Core Insights - The offshore drilling industry is being closely monitored, with a focus on forecasting future revenues based on backlog data [1] - Company fundamentals, industry-specific data, and broader economic trends are the primary basis for analysis [1] - Company presentations are designed to present data favorably, and no presentations have advised selling stock [1] Company Analysis - Noble's recent earnings report was highlighted for its backlog scrutiny, indicating its importance in revenue forecasting [1] - Transocean's performance is also under consideration, suggesting it may be a key player in the industry [1] Industry Trends - The analysis emphasizes the importance of backlog in predicting future revenues within the offshore drilling sector [1] - The approach taken is to rely on comprehensive data rather than solely on company presentations, which may be biased [1]

Company Overview - Borr Drilling Limited provides offshore drilling services, focusing on the ownership and operation of jack-up rigs for shallow-water oil and gas exploration and production [5] - The company generates revenue by contracting rigs and related services to oil and gas companies, charging for rig time, equipment, and work crews [5] Financial Performance - Borr Drilling reported a revenue of $1.02 billion and a net income of $75.30 million for the trailing twelve months (TTM) [4] - The company has a dividend yield of 4.03% as of February 20, 2026 [4] - As of the same date, shares of Borr Drilling were priced at $5.95, reflecting a 95% increase over the past year [3][4] Market Activity - GeoSphere Capital Management acquired 1,385,000 shares of Borr Drilling, valued at approximately $5.58 million, during the fourth quarter of 2025 [2] - This new position accounts for 1.8371% of GeoSphere's reportable assets under management [3] Industry Dynamics - The offshore drilling sector is highly cyclical, with improving contract activity expected to lift earnings sharply [1][7] - Following years of underinvestment, offshore activity is recovering, leading to a significant rise in Borr's stock price [7] - The company's profitability is closely tied to the demand for rigs and contract prices, which can fluctuate based on industry activity [9][10] Investment Considerations - Investors should monitor whether higher day rates and stronger rig demand can be sustained, as these factors will influence Borr's cash flow [10] - High fleet utilization and manageable debt levels are critical for Borr to capitalize on industry improvements [10]

Core Insights - The company has seen significant improvements in rig commitments and operational performance, indicating a recovery in the jackup market fundamentals, particularly in the Middle East and Mexico [1][5][20] Operational Performance - In Q4 2025, the company achieved a technical utilization rate of 98.8% and an economic utilization rate of 97.8%, with operational revenues totaling $259.4 million [2][6] - The adjusted EBITDA for Q4 was $105.4 million, bringing the full-year adjusted EBITDA to $470.1 million, which was at the top end of the guidance range [2][8] Fleet and Contracting - The company has expanded its fleet by acquiring five premium rigs from Noble, which are expected to enhance operational capabilities and support near-term opportunities [5][20] - As of now, the fleet coverage for 2026 stands at 64%, with the first half coverage at 80% due to new rig acquisitions and contract extensions [15][16] Market Outlook - The company anticipates a gradual recovery in day rates and earnings visibility into 2027, driven by increasing demand and a robust tender pipeline, particularly in the Middle East [6][20] - There are approximately 120 rig-years in the tender and pre-tender phase for opportunities commencing within the next 12 months, with expectations for awards by mid-2026 [16][29] Financial Position - The company reported a net loss of $1 million for Q4, with total operating expenses increasing to $192.1 million, primarily due to higher rig operating and maintenance costs [7][8] - Cash and cash equivalents as of December 31 were $379.7 million, with total liquidity of $613.7 million, providing a solid financial foundation for future operations [10][20] Customer Relationships - The company has secured several new contracts and extensions, including a two-year contract extension for the Njord in Mexico, highlighting strong customer relationships and operational reliability [12][14] - Improved payment terms with Pemex are expected to enhance cash flow stability moving into 2026 [50][51]

Financial Data and Key Metrics Changes - Total operating revenues for Q4 2025 were $259.4 million, a decrease of $17.7 million or 6.4% from Q3 2025, primarily due to a $16 million decrease in day rate revenue [8] - Adjusted EBITDA for Q4 2025 was $105.4 million, bringing full year adjusted EBITDA to $470.1 million, which was at the top end of the guidance range [4][9] - The company recorded a net loss of $1 million for Q4 2025, while full year net income was $45 million, with a 7% decrease in adjusted EBITDA compared to 2024 [9][18] Business Line Data and Key Metrics Changes - Technical utilization for Q4 2025 was 98.8% and economic utilization was 97.8%, indicating strong operational performance [3] - The company secured new commitments for 7 rigs since the last quarterly report, with a focus on filling idle space in the 2026 schedule [13][16] Market Data and Key Metrics Changes - The jackup market utilization remains steady at approximately 90%, with expectations for market conditions to firm as tenders are awarded [6] - In the Middle East, multi-year tenders are in progress for an estimated 13 rigs, and Pemex announced a 34% year-on-year increase in upstream CapEx [5][6] Company Strategy and Development Direction - The company is focused on expanding its fleet and has acquired 5 premium rigs from Noble, which are expected to enhance operational flexibility and scale [6][19] - The strategy includes a mix of short and long-term contracts to optimize fleet utilization while being mindful of market conditions [49] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the recovery of market fundamentals and expects improvements in the second half of 2026, with a clear recovery in day rates anticipated in 2027 [19] - The company is actively pursuing contracting opportunities and expects to secure commitments that will bring contract coverage above 70% [16][19] Other Important Information - Cash and cash equivalents as of December 31, 2025, were $379.7 million, with total liquidity of $613.7 million [11] - The company plans to return to the Oslo Stock Exchange with a full uplisting expected in the first half of 2026 [12] Q&A Session Summary Question: Outlook for idle rigs Sif and Freya - Management is confident about securing contracts for Sif in the coming months, while Freya may take longer, potentially by late 2026 or early 2027 [22][23] Question: Achievability of EBITDA consensus of $440 million - Management indicated that while it is early for formal guidance, the outlook for 2026 suggests a pathway to achieve activity levels modestly higher than 2025 [24][26] Question: Market conditions in the Middle East - Management noted that tenders from Aramco and KOC are in progress, with awards expected around mid-year, which could tighten the market [31][32] Question: Potential for further acquisitions - Management stated that while they are open to M&A opportunities, they are selective and focused on complementary assets rather than individual rigs [39] Question: Rate development trajectory - Management anticipates that higher activity levels will start impacting bidding levels in Q3 2026, following the conclusion of current tenders [45][46] Question: Contracting strategy - Management aims for a mix of short and long-term contracts, with flexibility based on market conditions and specific tender requirements [49][50]

Financial Data and Key Metrics Changes - Total operating revenues for Q4 2025 were $259.4 million, a decrease of $17.7 million or 6.4% from Q3 2025, primarily due to a $16 million decrease in day rate revenue [8][9] - Adjusted EBITDA for Q4 2025 was $105.4 million, bringing full year adjusted EBITDA to $470.1 million, which was at the top end of the guidance range [4][9] - The company recorded a net loss of $1 million for Q4 2025, while full year net income was $45 million, representing a 7% decrease compared to 2024 [9][10] Business Line Data and Key Metrics Changes - Technical utilization for Q4 2025 was 98.8% and economic utilization was 97.8%, indicating strong operational performance [3] - The company secured new commitments for seven rigs since the last quarterly report, enhancing fleet contract visibility [4][13] Market Data and Key Metrics Changes - In the Middle East, multi-year tenders are in progress for an estimated 13 rigs, with Pemex announcing a 34% year-on-year increase in upstream CapEx [5][6] - Overall jackup market utilization remains steady at approximately 90%, with expectations for market conditions to firm as tenders are awarded [6] Company Strategy and Development Direction - The company believes the jackup market has bottomed out and anticipates gradual recovery in fundamentals as demand increases [4] - The company plans to return to the Oslo Stock Exchange through a listing on Euronext Growth, with a full uplisting to the main list expected in the first half of 2026 [12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about improving market dynamics in the second half of 2026, with expectations for a recovery in day rates and earnings visibility into 2027 [7][19] - The company highlighted the importance of filling idle space in the 2026 schedule while positioning the fleet to capitalize on improving market conditions [13][16] Other Important Information - The company completed a five-rig acquisition from Noble, which is expected to be immediately accretive to adjusted EBITDA and reduce debt per rig [19] - Cash and cash equivalents as of December 31, 2025, were $379.7 million, with total liquidity of $613.7 million [11] Q&A Session Summary Question: Outlook for idle rigs Sif and Freyja - Management is confident about securing contracts for Sif in the coming months, while Freyja may take longer to find work [22][23] Question: Achievability of EBITDA consensus of $440 million - Management indicated that while it is early for formal guidance, the outlook for 2026 suggests a pathway to achieve activity levels modestly higher than 2025 [24][25][26] Question: Middle East tender timeline - Management expects major tenders from Aramco and KOC to be awarded around mid-year, which could tighten the market [31][32] Question: Strategy for contract lengths - Management aims for a mix of short and long-term contracts, focusing on securing a baseline of backlog while being flexible with contract durations based on market conditions [47][49] Question: Payment normalization from Pemex - Management reported improved payment terms with Pemex, with expectations for continued normalization into 2026 [56][57] Question: Market dynamics and day rates - Management noted that day rates have been stable, with expectations for improvement following the awarding of tenders in the Middle East [42][45]

Financial Data and Key Metrics Changes - Total operating revenues for Q4 2025 were $259.4 million, a decrease of $17.7 million or 6.4% from Q3 2025, primarily due to a $16 million decrease in day rate revenue [8][9] - Adjusted EBITDA for Q4 2025 was $105.4 million, bringing full-year adjusted EBITDA to $470.1 million, which was at the top end of the guidance range [4][9] - The company recorded a net loss of $1 million for Q4 2025, while full-year net income was $45 million, with adjusted EBITDA decreasing by 7% compared to 2024 [9][10] Business Line Data and Key Metrics Changes - Technical utilization for the fleet was 98.8% and economic utilization was 97.8% in Q4 2025 [3] - The company secured new commitments for 7 rigs since the last quarterly report, with expectations for further coverage gains in the coming months [4][13] Market Data and Key Metrics Changes - In the Middle East, multi-year tenders are in progress for an estimated 13 rigs, and Pemex announced a 34% year-on-year increase in upstream CapEx [5] - Overall jackup market utilization remains steady at approximately 90%, with expectations for market conditions to firm as tenders are awarded [5] Company Strategy and Development Direction - The company believes the jackup market has bottomed out and sees gradual recovery in fundamentals as demand increases [4] - The company plans to return to the Oslo Stock Exchange through a listing on Euronext Growth, with a full uplisting to the main list expected in the first half of 2026 [12][20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the tendering pipeline, indicating that significant awards are expected by mid-2026, which could lead to improved market conditions [18][34] - The company anticipates that market conditions will continue to improve through the second half of 2026, with a clear recovery in day rates expected in 2027 and beyond [20] Other Important Information - Cash and cash equivalents as of December 31, 2025, were $379.7 million, with total liquidity of $613.7 million [11] - The company completed an equity offering raising gross proceeds of $84 million and an additional bond offering of $165 million [11][12] Q&A Session Summary Question: Outlook for idle rigs Sif and Freya - Management is confident that Sif will secure a contract in the coming months, while Freya may take longer, potentially going to work in late 2026 or early 2027 [22][24] Question: Thoughts on EBITDA for 2026 - Management indicated that while it is early for formal guidance, the outlook for 2026 suggests a modest increase in contracting days compared to 2025 [25][27] Question: Status of tenders in the Middle East - Management confirmed that major tenders from Aramco and KOC are in progress, with awards expected around mid-year [32][34] Question: Potential for further rig acquisitions - Management stated that while they are open to M&A opportunities, they are focused on complementary acquisitions rather than growth for its own sake [39][40] Question: Rate development trajectory - Management expects that higher activity levels will start impacting bidding levels in Q3 2026, following the awarding of tenders [46][47] Question: Contracting strategy for the fleet - Management emphasized the importance of a mix of short and long-term contracts, with flexibility based on market conditions [50][51] Question: Current status of rigs without contracts - Management indicated that rigs like Var and Freya may take longer to secure contracts, with a focus on developments in the Middle East as a potential catalyst [66]

Core Viewpoint - Borr Drilling Limited is set to present its fourth quarter 2025 results on February 19, 2026, via a webcast and conference call, indicating ongoing communication with stakeholders regarding financial performance [1]. Group 1: Presentation Details - The presentation will take place at 09:00 New York time (15:00 CET) on February 19, 2026 [1]. - Participants can access the presentation through a webcast link or by registering for a conference call [1]. - A replay of the webcast will be available after the live call [1]. Group 2: Contact Information - Questions regarding the presentation can be directed to Magnus Vaaler, CFO, at +44 1224 289208 [1].

Q4 2025 PRESENTATION February 19, 2026 Disclaimer Forward-Looking Statements These presentational materials and related discussions include forward-looking statements made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements do not reflect historical facts and may be identified by words such as "anticipate", "believe", "continue", "estimate", "expect", "intends", "may", "should", "will", "likely", "aim", "plan", "guidance", the negative ...

Core Insights - Borr Drilling Limited reported a decrease in annual net income and Adjusted EBITDA for 2025, while securing new contracts and expanding its fleet through acquisitions [1] Financial Performance - For the full year 2025, the company was awarded 24 new contract commitments, representing over 5,000 days and $649 million of Dayrate Equivalent Backlog [1] - Annual Adjusted EBITDA for 2025 was $470.1 million, a decrease of $35.3 million or 7% compared to 2024 [1] - Annual net income for 2025 was $45.0 million, a decrease of $37.1 million or 45% compared to 2024 [1] - Fourth Quarter Adjusted EBITDA was $105.2 million, a decrease of $30.4 million or 22% compared to the third quarter of 2025 [1] - Fourth Quarter total operating revenues were $259.4 million, a decrease of $17.7 million or 6% compared to the third quarter of 2025 [1] Operational Highlights - The company achieved a technical utilization rate of 98.8% and an economic utilization rate of 97.8% in the fourth quarter of 2025 [1] - The jack-up market is showing signs of recovery, particularly in the Middle East, with multiple tenders for long-term contracts for an estimated 13 rigs [1] - Contracted marketed premium rig utilization remains steady at approximately 90.3% [1] Strategic Moves - The company completed an equity offering of 21 million shares at $4.00 per share, raising total gross proceeds of $84 million [1] - An additional offering of $165 million principal amount of 10.375% senior secured notes due 2030 was completed [1] - The acquisition of five premium jack-up rigs from Noble Corporation was finalized for a total purchase price of $360 million, enhancing the company's fleet capacity [1] Future Outlook - The company expects market conditions to improve into the second half of 2026, setting the stage for better fundamentals and earnings visibility into 2027 [1] - Recent awards and extensions have increased 2026 coverage to 80% in the first half and 48% in the second half, adjusted for the newly acquired rigs [1]

Core Insights - Borr Drilling Limited's share price increased by 19.83% from February 2 to February 9, 2026, making it one of the top-performing energy stocks during that week [1][6] - The company has seen a total share price surge of over 40% since the beginning of 2025 [3] Company Overview - Borr Drilling Limited is an offshore shallow-water drilling contractor that provides worldwide offshore drilling services to the oil and gas industry [2] Recent Developments - On January 28, Borr Drilling announced the completion of the acquisition of five premium jack-up rigs from Noble Corporation for a total of $360 million, expanding its fleet to 29 rigs [3] - The CEO of Borr Drilling emphasized that the acquisition enhances the company's capacity for near-term offshore drilling opportunities and strengthens customer relationships [3]