profit showed up as operating cash. Above 1× is reassuring; well below suggests earnings lean on accruals. One year is noisy, growth and working-capital swings distort it, and this is operating cash, not free cash. Watch the multi-year trend.

How is the cash used?

Where do the earnings go? —

No surplus to allocate

What this means
The business didn't generate positive Owner Earnings this year, so any distributions came from the balance sheet or borrowing, not from operations.
Investing or harvesting? 1.49×

Expanding

Capex $241M ÷ depreciation $161M

What this means
Descriptive, not a grade. Above ~1× means investing faster than assets wear out (growth, or, sustained for years, today's earnings carrying less depreciation than tomorrow's will). Below means spending less than it's wearing out (efficiency, or a melting asset base). The ratio won't tell you which; the filings will.

Graham’s defensive tests · 1 of 5 met

Graham’s numerical criteria for the defensive investor (The Intelligent Investor, ch. 14), run on the filings. A floor of safety, not a buy signal; many fine modern businesses fail his strictest liquidity rules by design.

Adequate size Near

Revenue ≥ $2B · $1.0B

What this means
Big enough to weather a storm. Graham's 1972 floor was ~$100M of sales (≈ $700M today); we use a $2B revenue line as a conservative modern stand-in.
Strong liquidity Pass

Current ratio ≥ 2× · 2.53×

What this means
Current assets at least twice current liabilities, near-term bills covered without touching the business. Strict by design: many cash-rich modern firms run leaner and miss it, holding their cushion in longer-dated securities.
Conservative debt Miss

Debt ≤ working capital · $2.5B vs $361M WC

What this means
Graham's rule that borrowings not exceed net current assets. Capital-heavy and buyback-heavy firms routinely fail it, read it next to interest coverage, not alone.
Earnings stability Miss

A profit every year (9-yr record) · 6 loss years

What this means
Graham wanted earnings in each of the past ten years, the stability a defensive owner leans on.
Dividend record Miss

Uninterrupted dividends · 2 of 9 yrs

What this means
An unbroken dividend was Graham's mark of durability. He wanted twenty years; the filings show about ten, and a single suspension breaks the streak. Non-payers, many fine modern compounders, fall outside his defensive net by design.
Earnings growth —

Earnings +33% over the record · —

What this means
Earnings were negative early in the record, a growth rate isn't meaningful.
Moderate price —

P/E ≤ 15 and P/E × P/B ≤ 22.5 · decided by the price

What this means
Graham's valuation gate, the wall he kept between a sound business and a sound investment. Three-year average earnings are $0.16/share (latest year $0.07), the averaged base the calculator's gate runs on, and book value is $3.13/share. Enter a price in “What the price implies” just below for the P/E, P/B, and whether it clears. But this is the rule Buffett outgrew: there's no hard P/E law, and a wonderful business can deserve a far richer multiple if the thesis holds, treat it as the bargain-hunter's floor, not a verdict on the price.

Durability & moat, 2017–2025

Whether the record’s returns held, and what the capital reinvested earned.

Profitable years 3 of 9

What this means
Lost money in 6 year(s), look at what happened there before trusting the average.
Return on capital ≥ 15% 0 of 5 yrs

What this means
A moat shows up as a high return on invested capital that holds year after year, not one good vintage.
Operating margin −36608% → 34% (3-yr avg ends)

What this means
Through the cycle the operating margin widened — about −36608% early to 34% lately, median −36% — pricing power intact or improving.
Reinvestment, incremental ROIC returns capital

What this means
The capital base barely grew: this business returns cash through dividends and buybacks rather than reinvesting. Judge it on the cash returned, not on compounding.
Worst year 2017 · −109700.0% op. margin

What this means
Operations went underwater in 2017, understand why before trusting the good years.
Dividend record paid

What this means
Paid a dividend in 2 of the years on record.

All figures as filed; the source filing is linked above.

Current Position

as of fiscal year-end, Jun 30, 2026

Can the business pay what it owes this year, off the freshest balance sheet: the quality of the assets, the debt actually coming due, and what a low ratio means here.

Current assets$597M

Cash & short-term investments$225M
Receivables$54M
Other current assets$318M

Current liabilities$236M

Accounts payable$62M
Other current liabilities$174M

Current ratio2.53×all current assets ÷ what's due · Graham looked for 2×

Quick ratio—inventory untagged this quarter, so withheld rather than shown equal to the current ratio

Cash ratio0.96×strictest: cash alone against what's due

Working capital$361Mthe cushion left after near-term bills

Deeper floors

Tangible book value$962Mequity stripped of goodwill & intangibles

Net current asset value($2.1B)Graham's net-net: current assets less all liabilities

Debt incl. operating leases$2.5B$600K of it operating leases

Deferred revenue$22Mcustomer cash collected before delivery; operating float

From the company's latest filing.

Debt maturity

the debt note, SEC EDGAR →

Not how much it owes, but when it falls due, and against what. The ladder the company files, beside cash on hand and a year's owner earnings.

'27$144M

'28$1.3B

'29$43M

'30$622M

Bars scaled to the largest single year.

Due in the next 12 months$144Mthe first rung: what must be repaid or rolled over within the year

Within two years$1.4Bthe near wall, the part most exposed to today’s credit conditions

Biggest single year$1.3Bin 2028the lumpiest maturity, where a refinancing, if needed, is largest

Due over the next five years$2.1Bthe near slice; the balance sheet carries $2.5B of debt in all

Against what the business has and earns

Cash & short-term investments, Jun 30, 2026$225M

Together, against $144M due next year1.6×

Cash on hand as of Jun 30, 2026 comes to $225M against the $144M due in the twelve months after the Dec 31, 2025 schedule: 1.6 times it.

Maturity schedule extracted from the company’s Dec 31, 2025 annual report and reconciled to the balance-sheet debt.

Peers, Oilfield Services & Equipment

The same industry, side by side on owner economics. Each column names the period it is read over, and a median resting on fewer than three years carries that count beside it; the group median at the foot is the line to read each figure against.

Company	Revenuelatest FY, USD	Gross marginmedian over the record	Op. marginmedian over the record	ROICmedian over the record	Owner earn. marginmedian over the record
NENoble Corporation plc A	$3.3B	—	16.2%	7%	11%
NBRNabors Industries	$3.2B	37%	1.8%	-2%	4%
WTTRSelect Water Solutions	$1.4B	12%	1.9%	-0%	6%
NESRNational Energy Services Reunited Corp	$1.3B	13%	7.4%	8%	9%
HLXHelix Energy Solutions Group Inc.	$1.3B	12%	3.3%	1%	9%
PUMPProPetro Holding Corp.	$1.3B	—	0.1%	0%	7%
SDRLSeadrill Limited	$1.1B	—	28.5%	12%2y	-7%
BORRBorr Drilling Limited	$1.0B	—	-29.5%	-4%	-25%
Group median	—	—	2.6%	0%	6%

The price

What a price has to assume.

What the price implies

reverse-DCF

Enter the US price, in dollars: the NYSE/Nasdaq quote you hold. Borr Drilling Limited's US listing is the ordinary share itself. The record tables elsewhere on this page remain as filed.

Type today's close and see the owner-earnings growth you'd have to believe to justify it, beside what Borr Drilling Limited has delivered.

Borr Drilling Limited’s latest year shows negative owner earnings, the mark of a build-out: total capital spending outruns the cash the business throws off today. So the tool opens on the steady-state base (maintenance capex in place of the build-out spend), the cash it would earn at rest; clear the toggle below to read the latest year exactly as reported.

Today’s price $

Base Normalize · through-cycle ($8M) Net of stock comp Steady-state · maintenance capex (($28M))

—

The assumptions Required return 9% Years of high growth 10 Terminal growth 2.5%

9.0% = the 4.71% 10-year Treasury (Aug 18, 2026) + 4.29 points of equity premium. The rate you require is yours to set.

Enter a price above to run it.

Implied by the price—

Owner-earnings growth · since FY2024+628%/yr

Owner-earnings yield—

P/E (3-yr earnings ’23–’25)—

P/B—

Graham’s price gate—

Graham capped the multiple at 15×; Buffett and Munger let that rule go: a wonderful business can deserve 50× if the thesis holds. The gate marks the bargain-hunter's floor.

Against a high-grade bond: Graham’s yardstick bond yield%

Prefilled with the 10-year Treasury (4.71%, as of Aug 18, 2026). Edit it for today’s exact figure, or a AAA corporate yield.

Graham measured a stock against the bond you could own instead, the heart of his margin of safety. Enter a price above to weigh the owner-earnings yield against this bond.

Free cash flow ($108M) on 307M shares outstanding, per the 20-F cover, as of 2025-12-31; net debt $2.3B. The base opens on the steady-state figure (the latest year is negative on total capex mid-build-out); clear Steady-state to use the year as filed. Net of stock comp treats option pay as the expense it is. Capex ($241M) runs well above depreciation ($161M), so this is a build-out; Steady-state swaps total capex for maintenance (≈ depreciation), lifting the base to about ($28M), the cash it would throw off if it stopped expanding. The dials set the multiple a growth belief justifies; the price, and every dollar on this page, is yours.

Weigh BORR against another business →

Cite: Owner Scorecard, "Borr Drilling Limited (BORR), the owner's record," https://ownerscorecard.com/c/BORR, data as of 2026-08-17.

Manual order: ← BNTX its page in the Manual BOSC →

Industry order: ← BKR the Oilfield Services & Equipment chapter CLB →