NBR

Nabors Industries Ltd.

Next est. report 2026-10-27 · AMC

Energy Services '26: Land Contract DrillersEnergy Services '26: Land Drillers Energy Services '26: Oilfield Services & Equipment Oversupply Risk '26: Offshore Drilling

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Overview

Nabors Industries Ltd. provides land and offshore drilling services, including advanced rigs, automation, and equipment, for oil, natural gas, and geothermal we

Nabors Industries Ltd. provides land and offshore drilling services, including advanced rigs, automation, and equipment, for oil, natural gas, and geothermal wells globally. Its segments are U.S. Drilling, International Drilling, Drilling Solutions, and Rig Technologies. Nabors serves oil and natural gas operators, with a focus on public companies and international markets like Saudi Arabia and Latin America, while actively reducing debt.

Search Keywords Brand Product

PACE-X Ultra
ROCKit
SmartNAV
SmartSLIDE
RigCLOUD
REVit
Titan Rig floor wrench
ROC drill string oscillation software
Canrig
oil and gas drilling services
land drilling
offshore drilling
drilling solutions
rig technologies
geothermal drilling
drilling automation
managed pressure drilling
super hot enhanced geothermal systems
Vaca Muerta development

Search Keywords Event Phrases

Nabors earnings
SANAD newbuild program
Quaise Energy project Obsidian
Lower 48 rig count

Search Keywords Policy Regulatory

Middle East geopolitical tensions
Saudi Aramco investment

What They Do (Plain English & Analogies): Nabors Industries is like a specialized construction company for oil and gas, providing the large, powerful drilling rigs and all the high-tech tools and services needed to dig deep into the earth. They work both on land and in offshore locations to find and extract oil and natural gas. They also design and build some of these specialized tools themselves. Think of them as offering the entire 'drilling package' – from the heavy machinery and robotic systems that make drilling easier and safer, to the smart software that helps guide the drill bits and optimize performance. They are also expanding into new areas like super hot enhanced geothermal systems, which involves drilling to extreme depths to harness the Earth's heat for energy.
Very Brief History: Founded in 1952, Nabors Industries Ltd. has a long history in drilling solutions. Key milestones include operating in Venezuela since the 1940s through a predecessor company, Laughlin Brothers. The company created Nabors Drilling Solutions (NDS) in 2015 to focus on automation and technology, and established the SANAD joint venture with Saudi Aramco in Saudi Arabia in 2017. More recently, Nabors acquired Parker Wellbore in March 2025 and subsequently sold Quail Tools. They have also begun drilling on Quaise Energy's project Obsidian in Oregon in 2026, marking their entry into commercial super hot enhanced geothermal systems.
"Street Stereotype": Nabors is generally perceived as a cyclical oil and gas drilling contractor, highly sensitive to commodity price fluctuations. Historically, it has been viewed with concerns about its debt levels. However, recent significant debt reduction and capital structure strengthening are shifting this perception, positioning it as a potentially derisked value play with strong international growth prospects. The market is increasingly recognizing its technology leadership and the value generated by its integrated drilling solutions.
Subsidiaries On Linked In*: Canrig Drilling Technology Ltd. — Global supplier of rig technology, a Nabors subsidiary.; LinkedIn: canrig-drilling-technology-ltd
Nabors Drilling USA, LP — Operates land and ocean oil and gas rigs in the United States.; LinkedIn: nabors-drilling-usa-lp
SANAD (Saudi Aramco Nabors Drilling Company) — Joint venture with Saudi Aramco.; LinkedIn: sanad-drilling
Customer Sectors & Example Clients: Nabors' customers are primarily in the oil and natural gas exploration and production (E&P) sector. Specific clients include Saudi Aramco (through the SANAD joint venture), Catalyst (in South Texas), PEMEX (Mexico), and various supermajors in the U.S. Lower 48. They are also expanding into the geothermal energy sector, with Quaise Energy as a key client for their project Obsidian.
New Customers / Segments They'Re Targeting: Nabors is actively targeting supermajors in the U.S. Lower 48, as these larger operators tend to run longer duration drilling programs and adopt advanced technologies earlier, providing greater earnings visibility. They are also significantly expanding their presence in the enhanced geothermal systems market through projects like Quaise Energy's Obsidian, which aims to deliver gigawatt-scale geothermal power. Internationally, they are focused on capturing incremental work in key markets like Kuwait and Oman, where multiple tenders are underway, and are prepared for a potential resumption of activity in Venezuela.
Supply Chain And Sourcing Geographies: Nabors operates a global logistics network and has internal manufacturing capabilities, primarily through its Canrig subsidiary. Canrig manufactures and repairs drilling equipment, including top drives, catwalks, wrenches, and other components. It has an expanded manufacturing and repair facility in Dammam, Saudi Arabia, which uses primarily locally manufactured parts. Additionally, Canrig maintains parts distribution, service hubs, and repair facilities in various locations, including Midland, TX, Williston, ND, and Magnolia, TX in the U.S.; Nisku, AB in Canada; Villavicencio, Meta in Colombia; Dubai, UAE; and Indonesia. Nabors emphasizes vendor compliance and due diligence throughout its supply chain.
Sales Geographies And Expansion Plans: Nabors currently sells its drilling and drilling-related services across the United States (Lower 48, Alaska, Offshore), Canada, and internationally in over 20 countries. Key international markets include the Middle East (Saudi Arabia, Kuwait, Oman, UAE) and Latin America (Argentina, Mexico, and historically Venezuela). Management has clear plans to expand sales in several geographies: In Saudi Arabia, the SANAD joint venture continues its newbuild program with 34 rigs remaining to be delivered under the 50-rig program, and discussions for a fifth tranche are expected shortly. In Argentina, they are mobilizing another rig, bringing their total to 14 rigs, further extending their leadership position. They are tracking opportunities representing more than 40 incremental rigs across 10 countries in their existing international footprint. Nabors is also positioned to restart operations in Venezuela with its 5 idle rigs should activity resume under suitable commercial conditions. Additionally, they have commenced a short-term geothermal contract in Indonesia.
How Key Themes May Help/Hurt: Nabors is positioned to benefit from the 'Energy Services '26: Oilfield Services & Equipment' theme through several factors. Global energy security concerns are driving increased upstream investment, particularly in international and offshore markets, which aligns with Nabors' robust international expansion in the Middle East and Latin America. While primarily a land driller, their offshore presence and advanced technology can also benefit from the multi-year recovery in the deepwater and offshore market. Furthermore, their diversification into new energy infrastructure, specifically the super hot enhanced geothermal systems with Quaise Energy, aligns with the theme's focus on new, stable revenue streams. However, Nabors could be hurt by persistent geopolitical instability in the Middle East, which, despite not disrupting their core operations, introduces operational inefficiencies and macro uncertainty. Mixed signals in North American onshore activity could temper growth in their Lower 48 segment, and broader supply chain constraints could impact their ability to fully capitalize on demand, despite their internal manufacturing capabilities through Canrig.

3 Main Long-Term Bull Details

Robust International Growth and Backlog: Nabors has significant, visible growth in international markets, particularly through the SANAD joint venture in Saudi Arabia with a multi-year newbuild program and potential for further tranches, as well as expansion in Latin America. This provides long-term contract visibility and attractive returns.
Technology Leadership and Automation: The company's continuous investment in and deployment of advanced drilling technology, automation (e.g., PACE-X Ultra, NDS services, Canrig innovations like the Titan wrench), and digital solutions enhances efficiency, safety, and performance for clients, driving demand for their high-spec rigs and services and generating attractive returns.
Strengthened Capital Structure and Diversification: Significant debt reduction efforts have materially derisked the company's capital structure, lowered interest expenses, and are expected to boost free cash flow generation. Additionally, diversification into the promising geothermal energy sector provides a new long-term growth vector.

3 Main Long-Term Bear Details

Geopolitical and Operational Risks in International Markets: Operating in numerous international locations, particularly the Middle East, exposes Nabors to geopolitical instability, regulatory changes, and operational disruptions, which can impact activity levels and profitability, even if core operations continue.
Commodity Price Volatility and Demand Uncertainty: The company remains highly exposed to global oil and gas price fluctuations and supply/demand imbalances, which can lead to unpredictable client investment decisions, rig count reductions, and pressure on day rates, particularly in the competitive U.S. Lower 48 market.
Capital Intensity of Growth Initiatives: While SANAD offers attractive long-term returns, its newbuild program requires substantial capital expenditures in the near term, consuming a significant portion of consolidated free cash flow and potentially limiting other capital allocation priorities.

Competitors And Differentiation: Nabors competes with other global land and offshore drilling contractors. Their differentiation strategy centers on their technology leadership, high-specification fleet, and integrated solutions. They offer advanced rigs like the PACE-X and PACE-X Ultra, which are fully equipped with their NDS technology suite, providing higher revenue and stronger margins. Their Rig Technologies business, Canrig, manufactures key drilling equipment, including the newly introduced Titan Rig floor wrench, which offers superior torque accuracy and faster connection times. Nabors Drilling Solutions (NDS) provides proprietary software and automation, such as ROC drill string oscillation software, which has secured competitive wins by displacing incumbents. This integration of premium rigs with premium technology, referred to as their 'rig-as-a-platform' strategy, creates a compelling value proposition for customers and differentiates Nabors from competitors.
Recent Performance & What The Market'S Focused On: Nabors delivered strong second-quarter 2026 results, with adjusted EBITDA totaling $222 million, well above expectations and exceeding guidance across all four reporting segments. Daily margins were particularly strong in their Lower 48 and International Drilling businesses. The company also achieved several strategic milestones, including placing another SANAD newbuild rig into service, returning a previously suspended SANAD rig to work, commencing drilling on Quaise Energy's project Obsidian, and commissioning two PACE-X ultrarigs for a supermajor. For the third quarter, Nabors expects consolidated EBITDA margin to increase by approximately 100 basis points and has raised its full-year 2026 EBITDA guidance to $920 million to $930 million. The market is focused on Nabors' continued debt reduction efforts, with a commitment to reduce gross debt by at least $100 million during 2026, and its ability to generate adjusted free cash flow, now expected to be $20 million to $30 million for the full year. Investors are also closely watching the progress of the SANAD newbuild program and the increasing adoption of Nabors' technology solutions on both owned and third-party rigs.

Revenue Segments And Estimated Mix: International Drilling — Mix: ~53.0%; Source: Q2 2026 transcript; Trend: Revenue increased by $13 million or 3.1% sequentially; EBITDA increased to $131 million, up $9 million or 7.6% sequentially.
U.S. Drilling — Mix: ~30.9%; Source: Q2 2026 transcript; Trend: Revenue increased to $252 million, up $11 million or 4.7% sequentially; EBITDA increased to $94 million, up $6 million or 6.8% sequentially. Lower 48 revenue increased by $15 million or 7.8% sequentially.
Drilling Solutions (NDS) — Mix: ~13.6%; Source: Q2 2026 transcript; Trend: Revenue increased by $4 million or 4.2% to $111 million; EBITDA increased by $1 million, up 3.5% to $40 million.
Rig Technologies — Mix: ~4.5%; Source: Q2 2026 transcript; Trend: Revenue increased to $37 million, up 37.7% sequentially; EBITDA improved to $3.2 million.
Product Brands: REVit
ROCKit
SmartNAV
SmartSLIDE
RigCLOUD
PACE-X
PACE-X Ultra
Canrig
Titan Rig floor wrench
ROC drill string oscillation software

Bull / Bear Details

Nabors Industries is poised for enhanced value creation, driven by robust international expansion, particularly SANAD's growth in Saudi Arabia and strong Latin

Thesis

Nabors Industries is poised for enhanced value creation, driven by robust international expansion, particularly SANAD's growth in Saudi Arabia and strong Latin American performance. An outperforming U.S. Lower 48 market, fueled by high-spec rigs and NDS technology, is accelerating pricing and utilization. Strong Q2 results, raised full-year EBITDA/FCF guidance, and continued debt reduction underpin an increasingly optimistic outlook despite ongoing geopolitical and capital intensity challenges. (Updated: 2026-08-24)

Bull case

Nabors demonstrated strong financial execution in Q2 2026, exceeding EBITDA guidance across all segments and raising full-year EBITDA expectations to $920-$930 million. The company also expects to surpass its full-year adjusted free cash flow guidance, now projecting $20-$30 million, even with SANAD's capital consumption. This financial outperformance and commitment to reducing gross debt by at least $100 million in 2026 significantly strengthen its capital structure and enhance investor confidence.
International operations are a key growth driver, with SANAD strengthening its leadership in Saudi Arabia (28% market share, 55 rigs) through newbuilds and reactivations, aligning with Aramco's gas expansion. Argentina is a compelling success story with 14 rigs and 30% market share, including redeployed U.S. assets. Opportunities for over 40 incremental rigs across 10 countries, plus improving Venezuela prospects, provide a long runway for profitable, multi-year contract growth.
Nabors' technology leadership and "rig-as-a-platform" strategy are yielding significant returns. NDS revenue on owned and third-party rigs is outpacing fleet growth (11% and 12% sequentially), driven by higher-value software and automation adoption. PACE-X ultrarigs with NDS suite generate over $40,000 daily revenue, while new innovations like the automated Titan wrench and ROC software secure competitive wins, differentiating Nabors in a tightening super-spec rig market.

Bear case

Ongoing geopolitical instability in the Middle East continues to introduce operational inefficiencies and cost pressures, impacting logistics and supply chains, despite SANAD's operations continuing without interruption. While the financial impact was in line with guidance, these persistent frictions contribute to macro uncertainty and could lead to project deferrals or increased operating expenses, potentially impacting profitability in a critical growth region.
The SANAD newbuild program, while a long-term growth driver, continues to consume a significant portion of consolidated adjusted free cash flow, with approximately $65 million expected in Q3 2026. The reduction in full-year SANAD newbuild capital expenditures, reflecting the movement of certain construction milestones into early 2027, indicates ongoing capital intensity and potential delays in realizing full cash flow benefits from these investments.
Despite overall positive sentiment, the U.S. Lower 48 market faces near-term pricing limitations. Q3 daily adjusted gross margin is expected to remain flat due to fewer near-term renewal opportunities, potentially tempering the pace of pricing acceleration. While super-spec utilization is rising, the market remains susceptible to commodity price volatility and capital discipline from operators, which could slow sustained activity levels and day rate improvements.

Bull / Bear Case

Bear Case: Despite recent operational strengths, Nabors faces persistent geopolitical instability in the Middle East, which introduces cost pressures and macro uncertainty, potentially impacting profitability in a critical growth region. The SANAD newbuild program, while a long-term driver, remains highly capital-intensive, consuming a significant portion of consolidated adjusted free cash flow (e.g., $65 million expected in Q3 2026) and potentially delaying full cash flow benefits. The rephasing of some SANAD capital expenditures into early 2027 highlights ongoing capital demands. In the U.S. Lower 48, near-term pricing limitations are expected, with Q3 daily adjusted gross margin projected to remain flat due to fewer renewal opportunities, potentially tempering the pace of pricing acceleration. The company also faces commodity price volatility and capital discipline from operators, which could slow sustained activity levels.
Bull Case: Nabors Industries is poised for significant value creation, driven by robust international expansion, particularly the SANAD joint venture in Saudi Arabia, which has a long runway for earnings growth with 34 newbuild rigs remaining and ongoing discussions for a fifth tranche. Strong performance in Latin America, with Argentina being a compelling success story, further diversifies international revenue. The company's technology leadership and "rig-as-a-platform" strategy, evidenced by NDS revenue outpacing fleet growth and high-value PACE-X ultrarigs, enhance margins and customer relationships. Strong Q2 2026 financial execution, exceeding EBITDA guidance and raising full-year outlook, coupled with a commitment to reducing gross debt by at least $100 million in 2026, strengthens its capital structure and underpins investor confidence. The improving U.S. Lower 48 market, with rising super-spec utilization and expected pricing momentum into 2027, also contributes to a positive outlook.
More Compelling & Why: I find the **Bull Case** more compelling. Despite some analyst concerns about overvaluation [6], Nabors' trailing EV/EBITDA of approximately 2.3-4.4x [2, 4, 9, 10, 13, 14] is significantly below the Oil & Gas industry median of 7.62x [10], suggesting potential undervaluation relative to its operational performance and growth. The strongest argument is the visible, contracted international growth, especially the SANAD program, providing long-term revenue visibility and high-margin opportunities. My view would flip if SANAD newbuilds face significant, sustained delays or cancellations, or if the company fails to meet its debt reduction targets, indicating a fundamental breakdown in its capital allocation strategy.

Key Factors5 rows

Key Factor	Why It Matters	What To Watch	What It Signals	Where/How To Track	Free Alt Data	Paid Alt Data
Nabors Drilling Solutions (NDS) EBITDA Growth and Technology Adoption	NDS represents Nabors' technology leadership and provides high-margin, capital-light revenue streams, differentiating the company and enhancing overall earnings power through advanced software and automation solutions.	NDS EBITDA for Q3 2026 (expected to increase by 5% sequentially to approximately $42 million). Continued sequential growth in NDS revenue on both Nabors-owned and third-party rigs.	Bullish if Q3 2026 NDS EBITDA is $42 million or higher and NDS revenue growth on third-party rigs continues to outpace third-party rig count growth. Bearish if NDS EBITDA is below $42 million or revenue growth significantly decelerates.	Company earnings calls, press releases, SEC filings (10-Q).	Industry publications on drilling technology adoption; competitor announcements regarding automation and digital solutions.	Thinknum: Job postings for NDS-related roles (e.g., automation engineers, data scientists); Web traffic analysis for nabors.com/NDS to gauge interest and engagement.
Lower 48 Average Rig Count & Pricing Momentum	The U.S. Lower 48 market is a significant segment for Nabors, and increasing rig count coupled with improving pricing for high-spec rigs directly impacts revenue and margins, validating the company's technology integration strategy.	Nabors' average Lower 48 working rig count for Q3 2026 (expected to increase to approximately 73, exiting at 74 rigs). Leading-edge daily revenue reaching or exceeding the mid-$30 thousands range by year-end 2026.	Bullish if Nabors' average Lower 48 working rig count meets or exceeds 74 by Q3 2026 exit and leading-edge daily revenue reaches or exceeds the mid-$30 thousands range by year-end 2026. Bearish if rig count falls below 73 in Q3 or pricing gains are limited below the mid-$30 thousands.	Company earnings calls, press releases, Baker Hughes North American Rotary Rig Count (weekly), Enverus rig activity reports.	Baker Hughes North American Rotary Rig Count (weekly); EIA Drilling Productivity Report.	Primary Vision: Frac crew count; Enverus: Rig activity data, pricing trends.
Net Debt Reduction Progress and Free Cash Flow Generation	Debt reduction is Nabors' highest financial priority, as it improves the capital structure, reduces interest expense, and enhances free cash flow, which is crucial for strengthening financial flexibility and investor confidence.	Progress towards reducing gross debt by at least $100 million for the full year 2026. Consolidated adjusted free cash flow for full year 2026 (now expected $20 million to $30 million, even with SANAD consuming $60 million to $80 million).	Bullish if gross debt reduction meets or exceeds $100 million for the full year 2026 and adjusted free cash flow exceeds $30 million. Bearish if gross debt reduction is less than $100 million or adjusted free cash flow is below $20 million.	Company earnings calls, press releases, SEC filings (10-Q, 10-K).	Financial news outlets tracking corporate debt and credit ratings.	Bloomberg Terminal: Debt levels, credit ratings, and bond yields; S&P Global Market Intelligence: Financial statements and debt analysis.
International Daily Gross Margin	International Drilling is a core growth driver for Nabors, and expanding daily gross margins indicate strong operational execution and favorable contract terms, directly impacting the segment's profitability and overall company earnings.	Average daily gross margin for International Drilling in Q3 2026 (expected to improve to a range of $18.1 thousand to $18.4 thousand).	Bullish if Q3 2026 average daily gross margin for International Drilling is $18.4 thousand or higher. Bearish if it falls below $18.1 thousand.	Company earnings calls, press releases, SEC filings (10-Q).	Industry reports on international drilling day rates from sources like the International Energy Agency (IEA) or OPEC.	Rystad Energy: International drilling day rates and contract terms; Clarksons Platou: Offshore rig market reports.
SANAD Newbuild and Suspended Rig Deployments	SANAD's expansion in Saudi Arabia provides long-term, high-margin contract visibility and is a key driver of international growth and earnings for Nabors, aligning with the company's strategic focus on international markets.	Deployment of the 17th SANAD new-build rig in Q3 2026. Progress and outcome of discussions for the fifth tranche of newbuild rigs (which would bring the total to 25 rigs). Return of the remaining suspended SANAD rig.	Bullish if the 17th newbuild is deployed on schedule in Q3 2026 and discussions for the fifth tranche are announced as progressing positively or an order is secured by Q4 2026. Bearish if the 17th newbuild deployment is delayed or the fifth tranche discussions stall.	Company earnings calls, press releases, SEC filings (10-Q, 10-K). The Q3 2026 earnings call will be key for updates on the fifth tranche discussions.	Saudi Aramco press releases, industry news on Middle East drilling activity from sources like Upstream Online.	Rystad Energy: Middle East rig count and contract awards; Wood Mackenzie: Upstream project intelligence, deepwater project tracking.

Key Reported Metrics, Reratings Triggers & Results3 rows

Adjusted EBITDA is a core profitability metric that demonstrates the company's operational efficiency and ability to generate earnings before non-cash items. It

Upcoming print · 2026-10-27

Key reported metrics
Metric	Last period	Why it matters
Adjusted EBITDA	Q2 2026 Adjusted EBITDA was $222 million (-10.5% y/y change from $248 million in Q2 2025). The company raised its full-year 2026 Adjusted EBITDA guidance to $920 million to $930 million.	Adjusted EBITDA is a core profitability metric that demonstrates the company's operational efficiency and ability to generate earnings before non-cash items. It is a key indicator of overall financial health and management's execution against guidance.
Lower 48 Average Rig Count	Q2 2026 average rig count was 93.4 (8.73% y/y growth from 85.9 rigs in Q2 2025). The company guided for Q3 2026 average rig count of 94-96, exiting Q3 at 96 rigs.	This metric indicates Nabors' performance in the crucial U.S. land drilling market. Growth here, especially with high-spec rigs, signals market share gains and potential for improved pricing, which is vital for domestic profitability.
International Drilling Average Rig Count	Q2 2026 average rig count was 93.4 (8.73% y/y growth from 85.9 rigs in Q2 2025). The company guided for Q3 2026 average rig count of 94-96, exiting Q3 at 96 rigs.	This metric directly reflects Nabors' international expansion and the success of its SANAD newbuild program, a key driver for long-term, high-margin contracts and overall revenue growth. Investors will watch for continued deployment and utilization.

Last reported · 2026-07-28

Key reported metrics			Rerating thresholds			Earnings results
Metric	Last period	Why it matters	What's needed for rerating	Rerating context	Earnings date	Actual reported	Hit target?	Notes
International Drilling Average Rig Count	9.76%	This metric is crucial as it directly reflects Nabors' operational scale and future revenue potential from its international expansion, especially the SANAD program. Exceeding these targets confirms successful growth, boosts investor confidence in diversified revenue streams, and supports a higher valuation.	The International Drilling Average Rig Count needs to meet or exceed Nabors' full-year 2026 projection of 96 to 98 rigs, with a strong indication of exiting December 2026 at or above 101 rigs.	This metric is crucial as it directly reflects Nabors' operational scale and future revenue potential from its international expansion, especially the SANAD program. Exceeding these targets confirms successful growth, boosts investor confidence in diversified revenue streams, and supports a higher valuation.	2026-07-28	Q2 2026 average rig count was 93.4 (8.73% y/y growth from 85.9 rigs in Q2 2025). The company guided for Q3 2026 average rig count of 94-96, exiting Q3 at 96 rigs.	No	While the company reported sequential growth in its international drilling average rig count and provided optimistic Q3 guidance, the Q2 actuals and Q3 projections do not strongly indicate that Nabors is on track to meet the full-year 2026 average of 96-98 rigs or the ambitious target of exiting December 2026 at or above 101 rigs.
Net Debt	-26.33%	Achieving this debt reduction target is Nabors' highest financial priority, as it derisks the capital structure, lowers interest expenses, and boosts free cash flow. This enhances financial flexibility, improves investor confidence, and supports a higher valuation by signaling a stronger, more sustainable financial position.	Nabors Industries Ltd. needs to demonstrate continued significant progress in its debt reduction strategy by meeting or exceeding its stated goal of reducing gross debt by at least $100 million for the full year 2026. Further improvement in its net leverage ratio, currently at 1.7x, would also contribute to a higher rerating.	Achieving this debt reduction target is Nabors' highest financial priority, as it derisks the capital structure, lowers interest expenses, and boosts free cash flow. This enhances financial flexibility, improves investor confidence, and supports a higher valuation by signaling a stronger, more sustainable financial position.	2026-07-28	The company reiterated its commitment to reducing gross debt by at least $100 million for the full year 2026. No specific Q2 2026 gross debt reduction figure was reported. Nabors generated $12 million in adjusted free cash flow in Q2 2026.	Partially	Nabors reiterated its commitment to its full-year gross debt reduction target of at least $100 million. While the company generated positive adjusted free cash flow in Q2, which supports this goal, a specific Q2 debt reduction amount was not provided, making it difficult to assess progress against the full-year target at this stage.
Adjusted EBITDA	0.45%	Achieving full-year Adjusted EBITDA above $986 million signals robust operational outperformance, validating the success of international expansion and high-spec technology adoption. This demonstrates stronger cash flow generation for debt reduction and future growth, enhancing investor confidence and justifying a higher valuation multiple.	Nabors Industries Ltd. (NBR) needs to raise its full-year 2026 consolidated Adjusted EBITDA guidance to exceed $986 million. This target represents the high end of its previously stated 6-8% normalized growth over 2025's Adjusted EBITDA of $913 million. Achieving this would require strong operational performance in Q2 2026 (upcoming earnings) and subsequent quarters, maintaining or exceeding the Q1 2026 Adjusted EBITDA run rate of $205 million.	Achieving full-year Adjusted EBITDA above $986 million signals robust operational outperformance, validating the success of international expansion and high-spec technology adoption. This demonstrates stronger cash flow generation for debt reduction and future growth, enhancing investor confidence and justifying a higher valuation multiple.	2026-07-28	Q2 2026 Adjusted EBITDA was $222 million (-10.5% y/y change from $248 million in Q2 2025). The company raised its full-year 2026 Adjusted EBITDA guidance to $920 million to $930 million.	No	Nabors exceeded its Q2 Adjusted EBITDA expectations, reporting $222 million, and raised its full-year 2026 guidance to a range of $920 million to $930 million. However, this revised full-year guidance still falls below the rerating trigger of exceeding $986 million. Despite missing this specific rerating threshold, the company's stock rose in after-hours trading due to strong operational performance, exceeding Q2 expectations, and the overall positive outlook.

Key Questions

Can Nabors' International Drilling segment, particularly SANAD, continue its strong operational execution, meet its Q3 2026 daily gross margin guidance of $18.1

Can Nabors' International Drilling segment, particularly SANAD, continue its strong operational execution, meet its Q3 2026 daily gross margin guidance of $18.1k-$18.4k, and secure the fifth tranche of newbuild rigs amidst ongoing Middle East geopolitical dynamics?

Question 2: Will Nabors achieve its targeted Lower 48 rig count of 74 by Q3 2026 exit and successfully translate improving utilization into leading-edge daily revenue reaching or exceeding the mid-$30,000s by year-end, overcoming the expected flat daily adjusted gross margin in Q3?
Question 3: Can Nabors achieve its revised full-year 2026 adjusted free cash flow guidance of $20 million to $30 million and meet its gross debt reduction target of at least $100 million, especially with SANAD's continued cash consumption in Q3 and the rephasing of newbuild capital expenditures into early 2027?

Earnings Transcript Summary2 rows

2026-07-28 · 2026Q2 Earnings Call

3 Things Management Is Most Focused On	Call Takeaway & Tone	Prior Quarter'S Y/Y Growth By Segment	3 Things Analysts Most Pressed On (And Mgmt Responses)	Revenue Segments
3 Things Management Is Most Focused On1. Strong Operational Execution and Financial Outperformance: Management highlighted exceeding adjusted EBITDA guidance across all four reporting segments, with strong daily margins in Lower 48 and International Drilling, reflecting disciplined commercial execution and operational excellence. 2. Strengthening and Expanding the International Franchise: Focus on the SANAD joint venture's continued expansion in Saudi Arabia through newbuild deliveries and returning suspended rigs, along with robust performance in the Gulf (Kuwait and Oman) and significant growth opportunities in Latin America (Argentina and potential in Venezuela). 3. Leveraging Technology and Innovation for Integrated Solutions: Emphasis on technology as a key competitive advantage, with NDS revenue outpacing fleet growth, and the "rig-as-a-platform" strategy integrating premium rigs with advanced technology (e.g., PACE-X ultrarigs with NDS suite) to drive higher revenue, stronger margins, and deeper customer relationships.	Call Takeaway & ToneThe call conveyed a positive and confident tone. The key takeaway was Nabors' strong operational execution, exceeding guidance across all segments, and its robust position for continued growth. Management highlighted the strengthening international franchise, particularly SANAD's expansion and opportunities in Latin America, alongside the successful validation of their integrated technology strategy in the U.S. Lower 48. The company is focused on disciplined growth, capital allocation, and leveraging its technology leadership to enhance shareholder value, with a clear commitment to debt reduction and an optimistic outlook for the second half of 2026 and into 2027.	Prior Quarter'S Y/Y Growth By SegmentFor Q1 2026, Nabors Industries reported a consolidated revenue growth of 6.8% year-over-year. Segment-specific year-over-year revenue growth for Q1 2026 was not explicitly provided in the available earnings information. For reference, Q1 2026 sequential changes were: International Drilling revenue down 1% sequentially; U.S. Drilling revenue essentially flat sequentially (Lower 48 up 5.9% sequentially); Drilling Solutions revenue largely flat sequentially; and Rig Technologies revenue down sequentially.	3 Things Analysts Most Pressed On (And Mgmt Responses)1. U.S. Lower 48 Activity and Pricing Outlook for Q4 2026 and 2027: Analysts questioned the drivers of rig additions and pricing. Management responded that the market shows discipline from major players, with private operators driving activity. They anticipate acceleration in the second half of the year, with leading-edge pricing expected to reach or exceed the mid-$30,000s by year-end, driven by increasing utilization of super-spec rigs. 2. Saudi Arabia Market Conditions and the Fifth Tranche of SANAD Newbuilds: Analysts inquired about the progress of reactivations and discussions for the next tranche of SANAD newbuilds. Management expressed high confidence in the program's continuation, noting Aramco's commitment and expecting discussions on the next tranche "really shortly, actually. Probably within the next quarter." They also mentioned the potential for more suspended rigs to return to service. 3. 2027 Capital Plan and U.S. Contract Book Strategy: Analysts asked about the capital plan for 2027 compared to 2026 and the optimal percentage of contracted rigs in the U.S. Management indicated that 2027 CapEx would likely be in line with or slightly higher than 2026, with SANAD milestones continuing. For U.S. contracts, they emphasized focusing on long-term players who value technology and a bundled approach, aiming for relationships that offer more upside beyond just locking up a rig.	Revenue SegmentsConsolidated revenue was $815 million, an increase of 4% sequentially. International Drilling revenue was $432 million, an increase of 3.1% sequentially. U.S. Drilling revenue increased to $252 million, up 4.7% sequentially. Within U.S. Drilling, Lower 48 revenue increased by 7.8% sequentially. Drilling Solutions (NDS) revenue increased by 4.2% sequentially to $111 million. Rig Technologies revenue increased to $37 million, up 37.7% sequentially. Year-over-year growth for individual segments was not explicitly provided in the transcript.

2026-02-12 · 2025Q4 Earnings Call

3 Things Management Is Most Focused On	Call Takeaway & Tone	Prior Quarter'S Y/Y Growth By Segment	3 Things Analysts Most Pressed On (And Mgmt Responses)	Revenue Segments
3 Things Management Is Most Focused On1. Debt Reduction and Capital Structure Improvement: Management's highest financial priority is delevering, having reduced net debt by over $550 million compared to the end of 2024, reaching its lowest level since 2005. This also reduces annualized cash interest expense by approximately $45 million and improves free cash flow. 2. International Drilling Expansion and Growth: Management is focused on expanding in the international drilling market, where they generate attractive returns, benefit from multiyear contracts, and see significant growth prospects across the Middle East, Asia Pacific, and Latin America, particularly with the SANAD newbuild program and opportunities in Mexico and Argentina. 3. Deployment of Advanced Technology and Performance Excellence in Lower 48: Management highlighted their focus on performance excellence in the Lower 48 rig market, deploying advanced technologies like the PACE-X Ultra rig and Nabors Drilling Solutions (NDS) services, which enhance operator investment returns with improved production and efficiencies, and generate attractive returns for Nabors with low capital intensity.	Call Takeaway & ToneThe call conveyed a cautiously optimistic tone. The key takeaway was Nabors' significant progress in strengthening its capital structure through substantial debt reduction, driven by strategic transactions and improved free cash flow generation outside of SANAD. The company highlighted robust growth prospects in international drilling, particularly with the SANAD newbuild program and increased activity in Mexico and Argentina, and the strong performance of its high-spec rigs and technology in the Lower 48. While management expressed caution regarding the Lower 48 market in the second half of 2026 due to external uncertainties, they were confident in their ability to maintain momentum and capture value from their diversified portfolio.	Prior Quarter'S Y/Y Growth By SegmentFor Q3 2025, Nabors Industries reported a consolidated revenue growth of 11.80% year-over-year. Segment-specific year-over-year revenue growth for Q3 2025 was not explicitly provided in the available search results. However, sequential changes for Q3 2025 were reported as: International Drilling revenue increased by 5.8% sequentially; U.S. Drilling revenue decreased by 2.2% sequentially; and Drilling Solutions EBITDA, normalized for the Quail sale, increased modestly sequentially.	3 Things Analysts Most Pressed On (And Mgmt Responses)1. Lower 48 Outlook and Rig Count Drivers: Analysts questioned the drivers behind Nabors' increasing rig count in the Lower 48 (up to 66 rigs), which bucked industry trends. Management responded that the increase was mainly for public operators (80% public now), with a higher gas rig count (20%), and driven by the trend towards longer laterals (3- and 4-mile laterals growing significantly), for which Nabors' PACE-X rigs (including the Ultra) are well-suited. They also noted maintaining cost discipline and a cautious view for H2 2026. 2. Saudi Arabia Market Conditions and Timelines for Rigs: Analysts asked about the situation on the ground in Saudi Arabia, particularly confidence in the timelines for reactivating suspended rigs and deploying newbuilds given the tight labor market. Management expressed high confidence in the scheduled return of SANAD's suspended rigs (one in late Q1, one in late Q2) and the 5 newbuilds, citing Nabors' position and vertical integration. They viewed Aramco's large-scale resumption of rigs as a positive signal for 2027. 3. Mexico Activity and SANAD's Free Cash Flow Impact: Analysts inquired about potential for additional rigs in Mexico beyond the fourth platform rig and the impact of SANAD's capital expenditures on consolidated free cash flow. Management stated they are focused on the current profitable rigs in Mexico but acknowledged a more positive market. Regarding SANAD, management clarified that while SANAD consumes cash until crossover, Nabors' businesses excluding SANAD are expected to generate $80 million to $90 million in free cash flow for debt reduction, emphasizing the long-term value creation of the SANAD investment.	Revenue SegmentsConsolidated revenue for full year 2025 grew 8.7% year-over-year. Segment-specific year-over-year revenue growth for Q4 2025 was not explicitly provided in the transcript. The transcript reported sequential changes for Q4 2025 as follows: International Drilling revenue increased by 4.1% sequentially; U.S. Drilling revenue declined by 3.7% sequentially; Drilling Solutions revenue, normalized for the Quail sale, increased slightly sequentially; and Rig Technologies revenue increased by 6% sequentially.

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2026-07-28

About Expanding Eligible Market	About Competition	About The Broader Industry	Where Things Are Headed	Updates On Theme	Broader Themes Emerging	Bullish-Leaning Quotes (Short)	Bearish-Leaning Quotes (Short)
About Expanding Eligible MarketNabors' international footprint focuses on key markets across the Middle East and Latin America, with Saudi Arabia remaining the cornerstone. The Saudi land rig market continues to recover, with 196 land rigs currently operating, up 4 sequentially and 35 from the Q3 25 low. SANAD, with a 28% market share, is the largest land drilling contractor in Saudi Arabia, operating 55 rigs, with 34 rigs remaining to be delivered under the 50-rig newbuild program. SANAD's fleet is heavily exposed to natural gas (nearly 3-quarters), aligning with Saudi Aramco's gas production expansion. In Kuwait, the company has 3 deep gas exploration rigs on long-term contracts, and current tender activity supports market expansion. In Oman, 4 rigs are running, with multiple tenders underway. NDS holds the number 1 market share in casing running in Saudi Arabia and the UAE. Argentina is a compelling international success story, with Nabors operating 13 rigs and mobilizing another, bringing the total to 14 rigs and a 30% market share. 5 formerly idle Lower 48 units were redeployed to Argentina. NDS accounts for 46% of EBITDA in Argentina. Venezuela's outlook has improved materially, and with 5 idle rigs, Nabors is well-positioned should activity resume, with several large operators expressing interest. Globally, Nabors is tracking opportunities representing more than 40 incremental rigs across 10 countries. In the U.S. Lower 48, the Baker Hughes land rig count increased by 31 rigs (6%) sequentially, concentrated in oil-directed activity in the Permian, Austin Chalk, and Granite Wash, with private operator activity up 17%. Nabors added 5 rigs in Q2, including a mix of oil, gas, and geothermal, with 2 contracts from a supermajor. Nearly 70% of Nabors' working Lower 48 fleet serves publicly traded operators. The company also began drilling on Quaise Energy's Project Obsidian in Oregon, representing the first commercial application of super hot enhanced geothermal systems targeted to deliver gigawatt-scale power. NDS revenue on Nabors-owned Lower 48 rigs increased 11% sequentially, outpacing fleet growth, and NDS revenue on third-party rigs grew 12% while third-party rig count increased only 1%.	About CompetitionSANAD is the largest land drilling contractor in Saudi Arabia with a 28% market share. NDS holds the number 1 market share in casing running in both Saudi Arabia and the UAE. Nabors' ROC drill string oscillation software secured an important competitive win, displacing an incumbent competitor on multiple third-party rigs, demonstrating its technology leadership and compelling value proposition. Canrig introduced its first advanced fully automated Titan Rig floor wrench into commercial service, which combines superior torque accuracy, faster connection time, consistent makeup in one pass, and lower cost of ownership, an 'unmatched combination in a rig floor wrench today.' Nabors' customer mix in the Lower 48, with nearly 70% of its working fleet serving publicly traded operators, differentiates it from competitors. The company emphasizes that its strategy of integrating premium rigs with premium technology creates 'higher revenue, stronger margins, deeper customer relationships, and greater differentiation than either business could achieve independently,' which remains '1 of Nabors' clearest competitive advantages.' Tony Petrello also noted that Quaise Energy's technology 'does everything Fervo has, but it has the addition of the path to a ubiquitous kind of geothermal market,' highlighting a competitive edge in the emerging geothermal space.	About The Broader IndustryThe Saudi land rig market continues its recovery, with approximately 196 land rigs currently operating, though still 28 rigs below the early 2024 peak. Approximately two-thirds of the industry's land rigs in Saudi Arabia work in natural gas. Despite regional geopolitical tensions, SANAD's operations have continued without interruption. Argentina is highlighted as an attractive international growth market due to 'world class resources compelling project economics, and an increasingly stable operating environment.' Venezuela, with its large resource base and proximity to refining capacity, holds 'enormous potential' for drilling activity to resume. In the U.S. Lower 48, the industry strengthened during the second quarter, with the Baker Hughes land rig count increasing by 31 rigs or 6%. The oil rig count increased by 8%, concentrated in the Permian, Austin Chalk, and Granite Wash, while the gas rig count declined slightly. Public operator activity held flat, but private operator activity increased sequentially by 17%. The improving utilization environment in the Lower 48 is beginning to translate into stronger financial performance, and leading-edge pricing continues to improve. The U.S. industry activity is expected to build progressively, supported by stable oil prices and an improving outlook for natural gas demand. Operators are maintaining capital discipline, reinforcing a selective, performance-driven market. The supply of readily deployable super spec rigs is becoming increasingly constrained, with most operators, especially those focused on longer laterals, demanding higher spec rigs. Geothermal energy is identified as the 'most underappreciated renewable out there because it is obviously baseload and renewable,' with the potential to become ubiquitous if super hot rock can be accessed.	Where Things Are HeadedNabors expects SANAD to have a clear runway for additional earnings growth over the next several years, with 34 rigs still to be delivered under the newbuild program, and discussions for the next tranche expected shortly. Kuwait's market is expected to expand due to ongoing gas development and tender activity for high-specification rigs. Venezuela has the potential to become a meaningful contributor to the international business over time if activity resumes under the right commercial conditions. Internationally, Nabors is tracking opportunities for more than 40 incremental rigs across 10 countries. In the Lower 48, the company expects to reach approximately 50% of its rigs having at least 6 months of remaining contract duration in Q3. A survey of large Lower 48 operators indicates a constructive outlook, with another 11 rigs expected to be added through the end of 2026. Nabors is confident in continued activity and pricing momentum through the balance of this year and into 2027, with leading-edge daily revenue expected to reach or exceed the mid-$30 thousands range. For Q3, International Drilling's average rig count is expected to range between 94 and 96, with average daily gross margin improving to $18.1 thousand to $18.4 thousand. U.S. Lower 48 working rig count is expected to increase to approximately 73, exiting the quarter with 74 rigs, though daily adjusted gross margin is expected to remain flat at $13.8 thousand due to fewer near-term renewal opportunities. Drilling Solutions EBITDA is expected to increase by 5% sequentially to approximately $42 million, and Rig Technologies EBITDA is projected to improve to $5 million to $6 million. Overall, consolidated EBITDA margin is expected to increase by approximately 100 basis points in Q3. Full-year 2026 consolidated capital expenditures are now expected to be $710 million to $730 million, with a reduction in SANAD's new-build outlook due to certain construction milestones moving into early 2027. Nabors now expects full-year EBITDA of $920 million to $930 million, above prior expectations, and anticipates generating $20 million to $30 million in adjusted free cash flow, even with SANAD consuming $60 million to $80 million. The company remains committed to reducing gross debt by at least $100 million during 2026, targeting a long-term net leverage of approximately 1 turn. The second half of 2026 is expected to run at an EBITDA rate of at least $1 billion.	Updates On ThemeOilfield	Broader Themes EmergingGeothermal Energy: Nabors has identified geothermal as the 'most underappreciated renewable out there because it is obviously baseload and renewable.' The company has begun drilling on Quaise Energy's Project Obsidian, which represents the first commercial application of super hot enhanced geothermal systems and is ultimately targeted to deliver gigawatt-scale geothermal power. This highlights the emerging theme of advanced geothermal solutions for ubiquitous, baseload renewable energy. AI, Automation, and Digitalization: The introduction of Canrig's first advanced fully automated Titan Rig floor wrench and the competitive win of NDS's ROC drill string oscillation software underscore the growing importance of automation and digital solutions in drilling operations. The deployment of PACE-X ultrarigs fully equipped with the NDS technology suite, generating significantly higher daily revenue, further illustrates the trend of integrating premium rigs with advanced technology to optimize performance and increase earnings power.	Bullish-Leaning Quotes (Short)Once again, we delivered strong operational execution and achieved several strategic milestones. Adjusted EBITDA totaled $222 million, well above our expectations. Daily margins were especially strong in our Lower 48 and International Drilling businesses. SANAD has a clear runway for additional earnings growth over the next several years. Argentina continues to be 1 of Nabors' most compelling international success stories. Venezuela has the potential to become another meaningful contributor to our international business over time. The broader picture is encouraging. The industry strengthened during the second quarter. The improving utilization environment is beginning to translate into stronger financial performance. Confidence in continued activity and pricing momentum through the balance of this year and into 2027. Technology remains 1 of Nabors' most important competitive advantages. We are confident that our pricing will reach or exceed the mid-$30 thousands as we progress through the balance of this year and into 2027. We now expect full year EBITDA of $920 million to $930 million above both our prior expectations and the prior year level. We believe we are well positioned to exceed our full year adjusted free cash flow guidance. Nabors is executing from a position of strength, and we deliver on our commitments. We see significant opportunity ahead and we are well positioned to capture it. The good news is the super spec percentage is going up of utilization. Aramco is very committed to the program, and it is all been positive. Quaise does everything Fervo has, but it has the addition of the path to a ubiquitous kind of geothermal market. Second half run rate based on what we have told you today is we see we are running at $1 billion run-rate in the second half of this year, which At least. NDS' conversion rate, I think in this quarter, was 90% free cash flow conversion rate on its EBITDA. Which is really a remarkable number.	Bearish-Leaning Quotes (Short)Despite regional geopolitical tensions, SANAD's operations have continued without interruption. The financial impact of the related cost pressure was broadly in line with our guidance. These additions were partially offset by the contract roll off of 2 lower margin rigs. Daily adjusted gross margin is expected to remain approximately flat with the second quarter at $13.8 thousand as fewer near term renewal opportunities limit additional pricing gains. We expect to use approximately $40 million of consolidated adjusted free cash flow including approximately $65 million of cash consumption by SANAD. The mix differed from our expectations, reflecting the timing of SANAD new-build milestones and slower collections in Mexico and The United States. The reduction in SANAD's new-build outlook reflects the movement of certain construction milestones into early 27. Despite persistent cost friction related to the Middle East Conflict. Today's drilling activity remains limited. The current count still stands 28 rigs below the peak early 24.

2026-02-12

About Expanding Eligible Market	About Competition	About The Broader Industry	Where Things Are Headed	Updates On Theme	Broader Themes Emerging	Bullish-Leaning Quotes (Short)	Bearish-Leaning Quotes (Short)	Hiring
About Expanding Eligible MarketNabors is expanding in the international drilling market, where it generates attractive returns. The company is prepared to return to work in Venezuela with 5 idle rigs and a small number of key local personnel, and is already in discussions with multiple operators. Across the Middle East and North Africa, several markets aspire to increase production capacity, aligning with Nabors' business portfolio. In the Lower 48, Nabors' gas rig count increased by 50% in 2025, with gas-directed activity comprising approximately 20% of its overall rig count. The company's activity outlook in Mexico has improved, with plans to restart a fourth offshore platform rig early this year, adding to the current three. In Argentina, Nabors expects to start one rig this quarter and a second in the third quarter, bringing its rig count there to 14. In the Eastern Hemisphere, Nabors is tracking nearly 20 opportunities for additional rigs in countries where it currently operates. SANAD, the joint venture in Saudi Arabia, continues discussions for a fifth tranche of newbuild rigs, which would bring the total to 25. Nabors Drilling Solutions (NDS) strategy to target third-party rigs is paying off, with NDS revenue on third-party rigs in the Lower 48 (excluding Quail) increasing sequentially by 10% in the fourth quarter.	About CompetitionNabors believes its fleet of PACE-X rigs is well-suited for drilling longer laterals, with the PACE-X Ultra rig already demonstrating its value for Catalyst in South Texas. The company is working towards deploying a second PACE-X Ultra and upgrading existing PACE-X rigs for other operators to drill longer lateral wells, demonstrating the versatility and capability of its high-end drilling technology. Tony Petrello asserted that Nabors' investments in the Kingdom, particularly SANAD, offer orders of magnitude better returns than other deals made by competitors. He also stated that no other company in the industry has Nabors' level of built-in growth, strong client base, or partnership with the #1 oil company in the world in the largest market. The new Canrig 3-bite wrench, loaded with feedback and automation, has received a highly positive initial reaction, with drilling contractors expressing interest.	About The Broader IndustryOil prices experienced a downward trend in the second half of 2025, which lasted until the U.S. announced crude imports from Venezuela in early January, followed by a production interruption in Kazakhstan and uncertainty around tariffs related to Greenland and protests in Iran. Global oil supply exceeded demand throughout 2025, according to EIA figures. Looking ahead, potential impacts on oil prices include ongoing uncertainty around future tariff actions, oil production increases both inside and outside OPEC, reported inventory builds, higher demand concentrated in Asia, and conflicts involving Ukraine and Iran. Operators in the Lower 48 are focused on maintaining production but are prepared to react quickly if oil prices do not support their investment returns. The outlook for natural gas remains positive for the next several years, with U.S. LNG exports and domestic consumption expected to ramp up, and continued expansion of natural gas supporting drilling activity in the Middle East and Latin America. The Baker Hughes weekly Lower 48 land rig count decreased by 3 rigs from the end of September through December, indicating apparent stability. A survey of large Lower 48 operators, accounting for 42% of the market's working rig count, suggests the rig count will remain largely stable through the end of 2026, though two companies indicate declines. The large-scale resumption of Aramco reactivating nearly half of its suspended rigs is seen as an incredibly positive signal, suggesting Aramco is positioning for a strong 2027. The EIA continues to report concerns about oversupply in the market.	Where Things Are HeadedNabors is confident its strategic priorities will lead to future success. The company is well-positioned to benefit from improvements in global drilling markets due to its geographic reach. Nabors stands ready to respond to increased demand across gas-producing basins. The company's rig count recently stood at 66, up from 62 at the end of Q4 2025. SANAD plans to deploy five more newbuild rigs in 2026, bringing the total to 19, with the 20th expected in early 2027. SANAD is also advancing discussions for a fifth tranche of newbuild rigs, which would bring the total to 25. Nabors aims for further debt reduction, expecting to generate free cash flow outside SANAD. The outlook for 2026 envisions EBITDA performance matching 2025, with increases in several operations offsetting the Quail disposition. For the full year 2026, Nabors expects EBITDA to grow by 6% to 8% normalized for Quail, maintaining the same reported EBITDA level as 2025. Lower 48 average rig count is expected to be 61 to 64 rigs, with a cautious view for the second half. International drilling average rig count is projected at 96 to 98 rigs, exiting December at or above 101 rigs, with average daily gross margin targeted at $18,500 (5% up). NDS EBITDA is expected to grow by 6% to 7% normalized for Quail, reaching $160 million to $170 million, largely driven by international growth. Rig Technologies EBITDA is expected to range between $22 million and $25 million. The retained Parker businesses are expected to generate at least $70 million of EBITDA in 2026. For 2026, SANAD is expected to consume $100 million to $120 million in adjusted free cash flow, while the rest of the businesses generate $80 million to $90 million, with plans to reduce gross debt by at least $100 million. Events in Venezuela could lead to increased oil activity. Each annual tranche of five SANAD newbuilds is projected to generate incremental annualized EBITDA of more than $60 million, translating to over $500 million of value creation each year at current Middle East driller valuations.	Updates On ThemeOffshore	Broader Themes EmergingAI, Automation, and Digitalization as Core Operational Drivers: Nabors highlighted the integral full automation package supplied by Nabors Drilling Solutions in its PACE-X Ultra rig and the new 3-bite Canrig wrench, which is capable of fully autonomous mode. This aligns with the broader industry trend of leveraging advanced technologies to enhance efficiency and reduce risks. Geopolitical and Energy Security Drivers: The transcript mentions ongoing conflicts involving Ukraine and Iran, uncertainty around tariffs, and the U.S. announcement to import Venezuelan crude, all of which are geopolitical factors influencing oil markets and energy security. M&A and Consolidation: Nabors completed significant transactions, including the purchase of Parker Wellbore and the sale of Quail Tools, reflecting the ongoing consolidation trend in the industry.	Bullish-Leaning Quotes (Short)This improvement significantly derisks our capital structure. Our commitment to these priorities led to our recent accomplishments. We are confident they will lead us to future success as well. The outlook for natural gas remains positive over the next several years. Our momentum accelerated during the fourth quarter. This diversity is encouraging. It suggests favorable operator economics across basins. The newbuild fleet there continues to expand. Across other markets in the Eastern Hemisphere, we are seeing potential activity growth. Our activity outlook in Mexico has improved. Our leading position in this market enables us to opportunistically capture additional work. The first unit has been working for Catalyst in South Texas since mid-September. We had high expectations for this rig. It has delivered. Our net debt is down by more than $550 million. It stands at the lowest level since 2005. Our outlook for 2026 envisions EBITDA performance that matches last year's. Our organization is well positioned to operate at peak performance and deliver durable growth and long-term value. We are very pleased with the progress in a rather complex market at present. The large-scale resumption of Aramco putting back all these rigs to work... is an incredibly positive signal to the market. This exceptional performance drove our full year adjusted free cash flow to approximately $117 million, significantly exceeding our revised post-parket guidance of approximately $80 million. We improved our credit ratings, extended our maturity profile into 2029... reduced net debt by more than $554 million and improved our net leverage ratio to approximately 1.7x, the lowest since 2008. The transformation of our capital structure shifts significant value to our equity investors. Each annual tranche of new builds at 5 per year should generate incremental annualized EBITDA of more than $60 million. We remain pretty bullish on the long-term picture for gas. The initial reaction [to the new Canrig wrench] is really high.	Bearish-Leaning Quotes (Short)Oil prices were in a downward trend in the second half of 2025. These events occurred against the backdrop of global oil supply exceeding demand. The EIA's figures showed a surplus each month of 2025. Looking ahead, we see several issues that could impact oil prices. Operators in the Lower 48 appear focused on maintaining production. At the same time, they are positioned to react quickly should oil prices no longer support their investment return metrics. SANAD recently elected not to renew 3 of its owned rigs... They generated very little EBITDA and free cash flow. Thus far, we have not seen oil prices at the level that concerned us a quarter ago. Taken together, these operators expect the rig count to remain largely stable through the end of 2026. Looking more closely, 2 companies indicate declines. This outlook reflects a step down in daily margins driven primarily by a change in the scope of work of our marquee offshore platform rig as well as reduced activity levels in Alaska. Lower 48 to average 61 to 64 rigs, reflecting a cautious view for the second half of the year. For the first quarter, we expect to consume $80 million to $90 million of consolidated adjusted free cash flow, with SANAD alone consuming approximately $50 million to $60. Funding SANAD's newbuild program results in the consumption of cash at the JV until crossover. It's more just the constant -- all the external noise, the EIA, even as of last week, is talking about oversupply and the market's reaction.	HiringSANAD can utilize the experienced crew from three non-renewed rigs on its planned deployments during the quarter, which should help mitigate the effects of a tight labor market in Saudi Arabia. Tony Petrello also mentioned that the labor market in the Kingdom is 'fairly tight'.

Notes2 rows

Date	Comment	Comment Type	Comment Sentiment	Link	Price Reaction
2026-02-12	Nabors Industries reported strong Q4 2025 results, exceeding expectations, driven by U.S. Drilling and international expansion. Significant debt reduction ($554M) and a positive outlook for international rig count, particularly SANAD, were highlighted. Despite cautious H2 2026 U.S. guidance, the market reacted very positively, with the stock outperforming SPY by a wide margin (6.61% vs 0.23% post-earnings), indicating strong investor confidence in NBR's operational performance and capital structure improvements.	Earnings Transcript	Neutral		+6.61% (vs SPY: +6.38%)
2026-07-28	Nabors exceeded Q2 2026 EBITDA guidance across all segments, raising full-year outlook to $920-$930M EBITDA and $20-$30M FCF. Strong international growth, improving U.S. Lower 48 pricing, and technology adoption drove results. The market perceived this very positively, with the stock significantly outperforming SPY by 13.26% post-earnings, validating the company's confident messaging and guidance.	Earnings Transcript	Positive		+13.26% (vs SPY: +12.43%)

Upcoming Events8 rows

Catalyst ID	Estimated Timing	Estimated Date Start	Estimated Date End	Catalyst	Why It Matters	Ticker Or Theme Specific	Transcript Date	Source Type
NBR_d4016d0f	exit the quarter	2026-09-30	2026-09-30	Nabors' Lower 48 working rig count reaching 74 rigs.	This demonstrates continued activity growth and market share capture in the Lower 48, contributing directly to revenue and EBITDA.	Ticker	2026-07-28	earnings_transcript
NBR_7015dd8b	third quarter	2026-07-01	2026-09-30	Deployment of the 17th SANAD new-build rig in Saudi Arabia.	This deployment increases Nabors' international rig count and strengthens SANAD's market leadership, contributing to higher average rig count and daily gross margin.	Ticker	2026-07-28	earnings_transcript
NBR_19aae069	third quarter	2026-07-01	2026-09-30	Redeployment of an idle US rig to Argentina, increasing Nabors' total to 14 rigs in the country.	This expands Nabors' market leadership in Argentina, optimizes global assets, and contributes to international earnings growth.	Ticker	2026-07-28	earnings_transcript
NBR_df79ff11	Five more rigs are planned to commence work during 2026	2026-01-01	2026-12-31	Commencement of operations for 5 newbuild rigs for the SANAD joint venture in Saudi Arabia during 2026.	These rigs are a key part of SANAD's long-term growth strategy, expected to generate significant incremental annualized EBITDA and contribute to the International Drilling segment's performance.	Ticker	2026-02-12	earnings_transcript
NBR_9aff2abe	We expect to start 1 rig this quarter. We have a second rig scheduled to start work there in the third quarter.	2026-01-01	2026-09-30	Deployment of two additional rigs in Argentina (one in Q1, one in Q3 2026).	These deployments will increase Nabors' rig count in Argentina to 14, enhancing the international segment's revenue and EBITDA.	Ticker	2026-02-12	earnings_transcript
NBR_0d0fcf2c	working with another operator to upgrade an existing PACE-X rig... in discussions to similarly upgrade a PACE-X rig for South Texas.	2026-04-24	2027-02-12	Upgrades of existing PACE-X rigs for 4-mile lateral wells in the Permian Basin and for South Texas.	These upgrades enhance rig capabilities to meet increasing demand for longer laterals, demonstrating versatility and generating attractive returns on investment.	Ticker	2026-02-12	earnings_transcript
NBR_4625be26	Currently, we are tracking nearly 20 opportunities for additional rigs in countries where we currently operate.	2026-04-24	2027-02-12	Potential for securing contracts for nearly 20 additional rigs across various Eastern Hemisphere markets.	Winning these opportunities would significantly expand Nabors' international rig count, driving substantial revenue and EBITDA growth.	Ticker	2026-02-12	earnings_transcript
NBR_2c4fbc20	until crossover	2027-01-01	2027-12-31	SANAD achieving free cash flow crossover, becoming cash flow positive.	This milestone would eliminate SANAD's cash consumption, significantly boosting Nabors' consolidated free cash flow, improving overall valuation, and enhancing investor sentiment.	Ticker	2026-02-12	earnings_transcript

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