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    What Borr Drilling (BORR)'s New Americas Jack-Up Contracts Mean For Shareholders

    Simply Wall St·01/07/2026 13:32:45
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    • Borr Drilling Limited recently announced new contract commitments for its premium jack-up rigs Ran and Odin in the Americas, including a one-well extension with ENI in Mexico and a multi-well deal in the United States that extends firm work visibility into 2026 and activates additional option periods into 2027.
    • These contracts deepen Borr Drilling’s backlog and lengthen revenue visibility, particularly through the activated six-month optional period for Odin’s customer Cantium starting in January 2027.
    • We’ll now explore how this additional contracted time for Ran and Odin may affect Borr Drilling’s investment narrative and future earnings visibility.

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    Borr Drilling Investment Narrative Recap

    To own Borr Drilling, you need to believe in sustained demand for modern jack up rigs and the company’s ability to keep its fleet effectively contracted. The Ran and Odin awards modestly strengthen near term earnings visibility, but do not materially change the biggest risk right now, which is that earnings are forecast to decline even as interest costs remain poorly covered.

    Against this backdrop, the May 2025 decision to stop paying a dividend to reinforce the balance sheet stands out. When you set that alongside the fresh contract wins for Ran and Odin, the picture that emerges is a business prioritizing balance sheet resilience while gradually extending backlog, which directly ties into the catalyst of improved contracting coverage.

    However, while new contracts help, investors should still be aware that interest payments are not well covered and that...

    Read the full narrative on Borr Drilling (it's free!)

    Borr Drilling's narrative projects $1.0 billion revenue and $3.4 million earnings by 2028.

    Uncover how Borr Drilling's forecasts yield a $4.25 fair value, a 3% upside to its current price.

    Exploring Other Perspectives

    BORR 1-Year Stock Price Chart
    BORR 1-Year Stock Price Chart

    Six members of the Simply Wall St Community currently estimate Borr Drilling’s fair value between US$4 and US$38.92, reflecting very different views on its prospects. You can weigh those opinions against the growing backlog from recent contracts, which may influence how you think about the company’s ability to support earnings over time.

    Explore 6 other fair value estimates on Borr Drilling - why the stock might be worth just $4.00!

    Build Your Own Borr Drilling Narrative

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.