Nabors Announces Fourth Quarter and Full-Year 2025 Results

Rhea-AI Summary

Nabors Industries (NYSE: NBR) reported 4Q 2025 operating revenues of $798 million and net income attributable to shareholders of $10 million ($0.17 diluted). Adjusted EBITDA was $222 million. Debt-reduction actions cut net debt by ~$554 million since year-end 2024 and reduced annual interest expense by ~$45 million. 4Q adjusted free cash flow was $132 million. Management provided 1Q and full-year 2026 operating and capital guidance, including full-year capex of $730–760 million and SANAD consuming $100–120 million in free cash flow.

Positive

• Net debt reduced by approximately $554 million since end of 2024
• Adjusted EBITDA of $222 million in 4Q 2025
• Adjusted free cash flow of $132 million in 4Q 2025
• Realized $40 million cost synergies for 2025 from Parker businesses
• Annual interest expense expected to decline by approximately $45 million

Negative

• Net income fell to $10 million in 4Q from $274 million in 3Q due to prior quarter Quail gain
• Drilling Solutions adjusted EBITDA declined sequentially to $41.3 million
• Full-year 2026 capital expenditures large at $730–760 million, increasing near-term cash needs
• SANAD expected to consume $100–120 million of free cash flow in 2026

Market Reaction

-10.84% $63.20 2.0x vol

15m delay 26 alerts

-10.84% Since News

$63.20 Last Price

$62.19 $69.00 Day Range

-$112M Valuation Impact

$920M Market Cap

2.0x Rel. Volume

Following this news, NBR has declined 10.84%, reflecting a significant negative market reaction. Our momentum scanner has triggered 26 alerts so far, indicating elevated trading interest and price volatility. The stock is currently trading at $63.20. This price movement has removed approximately $112M from the company's valuation. Trading volume is elevated at 2.0x the average, suggesting increased selling activity.

Data tracked by StockTitan Argus (15 min delayed). Upgrade to Silver for real-time data.

Key Figures

Q4 2025 operating revenues: $798 million Q4 2025 net income: $10 million Quail disposition gain: $314 million +5 more

8 metrics

Q4 2025 operating revenues $798 million Fourth quarter 2025 operating revenues vs $818 million in Q3 2025

Q4 2025 net income $10 million Net income attributable to shareholders for Q4 2025

Quail disposition gain $314 million One-time after-tax gain in Q3 2025 from Quail Tools sale

Q4 2025 adjusted EBITDA $222 million Fourth quarter 2025 adjusted EBITDA vs $236 million in Q3 2025

Q4 adjusted free cash flow $132 million Consolidated adjusted free cash flow vs $6 million in Q3 2025

Notes issued 2032 $700 million Notes due 2032 issued as part of capital structure actions

Notes redeemed 2027 $546 million Remaining balance of notes due 2027 redeemed

2026 capex guidance $730–$760 million Full-year 2026 capital expenditures, including SANAD newbuilds

Market Reality Check

Price: $70.88 Vol: Volume 341,268 is slightl...

normal vol

$70.88 Last Close

Volume Volume 341,268 is slightly above the 20-day average of 309,604 (relative volume 1.1x). normal

Technical Trading above the 200-day MA of $42.30, reflecting a pre-news uptrend despite today’s pullback.

Peers on Argus

NBR fell 2.95%, while key drilling peers also declined (e.g., PTEN -4.72%, RIG -...

NBR fell 2.95%, while key drilling peers also declined (e.g., PTEN -4.72%, RIG -2.86%, SDRL -2.43%, BORR -2.14%, PDS -1.40%), indicating a sector-wide downdraft rather than an isolated move.

Historical Context

5 past events · Latest: Jan 14 (Neutral)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Jan 14	Earnings call notice	Neutral	-2.5%	Scheduled Q4 2025 earnings call and release timing details.
Nov 04	Credit rating upgrades	Positive	+0.1%	S&P, Fitch, Moody’s upgraded ratings tied to new 2032 notes.
Nov 04	Debt pricing update	Neutral	+0.1%	Pricing of $700M senior priority guaranteed notes due 2032.
Nov 04	Debt offering launch	Negative	-3.9%	Announcement of $550M note offering to redeem 2027 notes.
Nov 03	JV rigs resuming	Positive	+11.1%	SANAD joint venture rigs in Saudi Arabia set to resume work.

Pattern Detected

Price has generally moved in the same direction as the perceived news tone, with only one divergence out of five recent events.

Recent Company History

Over the last six months, Nabors has focused on balance sheet improvement and strategic operations. On Nov 3, 2025, SANAD’s rig restart notices coincided with an 11.09% gain. Subsequent announcements on a $550–700 million notes offering and related upgrades in credit ratings on Nov 4, 2025 saw modest moves around flat. An update to its Q4 2025 earnings call on Jan 14, 2026 preceded a 2.47% decline. Today’s detailed Q4 and full-year 2025 results build on this deleveraging and operational narrative.

Market Pulse Summary

The stock is dropping -10.8% following this news. The decline reflects a cautious reaction to mixed ...

Analysis

The stock is dropping -10.8% following this news. The decline reflects a cautious reaction to mixed quarterly metrics and heavy forward investment despite progress on leverage. Q4 2025 operating revenues were $798 million, slightly below Q3, while adjusted EBITDA dipped to $222 million. However, adjusted free cash flow improved sharply to $132 million, and Nabors redeemed $546 million of 2027 notes after issuing $700 million due 2032. Historically, most news-driven moves have aligned with fundamentals, so persistent weakness would focus attention on execution versus 2026 guidance.

Key Terms

adjusted EBITDA, adjusted free cash flow, seller financing note, managed pressure drilling

4 terms

adjusted EBITDA financial

"Fourth-quarter adjusted EBITDA was $222 million, compared to $236 million..."

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

adjusted free cash flow financial

"Consolidated adjusted free cash flow was $132 million in the fourth quarter..."

Adjusted free cash flow is the amount of money a company generates from its operations after accounting for essential expenses and investments, like maintaining or upgrading equipment. It shows how much cash is truly available to grow the business, pay debts, or return to shareholders, helping investors see the company's financial health more clearly.

seller financing note financial

"Related to the sale of Quail, Nabors collected the $250 million seller financing note..."

A seller financing note is a written promise where the seller of an asset lends money to the buyer to cover part or all of the purchase, and the buyer agrees to repay in scheduled installments—think of the seller acting like the bank and the purchased asset often serving as collateral. For investors, these notes create ongoing cash flow and can offer higher returns than ordinary market loans, but they carry credit and collateral risk, are less liquid, and depend on the buyer’s ability to make payments.

managed pressure drilling technical

"The largest contributors to this increase include casing running, managed pressure drilling..."

A drilling technique that actively controls the pressure in the space around the drill bit to prevent uncontrolled fluid flows from underground and to keep the well stable as drilling goes deeper. Think of it like carefully adjusting the water level in a glass while dropping a pebble so the liquid never overflows; for investors, it reduces the risk of costly delays, accidents, or lost wells and can improve project timelines, safety records, and capital efficiency.

AI-generated analysis. Not financial advice.

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 Highlights

• Nabors 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 Flow

Consolidated 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."

Outlook

Nabors expects the following metrics for the first quarter of 2026:

U.S. Drilling             

• Lower 48 average rig count of 64 - 65 rigs
• Lower 48 daily adjusted gross margin of approximately $13,200
• Alaska and Gulf of America combined adjusted EBITDA of $16 - $17 million

International

• Average rig count of 91 - 92 rigs
• Daily adjusted gross margin of approximately $17,500 - $17,600

Drilling Solutions

• Adjusted EBITDA of approximately $39 million

Rig Technologies

• Adjusted EBITDA of approximately $2 million

Capital Expenditures

• Capital expenditures of $170 - $180 million, including approximately $85 million for newbuilds in Saudi Arabia

Adjusted Free Cash Flow

• First quarter adjusted free cash consumption of $80 - $90 million, including free cash consumption at SANAD of $50 - $60 million

Nabors expects the following metrics for full-year 2026:

U.S. Drilling             

• Lower 48 average rig count of 61 - 64 rigs
• Lower 48 daily adjusted gross margin of $13,000 - $13,400
• Alaska and Gulf of America combined adjusted EBITDA of $55 - $60 million

International

• Average rig count of 96 - 98 rigs
• Daily adjusted gross margin of approximately $18,500

Drilling Solutions

• Adjusted EBITDA of $160 - $170 million

Rig Technologies

• Adjusted EBITDA of $22 - $25 million

Capital Expenditures

• Capital expenditures of approximately $730 - $760 million, with $360 - $380 million for SANAD newbuilds

Adjusted Free Cash Flow

• Adjusted free cash flow excluding SANAD of $80 - $90 million, with SANAD consuming $100 - $120 million

Mr. 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 Industries

Nabors 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 Statements

The 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 Disclaimer

This 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 SUBSIDIARIES
CONDENSED 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		$          2,930,126
Investment income (loss)		7,600		8,828		7,323		27,648		38,713
Total 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		1,742,411
General and administrative expenses		76,279		61,436		77,076		304,587		249,317
Research and engineering		13,328		14,434		12,978		53,063		57,063
Depreciation and amortization		159,188		156,348		160,347		649,234		633,408
Interest expense		50,625		53,642		54,334		215,366		210,864
Gain 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		106,816
Total 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 SUBSIDIARIES
CONDENSED 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		$               397,299
Notes receivable		-		250,035		-
Accounts receivable, net		391,705		487,062		387,970
Other current assets		219,130		259,251		214,268
Total current assets		1,551,573		1,424,427		999,537
Property, plant and equipment, net		2,920,019		2,931,290		2,830,957
Other 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		321,030
Other current liabilities		315,042		327,799		250,887
Total current liabilities		993,001		680,214		571,917
Long-term debt, net		2,117,187		2,347,984		2,505,217
Other 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		134,996
Noncontrolling 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 SUBSIDIARIES
SEGMENT 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 SUBSIDIARIES
NON-GAAP FINANCIAL MEASURES
RECONCILIATION 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)		$      62,367
Depreciation and amortization		64,657		81,624		7,280		3,605		2,022		159,188
Adjusted 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)		$      64,197
Depreciation and amortization		66,784		82,434		4,865		795		1,470		156,348
Adjusted 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)		$      75,961
Depreciation and amortization		62,732		82,075		10,684		2,893		1,963		160,347
Adjusted 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)		$    263,433
Depreciation and amortization		250,534		327,834		52,040		11,179		7,647		649,234
Adjusted 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)		$    247,927
Depreciation and amortization		272,559		328,924		19,988		9,200		2,737		633,408
Adjusted EBITDA		$  448,840		$        436,782		$  132,375		$            29,443		$   (166,105)		$    881,335

 

NABORS INDUSTRIES LTD. AND SUBSIDIARIES
NON-GAAP FINANCIAL MEASURES
RECONCILIATION 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 SUBSIDIARIES
RECONCILIATION 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		56,947
Income (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		210,864
Gain 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		106,816
Adjusted operating income (loss) (1)		62,367		64,197		75,961		263,433		247,927
Depreciation and amortization		159,188		156,348		160,347		649,234		633,408
Adjusted 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 SUBSIDIARIES
RECONCILIATION 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		2,505,217
Less: 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 SUBSIDIARIES
RECONCILIATION OF ADJUSTED FREE CASH FLOW TO
NET 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		$                     693,266
Add: 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.html

SOURCE Nabors Industries Ltd.

FAQ

What were Nabors (NBR) fourth-quarter 2025 revenues and EPS reported on Feb 11, 2026?

Nabors reported 4Q 2025 operating revenues of $798 million and diluted EPS of $0.17. According to the company, these results compare to $818 million revenue and $16.85 diluted EPS in the prior quarter, which included a one-time Quail disposition gain.

How much did Nabors (NBR) reduce net debt in 2025 and what is the interest expense impact?

Nabors cut outstanding net debt by about $554 million since end of 2024. According to the company, this debt reduction should lower annual interest expense by roughly $45 million, improving adjusted free cash flow dollar-for-dollar.

What is Nabors' full-year 2026 capital expenditure guidance and SANAD cash consumption?

Nabors expects full-year 2026 capital expenditures of $730–760 million, with SANAD newbuilds at $360–380 million. According to the company, SANAD is forecast to consume $100–120 million of free cash flow in 2026.

What guidance did Nabors (NBR) give for first-quarter 2026 rig counts and margins?

For 1Q 2026 Nabors forecast Lower 48 average rig count of 64–65 rigs and Lower 48 daily adjusted gross margin of about $13,200. According to the company, international average rig count is expected at 91–92 rigs with ~$17,500–17,600 daily margin.

How did Nabors' adjusted free cash flow perform in 4Q 2025 and why did it improve?

Adjusted free cash flow was $132 million in 4Q 2025, up materially from $6 million in 3Q. According to the company, stronger EBITDA, improved collections in Mexico, lower-than-expected capex, and claim settlements drove the improvement.