Borr Drilling Made Its Bet With A New Acquisition (Rating Downgrade)
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Yield Partners145 FollowersFollow5ShareSavePlay(10min)CommentsSummaryBorr Drilling Limited has rebounded strongly, with revenue and EBITDA stabilizing after a weak Q1 2025.Recent acquisition of five jack-up rigs for $360M increases fleet size but adds significant long-term debt and financial risk.Management transition to new CEO Bruno Morand signals continuity, with strategic oversight retained by the former CEO.I recommend a HOLD rating due to valuation, acquisition-related uncertainties, and the need for clarity on integration and market conditions. TheKaran/iStock via Getty Images It's time to take another look at oil drilling company Borr Drilling Limited (BORR), as since my last analysis, the 2025 Q2 and Q3 reports have been released, along with news thatThis article was written byYield Partners145 FollowersFollowI am a full-time investor focusing on high-quality and growth companies. One of my other major areas is stocks with high starting dividends and low valuations. I try to have a portfolio balance between dividend-paying stocks and stocks with high growth but lower dividend payouts. Overall, I have 8 years of experience of investing in stocks and fortunately, I have had more good investments than bad since I started doing this. I also keep companies in my portfolio that pay no dividends at all, but have a great potential to grow well and even pay dividends later.Analyst’s Disclosure:I/we have a beneficial long position in the shares of BORR either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.