BORRBorr Drilling Limited
Is the business good?
The checks split: nothing decisive, though earnings fully cash-backed (1.1×).
Operating profit is fully backed by cash. Conversion is improving vs a year ago.
Margins have held roughly steady, a stable cost structure.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is BORR?
Borr Drilling Limited earns 5.0% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 4.0 points below what the capital costs: growth destroys value
- Operating margin
- 21%
Operating margin · Oil & Gas Drilling median 5.0% · 12 months to Q2 2026
- Cash conversion
- 1.07×
Cash conversion · 0.15× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- +6.6%
Share count, year on year · shareholders own a smaller slice than a year ago
| Year | Operating margin |
|---|---|
| FY2020 | −61% |
| FY2021 | −36% |
| FY2022 | −23% |
| FY2023 | 32% |
| FY2024 | 37% |
| FY2025 | 32% |
Details›
- Operating margin12 months to Q2 2026
- 21%
- Net margin12 months to Q2 2026
- −26%
- Free cash flow margin
- 18%
- Revenue, trailing twelve months
- $964M
- Free cash flow, trailing twelve months
- $171M
- Net income, trailing twelve months
- −$252M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 5.0%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.