Borr Drilling Ltd. shares have tumbled to a 52-week low, touching down at $2.63, as the company faces a tumultuous period marked by market volatility and operational headwinds. Despite generating $505M in EBITDA and maintaining profitability with a P/E ratio of 7.9x, InvestingPro analysis indicates the stock is currently trading below its Fair Value. This latest price level reflects a significant downturn from previous valuations, with the stock experiencing a stark 1-year change, plummeting by 55.29%. Investors are closely monitoring the situation, as the company navigates through the challenges that have led to this notable decline in stock value. The energy sector, particularly oil drilling, has been subject to intense pressure, and Borr Drilling’s performance is a clear indicator of the broader industry’s current struggles. Technical indicators from InvestingPro suggest the stock is in oversold territory, while the company maintains strong revenue growth of 31% year-over-year.[Discover 12 additional exclusive insights and detailed analysis for Borr Drilling with an InvestingPro subscription, including comprehensive Pro Research Reports that transform complex data into actionable intelligence.]
In other recent news, Borr Drilling Ltd reported its Q4 2024 earnings, revealing an EPS of $0.10, which fell short of the projected $0.1124. Despite this miss, the company saw a revenue increase to $263.1 million, surpassing the expected $251.49 million. The firm also experienced an 18% rise in adjusted EBITDA from the previous quarter, reaching $136.7 million. Analysts from various firms have noted the mixed performance, with the revenue beat being overshadowed by the EPS shortfall. Borr Drilling did not provide specific financial guidance for 2025 but anticipates a gradual market recovery in the latter half of the year. The company is focusing on reducing idle periods and strengthening its 2026 backlog. Additionally, the board declared a cash distribution of $0.02 per share for Q4 2024, reflecting a cautious approach to cash management amid market uncertainties. The company’s operational performance was highlighted by a strong technical utilization rate of 98.9%.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.