Nabors Industries Ltd. Q3 2026 Earnings Recap

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.