BORR (Borr Drilling) Operating Margin %: 18.62% (As of Mar. 2026)


BORR Borr Drilling Ltd BORR
71 GF Score
Price $4.33
GF Value $5.40
Valuation Modestly Undervalued
! 5 Warning Signs
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What is Borr Drilling Operating Margin %?

Borr Drilling BORR -0.92% 71 Operating Margin % is 18.62% as of Mar. 2026. GuruFocus rates BORR with a GF Score™ of 71/100 and a GF Value™ of $5.40 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 916 Oil & Gas companies, Borr Drilling ranks better than 84.06% on this metric.

Operating Margin % is calculated as Operating Income divided by its Revenue. Borr Drilling's Operating Income for the three months ended in Mar. 2026 was $46 Mil. Borr Drilling's Revenue for the three months ended in Mar. 2026 was $247 Mil. Therefore, Borr Drilling's Operating Margin % for the quarter that ended in Mar. 2026 was 18.62%.

The historical rank and industry rank for Borr Drilling's Operating Margin % or its related term are showing as below:

BORR' s Operating Margin % Range Over the Past 10 Years
Min: -78300   Med: -36.49   Max: 36.99
Current: 29.3


BORR's Operating Margin % is ranked better than
84.06% of 916 companies
in the Oil & Gas industry
Industry Median: 6.86 vs BORR: 29.30

Borr Drilling's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.

Borr Drilling's Operating Income for the three months ended in Mar. 2026 was $46 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was $308 Mil.


Borr Drilling  (NYSE:BORR) Operating Margin % Explanation

Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.


Be Aware

Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia’s Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


Borr Drilling Operating Margin % Related Terms


Borr Drilling Operating Margin % Historical Data

* Premium members only.

The historical data trend for Borr Drilling's Operating Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Borr Drilling Operating Margin % Chart

Borr Drilling Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -36.49 5.77 32.37 36.99 31.52

Borr Drilling Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Operating Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 27.61 36.05 35.44 25.94 18.62

BORR vs NBR, SOC, VTDRF: Operating Margin % Comparison

For the Oil & Gas Drilling subindustry, Borr Drilling's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Borr Drilling Operating Margin % vs Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Borr Drilling's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Borr Drilling's Operating Margin % falls into.


BORR
71GF Score
Borr Drilling Ltd BORR
Operating Margin % is just one metric. See GF Score™, valuation, warning signs, and more.
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Borr Drilling Operating Margin % Calculation

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

Borr Drilling's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as

Operating Margin %=Operating Income (A: Dec. 2025 ) / Revenue (A: Dec. 2025 )
=321.8 / 1020.8
=31.52 %

Borr Drilling's Operating Margin % for the quarter that ended in Mar. 2026 is calculated as

Operating Margin %=Operating Income (Q: Mar. 2026 ) / Revenue (Q: Mar. 2026 )
=46 / 247
=18.62 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about Operating Margin % →
What does a Operating Margin % of 18.62% mean?
Borr Drilling (BORR) has a Operating Margin % of 18.62% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Borr Drilling and its competitors. According to the industry distribution chart, Borr Drilling ranks #146 out of 916 companies in the Oil & Gas industry, placing it in the top 15.9%.
Is Borr Drilling's Operating Margin % too high?
Borr Drilling's current Operating Margin % is 18.62%. The Oil & Gas industry median Operating Margin % is 6.86. Borr Drilling's value of 18.62% is 171.4% above this industry median. Based on the distribution chart, Borr Drilling ranks #146 out of 916 companies in the Oil & Gas industry, which is in the top quartile — a strong position relative to peers. Overall, Borr Drilling has a GF Score™ of 71/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Borr Drilling's Operating Margin % compare to NBR and SOC?
According to the Oil & Gas industry distribution chart, Borr Drilling ranks #146 out of 916 companies for Operating Margin %. This places Borr Drilling in the top 16% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 6.86. Borr Drilling's value of 18.62% is 171.4% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for an Oil & Gas company?
The median Operating Margin % among Oil & Gas companies is 6.86, based on 916 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Borr Drilling's current Operating Margin % of 18.62% is 171.4% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Borr Drilling and its competitors. For the Oil & Gas industry, the median Operating Margin % is 6.86 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Borr Drilling's current Operating Margin % is 18.62%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Borr Drilling stock overvalued right now?
Based on GuruFocus' analysis, Borr Drilling (BORR) is currently considered Modestly Undervalued. The stock's GF Value™ is $5.40, compared to a current price of $4.33 — trading 19.8% below its estimated fair value. The current Operating Margin % is 18.62% and 171.4% above the Oil & Gas industry median of 6.86. Borr Drilling's overall GF Score™ is 71/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Borr Drilling (BORR), the current Operating Margin % is 18.62% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Borr Drilling (BORR) Overvalued in 2026?

Based on GuruFocus' analysis, Borr Drilling stock appears to be undervalued. The current stock price of $4.33 is trading 19.8% below its estimated GF Value™ of $5.40. GuruFocus considers Borr Drilling to be Modestly Undervalued.

Key valuation signals for BORR:

  • Operating Margin %: 18.62%
  • GF Value™: $5.40 vs. price of $4.33 (19.8% below fair value)
  • GF Score™: 71/100 with 5 warning signs
  • Industry Position: 171.4% above the Oil & Gas median (#146 of 916)

No single metric tells the full story. See the BORR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Borr Drilling Business Description

Industry EnergyOil & Gas
Address 9 Par-la-Ville Road, S.E. Pearman Building, 2nd Floor, Hamilton, BMU, HM11
Borr Drilling Ltd is an offshore shallow-water drilling contractor providing services to the oil and gas industry. Its operations focus on the ownership, contracting, and operation of jack-up rigs in shallow-water areas, including the provision of related equipment and work crews to conduct oil and gas drilling and workover operations for exploration and production (E&P) customers. The company contracts its rigs on a dayrate basis to drill wells for integrated oil companies, state-owned national oil companies, and independent oil and gas companies. It operates in one reportable segment.
71GF Score

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Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$4.33
Price
$5.40
GF Value