Borr Drilling (BORR) Shares Rally 1.00% to 2025 High on Earnings, Contract Wins

Borr Drilling (BORR) shares surged 1.00% on Thursday, marking a three-day rally with a cumulative gain of 10.14%. The stock reached its highest level since September 2025, with an intraday high reflecting renewed investor confidence in the offshore drilling sector. This upward momentum follows a series of strategic and operational developments that have positioned the company to capitalize on industry tailwinds.

Recent contract awards for two premium jack-up rigs in the North Sea and West Africa underscore BORR’s ability to secure high-margin work with repeat clients. These agreements, combined with its focus on shallow-to-intermediate water depths, highlight the company’s competitive edge in mature and emerging markets. The contracts reinforce long-term revenue visibility, particularly as global jackup fleets face aging infrastructure and supply constraints.

Strong financial performance in Q2 2025 further bolstered sentiment. BORR reported earnings of $0.14 per share, exceeding the $0.11 consensus estimate, while revenue of $267.7 million outpaced forecasts. Improved cost management and higher utilization rates contributed to a 5.48% net margin, outperforming broader market averages. A P/E ratio of 14.50, significantly lower than sector peers, suggests the stock may be undervalued amid cyclical industry dynamics.

Investor sentiment has shifted positively, evidenced by a 7.18% decline in short interest and a short interest ratio of 3.4. Analysts have assigned a “Hold” rating, reflecting cautious optimism. The company’s capital-raising efforts, including a $102.5 million share offering and a repurchase program initiated in late 2024, signal confidence in its intrinsic value and financial flexibility. These moves support debt reduction and operational resilience in a volatile market.

While BORR’s price-to-book ratio of 0.75 indicates potential undervaluation, risks such as oil price volatility and regulatory shifts remain. However, its modern fleet and strategic focus on fleet modernization position it to benefit from long-term demand. Investors should monitor upcoming earnings, contract renewals, and broader energy trends to gauge the stock’s trajectory in the coming months.