Nabors Industries Ltd. Earnings Recaps
Q3 2026
Nov 2, 2026
Nabors’ shares rose 10.5% after earnings, as third-quarter adjusted EBITDA of $246 million exceeded management’s expectations and free cash flow supported further debt reduction. The outlook is mixed: Saudi suspensions are reducing SANAD’s rig count, while newbuilds and growth opportunities elsewhere offer partial offsets.
Key takeaways
- Nabors redeemed $100 million of debt during the quarter, advancing its gross-debt reduction plan.
- Saudi Arabia is expected to be a near-term headwind: SANAD’s active rig count has fallen from 56 to 53, with two more suspensions scheduled; including a planned newbuild, the company expects to end the year with 52 rigs.
- SANAD brought its 17th newbuild rig into service in the quarter and plans to deploy its 18th in the fourth quarter. Discussions on the fifth tranche of the newbuild program are ongoing.
- In Argentina, Nabors operates 14 owned rigs plus one under an O&M contract, holds a 33% market share, and is evaluating 10 additional opportunities.
- Canrig delivered four TITAN automated rig-floor wrenches in the quarter, with backlog exceeding 20 units; Nabors also expanded its geothermal work and investment.
Q3 2025
Oct 31, 2025
Nabors Industries delivered a strong third quarter in 2025, highlighted by a strategic asset sale that significantly improved its capital structure and reduced net debt to a decade-low level.
Key takeaways
- Successfully sold Quail Tools for $625 million, achieving approximately 4.2x estimated EBITDA multiples and utilizing proceeds to pay down $330 million of debt.
- Adjusted EBITDA improved to $236 million, exceeding prior expectations due to solid performance in International Drilling and increased contributions from legacy Drilling Solutions.
- Anticipated significant restructuring benefits with non-Quail businesses projected to increase EBITDA from $7 million to $70 million by 2026.
- Continued focus on cost synergies from the Parker acquisition, with corporate costs declining in the quarter.
- Positive outlook for natural gas activities, driven by anticipated U.S. LNG export growth and increased drilling activity in international markets.
Q2 2025
Aug 1, 2025
Nabors Industries reported a solid second quarter in 2025, with adjusted EBITDA reaching $248 million, bolstered by contributions from the recently acquired Parker Wellbore business and growth in its U.S. drilling operations.
Key takeaways
- Adjusted EBITDA aligned with expectations, driven by strong performance in U.S. drilling and the Parker acquisition, which is on track to achieve $40 million in cost synergies by 2025.
- The company's U.S. Offshore and Alaska drilling operations contributed over $28 million to adjusted EBITDA.
- An increase in activity within natural gas basins is anticipated, as evidenced by an uptick in the Lower 48 rig count and resilience in the natural gas market.
- International markets, particularly Saudi Arabia and Latin America, present both challenges and opportunities, with new rig opportunities identified and ongoing contract negotiations.