BORR

Borr Drilling Limited

$4.26BuyTarget $5.58Report: Jan 30, 2026Energy • Oil & Gas Drilling • Cyclical Operator

Price History

Pelican View

Current$4.26+31.0%

Rec: BuyConviction: High

Entry Target

$4.26

(0% above current)

Fair Value

$5.58

(31% above current)

Stop Loss

$1.55

(64% below current)

Position Size

Half

Time Horizon

Transitional (12-24 Months)

Key Metrics

Market Data

52 Week High$4.86

52 Week Low$1.55

Avg. 3 Month Volume5.04M

Efficiency

LTM Gross MarginN/A

LTM EBITDA MarginN/A

LTM EBIT MarginN/A

LTM Operating MarginN/A

LTM ROAN/A

LTM ROEN/A

LTM ROICN/A

LTM ROCEN/A

Capital Structure

Market Cap (MM)$0

Enterprise Value (MM)$0

Shares OutstandingN/A

Total Debt (MM)N/A

Cash & Equivalents (MM)N/A

LTM Net Debt (MM)N/A

LTM Net Debt/EBITDAN/A

Growth

TTM Rev. GrowthN/A

Last 3-Yr Rev. CAGRN/A

Last 3-Yr EBITDA CAGRN/A

Last 3-Yr EPS CAGRN/A

Valuation

Street Target Price$2.40

LTM EV/RevenueN/A

LTM EV/Gross ProfitN/A

LTM EV/EBITN/A

LTM EV/EBITDAN/A

LTM P/EN/A

LTM EV/FCFN/A

LTM P/FCFN/A

LTM P/TBN/A

LTM P/BN/A

Dividend YieldN/A

Payout RatioN/A

About the Company

Borr Drilling Limited is an offshore shallow-water drilling contractor providing worldwide offshore drilling services to the oil and gas industry. The company's primary business is the ownership, contracting, and operation of jack-up rigs for operations in shallow-water areas (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 customers. The company focuses exclusively on the jack-up drilling market, which it believes allows for optimization of size and scale and achievement of operational efficiency compared to competitors with mixed fleets.

Revenue Generation

The company generates revenue primarily by providing jack-up rigs, work crews, and related equipment and services necessary to operate the rigs. Revenue is recognized under drilling contracts based on variable dayrates, which range from full operating rates to lower rates or zero rates for periods when drilling operations are interrupted. The company also earns revenue from bareboat charter agreements (fixed-rate charters of rigs to third parties) and management contract agreements (providing rig operation and maintenance support services). The company operates globally, with significant revenue attributed to Latin America (primarily Mexico), South East Asia, the Middle East, West Africa, and Europe.

Investment Thesis

Executive SummaryBorr Drilling has successfully transitioned from a period of aggressive, dilutive growth to an operational steady-state characterized by 97.4% economic utilization and a $1.9 billion backlog. While the market remains fixated on the company's $2.06 billion debt load and historical 266% share count expansion, our analysis indicates that the cessation of growth CapEx and the integration of five newly acquired rigs will drive a free cash flow inflection. With the Executive Chairman holding a 15.1% stake, management is strongly aligned to prioritize deleveraging over further dilution, creating a classic mean-reversion opportunity as the company repairs its balance sheet during an industry upcycle.

Recent Activity

2025-12-09+7.39%

Borr Drilling agrees to acquire five premium jack-up rigs for $360 million.

2025-11-25+5.38%

AZVALOR Asset Management increases ownership to 10% of Borr Drilling's common stock.

2025-11-06+5.94%

Excerpt: Source: Attachment (EX-99.1) Exhibit 99.1 Borr Drilling Limited Announces Third Quarter 2025 Results Hamilton, Bermuda, November 5, 2025: Borr Drilling Limited (NYSE: BORR) (“Borr”, “Borr Drilling” or the “Company”) announces...

Valuation Table

Method	Implied Value	Weight	Weighted Value
DCF	$7.31	40%	$2.92
Comps	$5.46	35%	$1.91
Historicals	$4.60	5%	$0.23
NLV	$2.60	20%	$0.52
Total Weighted			$5.58