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Disciplined Execution, Durable Momentum: Nabors 1Q 2026April 28, 2026 4:15 PM
PR Newswire (US)
HAMILTON, Bermuda, April 28, 2026 /PRNewswire/ -- Nabors Industries Ltd. ("Nabors" or the "Company") (NYSE: NBR) today reported first quarter 2026 operating revenues of $784 million. Net loss attributable to Nabors' shareholders for the quarter was $15 million, compared to net income of $10 million in the fourth quarter. First-quarter adjusted EBITDA was $205 million.
Selected Financial Information
(In millions, except rig activity)
Three Months Ended
March 31,
December 31,
March 31,
2026
2025
2025
Operating revenues
$ 783.5
$ 797.5
$ 736.2
Adjusted EBITDA
$ 204.8
$ 221.6
$ 206.3
Adjusted operating income
$ 48.6
$ 62.4
$ 51.7
Adjusted free cash flow
$ (48.2)
$ 131.8
$ (61.2)
Average rigs working:
Lower 48
65.3
59.8
60.6
International Drilling
92.6
93.3
85.0
Average total rigs working
167.9
162.9
153.2 1Q 2026 HighlightsThe SANAD land drilling joint venture deployed one newbuild rig in the Kingdom of Saudi Arabia, bringing total newbuild deployments to 15. Four more are scheduled for 2026. In addition, SANAD reactivated one previously suspended rig, with a second resumption scheduled for the second quarter.In the Lower 48 market, Nabors added four rigs during the first quarter. The Company's working rig count in this market currently stands at 66, reflecting an increase of eight rigs since November 2025.Continuing its debt reduction initiatives, Nabors redeemed the remaining outstanding balance of its notes due in 2028, reducing total debt to $2.1 billion as of March 31, 2026. Since year-end 2024, the Company has reduced its total debt by $386 million. The Company's next debt maturity is $250 million due in 2029. Its weighted average debt maturity has been extended to more than five years.Nabors received three awards at the Oil & Gas Middle East Awards 2026, including Service Partner of the Year, recognizing its reliability, innovation, digital drilling capabilities, and strong operator partnerships.Anthony G. Petrello, Nabors Chairman, CEO and President, commented, "The conflict in the Middle East and its broader implications across global energy markets continue to reinforce the value of Nabors' portfolio and geographic diversification. While our business in that region was only modestly impacted in the first quarter, we are well positioned to respond to changes in activity levels across our markets, supported by our global fleet and operational flexibility."Nabors' first quarter results reflect continued improvement in Lower 48 activity, with another increase in rig count and fleet utilization. We believe we are gaining share in this market as clients increasingly prioritize high-specification rigs, integrated technology, and consistent operational execution in complex drilling environments. Our average rig count in the Lower 48 exceeded our growth expectations for the quarter, reflecting strong customer demand and contract visibility."In our International Drilling segment, we expanded activity across key markets. In Saudi Arabia we added two rigs. Another two rigs commenced operations in Latin America, one of which was an idle U.S. rig mobilized to Argentina under a long-term contract, demonstrating the flexibility of our asset base. Late in the quarter, we reactivated an offshore platform rig in Mexico, further increasing international utilization."Drilling Solutions' ("NDS") international business delivered sequential growth in the first quarter, with contributions across multiple product lines, including Performance Software, Managed Pressure Drilling, and Surface & Tubulars, which includes drilling equipment rentals. Our focus on NDS's international markets continues to gain traction. These markets account for approximately 65% of the segment's EBITDA, up from 31% in the first quarter of 2023, underscoring the increasing scale and profitability of our international footprint."Segment Results International Drilling adjusted EBITDA was $121 million in the first quarter, compared to $131 million in the fourth quarter of 2025. Average rig count declined slightly, as contract expirations were largely offset by recent startups and new deployments. Daily adjusted gross margin for the first quarter was $16,880, reflecting increased costs in the Middle East related to staffing and logistics, as well as higher operating expenses and activity interruptions in certain markets.The U.S. Drilling segment reported first quarter adjusted EBITDA of $88 million, compared to $93 million in the previous quarter. Results in the Lower 48 improved with average rig count increasing 9% sequentially, reflecting stronger activity and improving fleet utilization. As expected, results from the Offshore and Alaska operations declined sequentially.Drilling Solutions adjusted EBITDA was $39 million, compared to $41 million in the fourth quarter of 2025. Growth in international markets was offset by lower third-party activity in the U.S., mainly attributable to the decline in the U.S. third-party rig count.Rig Technologies adjusted EBITDA was less than $1 million, compared to $5 million in the previous quarter. Aftermarket revenue declined sequentially, reflecting lower customer activity. Sales were constrained by logistical challenges in the Middle East.Adjusted Free Cash FlowConsolidated adjusted free cash flow was negative $48 million in the first quarter, compared to negative $61 million in the first quarter of 2025, reflecting a $13 million improvement year-over-year. This was driven primarily by lower cash interest payments.On a sequential basis, adjusted free cash flow declined from the fourth quarter primarily due to typical seasonal activity patterns and timing of receivables and payables, as well as higher cash interest payments in the first quarter. Fourth quarter of 2025 results also benefited from settlements of certain outstanding claims. Historically, the Company generates its strongest free cash flow in the fourth quarter.Miguel Rodriguez, Nabors CFO, stated, "In the first quarter we delivered free cash flow above our expectations. On a consolidated basis, we exceeded our midpoint target by more than $35 million, reflecting consistent execution and stronger working capital performance than planned. This outperformance was primarily related to the Nabors businesses outside of the SANAD joint venture."Our full-year outlook for rig count in the Lower 48 has strengthened. We now expect to exit the second quarter with approximately 69 rigs running and to sustain that level through year-end 2026. Even with this higher activity, we expect to maintain our measured capital allocation approach, with full-year capital spending in the previously guided range of $730 to $760 million, including $360 to $380 million for the SANAD newbuilds."Our focus remains on further strengthening the balance sheet, while our consistent growth strategy supports long-term shareholder value creation."OutlookNabors expects the following metrics for the second quarter of 2026:U.S. Drilling Lower 48 average rig count of 67 - 68 rigsLower 48 daily adjusted gross margin of approximately $13,300Alaska and Gulf of America combined adjusted EBITDA of approximately $15 millionInternationalAverage rig count of 93 - 95 rigsDaily adjusted gross margin of approximately $17,400 - $17,500Drilling SolutionsAdjusted EBITDA of approximately $39 millionRig TechnologiesAdjusted EBITDA of approximately $3 millionCapital ExpendituresCapital expenditures of $180 - $190 million, including $75 - $80 million for newbuilds in Saudi ArabiaAdjusted Free Cash FlowAdjusted free cash flow of approximately $10 million, including free cash consumption at SANAD of approximately $10 millionMr. Petrello concluded, "Looking ahead to the remainder of the year, we see continued growth opportunities across both our U.S. and International Drilling businesses. This outlook is supported by contracted rig additions in each segment, which provide increased visibility into activity levels. Our disciplined approach to improving free cash flow is reflected in our first-quarter results, and we are positioned to deliver further improvements as we execute throughout the year."About Nabors IndustriesNabors Industries (NYSE: NBR) is a leading provider of advanced technology for the energy industry. With presence in more than 20 countries, Nabors has established a global network of people, technology and equipment to deploy solutions that deliver safe, efficient and responsible energy production. By leveraging its core competencies, particularly in drilling, engineering, automation, data science and manufacturing, Nabors aims to innovate the future of energy and enable the transition to a lower-carbon world. Learn more about Nabors and its energy technology leadership: www.nabors.com.Forward-looking StatementsThe information included in this press release includes forward-looking statements within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934. Such forward-looking statements are subject to a number of risks and uncertainties, as disclosed by Nabors from time to time in its filings with the Securities and Exchange Commission. As a result of these factors, Nabors' actual results may differ materially from those indicated or implied by such forward-looking statements. The forward-looking statements contained in this press release reflect management's estimates and beliefs as of the date of this press release. Nabors does not undertake to update these forward-looking statements. Non-GAAP DisclaimerThis press release presents certain "non-GAAP" financial measures. The components of these non-GAAP measures are computed by using amounts that are determined in accordance with accounting principles generally accepted in the United States of America ("GAAP"). Adjusted operating income (loss) represents income (loss) before income taxes, interest expense, investment income (loss), gain on disposition of Quail Tools, gain on bargain purchase, and other, net. Adjusted EBITDA is computed similarly, but also excludes depreciation and amortization expenses. Adjusted gross margin represents adjusted operating income (loss) plus general and administrative costs, research and engineering costs and depreciation and amortization. In addition, adjusted EBITDA and adjusted operating income (loss) exclude certain cash expenses that the Company is obligated to make. Net debt is calculated as total debt minus the sum of cash, cash equivalents and short-term investments. Adjusted free cash flow represents net cash provided by operating activities less cash used for capital expenditures, net of proceeds from sales of assets, and before cash paid for acquisition-related costs. Management believes that adjusted free cash flow is an important liquidity measure for the company and that it is useful to investors and management as a measure of the company's ability to generate cash flow, after reinvesting in the company for future growth, that could be available for paying down debt or other financing cash flows, such as dividends to shareholders. Adjusted free cash flow does not represent the residual cash flow available for discretionary expenditures. Adjusted free cash flow is a non-GAAP financial measure that should be considered in addition to, not as a substitute for or superior to, cash flow from operations reported in accordance with GAAP.Each of these non-GAAP measures has limitations and therefore should not be used in isolation or as a substitute for the amounts reported in accordance with GAAP. However, management evaluates the performance of its operating segments and the consolidated Company based on several criteria, including Adjusted EBITDA, adjusted operating income (loss), net debt, and adjusted free cash flow, because it believes that these financial measures accurately reflect the Company's ongoing profitability, performance and liquidity. Securities analysts and investors also use these measures as some of the metrics on which they analyze the Company's performance. Other companies in this industry may compute these measures differently. Reconciliations of consolidated adjusted EBITDA and adjusted operating income (loss) to income (loss) before income taxes, net debt to total debt, and adjusted free cash flow to net cash provided by operations, which are their nearest comparable GAAP financial measures, are included in the tables at the end of this press release. We do not provide a forward-looking reconciliation of our outlook for Segment Adjusted EBITDA, Segment Gross Margin or Adjusted Free Cash Flow, as the amount and significance of items required to develop meaningful comparable GAAP financial measures cannot be estimated at this time without unreasonable efforts. These special items could be meaningful. Investor Contacts: William C. Conroy, CFA, Vice President of Corporate Development & Investor Relations, +1 281-775-2423 or via e-mail william.conroy@nabors.com, or Kara Peak, Director of Corporate Development & Investor Relations, +1 281-775-4954 or via email kara.peak@nabors.com. To request investor materials, contact Nabors' corporate headquarters in Hamilton, Bermuda at +441-292-1510 or via e-mail mark.andrews@nabors.com NABORS INDUSTRIES LTD. AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS)(Unaudited)
Three Months Ended
March 31,
December 31,(In thousands, except per share amounts)
2026
2025
2025
Revenues and other income:
Operating revenues
$ 783,548
$ 736,186
$ 797,529Investment income (loss)
2,887
6,596
7,600Total revenues and other income
786,435
742,782
805,129
Costs and other deductions:
Direct costs
493,469
447,300
486,367General and administrative expenses
71,760
68,506
76,279Research and engineering
13,506
14,035
13,328Depreciation and amortization
156,186
154,638
159,188Interest expense
43,761
54,326
50,625Gain on disposition of Quail Tools
-
-
1,595Gain on bargain purchase
-
(112,999)
2,846Other, net
(13,393)
44,790
(9,532)Total costs and other deductions
765,289
670,596
780,696
Income (loss) before income taxes
21,146
72,186
24,433Income tax expense (benefit)
16,884
15,007
7,440
Net income (loss)
4,262
57,179
16,993Less: Net (income) loss attributable to noncontrolling interest
(19,428)
(24,191)
(6,645)Net income (loss) attributable to Nabors
$ (15,166)
$ 32,988
$ 10,348
Earnings (losses) per share:
Basic
$ (1.54)
$ 2.35
$ 0.17 Diluted
$ (1.54)
$ 2.18
$ 0.17
Weighted-average number of common shares outstanding:
Basic
14,213
10,460
14,131 Diluted
14,213
11,671
14,210
Adjusted EBITDA
$ 204,813
$ 206,345
$ 221,555
Adjusted operating income (loss)
$ 48,627
$ 51,707
$ 62,367 NABORS INDUSTRIES LTD. AND SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE SHEETS(Unaudited)
March 31,
December 31,(In thousands)
2026
2025
ASSETS
Current assets:
Cash and short-term investments
$ 500,853
$ 940,738Accounts receivable, net
417,717
391,705Other current assets
234,031
219,130 Total current assets
1,152,601
1,551,573Property, plant and equipment, net
2,914,886
2,920,019Other long-term assets
318,149
318,065 Total assets
$ 4,385,636
$ 4,789,657
LIABILITIES AND EQUITY
Current liabilities:
Current debt
$ -
$ 377,492Trade accounts payable
322,837
300,467Other current liabilities
262,378
315,042 Total current liabilities
585,215
993,001Long-term debt
2,118,729
2,117,187Other long-term liabilities
240,163
241,826 Total liabilities
2,944,107
3,352,014
Redeemable noncontrolling interest in subsidiary
489,129
482,446
Equity:
Shareholders' equity
568,942
590,727Noncontrolling interest
383,458
364,470 Total equity
952,400
955,197 Total liabilities and equity
$ 4,385,636
$ 4,789,657 NABORS INDUSTRIES LTD. AND SUBSIDIARIESSEGMENT REPORTING(Unaudited)
The following tables set forth certain information with respect to our reportable segments and rig activity:
Three Months Ended
March 31,
December 31,(In thousands, except rig activity)
2026
2025
2025
Operating revenues:
U.S. Drilling
$ 241,144
$ 230,746
$ 240,624
International Drilling
419,496
381,718
423,842
Drilling Solutions
106,222
93,179
107,879
Rig Technologies (1)
27,222
44,165
37,747
Other reconciling items (2)
(10,536)
(13,622)
(12,563)
Total operating revenues
$ 783,548
$ 736,186
$ 797,529
Adjusted EBITDA: (3)
U.S. Drilling
$ 88,065
$ 92,711
$ 93,213
International Drilling
121,281
115,486
131,262
Drilling Solutions
38,662
40,853
41,302
Rig Technologies (1)
505
5,563
4,946
Other reconciling items (4)
(43,700)
(48,268)
(49,168)
Total adjusted EBITDA
$ 204,813
$ 206,345
$ 221,555
Adjusted operating income (loss): (5)
U.S. Drilling
$ 24,624
$ 31,599
$ 28,556
International Drilling
40,757
32,958
49,638
Drilling Solutions
31,872
32,913
34,022
Rig Technologies (1)
(1,888)
4,335
1,341
Other reconciling items (4)
(46,738)
(50,098)
(51,190)
Total adjusted operating income (loss)
$ 48,627
$ 51,707
$ 62,367
Rig activity:
Average Rigs Working: (7)
Lower 48
65.3
60.6
59.8
Other US
10.0
7.6
9.8
U.S. Drilling
75.3
68.2
69.6
International Drilling
92.6
85.0
93.3
Total average rigs working
167.9
153.2
162.9
Daily Rig Revenue: (6),(8)
Lower 48
$ 32,653
$ 34,546
$ 32,938
Other US
54,646
61,361
66,003
U.S. Drilling (10)
35,573
37,557
37,582
International Drilling
50,351
49,895
49,391
Daily Adjusted Gross Margin: (6),(9)
Lower 48
$ 13,177
$ 14,276
$ 13,303
Other US
19,559
30,374
29,557
U.S. Drilling (10)
14,024
16,084
15,586
International Drilling
16,880
17,421
17,630
(1)Includes our oilfield equipment manufacturing activities.
(2)Represents the elimination of inter-segment transactions related to our Rig Technologies operating segment.
(3)Adjusted EBITDA represents net income (loss) before income tax expense (benefit), investment income (loss), interest expense, gain on disposition of Quail Tools, gain on bargain purchase, other, net and depreciation and amortization. Adjusted EBITDA is a non-GAAP financial measure and should not be used in isolation or as a substitute for the amounts reported in accordance with GAAP. In addition, adjusted EBITDA excludes certain cash expenses that the Company is obligated to make. However, management evaluates the performance of its operating segments and the consolidated Company based on several criteria, including adjusted EBITDA and adjusted operating income (loss), because it believes that these financial measures accurately reflect the Company's ongoing profitability and performance. Securities analysts and investors use this measure as one of the metrics on which they analyze the Company's performance. Other companies in this industry may compute these measures differently. A reconciliation of this non-GAAP measure to net income (loss), which is the most closely comparable GAAP measure, is provided in the table set forth immediately following the heading "Reconciliation of Non-GAAP Financial Measures to Net Income (Loss)".
(4)Represents the elimination of inter-segment transactions and unallocated corporate expenses.
(5)Adjusted operating income (loss) represents net income (loss) before income tax expense (benefit), investment income (loss), interest expense, gain on disposition of Quail Tools, gain on bargain purchase and other, net. Adjusted operating income (loss) is a non-GAAP financial measure and should not be used in isolation or as a substitute for the amounts reported in accordance with GAAP. In addition, adjusted operating income (loss) excludes certain cash expenses that the Company is obligated to make. However, management evaluates the performance of its operating segments and the consolidated Company based on several criteria, including adjusted EBITDA and adjusted operating income (loss), because it believes that these financial measures accurately reflect the Company's ongoing profitability and performance. Securities analysts and investors use this measure as one of the metrics on which they analyze the Company's performance. Other companies in this industry may compute these measures differently. A reconciliation of this non-GAAP measure to net income (loss), which is the most closely comparable GAAP measure, is provided in the table set forth immediately following the heading "Reconciliation of Non-GAAP Financial Measures to Net Income (Loss)".
(6)Rig revenue days represents the number of days the Company's rigs are contracted and performing under a contract during the period. These would typically include days in which operating, standby and move revenue is earned.
(7)Average rigs working represents a measure of the average number of rigs operating during a given period. For example, one rig operating 45 days during a quarter represents approximately 0.5 average rigs working for the quarter. On an annual period, one rig operating 182.5 days represents approximately 0.5 average rigs working for the year. Average rigs working can also be calculated as rig revenue days during the period divided by the number of calendar days in the period.
(8)Daily rig revenue represents operating revenue, divided by the total number of revenue days during the quarter.
(9)Daily adjusted gross margin represents operating revenue less direct costs, divided by the total number of rig revenue days during the quarter.
(10)The U.S. Drilling segment includes the Lower 48, Alaska, and Gulf of Mexico operating areas. NABORS INDUSTRIES LTD. AND SUBSIDIARIESReconciliation of Earnings per Share(Unaudited)
Three Months Ended
March 31,
December 31,(in thousands, except per share amounts)2026
2025
2025
BASIC EPS:
Net income (loss) (numerator):
Income (loss), net of tax$4,262
$57,179
$16,993Less: net (income) loss attributable to
noncontrolling interest
(19,428)
(24,191)
(6,645)Less: deemed dividends to SPAC public
shareholders
—
—
(250)Less: distributed and undistributed earnings
allocated to unvested shareholders
—
(1,177)
(301)Less: accrued distribution on redeemable
noncontrolling interest in subsidiary
(6,683)
(7,184)
(7,344)Numerator for basic earnings per share:
Adjusted income (loss), net of tax - basic$(21,849)
$24,627
$2,453
Weighted-average number of shares outstanding -
basic
14,213
10,460
14,131Earnings (losses) per share:
Total Basic$(1.54)
$2.35
$0.17
DILUTED EPS:
Adjusted income (loss), net of tax - basic$(21,849)
$24,627
$2,453Add: after tax interest expense of convertible notes
—
848
—Add: effect of reallocating undistributed earnings of
unvested shareholders
—
4
1Adjusted income (loss), net of tax - diluted$(21,849)
$25,479
$2,454
Weighted-average number of shares outstanding -
basic
14,213
10,460
14,131Add: if converted dilutive effect of convertible notes
—
1,176
—Add: dilutive effect of potential common shares
—
35
79Weighted-average number of shares outstanding -
diluted
14,213
11,671
14,210Earnings (losses) per share:
Total Diluted$(1.54)
$2.18
$0.17 NABORS INDUSTRIES LTD. AND SUBSIDIARIESNON-GAAP FINANCIAL MEASURESRECONCILIATION OF ADJUSTED EBITDA BY SEGMENT TO ADJUSTED OPERATING INCOME (LOSS) BY SEGMENT(Unaudited)
(In thousands)
Three Months Ended March 31, 2026
U.S.
Drilling
International
Drilling
Drilling
Solutions
Rig
Technologies
Other
reconciling
items
Total
Adjusted operating income (loss)
$24,624
$ 40,757
$ 31,872
$ (1,888)
$ (46,738)
$ 48,627Depreciation and amortization
63,441
80,524
6,790
2,393
3,038
156,186Adjusted EBITDA
$88,065
$ 121,281
$ 38,662
$ 505
$ (43,700)
$ 204,813
Three Months Ended March 31, 2025
U.S.
Drilling
International
Drilling
Drilling
Solutions
Rig
Technologies
Other
reconciling
items
Total
Adjusted operating income (loss)
$31,599
$ 32,958
$ 32,913
$ 4,335
$ (50,098)
$ 51,707Depreciation and amortization
61,112
82,528
7,940
1,228
1,830
154,638Adjusted EBITDA
$92,711
$ 115,486
$ 40,853
$ 5,563
$ (48,268)
$ 206,345
Three Months Ended December 31, 2025
U.S.
Drilling
International
Drilling
Drilling
Solutions
Rig
Technologies
Other
reconciling
items
Total
Adjusted operating income (loss)
$28,556
$ 49,638
$ 34,022
$ 1,341
$ (51,190)
$ 62,367Depreciation and amortization
64,657
81,624
7,280
3,605
2,022
159,188Adjusted EBITDA
$93,213
$ 131,262
$ 41,302
$ 4,946
$ (49,168)
$ 221,555 NABORS INDUSTRIES LTD. AND SUBSIDIARIESNON-GAAP FINANCIAL MEASURESRECONCILIATION OF ADJUSTED GROSS MARGIN BY SEGMENT TO ADJUSTED
OPERATING INCOME (LOSS) BY SEGMENT(Unaudited)
Three Months Ended
March 31,
December 31,(In thousands)
2026
2025
2025
Lower 48 - U.S. Drilling
Adjusted operating income (loss)
$ 17,405
$ 18,995
$ 13,015
Plus: General and administrative costs
5,324
4,817
4,874
Plus: Research and engineering
1,143
823
1,199
GAAP Gross Margin
23,872
24,635
19,088
Plus: Depreciation and amortization
53,595
53,225
54,123
Adjusted gross margin
$ 77,467
$ 77,860
$ 73,211
Other - U.S. Drilling
Adjusted operating income (loss)
$ 7,219
$ 12,604
$ 15,541
Plus: General and administrative costs
458
405
416
Plus: Research and engineering
80
62
90
GAAP Gross Margin
7,757
13,071
16,047
Plus: Depreciation and amortization
9,846
7,887
10,534
Adjusted gross margin
$ 17,603
$ 20,958
$ 26,581
U.S. Drilling
Adjusted operating income (loss)
$ 24,624
$ 31,599
$ 28,556
Plus: General and administrative costs
5,782
5,222
5,290
Plus: Research and engineering
1,223
885
1,289
GAAP Gross Margin
31,629
37,706
35,135
Plus: Depreciation and amortization
63,441
61,112
64,657
Adjusted gross margin
$ 95,070
$ 98,818
$ 99,792
International Drilling
Adjusted operating income (loss)
$ 40,757
$ 32,958
$ 49,638
Plus: General and administrative costs
17,609
16,378
18,207
Plus: Research and engineering
1,749
1,414
1,821
GAAP Gross Margin
60,115
50,750
69,666
Plus: Depreciation and amortization
80,524
82,528
81,624
Adjusted gross margin
$ 140,639
$ 133,278
$ 151,290
Adjusted gross margin by segment represents adjusted operating income (loss) plus general and administrative costs, research and engineering costs and depreciation and amortization. NABORS INDUSTRIES LTD. AND SUBSIDIARIESRECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO NET INCOME (LOSS)(Unaudited)
Three Months Ended
March 31,
December 31,(In thousands)
2026
2025
2025
Net income (loss)
$ 4,262
$ 57,179
$ 16,993Income tax expense (benefit)
16,884
15,007
7,440Income (loss) before income taxes
21,146
72,186
24,433Investment (income) loss
(2,887)
(6,596)
(7,600)Interest expense
43,761
54,326
50,625Gain on disposition of Quail Tools
-
-
1,595Gain on bargain purchase
-
(112,999)
2,846Other, net
(13,393)
44,790
(9,532)Adjusted operating income (loss) (1)
48,627
51,707
62,367Depreciation and amortization
156,186
154,638
159,188Adjusted EBITDA (2)
$ 204,813
$ 206,345
$ 221,555
(1) Adjusted operating income (loss) represents net income (loss) before income tax expense (benefit), investment income (loss), interest expense, gain on disposition of Quail Tools, gain on bargain purchase and other, net. Adjusted operating income (loss) is a non-GAAP financial measure and should not be used in isolation or as a substitute for the amounts reported in accordance with GAAP. In addition, adjusted operating income (loss) excludes certain cash expenses that the Company is obligated to make. However, management evaluates the performance of its operating segments and the consolidated Company based on several criteria, including adjusted EBITDA and adjusted operating income (loss), because it believes that these financial measures accurately reflect the Company's ongoing profitability and performance. Securities analysts and investors use this measure as one of the metrics on which they analyze the Company's performance. Other companies in this industry may compute these measures differently.
(2) Adjusted EBITDA represents net income (loss) before income tax expense (benefit), investment income (loss), interest expense, gain on disposition of Quail Tools, gain on bargain purchase, other, net and depreciation and amortization. Adjusted EBITDA is a non-GAAP financial measure and should not be used in isolation or as a substitute for the amounts reported in accordance with GAAP. In addition, adjusted EBITDA excludes certain cash expenses that the Company is obligated to make. However, management evaluates the performance of its operating segments and the consolidated Company based on several criteria, including adjusted EBITDA and adjusted operating income (loss), because it believes that these financial measures accurately reflect the Company's ongoing profitability and performance. Securities analysts and investors use this measure as one of the metrics on which they analyze the Company's performance. Other companies in this industry may compute these measures differently. NABORS INDUSTRIES LTD. AND SUBSIDIARIESRECONCILIATION OF NET DEBT TO TOTAL DEBT(Unaudited)
March 31,
December 31,(In thousands)
2026
2025
Current debt
$ -
$ 377,492Long-term debt
2,118,729
2,117,187 Total Debt
2,118,729
2,494,679Less: Cash and short-term investments
500,853
940,738 Net Debt
$ 1,617,876
$ 1,553,941 NABORS INDUSTRIES LTD. AND SUBSIDIARIESRECONCILIATION OF ADJUSTED FREE CASH FLOW TONET CASH PROVIDED BY OPERATING ACTIVITIES(Unaudited)
Three Months Ended
March 31,
December 31,(In thousands)
2026
2025
2025
Net cash provided by operating activities
$ 113,339
$ 87,735
$ 245,841Add: Capital expenditures, net of proceeds from sales
of assets
(161,558)
(159,161)
(114,043)
Free cash flow
$ (48,219)
$(71,426)
$ 131,798
Cash paid for acquisition related costs (1)
-
10,181
-
Adjusted free cash flow
$ (48,219)
$(61,245)
$ 131,798
(1) Cash paid related to the Parker Drilling acquisition
Adjusted free cash flow represents net cash provided by operating activities less cash used for capital expenditures, net of proceeds from sales of assets, and before cash paid for acquisition related costs. Management believes that adjusted free cash flow is an important liquidity measure for the company and that it is useful to investors and management as a measure of the company's ability to generate cash flow, after reinvesting in the company for future growth, that could be available for paying down debt or other financing cash flows, such as dividends to shareholders. Adjusted free cash flow does not represent the residual cash flow available for discretionary expenditures. Adjusted free cash flow is a non-GAAP financial measure that should be considered in addition to, not as a substitute for or superior to, cash flow from operations reported in accordance with GAAP.
View original content:https://www.prnewswire.com/news-releases/disciplined-execution-durable-momentum-nabors-1q-2026-302756186.htmlSOURCE Nabors Industries Ltd.
Original: Disciplined Execution, Durable Momentum: Nabors 1Q 2026
US Market News
5月前
Nabors Announces Fourth Quarter and Full-Year 2025 ResultsFebruary 11, 2026 4:15 PM
PR Newswire (US)
HAMILTON, Bermuda, Feb.11, 2026 /PRNewswire/ -- Nabors Industries Ltd. ("Nabors" or the "Company") (NYSE: NBR) today reported fourth quarter 2025 operating revenues of $798 million, compared to operating revenues of $818 million in the third quarter. Net income attributable to Nabors' shareholders for the quarter was $10 million, compared to $274 million in the third quarter. This equates to earnings per diluted share of $0.17, compared to $16.85 in the third quarter. The third quarter included a one-time, after-tax gain on the disposition of Quail Tools, LLC ("Quail") of $314 million, or $20.52 per diluted share. Fourth-quarter adjusted EBITDA was $222 million, compared to $236 million in the previous quarter.
4Q 2025 HighlightsNabors completed several transactions that materially reduced total debt and significantly strengthened its leverage metrics:Related to the sale of Quail, Nabors collected the $250 million seller financing note in full.The Company issued $700 million of notes due in 2032.In turn, the Company redeemed the $546 million remaining balance of its notes due in 2027.In January, the Company redeemed in full the remaining outstanding notes due in 2028.These actions contributed to a reduction in Nabors' outstanding net debt by approximately $554 million since the end of 2024. The Company's next debt maturity is $250 million due in 2029.The performance of the retained Parker Wellbore businesses improved. Adjusted EBITDA contribution from these operations increased by 11% sequentially, with stronger drilling activity in Canada and Indonesia. This growth also includes additional realization of cost synergies, reaching the $40 million synergy target for 2025.The SANAD joint venture deployed one newbuild rig in the Kingdom. The number of newbuild deployments now totals 14. Five more are scheduled for 2026, followed by one more in early 2027.In the fourth quarter, Nabors installed the first unit of its new Canrig® automated floor wrench on a Nabors rig working in the Haynesville Shale. This wrench represents a technological step-change for this critical rig floor component. Its field performance demonstrates a 30% reduction in cycle time and improved positioning. Available as a retrofit to Canrig wrenches deployed in the field, it is already generating significant customer interest.Anthony G. Petrello, Nabors Chairman, CEO and President, commented, "2025 proved to be a transformational year for our capital structure. Including the redemption in January, we reduced our total debt by $388 million since the end of 2024. This represents significant progress on our path to delevering. As a result of this significant reduction in debt, our annual interest expense should decline by approximately $45 million, translating into a dollar-for-dollar improvement in adjusted free cash flow."Nabors' fourth quarter results improved compared to the third quarter, excluding the contribution from Quail. This sequential improvement was broad-based across all segments of our operations."In the Lower 48 business and International Drilling segment, our average rig counts in the fourth quarter exceeded both our expectations and those of the prior quarter. Our Lower 48 count increased in the latter portion of the quarter, highlighting our success executing on opportunities to add rigs. In our International Drilling segment, SANAD added a newbuild in Saudi Arabia, two rigs were redeployed in Argentina, and three platform rigs in Mexico continued to work throughout the quarter."The sequential increase in Drilling Solutions' ("NDS") adjusted EBITDA was particularly encouraging. The largest contributors to this increase include casing running, managed pressure drilling, and performance software in our international markets. In the Lower 48 market, NDS's revenue on third-party drilling contractors' rigs increased sequentially by more than 10%, even as that market's rig count grew by just 1%. This performance demonstrates the value of the NDS portfolio and our success targeting the third-party rig market."Segment Results International Drilling adjusted EBITDA totaled $131.3 million, compared to $127.6 million in the third quarter. Average rig count increased by more than four rigs, reflecting the recent startup of rigs in Argentina, Saudi Arabia and Colombia. Daily adjusted gross margin for the fourth quarter was $17,630, partially reflecting rig startup inefficiencies and activity interruptions in certain markets.The U.S. Drilling segment reported fourth quarter adjusted EBITDA of $93.2 million, compared to $94.2 million in the previous quarter. Results in the Lower 48 operation improved on increases in average rig count and daily gross margin. These were mainly offset by a margin decline in Alaska and Offshore which was smaller than expected.Drilling Solutions adjusted EBITDA was $41.3 million, compared to $60.7 million in the third quarter. The segment's third quarter results included the contribution from Quail through its disposition in August. Excluding the impact of Quail from the third quarter results, Drilling Solutions adjusted EBITDA grew 2.3%.Rig Technologies adjusted EBITDA was $4.9 million, a 31% increase from $3.8 million in the prior quarter. Sales of capital equipment improved in the quarter.Adjusted Free Cash FlowConsolidated adjusted free cash flow was $132 million in the fourth quarter, a significant increase from $6 million in the third quarter. Several factors contributed to this performance. In addition to stronger EBITDA, collections in Mexico improved substantially. Capital spending in the fourth quarter was below expectations, both for the SANAD newbuild rig program and in the balance of the operation. The Company also received settlements from several outstanding claims.Miguel Rodriguez, Nabors CFO, stated, "Our achievements over the past year demonstrate that we are delivering on our commitments. Our top priority is the reduction of debt. We intend to follow the recent progress with an additional decrease this year."In the fourth quarter, our adjusted EBITDA exceeded our expectations. The U.S. Drilling and Drilling Solutions segments contributed to this outperformance. All three of the U.S. Drilling operations were stronger than expected. In the Lower 48, the increase in rig count late in the quarter sets us up for a positive start to 2026. Drilling Solutions' strength was evident across multiple service lines, especially in its international markets."Adjusted free cash flow in the fourth quarter also exceeded our expectations. Going forward, our focus will remain strengthening our capital structure, while delivering durable growth and long-term value."OutlookNabors expects the following metrics for the first quarter of 2026:U.S. Drilling Lower 48 average rig count of 64 - 65 rigsLower 48 daily adjusted gross margin of approximately $13,200Alaska and Gulf of America combined adjusted EBITDA of $16 - $17 millionInternationalAverage rig count of 91 - 92 rigsDaily adjusted gross margin of approximately $17,500 - $17,600Drilling SolutionsAdjusted EBITDA of approximately $39 millionRig TechnologiesAdjusted EBITDA of approximately $2 millionCapital ExpendituresCapital expenditures of $170 - $180 million, including approximately $85 million for newbuilds in Saudi ArabiaAdjusted Free Cash FlowFirst quarter adjusted free cash consumption of $80 - $90 million, including free cash consumption at SANAD of $50 - $60 millionNabors expects the following metrics for full-year 2026:U.S. Drilling Lower 48 average rig count of 61 - 64 rigsLower 48 daily adjusted gross margin of $13,000 - $13,400Alaska and Gulf of America combined adjusted EBITDA of $55 - $60 millionInternationalAverage rig count of 96 - 98 rigsDaily adjusted gross margin of approximately $18,500Drilling SolutionsAdjusted EBITDA of $160 - $170 millionRig TechnologiesAdjusted EBITDA of $22 - $25 millionCapital ExpendituresCapital expenditures of approximately $730 - $760 million, with $360 - $380 million for SANAD newbuildsAdjusted Free Cash FlowAdjusted free cash flow excluding SANAD of $80 - $90 million, with SANAD consuming $100 - $120 millionMr. Petrello concluded, "The steps we have taken over the past year have significantly reduced our debt, improved our leverage metrics, and lowered our interest payments. In addition, we retain a business portfolio from Parker that contributes materially to EBITDA and free cash flow. "Looking forward, the Lower 48 market appears to be stabilizing. At the same time, the opportunity set in our international markets looks attractive. Our diversified business portfolio is designed to capitalize on this environment."About Nabors IndustriesNabors Industries (NYSE: NBR) is a leading provider of advanced technology for the energy industry. With presence in more than 20 countries, Nabors has established a global network of people, technology and equipment to deploy solutions that deliver safe, efficient and responsible energy production. By leveraging its core competencies, particularly in drilling, engineering, automation, data science and manufacturing, Nabors aims to innovate the future of energy and enable the transition to a lower-carbon world. Learn more about Nabors and its energy technology leadership: www.nabors.com.Forward-looking StatementsThe information included in this press release includes forward-looking statements within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934. Such forward-looking statements are subject to a number of risks and uncertainties, as disclosed by Nabors from time to time in its filings with the Securities and Exchange Commission. As a result of these factors, Nabors' actual results may differ materially from those indicated or implied by such forward-looking statements. The forward-looking statements contained in this press release reflect management's estimates and beliefs as of the date of this press release. Nabors does not undertake to update these forward-looking statements. Non-GAAP DisclaimerThis press release presents certain "non-GAAP" financial measures. The components of these non-GAAP measures are computed by using amounts that are determined in accordance with accounting principles generally accepted in the United States of America ("GAAP"). Adjusted operating income (loss) represents income (loss) before income taxes, interest expense, investment income (loss), gain on disposition of Quail Tools, gain on bargain purchase, and other, net. Adjusted EBITDA is computed similarly, but also excludes depreciation and amortization expenses. In addition, adjusted EBITDA and adjusted operating income (loss) exclude certain cash expenses that the Company is obligated to make. Net debt is calculated as total debt minus the sum of cash, cash equivalents and short-term investments.Adjusted free cash flow represents net cash provided by operating activities less cash used for capital expenditures, net of proceeds from sales of assets, and before cash paid for acquisition-related costs. Management believes that adjusted free cash flow is an important liquidity measure for the company and that it is useful to investors and management as a measure of the company's ability to generate cash flow, after reinvesting in the company for future growth, that could be available for paying down debt or other financing cash flows, such as dividends to shareholders. Adjusted free cash flow does not represent the residual cash flow available for discretionary expenditures. Adjusted free cash flow is a non-GAAP financial measure that should be considered in addition to, not as a substitute for or superior to, cash flow from operations reported in accordance with GAAP.Each of these non-GAAP measures has limitations and therefore should not be used in isolation or as a substitute for the amounts reported in accordance with GAAP. However, management evaluates the performance of its operating segments and the consolidated Company based on several criteria, including Adjusted EBITDA, adjusted operating income (loss), net debt, and adjusted free cash flow, because it believes that these financial measures accurately reflect the Company's ongoing profitability, performance and liquidity. Securities analysts and investors also use these measures as some of the metrics on which they analyze the Company's performance. Other companies in this industry may compute these measures differently. Reconciliations of consolidated adjusted EBITDA and adjusted operating income (loss) to income (loss) from continuing operations before income taxes, net debt to total debt, and adjusted free cash flow to net cash provided by operations, which are their nearest comparable GAAP financial measures, are included in the tables at the end of this press release. We do not provide a forward-looking reconciliation of our outlook for Segment Adjusted EBITDA, Segment Gross Margin or Adjusted Free Cash Flow, as the amount and significance of items required to develop meaningful comparable GAAP financial measures cannot be estimated at this time without unreasonable efforts. These special items could be meaningful.Investor Contacts: William C. Conroy, CFA, Vice President of Corporate Development & Investor Relations, +1 281-775-2423 or via e-mail william.conroy@nabors.com or Kara K. Peak, Director of Corporate Development & Investor Relations, +1 281-775-4954 or via email kara.peak@nabors.com. To request investor materials, contact Nabors' corporate headquarters in Hamilton, Bermuda at +441-292-1510 or via e-mail mark.andrews@nabors.com NABORS INDUSTRIES LTD. AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS)(Unaudited)
Three Months Ended
Year Ended
December 31,
September 30,
December 31,(In thousands, except per share amounts)
2025
2024
2025
2025
2024
Revenues and other income:
Operating revenues
$ 797,529
$ 729,819
$ 818,190
$ 3,184,693
$ 2,930,126Investment income (loss)
7,600
8,828
7,323
27,648
38,713Total revenues and other income
805,129
738,647
825,513
3,212,341
2,968,839
Costs and other deductions:
Direct costs
486,367
433,404
491,828
1,914,376
1,742,411General and administrative expenses
76,279
61,436
77,076
304,587
249,317Research and engineering
13,328
14,434
12,978
53,063
57,063Depreciation and amortization
159,188
156,348
160,347
649,234
633,408Interest expense
50,625
53,642
54,334
215,366
210,864Gain on disposition of Quail Tools
1,595
-
(415,557)
(413,962)
-Gain on bargain purchase
2,846
-
-
(113,653)
-Other, net
(9,532)
37,021
24,470
65,802
106,816Total costs and other deductions
780,696
756,285
405,476
2,674,813
2,999,879
Income (loss) before income taxes
24,433
(17,638)
420,037
537,528
(31,040)Income tax expense (benefit)
7,440
15,231
117,571
163,095
56,947
Net income (loss)
16,993
(32,869)
302,466
374,433
(87,987)Less: Net (income) loss attributable to noncontrolling interest
(6,645)
(20,802)
(28,268)
(87,809)
(88,097)Net income (loss) attributable to Nabors
$ 10,348
$ (53,671)
$ 274,198
$ 286,624
$ (176,084)
Earnings (losses) per share:
Basic
$ 0.17
$ (6.67)
$ 18.25
$ 18.75
$ (22.37) Diluted
$ 0.17
$ (6.67)
$ 16.85
$ 17.39
$ (22.37)
Weighted-average number of common shares outstanding:
Basic
14,131
9,213
14,098
13,193
9,202 Diluted
14,210
9,213
15,321
14,416
9,202
Adjusted EBITDA
$ 221,555
$ 220,545
$ 236,308
$ 912,667
$ 881,335
Adjusted operating income (loss)
$ 62,367
$ 64,197
$ 75,961
$ 263,433
$ 247,927 NABORS INDUSTRIES LTD. AND SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE SHEETS(Unaudited)
December 31,
September 30,
December 31,(In thousands)
2025
2025
2024
ASSETS
Current assets:
Cash and short-term investments
$ 940,738
$ 428,079
$ 397,299Notes receivable
-
250,035
-Accounts receivable, net
391,705
487,062
387,970Other current assets
219,130
259,251
214,268 Total current assets
1,551,573
1,424,427
999,537Property, plant and equipment, net
2,920,019
2,931,290
2,830,957Other long-term assets
318,065
477,787
673,807 Total assets
$ 4,789,657
$ 4,833,504
$ 4,504,301
LIABILITIES AND EQUITY
Current liabilities:
Current debt, net
$ 377,492
$ -
$ -Trade accounts payable
300,467
352,415
321,030Other current liabilities
315,042
327,799
250,887 Total current liabilities
993,001
680,214
571,917Long-term debt, net
2,117,187
2,347,984
2,505,217Other long-term liabilities
241,826
237,136
220,829 Total liabilities
3,352,014
3,265,334
3,297,963
Redeemable noncontrolling interest in subsidiary
482,446
629,261
785,091
Equity:
Shareholders' equity
590,727
579,776
134,996Noncontrolling interest
364,470
359,133
286,251 Total equity
955,197
938,909
421,247 Total liabilities and equity
$ 4,789,657
$ 4,833,504
$ 4,504,301 NABORS INDUSTRIES LTD. AND SUBSIDIARIESSEGMENT REPORTING(Unaudited)
The following tables set forth certain information with respect to our reportable segments and rig activity:
Three Months Ended
Year Ended
December 31,
September 30,
December 31,(In thousands, except rig activity)
2025
2024
2025
2025
2024
Operating revenues:
U.S. Drilling
$ 240,624
$ 241,637
$ 249,836
$ 976,644
$ 1,028,122
International Drilling
423,842
371,406
407,235
1,597,765
1,446,092
Drilling Solutions
107,879
75,992
141,942
513,283
314,071
Rig Technologies (1)
37,747
56,166
35,597
154,036
201,677
Other reconciling items (2)
(12,563)
(15,382)
(16,420)
(57,035)
(59,836)
Total operating revenues
$ 797,529
$ 729,819
$ 818,190
$ 3,184,693
$ 2,930,126
Adjusted EBITDA: (3)
U.S. Drilling
$ 93,213
$ 105,757
$ 94,161
$ 381,906
$ 448,840
International Drilling
131,262
111,962
127,551
491,957
436,782
Drilling Solutions
41,302
33,809
60,666
219,322
132,375
Rig Technologies (1)
4,946
9,208
3,770
19,453
29,443
Other reconciling items (4)
(49,168)
(40,191)
(49,840)
(199,971)
(166,105)
Total adjusted EBITDA
$ 221,555
$ 220,545
$ 236,308
$ 912,667
$ 881,335
Adjusted operating income (loss): (5)
U.S. Drilling
$ 28,556
$ 38,973
$ 31,429
$ 131,372
$ 176,281
International Drilling
49,638
29,528
45,476
164,123
107,858
Drilling Solutions
34,022
28,944
49,982
167,282
112,387
Rig Technologies (1)
1,341
8,413
877
8,274
20,243
Other reconciling items (4)
(51,190)
(41,661)
(51,803)
(207,618)
(168,842)
Total adjusted operating income (loss)
$ 62,367
$ 64,197
$ 75,961
$ 263,433
$ 247,927
Rig activity:
Average Rigs Working: (7)
Lower 48
59.8
65.9
59.2
60.5
68.6
Other US
9.8
6.8
10.0
9.4
6.5
U.S. Drilling
69.6
72.7
69.2
69.9
75.1
International Drilling
93.3
84.8
89.2
88.4
83.7
Total average rigs working
162.9
157.5
158.4
158.3
158.8
Daily Rig Revenue: (6),(8)
Lower 48
$ 32,938
$ 33,396
$ 34,017
$ 33,737
$ 34,771
Other US
66,003
62,624
70,035
67,698
65,264
U.S. Drilling (10)
37,582
36,137
39,219
38,290
37,419
International Drilling
49,391
47,620
49,596
49,532
47,189
Daily Adjusted Gross Margin: (6),(9)
Lower 48
$ 13,303
$ 14,940
$ 13,151
$ 13,660
$ 15,411
Other US
29,557
34,707
31,527
30,921
36,440
U.S. Drilling (10)
15,586
16,793
15,805
15,974
17,237
International Drilling
17,630
16,687
17,931
17,634
16,478
(1)Includes our oilfield equipment manufacturing activities.
(2)Represents the elimination of inter-segment transactions related to our Rig Technologies operating segment.
(3)Adjusted EBITDA represents net income (loss) before income tax expense (benefit), investment income (loss), interest expense, gain on disposition of Quail Tools, gain on bargain purchase, other, net and depreciation and amortization. Adjusted EBITDA is a non-GAAP financial measure and should not be used in isolation or as a substitute for the amounts reported in accordance with GAAP. In addition, adjusted EBITDA excludes certain cash expenses that the Company is obligated to make. However, management evaluates the performance of its operating segments and the consolidated Company based on several criteria, including adjusted EBITDA and adjusted operating income (loss), because it believes that these financial measures accurately reflect the Company's ongoing profitability and performance. Securities analysts and investors use this measure as one of the metrics on which they analyze the Company's performance. Other companies in this industry may compute these measures differently. A reconciliation of this non-GAAP measure to net income (loss), which is the most closely comparable GAAP measure, is provided in the table set forth immediately following the heading "Reconciliation of Non-GAAP Financial Measures to Net Income (Loss)".
(4)Represents the elimination of inter-segment transactions and unallocated corporate expenses.
(5)Adjusted operating income (loss) represents net income (loss) before income tax expense (benefit), investment income (loss), interest expense, gain on disposition of Quail Tools, gain on bargain purchase and other, net. Adjusted operating income (loss) is a non-GAAP financial measure and should not be used in isolation or as a substitute for the amounts reported in accordance with GAAP. In addition, adjusted operating income (loss) excludes certain cash expenses that the Company is obligated to make. However, management evaluates the performance of its operating segments and the consolidated Company based on several criteria, including adjusted EBITDA and adjusted operating income (loss), because it believes that these financial measures accurately reflect the Company's ongoing profitability and performance. Securities analysts and investors use this measure as one of the metrics on which they analyze the Company's performance. Other companies in this industry may compute these measures differently. A reconciliation of this non-GAAP measure to net income (loss), which is the most closely comparable GAAP measure, is provided in the table set forth immediately following the heading "Reconciliation of Non-GAAP Financial Measures to Net Income (Loss)".
(6)Rig revenue days represents the number of days the Company's rigs are contracted and performing under a contract during the period. These would typically include days in which operating, standby and move revenue is earned.
(7)Average rigs working represents a measure of the average number of rigs operating during a given period. For example, one rig operating 45 days during a quarter represents approximately 0.5 average rigs working for the quarter. On an annual period, one rig operating 182.5 days represents approximately 0.5 average rigs working for the year. Average rigs working can also be calculated as rig revenue days during the period divided by the number of calendar days in the period.
(8)Daily rig revenue represents operating revenue, divided by the total number of revenue days during the quarter.
(9)Daily adjusted gross margin represents operating revenue less direct costs, divided by the total number of rig revenue days during the quarter.
(10)The U.S. Drilling segment includes the Lower 48, Alaska, and Gulf of Mexico operating areas. NABORS INDUSTRIES LTD. AND SUBSIDIARIES
Reconciliation of Earnings per Share
(Unaudited)
Three Months Ended
Year Ended
December 31,
September 30,
December 31,
(in thousands, except per share amounts)2025
2024
2025
2025
2024
BASIC EPS:
Net income (loss) (numerator):
Income (loss), net of tax$16,993
$(32,869)
$302,466
$374,433
$(87,987)
Less: net (income) loss attributable to noncontrolling interest
(6,645)
(20,802)
(28,268)
(87,809)
(88,097)
Less: deemed dividends to SPAC public shareholders
(250)
—
(750)
(1,000)
—
Less: distributed and undistributed earnings allocated to unvested shareholders
(301)
—
(8,828)
(9,149)
—
Less: accrued distribution on redeemable noncontrolling interest in subsidiary
(7,344)
(7,794)
(7,344)
(29,136)
(29,723)
Numerator for basic earnings per share:
Adjusted income (loss), net of tax - basic$2,453
$(61,465)
$257,276
$247,339
$(205,807)
Weighted-average number of shares outstanding - basic
14,131
9,213
14,098
13,193
9,202
Earnings (losses) per share:
Total Basic$0.17
$(6.67)
$18.25
$18.75
$(22.37)
DILUTED EPS:
Adjusted income (loss), net of tax - basic$2,453
$(61,465)
$257,276
$247,339
$(205,807)
Add: after tax interest expense of convertible notes
—
—
848
3,392
—
Add: effect of reallocating undistributed earnings of unvested shareholders
1
—
28
32
—
Adjusted income (loss), net of tax - diluted$2,454
$(61,465)
$258,152
$250,763
$(205,807)
Weighted-average number of shares outstanding - basic
14,131
9,213
14,098
13,193
9,202
Add: if converted dilutive effect of convertible notes
—
—
1,176
1,176
—
Add: dilutive effect of potential common shares
79
—
47
47
—
Weighted-average number of shares outstanding - diluted
14,210
9,213
15,321
14,416
9,202
Earnings (losses) per share:
Total Diluted$0.17
$(6.67)
$16.85
$17.39
$(22.37)
NABORS INDUSTRIES LTD. AND SUBSIDIARIESNON-GAAP FINANCIAL MEASURESRECONCILIATION OF ADJUSTED EBITDA BY SEGMENT TO ADJUSTED OPERATING INCOME (LOSS) BY SEGMENT(Unaudited)
(In thousands)
Three Months Ended December 31, 2025
U.S.
Drilling
International
Drilling
Drilling
Solutions
Rig
Technologies
Other
reconciling
items
Total
Adjusted operating income (loss)
$ 28,556
$ 49,638
$ 34,022
$ 1,341
$ (51,190)
$ 62,367Depreciation and amortization
64,657
81,624
7,280
3,605
2,022
159,188Adjusted EBITDA
$ 93,213
$ 131,262
$ 41,302
$ 4,946
$ (49,168)
$ 221,555
Three Months Ended December 31, 2024
U.S.
Drilling
International
Drilling
Drilling
Solutions
Rig
Technologies
Other
reconciling
items
Total
Adjusted operating income (loss)
$ 38,973
$ 29,528
$ 28,944
$ 8,413
$ (41,661)
$ 64,197Depreciation and amortization
66,784
82,434
4,865
795
1,470
156,348Adjusted EBITDA
$ 105,757
$ 111,962
$ 33,809
$ 9,208
$ (40,191)
$ 220,545
Three Months Ended September 30, 2025
U.S.
Drilling
International
Drilling
Drilling
Solutions
Rig
Technologies
Other
reconciling
items
Total
Adjusted operating income (loss)
$ 31,429
$ 45,476
$ 49,982
$ 877
$ (51,803)
$ 75,961Depreciation and amortization
62,732
82,075
10,684
2,893
1,963
160,347Adjusted EBITDA
$ 94,161
$ 127,551
$ 60,666
$ 3,770
$ (49,840)
$ 236,308
Year Ended December 31, 2025
U.S.
Drilling
International
Drilling
Drilling
Solutions
Rig
Technologies
Other
reconciling
items
Total
Adjusted operating income (loss)
$ 131,372
$ 164,123
$ 167,282
$ 8,274
$ (207,618)
$ 263,433Depreciation and amortization
250,534
327,834
52,040
11,179
7,647
649,234Adjusted EBITDA
$ 381,906
$ 491,957
$ 219,322
$ 19,453
$ (199,971)
$ 912,667
Year Ended December 31, 2024
U.S.
Drilling
International
Drilling
Drilling
Solutions
Rig
Technologies
Other
reconciling
items
Total
Adjusted operating income (loss)
$ 176,281
$ 107,858
$ 112,387
$ 20,243
$ (168,842)
$ 247,927Depreciation and amortization
272,559
328,924
19,988
9,200
2,737
633,408Adjusted EBITDA
$ 448,840
$ 436,782
$ 132,375
$ 29,443
$ (166,105)
$ 881,335 NABORS INDUSTRIES LTD. AND SUBSIDIARIESNON-GAAP FINANCIAL MEASURESRECONCILIATION OF ADJUSTED GROSS MARGIN BY SEGMENT TO ADJUSTED OPERATING INCOME (LOSS) BY SEGMENT(Unaudited)
Three Months Ended
Year Ended
December 31,
September 30,
December 31,(In thousands)
2025
2024
2025
2025
2024
Lower 48 - U.S. Drilling
Adjusted operating income (loss)
$ 13,015
$ 27,354
$ 13,689
$ 67,214
$ 129,812
Plus: General and administrative costs
4,874
5,156
4,745
18,917
19,452
Plus: Research and engineering
1,199
1,002
1,121
4,031
3,847
GAAP Gross Margin
19,088
33,512
19,555
90,162
153,111
Plus: Depreciation and amortization
54,123
57,019
52,120
211,548
233,555
Adjusted gross margin
$ 73,211
$ 90,531
$ 71,675
$ 301,710
$ 386,666
Other - U.S. Drilling
Adjusted operating income (loss)
$ 15,541
$ 11,619
$ 17,740
$ 64,158
$ 46,469
Plus: General and administrative costs
416
305
568
2,285
1,250
Plus: Research and engineering
90
72
85
301
206
GAAP Gross Margin
16,047
11,996
18,393
66,744
47,925
Plus: Depreciation and amortization
10,534
9,765
10,612
38,986
39,004
Adjusted gross margin
$ 26,581
$ 21,761
$ 29,005
$ 105,730
$ 86,929
U.S. Drilling
Adjusted operating income (loss)
$ 28,556
$ 38,973
$ 31,429
$ 131,372
$ 176,281
Plus: General and administrative costs
5,290
5,461
5,313
21,202
20,702
Plus: Research and engineering
1,289
1,074
1,206
4,332
4,053
GAAP Gross Margin
35,135
45,508
37,948
156,906
201,036
Plus: Depreciation and amortization
64,657
66,784
62,732
250,534
272,559
Adjusted gross margin
$ 99,792
$ 112,292
$ 100,680
$ 407,440
$ 473,595
International Drilling
Adjusted operating income (loss)
$ 49,638
$ 29,528
$ 45,476
$ 164,123
$ 107,858
Plus: General and administrative costs
18,207
16,758
18,015
70,468
62,306
Plus: Research and engineering
1,821
1,431
1,665
6,398
5,886
GAAP Gross Margin
69,666
47,717
65,156
240,989
176,050
Plus: Depreciation and amortization
81,624
82,434
82,075
327,834
328,924
Adjusted gross margin
$ 151,290
$ 130,151
$ 147,231
$ 568,823
$ 504,974
Adjusted gross margin by segment represents adjusted operating income (loss) plus general and administrative
costs, research and engineering costs and depreciation and amortization.
NABORS INDUSTRIES LTD. AND SUBSIDIARIESRECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO NET INCOME (LOSS)(Unaudited)
Three Months Ended
Year Ended
December 31,
September 30,
December 31,(In thousands)
2025
2024
2025
2025
2024
Net income (loss)
$ 16,993
$ (32,869)
$ 302,466
$ 374,433
$ (87,987)Income tax expense (benefit)
7,440
15,231
117,571
163,095
56,947Income (loss) before income taxes
24,433
(17,638)
420,037
537,528
(31,040)Investment (income) loss
(7,600)
(8,828)
(7,323)
(27,648)
(38,713)Interest expense
50,625
53,642
54,334
215,366
210,864Gain on disposition of Quail Tools
1,595
-
(415,557)
(413,962)
-Gain on bargain purchase
2,846
-
-
(113,653)
-Other, net
(9,532)
37,021
24,470
65,802
106,816Adjusted operating income (loss) (1)
62,367
64,197
75,961
263,433
247,927Depreciation and amortization
159,188
156,348
160,347
649,234
633,408Adjusted EBITDA (2)
$ 221,555
$ 220,545
$ 236,308
$ 912,667
$ 881,335
(1) Adjusted operating income (loss) represents net income (loss) before income tax expense (benefit), investment income (loss), interest expense, gain on disposition of Quail Tools, gain on bargain purchase and other, net. Adjusted operating income (loss) is a non-GAAP financial measure and should not be used in isolation or as a substitute for the amounts reported in accordance with GAAP. In addition, adjusted operating income (loss) excludes certain cash expenses that the Company is obligated to make. However, management evaluates the performance of its operating segments and the consolidated Company based on several criteria, including adjusted EBITDA and adjusted operating income (loss), because it believes that these financial measures accurately reflect the Company's ongoing profitability and performance. Securities analysts and investors use this measure as one of the metrics on which they analyze the Company's performance. Other companies in this industry may compute these measures differently.
(2) Adjusted EBITDA represents net income (loss) before income tax expense (benefit), investment income (loss), interest expense, gain on disposition of Quail Tools, gain on bargain purchase, other, net and depreciation and amortization. Adjusted EBITDA is a non-GAAP financial measure and should not be used in isolation or as a substitute for the amounts reported in accordance with GAAP. In addition, adjusted EBITDA excludes certain cash expenses that the Company is obligated to make. However, management evaluates the performance of its operating segments and the consolidated Company based on several criteria, including adjusted EBITDA and adjusted operating income (loss), because it believes that these financial measures accurately reflect the Company's ongoing profitability and performance. Securities analysts and investors use this measure as one of the metrics on which they analyze the Company's performance. Other companies in this industry may compute these measures differently. NABORS INDUSTRIES LTD. AND SUBSIDIARIESRECONCILIATION OF NET DEBT TO TOTAL DEBT(Unaudited)
December 31,
September 30,
December 31,(In thousands)
2025
2025
2024
Current debt, net
$ 377,492
$ -
$ -Long-term debt, net
2,117,187
2,347,984
2,505,217 Total Debt
2,494,679
2,347,984
2,505,217Less: Cash and short-term investments
940,738
428,079
397,299 Net Debt
$ 1,553,941
$ 1,919,905
$ 2,107,918 NABORS INDUSTRIES LTD. AND SUBSIDIARIESRECONCILIATION OF ADJUSTED FREE CASH FLOW TONET CASH PROVIDED BY OPERATING ACTIVITIES(Unaudited)
Three Months Ended
Year Ended
December 31,
September 30,
December 31,(In thousands)
2025
2025
2025
Net cash provided by operating activities
$ 245,841
$ 207,880
$ 693,266Add: Capital expenditures, net of proceeds from
sales of assets
(114,043)
(202,267)
(617,320)
Free cash flow
$ 131,798
$ 5,613
$ 75,946
Cash paid for acquisition related costs (1)
-
-
40,816
Adjusted free cash flow
$ 131,798
$ 5,613
$ 116,762
(1) Cash paid related to the Parker Drilling acquisition
Adjusted free cash flow represents net cash provided by operating activities less cash used for capital expenditures, net of proceeds from sales of assets, and before cash paid for acquisition related costs. Management believes that adjusted free cash flow is an important liquidity measure for the company and that it is useful to investors and management as a measure of the company's ability to generate cash flow, after reinvesting in the company for future growth, that could be available for paying down debt or other financing cash flows, such as dividends to shareholders. Adjusted free cash flow does not represent the residual cash flow available for discretionary expenditures. Adjusted free cash flow is a non-GAAP financial measure that should be considered in addition to, not as a substitute for or superior to, cash flow from operations reported in accordance with GAAP.
View original content:https://www.prnewswire.com/news-releases/nabors-announces-fourth-quarter-and-full-year-2025-results-302685592.htmlSOURCE Nabors Industries Ltd.
Original: Nabors Announces Fourth Quarter and Full-Year 2025 Results
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