Borr Drilling

To provide superior drilling services by being the undisputed global leader in modern shallow-water drilling.

Borr Drilling SWOT Analysis

Updated: October 4, 2025 • 2025-Q4 Analysis

How to Use This Analysis

This analysis for Borr Drilling was created using Alignment.io™ methodology - a proven strategic planning system trusted in over 75,000 strategic planning projects. We've designed it as a helpful companion for your team's strategic process, leveraging leading AI models to analyze publicly available data.

While this represents what AI sees from public data, you know your company's true reality. That's why we recommend using Alignment.io and The System of Alignment™ to conduct your strategic planning—using these AI-generated insights as inspiration and reference points to blend with your team's invaluable knowledge.

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The Borr Drilling SWOT analysis reveals a company at a pivotal moment. Its premier, modern fleet is a formidable strength, commanding high day rates and utilization in a tight market. This operational advantage, however, is weighed down by a significant debt burden that constrains financial flexibility and profitability. The primary strategic imperative is clear: leverage the current strong market cycle to aggressively pay down debt and refinance obligations. Opportunities for regional expansion and favorable contract repricing must be seized immediately. Simultaneously, the company must mitigate threats from geopolitical instability and interest rate hikes. The core challenge for Borr Drilling is to translate its undeniable operational excellence into enduring financial strength, securing its position as a market leader beyond the current upcycle. This focused execution will unlock significant shareholder value.

Valaris Seadrill Noble Corporation Shelf Drilling ADES

No past cycles

Mission & Vision SWOT Analysis OKR Plan Retrospective AI Strategy Data Acquisition

To provide superior drilling services by being the undisputed global leader in modern shallow-water drilling.

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Strengths

FLEET: Youngest, most advanced jack-up fleet commands premium rates.
UTILIZATION: Industry-leading economic utilization rate consistently >93%.
BACKLOG: Strong contract backlog of $1.74B provides revenue visibility.
DAYRATES: Secured leading-edge day rates >$170k, boosting profitability.
MANAGEMENT: Experienced team with proven operational execution track record.

Weaknesses

DEBT: Significant ~$1.5B debt load consumes cash flow via interest.
SCALE: Smaller size relative to giants like Valaris limits economies of scale.
DOWNTIME: Planned maintenance/activations create temporary revenue gaps.
CONCENTRATION: High revenue dependence on Middle East region and key clients.
CASH FLOW: Free cash flow remains constrained by capex and debt service.

Opportunities

REFINANCING: Favorable market to refinance debt, extending maturities.
DEMAND: Surging jack-up demand in Middle East & SE Asia for long-term work.
PRICING: Tight market allows for continued upward repricing of contracts.
CONSOLIDATION: Potential to be a consolidator or an attractive M&A target.
GAS: Growing global demand for natural gas supports shallow-water activity.

Threats

VOLATILITY: High sensitivity to oil price fluctuations and E&P spending.
INTEREST RATES: Higher rates increase cost of servicing and refinancing debt.
GEOPOLITICS: Regional instability in the Middle East could disrupt operations.
COMPETITION: Intense pricing pressure from larger, recently merged rivals.
ESG: Growing investor pressure to divest from fossil fuel-related assets.

Key Priorities

DEBT: Aggressively de-leverage the balance sheet to improve flexibility.
CONTRACTS: Maximize economic utilization via long-term, high-rate contracts.
OPERATIONS: Drive flawless execution to minimize NPT and control costs.
DIVERSIFICATION: Strategically expand customer base and geographic footprint.

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Borr Drilling OKR

Updated: October 4, 2025 • 2025-Q4 Analysis

The Borr Drilling OKR plan is sharp, focused, and directly addresses the strategic imperatives identified in the analysis. The objectives to 'Fortify Balance Sheet' and 'Maximize Profitability' correctly prioritize leveraging the current strong market to fix the company's primary weakness—its debt. The 'Deliver Flawlessly' objective rightly connects operational excellence to financial outcomes, while 'Expand Strategically' provides a clear, disciplined path for growth. This OKR framework avoids generic goals, instead creating a clear, interconnected plan where operational success directly fuels financial strength, which in turn enables strategic expansion. It's a virtuous cycle designed to transform Borr Drilling from an operational leader into a financial powerhouse in its category.

Valaris Seadrill Noble Corporation Shelf Drilling ADES

No past cycles

Mission & Vision SWOT Analysis OKR Plan Retrospective AI Strategy Data Acquisition

To provide superior drilling services by being the undisputed global leader in modern shallow-water drilling.

FORTIFY BALANCE SHEET

Achieve financial resilience and unlock strategic freedom.

DEBT: Reduce total debt outstanding by $150M through a combination of free cash flow and asset sales.
REFINANCE: Complete the refinancing of the 2025 credit facilities to extend maturity out to 2028 or beyond.
RATIO: Achieve and maintain a net debt to trailing twelve months EBITDA ratio below 2.5x for the first time.
CASH: Increase the company's unrestricted cash balance to a target of $200M for operational flexibility.

MAXIMIZE PROFITABILITY

Secure top-tier contracts that reflect our premium fleet.

DAYRATES: Achieve a fleet-wide average contracted day rate of $150k, establishing a new company record.
BACKLOG: Increase the total contract revenue backlog by 20% to exceed the $2.0 billion threshold.
UTILIZATION: Attain a full-year economic utilization rate of 95% across the entire operational rig fleet.
MARGINS: Expand adjusted EBITDA margins to 50% by capitalizing on high day rates and strict cost control.

DELIVER FLAWLESSLY

Set the industry standard for safety and operational uptime.

UPTIME: Achieve a technical utilization (operational uptime) of 98.5% across the entire active rig fleet.
SAFETY: Reduce the Total Recordable Incident Rate (TRIR) by 15% year-over-year, aiming for a rate below 0.5.
NPT: Decrease non-productive time (NPT) by 20% through improved planning and predictive maintenance pilots.
BUDGET: Deliver all rig activation and special periodic survey projects within 5% of the approved budget.

EXPAND STRATEGICALLY

Grow our footprint in key markets with premier partners.

GEOGRAPHY: Secure the first long-term contract for a Borr Drilling rig operating in the Latin America region.
CUSTOMERS: Add two new International Oil Companies (IOCs) to our active customer portfolio for diversification.
DIVERSIFICATION: Reduce revenue concentration from the single largest customer to below 30% of total revenue.
PARTNERSHIP: Establish a formal technology partnership with a leading AI firm to pilot predictive analytics.

METRICS

Economic Utilization Rate: >95%
Adjusted EBITDA: >$500M
Total Debt: <$1.2B

VALUES

Honesty
Humbleness
Trouble-Shooting
Perseverance
Accountability

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Borr Drilling Retrospective

AI-Powered Insights

Claude

Gemini

GPT

Borr Drilling Q1 2024 Earnings Report & Webcast
Borr Drilling Investor Presentations (May 2024)
Borr Drilling Official Website (borrdrilling.com)
Public financial data sources (Market Cap, Stock Price)
Offshore drilling industry reports and competitor analysis

Valaris Seadrill Noble Corporation Shelf Drilling ADES

No past cycles

Mission & Vision SWOT Analysis OKR Plan Retrospective AI Strategy Data Acquisition

To provide superior drilling services by being the undisputed global leader in modern shallow-water drilling.

Toggle Theme

What Went Well

REVENUE: Strong revenue growth driven by higher day rates and utilization.
DAYRATES: Secured new contracts at leading-edge rates, boosting backlog value.
UTILIZATION: Maintained industry-leading economic utilization above 93%.
EBITDA: Adjusted EBITDA showed significant year-over-year improvement.
DEBT: Successfully executed refinancing activities, extending maturities.

Not So Well

DOWNTIME: Some rigs experienced downtime for contract prep and maintenance.
CASH FLOW: Free cash flow remains tight due to interest payments and capex.
NET INCOME: Profitability is still modest as high interest costs eat margins.
EXPENSES: Operating expenses increased due to inflation and rig reactivations.
GEOGRAPHY: Contract gaps in certain regions impacted continuous utilization.

Learnings

MARKET: The premium jack-up market is extremely tight, confirming our strategy.
DEBT: High leverage remains the single largest constraint on financial results.
UPTIME: Minimizing NPT and maintenance downtime is critical for profitability.
CLIENTS: Strong demand from NOCs provides a stable base for future growth.
COSTS: Inflationary pressures require strict cost discipline to protect margins.

Action Items

DEBT: Continue executing on the stated plan to de-leverage the balance sheet.
CONTRACTS: Proactively secure long-term contracts for rigs with upcoming availability.
MAINTENANCE: Optimize maintenance schedules to minimize downtime and revenue loss.
COSTS: Implement further cost control measures to offset inflationary pressures.
MARKETING: Aggressively market available rigs in high-demand regions like SE Asia.

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Organization	SWOT Analysis	OKR Plan	Top 6	Retrospective

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Borr Drilling Market

AI-Powered Insights

Claude

Gemini

GPT

Borr Drilling Q1 2024 Earnings Report & Webcast
Borr Drilling Investor Presentations (May 2024)
Borr Drilling Official Website (borrdrilling.com)
Public financial data sources (Market Cap, Stock Price)
Offshore drilling industry reports and competitor analysis

Founded: 2016
Market Share: ~8% of the global competitive jack-up rig market.
Customer Base: National oil companies (NOCs), integrated oil companies (IOCs).
Category:
Offshore Drilling
SIC Code: 1381 Drilling Oil and Gas Wells
NAICS Code: 213111 Drilling Oil and Gas Wells
Location: Hamilton, Bermuda
Zip Code: HM 11
Employees: 1500

Competitors

Valaris View Analysis

Seadrill View Analysis

Noble Corporation Request Analysis

Shelf Drilling Request Analysis

ADES Request Analysis

Products & Services

No products or services data available

Distribution Channels

Borr Drilling Business Model Analysis

AI-Powered Insights

Claude

Gemini

GPT

Borr Drilling Q1 2024 Earnings Report & Webcast
Borr Drilling Investor Presentations (May 2024)
Borr Drilling Official Website (borrdrilling.com)
Public financial data sources (Market Cap, Stock Price)
Offshore drilling industry reports and competitor analysis

Problem

Inefficient and unsafe offshore drilling
High emissions from older rig fleets
Unpredictable drilling project timelines

Solution

Modern, high-spec jack-up drilling rigs
Experienced crews focused on safety
Data-driven operational performance

Key Metrics

Economic utilization rate
Adjusted EBITDA
Total Recordable Incident Rate (TRIR)
Contract backlog value

Unique

Youngest, most technologically advanced fleet
Singular focus on premium jack-up segment
High operational uptime and efficiency

Advantage

Superior asset quality attracts top clients
Operational excellence as a culture
Lean structure allows for agility

Channels

Direct sales and commercial teams
Tender and bidding processes
Relationships with NOCs and IOCs

Customer Segments

National Oil Companies (NOCs)
International Oil Companies (IOCs)
Large Independent E&P Companies

Costs

Crew salaries and related expenses
Rig maintenance and capital expenditures
Debt service (interest payments)
General and administrative expenses

Borr Drilling Product Market Fit Analysis

Updated: October 4, 2025

Borr Drilling provides the world's most advanced shallow-water rigs, enabling energy companies to execute projects faster and more predictably. Its modern fleet delivers superior efficiency, reliability, and sustainability, minimizing project costs and risks while maximizing the value of critical energy resources. This ensures clients meet their production targets safely and with a reduced environmental footprint.

EFFICIENCY: Drill wells faster, reducing total project costs.

RELIABILITY: Minimize downtime with our modern, well-maintained fleet.

SUSTAINABILITY: Lower emissions per well with advanced rig technology.

Before State

Using older, less efficient drilling rigs.
Higher risk of safety incidents, downtime.
Increased fuel consumption and emissions.

After State

Predictable, efficient drilling operations.
Reduced emissions and enhanced safety.
Maximized reservoir recovery rates.

Negative Impacts

Project delays and budget overruns.
Higher carbon taxes and regulatory risk.
Reputational damage from safety lapses.

Positive Outcomes

Drilling programs completed on time, on budget.
Improved ESG scores and operational metrics.
Increased production and profitability.

Key Metrics

Economic Utilization Rate

>93% (Q1 2024)

Average Day Rate

~$135.5k (Q1 2024)

Contract Backlog

$1.74 Billion (Q1 2024)

Customer retention through contract extensions is high.

Requirements

Significant capital for modern rig contracts.
Commitment to high safety standards.
Integrated planning with the drilling contractor.

Why Borr Drilling

Deploying high-spec rigs with skilled crews.
Utilizing data analytics for performance.
Collaborative well planning with clients.

Borr Drilling Competitive Advantage

Our modern fleet drills faster, safer.
Fewer emissions than older competitor rigs.
Superior uptime minimizes costly NPT.

Proof Points

Industry-leading utilization rates >93%.
Secured record day rates over $170k.
Long-term contracts with major NOCs/IOCs.

Borr Drilling Market Positioning

AI-Powered Insights

Claude

Gemini

GPT

Borr Drilling Q1 2024 Earnings Report & Webcast
Borr Drilling Investor Presentations (May 2024)
Borr Drilling Official Website (borrdrilling.com)
Public financial data sources (Market Cap, Stock Price)
Offshore drilling industry reports and competitor analysis

Strategic pillars derived from our vision-focused SWOT analysis

Maintain the most modern, highest-performing fleet.

Achieve top-quartile safety and efficiency.

De-leverage and optimize capital allocation.

Pursue disciplined expansion in core markets.

What You Do

Provides modern, high-spec jack-up rigs for shallow-water drilling.

Target Market

Global oil and gas companies seeking efficiency and safety.

Differentiation

Youngest and most technologically advanced jack-up fleet.
Focus exclusively on premium shallow-water assets.

Revenue Streams

Long-term and short-term rig contracts (day rates).
Mobilization and demobilization fees.

Borr Drilling Operations and Technology

AI-Powered Insights

Claude

Gemini

GPT

Borr Drilling Q1 2024 Earnings Report & Webcast
Borr Drilling Investor Presentations (May 2024)
Borr Drilling Official Website (borrdrilling.com)
Public financial data sources (Market Cap, Stock Price)
Offshore drilling industry reports and competitor analysis

Company Operations

Organizational Structure: Centralized management with regional operational oversight.
Supply Chain: Global network of suppliers for rig equipment, parts, and services.
Tech Patents: Focus on operational tech, not extensive patent portfolio.
Website: https://borrdrilling.com/

Top Clients

Board Members

Borr Drilling Competitive Forces

Threat of New Entry

Low: Extremely high capital requirements ($200M+ for a new rig) and established relationships create significant barriers to entry.

Supplier Power

Medium: Key equipment suppliers (like NOV, SLB) are large and specialized, giving them pricing power for critical components.

Buyer Power

High: Customers are powerful NOCs and supermajors who can negotiate favorable terms and contract large fleets.

Threat of Substitution

Low: There is currently no viable technological substitute for jack-up rigs in shallow-water oil and gas extraction.

Competitive Rivalry

High: The market is dominated by a few large, well-capitalized players (Valaris, Noble, Seadrill) post-consolidation.

Analysis of AI Strategy

Updated: October 4, 2025 • 2025-Q4 Analysis

The Borr Drilling AI SWOT analysis highlights a significant opportunity to amplify its core competitive advantage. The company's modern, data-rich fleet is a perfect foundation for AI-driven operational excellence. The most immediate and impactful applications are in predictive maintenance and drilling optimization, which directly translate to higher uptime and lower costs—key value drivers for clients. While lacking deep in-house AI talent is a weakness, this can be mitigated through strategic partnerships with specialized tech firms. The primary focus should be on building a robust data infrastructure to unify information from its standardized fleet. By treating its operational data as a strategic asset and pursuing targeted AI initiatives, Borr Drilling can create a powerful, defensible moat, further differentiating its services and solidifying its position as the industry's high-performance leader.

Valaris Seadrill Noble Corporation Shelf Drilling ADES

No past cycles

Mission & Vision SWOT Analysis OKR Plan Retrospective AI Strategy Data Acquisition

To provide superior drilling services by being the undisputed global leader in modern shallow-water drilling.

Strengths

DATA: Rich, high-frequency operational data from modern, standardized rigs.
ASSETS: Homogeneous fleet allows for scalable deployment of AI solutions.
CULTURE: Lean, agile structure could enable faster adoption of new technology.
SENSORS: Modern rigs are equipped with thousands of sensors for data capture.
PARTNERS: Strong relationships with tech-forward clients open to AI pilots.

Weaknesses

EXPERTISE: Limited in-house data science and machine learning talent.
BUDGET: Constrained R&D budget for speculative, large-scale AI projects.
INTEGRATION: Legacy back-office systems may silo data from rig operations.
CONNECTIVITY: Inconsistent rig connectivity could hamper real-time AI models.
SCALE: Lacks the massive historical datasets of larger, older competitors.

Opportunities

MAINTENANCE: AI for predictive maintenance to forecast equipment failure.
OPTIMIZATION: Machine learning to optimize drilling parameters for speed.
SAFETY: AI-powered video analytics to monitor for safety protocol breaches.
LOGISTICS: AI to optimize supply chain, inventory, and crew scheduling.
AUTOMATION: Path to rig automation, reducing POB and human error.

Threats

COMPETITION: Larger rivals' heavy investment in AI could create a tech gap.
SECURITY: Increased risk of cyber-attacks on AI-enabled, connected rigs.
VENDORS: Over-reliance on third-party AI platforms creating vendor lock-in.
IMPLEMENTATION: High cost of failure for AI projects that don't deliver ROI.
TALENT WAR: Inability to attract and retain scarce, expensive AI talent.

Key Priorities

MAINTENANCE: Pilot AI for predictive maintenance on critical rig equipment.
OPTIMIZATION: Leverage AI to analyze drilling data for efficiency gains.
PARTNERSHIPS: Collaborate with tech firms to accelerate AI adoption.
DATA: Build a unified data infrastructure for all operational rig data.

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Borr Drilling Financial Performance

AI-Powered Insights

Claude

Gemini

GPT

Borr Drilling Q1 2024 Earnings Report & Webcast
Borr Drilling Investor Presentations (May 2024)
Borr Drilling Official Website (borrdrilling.com)
Public financial data sources (Market Cap, Stock Price)
Offshore drilling industry reports and competitor analysis

Profit: LTM Q1 2024 Net Income: $10.1 Million

Market Cap: $2.6 Billion (as of mid-2024)

Stock Performance

Annual Report: Available on company investor relations website.

Debt: Total Debt: ~$1.5 Billion (as of Q1 2024)

ROI Impact: High debt service costs constrain free cash flow and net income.

SWOT Index

Composite strategic assessment with 10-year outlook

/ 100

Market Challenger

ICM Index

STRATEGIC ADVISOR ASSESSMENT

Borr Drilling is a strong 'Market Challenger' with a world-class fleet (high Upside) offset by significant debt (high Downside). Its North Star is ambitious but constrained by financial weaknesses. The OKRs are well-aligned and impactful, focusing on the critical need to translate operational strength into financial resilience. AI potential is solid but not yet a core driver. The growth multiplier is modest, reflecting the high-risk, cyclical nature of the industry and the urgent need to de-leverage before the next downturn.

SWOT Factors

Upside: 83.3 Risk: 80.0

OKR Impact

AI Leverage

Top 3 Strategic Levers

DEBT REDUCTION: Aggressively pay down debt to improve resilience.

CONTRACT STRATEGY: Lock in long-term, high-rate contracts now.

OPERATIONAL UPTIME: Maximize cash flow by minimizing NPT.

AI Disclosure

This report was created using the Alignment Method—our proprietary process for guiding AI to reveal how it interprets your business and industry. These insights are for informational purposes only and do not constitute financial, legal, tax, or investment advice.

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