Borr Drilling Limited (BORR): Business Model Canvas [Apr-2026 Updated]

You're looking at Borr Drilling Limited (BORR) and seeing a fundamentally healthy operation, one that's successfully leveraging its premium jack-up fleet to drive revenue growth in a tightening market. Honestly, when you see $\mathbf{84\%}$ contract coverage for 2025 and Q3 operating revenues hitting $\mathbf{\$277.1}$ million while maintaining $\mathbf{97.9\%}$ economic utilization on a young fleet, you know the core business model is clicking. As someone who has spent two decades mapping these energy plays, I can tell you the structure-from key partnerships with National Oil Companies like PEMEX to managing high financial expenses-is designed to capture premium dayrates. Dive into the full Business Model Canvas below to see exactly how Borr Drilling Limited (BORR) is turning its $\mathbf{24}$ modern rigs into serious cash flow.

Borr Drilling Limited (BORR) - Canvas Business Model: Key Partnerships

You're looking at the critical relationships Borr Drilling Limited maintains to keep its premium jack-up fleet earning dayrates. These partnerships are the backbone supporting their recent financial maneuvers and operational strength as of late 2025.

The company relies heavily on major National Oil Companies (NOCs) for securing long-term revenue visibility. For instance, following quarter end in Q3 2025, Borr Drilling announced contract extensions with Mexico's Pemex for three rigs: Galar and Gersemi each received a two-year firm extension, and the Njord rig also received an extension. The total contract value for these extensions is approximately \$213 million, excluding options. This relationship is further detailed by the deployment of the Galar rig in the Bacab-Lum field, which is being developed by an affiliate of Borr Drilling's customer under a private investment structure. On the South American side, the rig Arabia I has started earning day rate revenues under its long-term contract with Petrobras in Brazil.

Financially, Borr Drilling strengthened its position significantly in 2025 through key banking relationships. In July 2025, the company increased its liquidity by more than \$200 million. This was achieved via a \$102.5 million equity offering and commitments from commercial banks and existing lenders to amend their revolving credit facilities. The bank commitments included increasing the existing super senior RCF to \$200 million, reallocating a \$45 million Guarantee Facility, and adding a new \$35 million senior secured RCF, all subject to the equity raise. As of September 30, 2025, Borr Drilling reported \$227.8 million in cash and cash equivalents and \$234.0 million of undrawn revolving credit facilities, totaling \$461.8 million in available liquidity.

Partnerships with shipyards are essential for fleet readiness, though specific 2025 shipyard names weren't detailed in the latest reports. The successful integration of newbuild capacity is evident, as the newbuild rig Vali began earning day rate revenues in 2025 following its delivery in August 2024. The cost of keeping the fleet operational is substantial, with Rig operating and maintenance expenses reported at (\$128.5 million) for the third quarter of 2025. This represented a \$6.3 million increase over the second quarter of 2025, driven partly by reimbursable expenses for the rig Gerd. Total operating expenses for Q3 2025 reached (\$178.9 million).

The structure of operations in Mexico involves specific affiliate and joint venture arrangements. The deployment of the Galar rig to the Bacab-Lum field is directly tied to a development by an affiliate of the customer (Pemex). Historically, Borr Drilling held a 51% majority ownership in the drilling services Joint Ventures (JVs) with its Mexican partner, which were set up to provide integrated well services to Pemex.

The reliance on key suppliers is reflected in the operational expenditure figures:

• Rig operating and maintenance expenses for Q3 2025 were (\$128.5 million).
• Total operating expenses for Q3 2025 were (\$178.9 million).
• The increase in operating and maintenance expenses from Q2 2025 to Q3 2025 was \$6.3 million.
• Reimbursable expenses included in total operating expenses for Q3 2025 were \$15.2 million.

The nature of these key relationships can be summarized by the recent contract activity and financial positioning:

Finance: review covenant compliance post-liquidity injection by end of Q4 2025.

Borr Drilling Limited (BORR) - Canvas Business Model: Key Activities

You're looking at the core actions Borr Drilling Limited takes to keep that premium jack-up fleet earning. It's all about keeping the steel working and the financing in order, so let's break down the numbers behind those activities as of late 2025.

The primary activity is providing contract drilling services. Borr Drilling Limited operates a fleet of 24 modern jack-up rigs. This requires constant, high-level execution across the entire asset base.

Securing the work is the next critical step. As of the second quarter 2025 reporting, Borr Drilling Limited had secured 14 new contract commitments year-to-date (YTD) 2025. These awards represented approximately 2,584 days of potential work, translating to about $318 million in potential contract revenue.

Rig maintenance and operational management focus heavily on utilization. For the active portion of the fleet, the economic utilization rate in the first quarter of 2025 was 97.9%. By the second quarter of 2025, the technical utilization for working rigs hit 99.6%, with 22 out of the 24 rigs active. This high activity level directly translates to financial performance, with Q2 2025 operating revenues reaching $267.7 million.

Here's a quick look at how that fleet coverage is shaping up:

Strategic financial management involves both managing existing liabilities and raising fresh capital when opportunities arise. In July 2025, Borr Drilling Limited took a decisive step to strengthen its longer-term position, increasing liquidity by more than $200 million. This was achieved through a $102.5 million equity offering and commitments from commercial banks. For debt service, cash interest paid for the six months ended June 30, 2025, totaled $104.4 million. Net cash used in financing activities for that same six-month period was $75.6 million.

Operational excellence and safety compliance are key differentiators that help secure these contracts. The commitment to safety is recognized by major customers. For example, Borr Drilling Limited received PTTEP's CEO SSHE Excellence Award for the second consecutive year. Other recognitions include the Groa winning Qatar Energy's HSE Award for 2024 and the Prospector 1 receiving the 2024 Best Safety Performance Award from the IADC North Sea Chapter.

You need to track the rig status to see these activities in action:

• Rigs active in Q2 2025: 22 out of 24.
• Total contract revenue backlog (as of June 30, 2025): $1.33 billion.
• Q2 2025 Adjusted EBITDA: $133.2 million.
• 2025 Bloomberg consensus Adjusted EBITDA estimate: approximately $470 million.

Finance: review the covenant compliance schedule for the RCF amendments by next Tuesday.

Borr Drilling Limited (BORR) - Canvas Business Model: Key Resources

The Key Resources for Borr Drilling Limited are centered on its modern, high-specification physical assets, strong financial footing, and the human capital required to operate them efficiently in the current market cycle.

The foundation of the asset base is the fleet of 24 premium, modern jack-up rigs. A critical differentiator is that all of these units were built after 2010, placing them in the most desirable, high-specification category for modern drilling programs. As of the third quarter of 2025, Borr Drilling Limited reported that 23 of 24 rigs were active, demonstrating near-full deployment of this premium fleet.

Financial resilience is a key resource, evidenced by the balance sheet strength as of September 30, 2025. The Total liquidity position stood at $461.8 million. This figure is comprised of $227.8 million in cash and cash equivalents, supplemented by $234.0 million of undrawn revolving credit facilities.

Forward visibility and revenue quality are secured through a substantial contract backlog. As outlined, the contract backlog provided 84% coverage for the 2025 fiscal year at an average day rate of $145,000. The total contract revenue backlog, as of September 30, 2025, was reported at $1.11 billion.

The capability of the highly skilled and experienced offshore drilling crews and the effectiveness of the proprietary operational systems are best quantified by the utilization metrics achieved in the recent period. These resources translate directly into operational uptime and revenue realization.

Here's a quick look at the operational performance metrics that reflect the quality of the fleet and the crews:

• Technical utilization for working rigs in Q3 2025 was 97.9%.
• Economic utilization for the same period was 97.4%.
• Marketed utilization for the modern jack-up fleet (rigs built after 2000) stood at 93.1% at the end of September 2025.
• Borr Drilling Limited secured 14 new contract commitments year-to-date 2025, representing approximately 2,584 days and $318 million of potential contract revenue.

The following table summarizes the key quantitative resources as of late 2025 reporting periods:

The company also noted that for the full year 2026, contract coverage, including price options, stood at 62%, with an average day rate of $139,000 for those contracted days.

Borr Drilling Limited (BORR) - Canvas Business Model: Value Propositions

You're looking at the core reasons customers choose Borr Drilling Limited, which really boils down to having top-tier equipment that works almost all the time, and securing that work with solid agreements.

The value proposition centers on a premium, young jack-up fleet, which offers superior efficiency and reliability compared to older assets in the market. While the exact average age isn't in the latest reports, the focus on a premium fleet underpins their high operational metrics.

Operational performance is a clear differentiator. Borr Drilling Limited demonstrated high operational performance, achieving a technical utilization of 97.9% and an economic utilization of 97.4% across the active fleet in Q3 2025. This follows an even higher technical utilization of 99.6% in Q2 2025. With 23 of their 24 rigs active during Q3 2025, the company is maximizing asset deployment.

Borr Drilling Limited maintains flexibility to operate in key shallow-water markets. They are actively securing work and expanding their presence in regions like Mexico, West Africa, and the Gulf of America.

The customer-centric approach is evidenced by securing long-term contract extensions, often with improved terms. Following Q3 2025, Borr Drilling Limited announced three contract extensions in Mexico for the Galar, Gersemi, and Njord rigs, all featuring improved commercial and payment terms. This focus on better terms also helped restart collections, with approximately $19 million received in September and October 2025 from Mexico.

The success in securing new work, like the recent awards expanding into the Gulf of America and Angola, positions Borr Drilling Limited to capture incremental drilling activity as the market tightens. This is reflected in the financial metrics showing strong forward visibility.

Here's a look at the recent operational and commercial strength that backs these value propositions:

The success in converting commercial interest into firm work is clear:

• Secured a $58 million contract for the 'Norve' rig in West Africa, estimated to start in Q3 2025.
• New commitments for 'Odin' and 'Grid' expanded footprint into the Gulf of America and Angola.
• Mexico contract extensions included improved payment terms, such as a 45-day O&M reimbursement and a 180-day cap on variable charter, materially reducing working capital risk.

You can see the focus on high-quality, long-term revenue visibility. Finance: draft 13-week cash view by Friday.

Borr Drilling Limited (BORR) - Canvas Business Model: Customer Relationships

You're looking at how Borr Drilling Limited manages the people who pay for their high-specification jack-up rigs. The relationships are clearly tied to performance and securing future work, which you see reflected in their backlog and utilization figures.

Borr Drilling Limited fosters relationships through demonstrated operational excellence. This focus translates directly into securing high-value contracts, which is why their total contract revenue backlog stood at a solid $1.25 billion as of the end of Q3 2025. The market is defintely rewarding this focus on reliable service delivery.

The commitment to superior operational performance is quantified by their Q3 2025 fleet metrics:

• Technical utilization across the active fleet reached 97.9%.
• Economic utilization across the active fleet reached 97.4%.
• The rig 'Arabia II' contract in the Middle East includes an additional performance-based incentive.
• The company received PTTEP's CEO SSHE Excellence Award for the second consecutive year.

Direct negotiation is evident in securing extensions and new work. Following Q3 2025, Borr Drilling Limited announced three contract extensions in Mexico, including the 'Galar' and 'Gersemi' rigs, each receiving a two-year firm extension at improved commercial and payment terms. Furthermore, new commitments were announced for the 'Odin' and 'Grid' rigs, expanding footprint into the Gulf of America and Angola.

Operational transparency and customer centricity are core focuses, especially in challenging markets. For instance, collections in Mexico restarted in September 2025, with approximately $19 million received in September and October, building confidence in payment normalization.

The relationship with key insiders is cemented by their participation in the July 2025 equity offering, which raised gross proceeds of $102.5 million through the issuance of approximately 50 million shares at $2.05 per share. Key insiders committed a total of $11.3 million in this offering:

The company's ability to secure new work is the clearest evidence of client satisfaction and perceived efficiency. Year-to-date 2025, Borr Drilling Limited was awarded 22 new contract commitments, representing more than 4,820 days and $625 million of potential contract revenue.

Here's a quick look at the forward visibility achieved through these customer relationships as of the Q3 2025 report:

• Total Contract Revenue Backlog (as of report date): $1.25 billion.
• 2025 Contract Coverage: 62% (following Q3 awards) with an average dayrate of $140,000 (including priced options for 2026 awards).
• Year-to-Date 2025 New Commitments: 22 contracts.

Borr Drilling Limited (BORR) - Canvas Business Model: Channels

You're looking at how Borr Drilling Limited gets its high-spec jack-up rigs in front of customers and secures the contracts that drive revenue. The channels here are all about direct engagement and demonstrating operational superiority, which translates directly into firm commitments.

Direct sales force and commercial team for contract negotiation are the engine behind securing the backlog. The commercial strength is evident in the results: Year to Date (YTD) 2025, Borr Drilling Limited secured 22 new contract commitments, adding $625 million to its backlog. This commercial success is underpinned by fleet readiness; for instance, in Q3 2025, the company had 23 of its 24 rigs active. The team is clearly effective at converting market interest into revenue visibility.

The success in negotiation is also seen in extensions and improved terms. Following Q3 2025, the Galar and Gersemi rigs in Mexico each received a two-year firm extension at improved commercial and payment terms. The focus on high-value work is clear when you look at the average dayrate for contracted work.

Direct tender participation with National Oil Companies (NOCs) and International Oil Companies (IOCs) is how Borr Drilling Limited lands these major deals. The customer base is actively diversifying, expanding into the Gulf of America and Angola to minimize idle time. Recent awards show direct engagement with various operators:

• Secured work with Dana Petroleum and ONE-Dyas in the North Sea.
• Contract with New Age in Congo, West Africa.
• Award from Vietsovpetro in Vietnam, Southeast Asia.
• Continued work with Pemex in Mexico, with collections restarting in September 2025, totaling approximately $19 million received in September and October.

The results of these tender wins are best summarized by the contract metrics achieved through these direct sales efforts:

Corporate website and investor relations for market communication serve as the primary hub for official updates. You can find the earnings report, webcast, and accompanying presentation on the Investor Relations section of its website, www.borrdrilling.com. The company communicated its Q3 2025 results via a webcast and conference call on November 6, 2025. This channel is crucial for managing expectations, especially given the anticipated full year 2025 Adjusted EBITDA guidance is between $455 million and $470 million.

Industry conferences and trade shows to showcase fleet and operational track record are supported by the company's leading operational metrics. The track record being showcased is one of high efficiency. In Q3 2025, Borr Drilling Limited reported industry-leading operational execution with:

• Technical utilization at 97.9%.
• Economic utilization at 97.4% across the active fleet.

This high utilization, with 23 of 24 rigs running, is the concrete proof point used in commercial discussions to justify premium dayrates. Finance: draft 13-week cash view by Friday.

Borr Drilling Limited (BORR) - Canvas Business Model: Customer Segments

Borr Drilling Limited's customer base is comprised of oil and gas exploration and production companies, including integrated oil companies, state-owned national oil companies, and independent oil and gas companies.

As of the report date of November 5, 2025, Borr Drilling Limited had a total contract revenue backlog of $1.25 billion, which followed a backlog of $1.11 billion as of September 30, 2025. Year to date 2025, the company was awarded 22 new contract commitments, representing more than 4,820 days and $625 million of potential contract revenue.

The fleet status as of November 5, 2025, showed 23 of 24 modern jack-up rigs either contracted or committed.

• Fleet distribution by location as of November 5, 2025: six in Southeast Asia, three in the Middle East, five in Africa, seven in Mexico, one in the North Sea, and one in South America.
• Contract coverage for 2026 stands at 62% with an average dayrate of $140,000, including priced options.
• Contract coverage for 2025 reached 84% at an average day rate of $145,000 as of the second quarter of 2025.

Global National Oil Companies (NOCs) like Saudi Aramco and PEMEX

Borr Drilling Limited secures long-term commitments with major NOCs. For example, the rig Arabia III is operating for Saudi Aramco in Saudi Arabia with a commitment extending to September 2028. The Galar and Gersemi rigs are operating for PEMEX in Mexico, with commitments extending to April 2026 and May 2026, respectively.

Major International Oil Companies (IOCs) like Petrobras and Eni

The customer base includes IOCs operating across various regions. The rig Arabia I is operating for Petrobras in Brazil, with an option to extend past April 2029. The rig Ran has a contract extension with Eni in Mexico running until January 2026.

Independent oil and gas exploration and production (E&P) companies

Independent E&P companies contribute to contract awards, such as the new commitment for the rig Norve in West Africa with a repeat customer, adding $58 million in contract revenue backlog. Also, in Mexico, the Company entered into a Letter of Intent (LOI) with an independent oil company for a drilling program commencing in 2025.

Customers operating in shallow-water basins across Latin America, West Africa, and Asia

The geographic spread of operations targets shallow-water basins. In Latin America, Petrobras operates in Brazil, and Mexico has seven contracted rigs as of November 2025. West Africa accounts for five rigs as of November 2025, with specific contracts in Benin (Lime Petroleum) and Ivory Coast (Foxtrot International). Asia includes commitments in Southeast Asia, with six rigs located there as of November 2025, including contracts in Thailand (PTTEP customer mentioned previously) and Vietnam.

Borr Drilling Limited (BORR) - Canvas Business Model: Cost Structure

You're looking at the core expenditures for Borr Drilling Limited as of late 2025. The cost structure is heavily weighted toward keeping those modern jack-up rigs running and servicing the debt taken on for their construction.

Rig operating and maintenance expenses represent a significant chunk of the day-to-day costs. For the third quarter of 2025, these expenses totaled $128.5 million. This figure reflects the costs associated with keeping the active fleet-which saw 23 of 24 rigs active during the quarter-in top operational shape.

Financing the fleet means high total financial expenses, net, are a constant drain. For Q3 2025, the net financial expense, which includes interest expense, was reported at $58.6 million. This is a direct consequence of debt service obligations, such as interest expense of $56.4 million recorded in that same quarter.

General and administrative (G&A) expenses are managed tightly, though they still contribute to the overall cost base. For the third quarter of 2025, Borr Drilling Limited reported G&A expenses of $12.8 million. This contrasts with the first quarter of 2025, where G&A was $11.1 million for the three months ended March 31, 2025.

When you look at the major cost components for the third quarter of 2025, here's how the key operating and financial expenses stack up:

Regarding crew and personnel costs, these are embedded within the operating expenses and G&A. For instance, in Q1 2025, the G&A decrease was partially driven by a $2.8 million reduction in personnel and associated personnel tax expense compared to the prior year period. Management has noted that the business may experience inflationary pressure impacting costs, including personnel costs.

For Capital expenditures (CapEx), the focus has shifted now that the newbuild program is largely complete. The most recent concrete data point on investing activities is for the first six months of 2025, where net cash used in investing activities was $25.1 million. While you mentioned a projection of below $50 million for the full year 2025 after newbuild completion, the specific, final CapEx figure for the full year 2025 isn't explicitly detailed in these latest filings, so we rely on the cash flow activity as the closest proxy for investment spending.

You should track the following cost drivers closely:

• Sustaining the active fleet's operational readiness.
• The impact of interest rate movements on debt service costs.
• Inflationary effects on crew wages and supplies.
• Any further capital deployment for maintenance or upgrades.

Finance: draft 13-week cash view by Friday.

Borr Drilling Limited (BORR) - Canvas Business Model: Revenue Streams

You're looking at how Borr Drilling Limited brings in the cash flow, which is key for any capital-intensive operation like offshore drilling. The revenue streams are heavily weighted toward the day-to-day operation of the premium jack-up fleet, but other components add important layers to the total top line.

For the third quarter of 2025, Borr Drilling Limited reported total operating revenues of $277.1 million. This figure represents a 4% increase compared to the second quarter of 2025. Honestly, seeing that quarter-over-quarter growth is a good sign of commercial strength.

The primary source of income comes from the rigs working under contract. Here's the quick math on how that Q3 2025 revenue broke down:

It's defintely worth noting that the dayrate revenue makes up the vast majority of the total. Also, within those total operating revenues, there was $21.2 million in reimbursable revenues recognized for the third quarter of 2025, which was an increase of $4.2 million compared to the prior quarter.

Beyond the recurring operational revenue, Borr Drilling Limited captures lump-sum fees related to getting rigs to work. For example, following the commencement of long-term contracts for the rigs Arabia I and the newbuild Vali, the company was set to invoice approximately $48 million in lump-sum mobilization revenues.

Looking at the forward-looking contract pipeline as of the end of Q3 2025, the company secured 22 new contract commitments year-to-date. These commitments represent more than 4,820 operating days and carry a potential contract revenue value of $625 million.

You can see the other ways revenue is generated through these specific activities:

• Dayrate Revenue from Contract Drilling Services
• Bareboat Charter Revenue
• Management Contract Revenue
• Lump-sum mobilization and demobilization fees

Finance: draft 13-week cash view by Friday.