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- **Revenue Growth**: Q3 revenue up $9.4 million QoQ, EBITDA margin 48.9%.
- **Mexico Recovery**: $19 million collections in Q3, 3 rig extensions with 45-day O&M reimbursement.
- **New Contracts**: Odin enters U.S. Gulf (Jan 2026), Grid awarded Angola campaign (Q1 2026).
- **Market Outlook**: Saudi Arabia demand tightening, 2025 coverage 85% at $145k/day rate.
- **Financial Strength**: $461.8 million liquidity, 2025 EBITDA guidance $455–$470 million.
- **Risk Mitigation**: Reduced Pemex exposure in Mexico, 2 rigs on IOC contracts.


**【Management Opening Remarks】**
- **Q3 2025 Results**: Revenue increased by $9.4 million QoQ, adjusted EBITDA rose 2% to $115.6 million, with a margin of 48.9%. Operational utilization remained industry-leading at 97.9% technical and 97.4% economic utilization.
- **Contract Extensions in Mexico**: 3 rig extensions with improved payment terms (45-day O&M reimbursement, 180-day bareboat). Collections resumed in September, with $19 million received in Q3 and additional payments expected in Q4.
- **New Awards**: Odin secured a 6-month U.S. Gulf campaign (Jan 2026 start), Grid awarded a 6-month Angola contract (Q1 2026 start). Full-year 2025 coverage at 85% with an average day rate of $145,000.
- **Market Outlook**: Saudi Arabia and Mexico showing demand inflection. 2025 adjusted EBITDA guidance maintained at $455–$470 million, despite Q4 rig transitions and Mexico contract terminations.

**【CFO Financial Commentary】**
- **Revenue Breakdown**: Day rate revenue up $2.5 million (Ran, Thor, Odin), bareboat charter revenue up $6.4 million (Galar, Gersemi, Grid). Operating expenses increased $6.3 million due to Grid reimbursables.
- **Financial Performance**: Net income $27.8 million, adjusted EBITDA $135.6 million (+$2.4 million QoQ). Free cash position $227.8 million, total liquidity $461.8 million.
- **Cash Flow**: Operating cash flow $72.1 million (offset by $42 million Mexico receivables buildup). Financing activities provided $97.2 million from equity offering.

**【Q&A Highlights】**
- **Market Recovery**: Saudi Arabia calling back 7–8 rigs, modern jack-up utilization at 93%. Mexico diversification reduces Pemex exposure, with 2 rigs on IOC contracts.
- **M&A Strategy**: Open to consolidation but prioritizing fleet quality and deleveraging. No new builds expected due to supply chain challenges.
- **Cost Trends**: Operating costs stable, inflation offset by operational efficiency. No significant attrition expected in older rigs.
- **Sanctions Impact**: Hild rig operations winding down in Mexico, Odin re-contracted post-sanction termination. Pemex payments improving with $17 million received in October.


Borr Drilling Limited (BORR) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

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Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

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Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

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Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

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Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

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Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

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Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

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Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

BORR

BORR fundamentals

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