Nabors Industries Ltd. Earnings Recaps
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.