Borr Drilling Swings to $270M Net Loss on $176M Debt Extinguishment Charge; Adjusted EBITDA Holds at $132M

summarizeSummary

Borr Drilling posted a $270.4M net loss for the first half of 2026, heavily weighed by a $176.3M non-cash debt extinguishment charge. Adjusted EBITDA came in at $132.3M. The company also disclosed the closing of a JV rig acquisition and an upsized credit facility.

check_boxKey Events · Earnings and Guidance · BORR

• Net Loss of $270.4M

  For the first half of 2026, the net loss attributable to shareholders reached $270.4 million, a sharp reversal from the $18.2 million profit recorded in H1 2025. The primary driver was a $176.3 million non-cash loss on debt extinguishment linked to the June 2026 refinancing.

• Adjusted EBITDA Declines 42%

  Adjusted EBITDA dropped to $132.3 million from $229.3 million, as a 38% rise in rig operating and maintenance expenses—including a $19.9 million provision for credit losses—and lower dayrate revenue more than offset gains from higher bareboat charter and management contract revenue.

• Transformative Debt Refinancing Completed

  In June 2026, the company issued $2.035 billion in new senior secured notes (8.75% due 2032 and 9.00% due 2034) alongside $300 million in convertible notes (3.5% due 2033). Proceeds were used to redeem all outstanding 2028 and 2030 notes and to repurchase $195.2 million of convertible bonds due 2028, resulting in a $176.3 million extinguishment loss.

• New JV Rig Acquisition Closed

  On July 29, 2026, a 50/50 joint venture finalized the acquisition of five jack-up rigs in Mexico for $287 million. The deal was financed with $237 million in seller's credit and $50 million in cash, of which Borr's share was $25 million.

auto_awesomeAnalysis · BORR · Energy & Transportation

A $176.3 million non-cash loss on debt extinguishment—stemming from the June refinancing—pushed Borr Drilling to a $270.4 million net loss in Q2 2026. Operating income tumbled 70% to $46.3 million, pressured by a 38% jump in rig operating expenses tied to higher repair and maintenance costs and a $19.9 million provision for credit losses. Even so, Adjusted EBITDA of $132.3 million, though down 42% year-over-year, underscores the fleet's underlying earnings capacity. The balance sheet now carries $2.5 billion in gross debt following the $2.035 billion notes offering and $300 million convertible notes issuance, with cash at $223.6 million. Beyond the numbers, the filing details the completion of a joint venture acquisition of five rigs in Mexico for $287 million, an upsize of the revolving credit facility to $250 million, and the cancellation of the share lending agreement. Together, these results and updates offer the first comprehensive view of the company's financial standing after its transformative refinancing and fleet expansion.