Record International Drilling Margin. $75 Million in Adjusted Free Cash Flow. Nabors Reports Third Quarter 2026 Results.
Nabors targets an annualized adjusted EBITDA run rate of approximately $1 billion heading into 2027.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Rhea-AI Summary
Nabors Industries (NYSE: NBR) reported third-quarter 2026 operating revenue of $872.2 million, up 7% sequentially, alongside higher adjusted earnings. Adjusted EBITDA, an adjusted earnings measure, rose to $245.5 million from $221.7 million. Net loss attributable to Nabors narrowed to $11.165 million from $22.330 million in the second quarter. Adjusted free cash flow increased to $74.5 million from $12.3 million.
International Drilling daily adjusted gross margin reached a record $19,060. Nabors redeemed $100 million of 9.125% notes with cash on hand. The company expects full-year adjusted EBITDA of approximately $930 million and raised its adjusted free cash flow outlook to $100–$110 million. Five SANAD rig suspensions affect the outlook; fourth-quarter international rig count is expected at 92–93, versus 94.9 in the third quarter. Full-year capital spending is expected at $710–$720 million.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Hollow bars mark forward-looking points. How the balance works
Positive
- Major point. Forward-looking: it has not happened yet and may not happen.Full-year adjusted free cash flow guidance raised to $100–$110 million.
- Moderate pointThird-quarter revenue of $872.2 million exceeded $814.8 million sequentially and $818.2 million a year earlier.
- Moderate pointAdjusted EBITDA of $245.5 million rose from $221.7 million sequentially and $236.3 million a year earlier.
- Moderate pointAdjusted free cash flow of $74.5 million increased from $12.3 million sequentially and $5.6 million a year earlier.
- Moderate pointAdjusted operating income of $85.8 million exceeded $61.1 million sequentially and $76.0 million a year earlier.
- Moderate point$100 million of 9.125% notes redeemed with cash on hand, reducing debt and cash interest expense. 8% of market cap
- Moderate pointInternational daily adjusted gross margin reached $19,060, a record, up $1,526 or 8.7% sequentially.
- Moderate pointLower 48 average working rigs increased to 72.8, from 67.8 sequentially and 59.2 a year earlier.
- Moderate point. Forward-looking: it has not happened yet and may not happen.Full-year adjusted EBITDA expected at approximately $930 million, the upper end of prior guidance.
- Moderate point. Forward-looking: it has not happened yet and may not happen.Fourth-quarter Lower 48 outlook: 75 average rigs and daily adjusted gross margin of $14,500–$14,700.
- Moderate point. Forward-looking: it has not happened yet and may not happen.Fourth-quarter Alaska and Gulf of America adjusted EBITDA expected at approximately $12 million combined.
- Moderate point. Forward-looking: it has not happened yet and may not happen.Fourth-quarter international daily adjusted gross margin expected at approximately $19,500, above third-quarter $19,060.
- Moderate point. Forward-looking: it has not happened yet and may not happen.Fourth-quarter Drilling Solutions adjusted EBITDA expected at approximately $46 million.
- Moderate point. Forward-looking: it has not happened yet and may not happen.Fourth-quarter Rig Technologies adjusted EBITDA expected at approximately $8 million.
- Moderate point. Forward-looking: it has not happened yet and may not happen.Annualized adjusted EBITDA run rate targeted at approximately $1 billion heading into 2027.
- Moderate pointThird-quarter interest expense fell to $42.087 million, from $42.678 million sequentially and $54.334 million a year earlier.
12 minor points
- Minor pointInternational Drilling revenue reached $458.544 million, versus $432.497 million sequentially and $407.235 million a year earlier.
- Minor pointInternational Drilling adjusted EBITDA reached $145.718 million, versus $130.533 million sequentially and $127.551 million a year earlier.
- Minor pointU.S. Drilling revenue reached $274.925 million, versus $252.459 million sequentially and $249.836 million a year earlier.
- Minor pointU.S. Drilling adjusted EBITDA reached $99.391 million, versus $94.081 million sequentially and $94.161 million a year earlier.
- Minor pointDrilling Solutions revenue reached $116.065 million, above $110.640 million sequentially but below $141.942 million a year earlier.
- Minor pointDrilling Solutions adjusted EBITDA reached $43.913 million, above $40.013 million sequentially but below $60.666 million a year earlier.
- Minor pointRig Technologies revenue reached $41.747 million, versus $37.485 million sequentially and $35.597 million a year earlier.
- Minor pointRig Technologies adjusted EBITDA reached $4.987 million, versus $3.180 million sequentially and $3.770 million a year earlier.
- Minor point. Forward-looking: it has not happened yet and may not happen.SANAD deployed its 17th newbuild; one more is scheduled in 2026 and two in first-quarter 2027.
- Minor point. Forward-looking: it has not happened yet and may not happen.Multiyear Venezuela contract signed for one rig deployment in early 2027, marking Nabors' return to drilling there.
- Minor pointFour additional RZR automation modules secured commitments, bringing the total deployed to six.
- Minor point. Forward-looking: it has not happened yet and may not happen.Fourth-quarter adjusted free cash flow expected at $60–$70 million.
Negative
- Moderate pointNet loss attributable to Nabors was $11.165 million, narrower sequentially but versus $274.198 million year-earlier income.
- Moderate point. Forward-looking: it has not happened yet and may not happen.Five SANAD rigs suspended; fourth-quarter international rig count expected at 92–93, versus 94.9 in the third quarter.
- Moderate point. Forward-looking: it has not happened yet and may not happen.Full-year capital spending expected at $710–$720 million, including $295–$305 million for SANAD newbuilds.
- Moderate pointCash and short-term investments fell to $475.145 million, from $509.833 million at June 30, 2026.
- Minor pointThird-quarter diluted loss per share was $1.24, versus $2.04 loss sequentially and $16.85 year-earlier earnings.
4 minor points
- Minor point. Forward-looking: it has not happened yet and may not happen.Fourth-quarter capital spending expected at $250–$260 million, including $140–$150 million for SANAD newbuilds.
- Minor point. Forward-looking: it has not happened yet and may not happen.SANAD cash consumption expected at approximately $20 million for both fourth-quarter and full-year guidance.
- Minor pointNine-month adjusted EBITDA declined to $672.016 million, from $691.112 million a year earlier.
- Minor pointNine-month adjusted operating income declined to $195.537 million, from $201.066 million a year earlier.
Key Figures
- Operating revenue
- $872.2 million
- 3Q 2026; up 7% sequentially
- Net loss attributable to shareholders
- $11 million loss
- 3Q 2026
- Adjusted EBITDA
- $245.5 million
- 3Q 2026; up nearly 11% sequentially
- Adjusted free cash flow
- $74.5 million
- 3Q 2026
- International Drilling daily adjusted gross margin
- $19,060
- 3Q 2026; record
- Full-year adjusted free cash flow guidance
- $100–$110 million
- 2026; includes approximately $20 million of cash consumption at SANAD
- Consolidated capital spending guidance
- $710–$720 million
- Full-year 2026
- Notes redeemed
- $100 million
- Redeemed during the quarter with cash on hand
Previous Earnings Reports
-
Reported $12.3 million adjusted free cash flow and $20–$30 million full-year guidance, later revised upward.
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
AI-generated analysis. How Rhea-AI works. Not financial advice.
Record International Drilling daily adjusted gross margin, a larger Lower 48 working fleet, and growth in Drilling Solutions drove the sequential improvement. Higher profitability, lower capital spending and improved working capital contributed to
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Selected Financial Information |
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(In millions, except rig activity) |
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Three Months Ended |
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September 30, |
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June 30, |
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September 30, |
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2026 |
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2026 |
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2025 |
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Operating revenues |
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$ 872.2 |
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$ 814.8 |
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$ 818.2 |
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Adjusted EBITDA |
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$ 245.5 |
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$ 221.7 |
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$ 236.3 |
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Adjusted operating income |
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$ 85.8 |
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$ 61.1 |
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$ 76.0 |
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Adjusted free cash flow |
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$ 74.5 |
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$ 12.3 |
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$ 5.6 |
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Average rigs working: |
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Lower 48 |
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72.8 |
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67.8 |
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59.2 |
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International Drilling |
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94.9 |
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93.4 |
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89.2 |
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Average total rigs working |
|
177.1 |
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171.2 |
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158.4 |
The quarter ended September 30, 2025 includes revenue of
3Q 2026 Highlights
- International Drilling daily adjusted gross margin reached a record
$19,060 $1,526 8.7% , sequentially. Strong field performance across multiple countries and high-margin rig deployments drove the increase. - The SANAD land drilling joint venture successfully deployed its 17th newbuild rig in
Saudi Arabia . One additional newbuild is scheduled for deployment in 2026 and two in the first quarter of 2027, bringing the total newbuild fleet to 20. - Nabors signed a multiyear contract to deploy one rig in
Venezuela in early 2027. The deployment will mark Nabors' return to drilling operations in the country. - Nabors rigs helped two Lower 48 operators achieve new drilling records. A PACE®-B rig in
North Dakota achieved an impressive drilling performance of more than 27,600 feet in 148 hours, with an average rate of penetration of nearly 187 feet per hour. A PACE®-X rig inSouth Texas achieved a record performance by drilling an 18,500-foot well in under six days, averaging more than 3,200 feet per day. The operator recorded its fastest drilling performance in the basin to date. - Canrig secured commitments for four additional RZR™ rig floor automation modules, which will bring the total deployed to six. Strong client interest supports the outlook for additional awards.
Anthony G. Petrello, Nabors Chairman, CEO and President, commented, "We delivered higher earnings and
"International Drilling achieved a record daily adjusted gross margin. Strong field performance and new rig deployments with attractive economics drove the increase. We expect further margin improvement in the fourth quarter, despite a lower SANAD rig count following the suspension of five rigs.
"Our Lower 48 rig count grew as expected, and daily adjusted gross margin again exceeded guidance. We remain constructive on this market. Advanced drilling technology and reliable field delivery position us to continue increasing both rig count and daily margin.
"Drilling Solutions' business delivered double-digit sequential adjusted EBITDA growth. Greater adoption of our Performance Software and Downhole Services on Nabors rigs in the Lower 48 drove the gains. International growth in Surface and Tubular services also contributed to the segment's improvement."
Segment Results
International Drilling adjusted EBITDA increased to
Drilling Solutions adjusted EBITDA increased to
Rig Technologies adjusted EBITDA increased to
Adjusted Free Cash Flow
Consolidated adjusted free cash flow was
Miguel Rodriguez, Nabors CFO, stated, "Third quarter adjusted free cash flow exceeded our expectations. SANAD newbuild spending was below forecast as certain construction milestones shifted to later periods. Outside SANAD, controlled capital spending and improved working capital supported the cash generation.
"We anticipate delivering full-year 2026 adjusted EBITDA of approximately
"We now expect full-year consolidated capital spending of
"During the quarter, we redeemed
Outlook
Nabors expects the following metrics for the fourth quarter of 2026:
- Lower 48 average rig count of 75 rigs
- Lower 48 daily adjusted gross margin of
$14,500 $14,700 Alaska and Gulf of America combined adjusted EBITDA of approximately$12 million
International
- Average rig count of 92 to 93 rigs
- Daily adjusted gross margin of approximately
$19,500
Drilling Solutions
- Adjusted EBITDA of approximately
$46 million
Rig Technologies
- Adjusted EBITDA of approximately
$8 million
Capital Expenditures
- Capital expenditures of
$250 $260 million $140 $150 million Saudi Arabia
Adjusted Free Cash Flow
- Adjusted free cash flow of
$60 $70 million $20 million
Mr. Petrello concluded, "Our third quarter results demonstrate the earnings power of our diversified portfolio. We expect further sequential adjusted EBITDA growth in the fourth quarter, led by
About Nabors Industries
Nabors Industries (NYSE: NBR) is a leading provider of advanced technology for the energy industry. With operations in approximately 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 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, via email william.conroy@nabors.com, or Kara K. Peak, Director of Corporate Development & Investor Relations, via email kara.peak@nabors.com. To request investor materials, contact Nabors' corporate headquarters in Hamilton, Bermuda via email mark.andrews@nabors.com
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NABORS INDUSTRIES LTD. AND SUBSIDIARIES |
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CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) |
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(Unaudited) |
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Three Months Ended |
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Nine Months Ended |
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|
September 30, |
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June 30, |
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September 30, |
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|
(In thousands, except per share amounts) |
|
2026 |
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2025 |
|
2026 |
|
2026 |
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2025 |
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|
|
|
|
|
|
|
|
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|
Revenues and other income: |
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|
|
|
Operating revenues |
|
$ 872,194 |
|
$ 818,190 |
|
$ 814,795 |
|
$ 2,470,537 |
|
$ 2,387,164 |
|
Investment income (loss) |
|
4,143 |
|
7,323 |
|
2,131 |
|
9,161 |
|
20,048 |
|
Total revenues and other income |
|
876,337 |
|
825,513 |
|
816,926 |
|
2,479,698 |
|
2,407,212 |
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|
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|
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|
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|
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|
Costs and other deductions: |
|
|
|
|
|
|
|
|
|
|
|
Direct costs |
|
536,577 |
|
491,828 |
|
507,551 |
|
1,537,597 |
|
1,428,009 |
|
General and administrative expenses |
|
76,733 |
|
77,076 |
|
71,375 |
|
219,868 |
|
228,308 |
|
Research and engineering |
|
13,341 |
|
12,978 |
|
14,209 |
|
41,056 |
|
39,735 |
|
Depreciation and amortization |
|
159,744 |
|
160,347 |
|
160,549 |
|
476,479 |
|
490,046 |
|
Interest expense |
|
42,087 |
|
54,334 |
|
42,678 |
|
128,526 |
|
164,741 |
|
Gain on disposition of Quail Tools |
|
- |
|
(415,557) |
|
- |
|
- |
|
(415,557) |
|
Gain on bargain purchase |
|
- |
|
- |
|
- |
|
- |
|
(116,499) |
|
Other, net |
|
11,428 |
|
24,470 |
|
5,682 |
|
3,717 |
|
75,334 |
|
Total costs and other deductions |
|
839,910 |
|
405,476 |
|
802,044 |
|
2,407,243 |
|
1,894,117 |
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|
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|
|
|
|
|
|
|
|
|
|
Income (loss) before income taxes |
|
36,427 |
|
420,037 |
|
14,882 |
|
72,455 |
|
513,095 |
|
Income tax expense (benefit) |
|
20,443 |
|
117,571 |
|
16,405 |
|
53,732 |
|
155,655 |
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|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
|
15,984 |
|
302,466 |
|
(1,523) |
|
18,723 |
|
357,440 |
|
Less: Net (income) loss attributable to noncontrolling interest |
|
(27,149) |
|
(28,268) |
|
(20,807) |
|
(67,384) |
|
(81,164) |
|
Net income (loss) attributable to Nabors |
|
$ (11,165) |
|
$ 274,198 |
|
$ (22,330) |
|
$ (48,661) |
|
$ 276,276 |
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|
Earnings (losses) per share: |
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|
Basic |
|
$ (1.24) |
|
$ 18.25 |
|
$ (2.04) |
|
$ (4.81) |
|
$ 18.99 |
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Diluted |
|
$ (1.24) |
|
$ 16.85 |
|
$ (2.04) |
|
$ (4.81) |
|
$ 17.54 |
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|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average number of common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
14,503 |
|
14,098 |
|
14,273 |
|
14,330 |
|
12,880 |
|
Diluted |
|
14,503 |
|
15,321 |
|
14,273 |
|
14,330 |
|
14,092 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
|
$ 245,543 |
|
$ 236,308 |
|
$ 221,660 |
|
$ 672,016 |
|
$ 691,112 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating income (loss) |
|
$ 85,799 |
|
$ 75,961 |
|
$ 61,111 |
|
$ 195,537 |
|
$ 201,066 |
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NABORS INDUSTRIES LTD. AND SUBSIDIARIES |
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CONDENSED CONSOLIDATED BALANCE SHEETS |
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(Unaudited) |
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|
|
|
|
September 30, |
|
June 30, |
|
December 31, |
|
(In thousands) |
|
2026 |
|
2026 |
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2025 |
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|
|
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
Cash and short-term investments |
|
$ 475,145 |
|
$ 509,833 |
|
$ 940,738 |
|
Accounts receivable, net |
|
511,663 |
|
443,417 |
|
391,705 |
|
Other current assets |
|
218,306 |
|
243,929 |
|
219,130 |
|
Total current assets |
|
1,205,114 |
|
1,197,179 |
|
1,551,573 |
|
Property, plant and equipment, net |
|
2,884,274 |
|
2,908,061 |
|
2,920,019 |
|
Other long-term assets |
|
353,929 |
|
314,705 |
|
318,065 |
|
Total assets |
|
$ 4,443,317 |
|
$ 4,419,945 |
|
$ 4,789,657 |
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
Current debt |
|
$ - |
|
$ - |
|
$ 377,492 |
|
Trade accounts payable |
|
370,483 |
|
365,472 |
|
300,467 |
|
Other current liabilities |
|
309,510 |
|
268,167 |
|
315,042 |
|
Total current liabilities |
|
679,993 |
|
633,639 |
|
993,001 |
|
Long-term debt |
|
2,022,758 |
|
2,120,276 |
|
2,117,187 |
|
Other long-term liabilities |
|
245,298 |
|
224,152 |
|
241,826 |
|
Total liabilities |
|
2,948,049 |
|
2,978,067 |
|
3,352,014 |
|
|
|
|
|
|
|
|
|
Redeemable noncontrolling interest in subsidiary |
|
502,718 |
|
495,886 |
|
482,446 |
|
|
|
|
|
|
|
|
|
Equity: |
|
|
|
|
|
|
|
Shareholders' equity |
|
565,912 |
|
544,128 |
|
590,727 |
|
Noncontrolling interest |
|
426,638 |
|
401,864 |
|
364,470 |
|
Total equity |
|
992,550 |
|
945,992 |
|
955,197 |
|
Total liabilities and equity |
|
$ 4,443,317 |
|
$ 4,419,945 |
|
$ 4,789,657 |
|
NABORS INDUSTRIES LTD. AND SUBSIDIARIES |
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SEGMENT REPORTING |
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(Unaudited) |
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The following tables set forth certain information with respect to our reportable segments and rig activity: |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
||||||
|
|
|
|
September 30, |
|
June 30, |
|
September 30, |
||||
|
(In thousands, except rig activity) |
|
2026 |
|
2025 |
|
2026 |
|
2026 |
|
2025 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ 274,925 |
|
$ 249,836 |
|
$ 252,459 |
|
$ 768,528 |
|
$ 736,020 |
|
|
International Drilling |
|
458,544 |
|
407,235 |
|
432,497 |
|
1,310,537 |
|
1,173,923 |
|
|
Drilling Solutions |
|
116,065 |
|
141,942 |
|
110,640 |
|
332,927 |
|
405,404 |
|
|
Rig Technologies (1) |
|
41,747 |
|
35,597 |
|
37,485 |
|
106,454 |
|
116,289 |
|
|
Other reconciling items (2) |
|
(19,087) |
|
(16,420) |
|
(18,286) |
|
(47,909) |
|
(44,472) |
|
|
Total operating revenues |
|
$ 872,194 |
|
$ 818,190 |
|
$ 814,795 |
|
$ 2,470,537 |
|
$ 2,387,164 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA: (3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ 99,391 |
|
$ 94,161 |
|
$ 94,081 |
|
$ 281,537 |
|
$ 288,693 |
|
|
International Drilling |
|
145,718 |
|
127,551 |
|
130,533 |
|
397,532 |
|
360,695 |
|
|
Drilling Solutions |
|
43,913 |
|
60,666 |
|
40,013 |
|
122,588 |
|
178,020 |
|
|
Rig Technologies (1) |
|
4,987 |
|
3,770 |
|
3,180 |
|
8,672 |
|
14,507 |
|
|
Other reconciling items (4) |
|
(48,466) |
|
(49,840) |
|
(46,147) |
|
(138,313) |
|
(150,803) |
|
|
Total adjusted EBITDA |
|
$ 245,543 |
|
$ 236,308 |
|
$ 221,660 |
|
$ 672,016 |
|
$ 691,112 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating income (loss): (5) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ 33,385 |
|
$ 31,429 |
|
$ 30,961 |
|
$ 88,970 |
|
$ 102,816 |
|
|
International Drilling |
|
64,275 |
|
45,476 |
|
45,860 |
|
150,892 |
|
114,485 |
|
|
Drilling Solutions |
|
36,150 |
|
49,982 |
|
32,125 |
|
100,147 |
|
133,260 |
|
|
Rig Technologies (1) |
|
3,037 |
|
877 |
|
1,497 |
|
2,646 |
|
6,933 |
|
|
Other reconciling items (4) |
|
(51,048) |
|
(51,803) |
|
(49,332) |
|
(147,118) |
|
(156,428) |
|
|
Total adjusted operating income (loss) |
|
$ 85,799 |
|
$ 75,961 |
|
$ 61,111 |
|
$ 195,537 |
|
$ 201,066 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rig activity: |
|
|
|
|
|
|
|
|
|
|
|
|
Average Rigs Working: (7) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Lower 48 |
|
72.8 |
|
59.2 |
|
67.8 |
|
68.7 |
|
60.7 |
|
|
Other US |
|
9.4 |
|
10.0 |
|
10.0 |
|
9.8 |
|
9.2 |
|
|
|
|
82.2 |
|
69.2 |
|
77.8 |
|
78.5 |
|
69.9 |
|
|
International Drilling |
|
94.9 |
|
89.2 |
|
93.4 |
|
93.6 |
|
86.7 |
|
|
Total average rigs working |
|
177.1 |
|
158.4 |
|
171.2 |
|
172.1 |
|
156.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Daily Rig Revenue: (6),(8) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Lower 48 |
|
$ 34,764 |
|
$ 34,017 |
|
$ 33,555 |
|
$ 33,704 |
|
$ 34,002 |
|
|
Other US |
|
48,612 |
|
70,035 |
|
50,073 |
|
51,141 |
|
68,302 |
|
|
|
|
36,343 |
|
39,219 |
|
35,680 |
|
35,880 |
|
38,527 |
|
|
International Drilling |
|
52,524 |
|
49,596 |
|
50,860 |
|
51,262 |
|
49,583 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Daily Adjusted Gross Margin: (6),(9) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Lower 48 |
|
$ 14,016 |
|
$ 13,151 |
|
$ 13,784 |
|
$ 13,677 |
|
$ 13,778 |
|
|
Other US |
|
14,203 |
|
31,527 |
|
17,318 |
|
17,067 |
|
31,408 |
|
|
|
|
14,037 |
|
15,805 |
|
14,238 |
|
14,100 |
|
16,104 |
|
|
International Drilling |
|
19,060 |
|
17,931 |
|
17,534 |
|
17,842 |
|
17,635 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 |
|
|
|
|
||||||
|
NABORS INDUSTRIES LTD. AND SUBSIDIARIES |
|
||||||||||||||
|
Reconciliation of Earnings per Share |
|
||||||||||||||
|
(Unaudited) |
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|||||||||||
|
|
September 30, |
|
June 30, |
|
September 30, |
|
|||||||||
|
(in thousands, except per share amounts) |
2026 |
|
2025 |
|
2026 |
|
2026 |
|
2025 |
|
|||||
|
|
|
||||||||||||||
|
BASIC EPS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) (numerator): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss), net of tax |
$ |
15,984 |
|
$ |
302,466 |
|
$ |
(1,523) |
|
$ |
18,723 |
|
$ |
357,440 |
|
|
Less: net (income) loss attributable to noncontrolling interest |
|
(27,149) |
|
|
(28,268) |
|
|
(20,807) |
|
|
(67,384) |
|
|
(81,164) |
|
|
Less: deemed dividends to SPAC public shareholders |
|
— |
|
|
(750) |
|
|
— |
|
|
— |
|
|
(750) |
|
|
Less: distributed and undistributed earnings allocated to unvested shareholders |
|
— |
|
|
(8,828) |
|
|
— |
|
|
— |
|
|
(9,106) |
|
|
Less: accrued distribution on redeemable noncontrolling interest in subsidiary |
|
(6,832) |
|
|
(7,344) |
|
|
(6,757) |
|
|
(20,272) |
|
|
(21,792) |
|
|
Numerator for basic earnings per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted income (loss), net of tax - basic |
$ |
(17,997) |
|
$ |
257,276 |
|
$ |
(29,087) |
|
$ |
(68,933) |
|
$ |
244,628 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average number of shares outstanding - basic |
|
14,503 |
|
|
14,098 |
|
|
14,273 |
|
|
14,330 |
|
|
12,880 |
|
|
Earnings (losses) per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Basic |
$ |
(1.24) |
|
$ |
18.25 |
|
$ |
(2.04) |
|
$ |
(4.81) |
|
$ |
18.99 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DILUTED EPS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted income (loss), net of tax - basic |
$ |
(17,997) |
|
$ |
257,276 |
|
$ |
(29,087) |
|
$ |
(68,933) |
|
$ |
244,628 |
|
|
Add: after tax interest expense of convertible notes |
|
— |
|
|
848 |
|
|
— |
|
|
— |
|
|
2,544 |
|
|
Add: effect of reallocating undistributed earnings of unvested shareholders |
|
— |
|
|
28 |
|
|
— |
|
|
— |
|
|
24 |
|
|
Adjusted income (loss), net of tax - diluted |
$ |
(17,997) |
|
$ |
258,152 |
|
$ |
(29,087) |
|
$ |
(68,933) |
|
$ |
247,196 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average number of shares outstanding - basic |
|
14,503 |
|
|
14,098 |
|
|
14,273 |
|
|
14,330 |
|
|
12,880 |
|
|
Add: if converted dilutive effect of convertible notes |
|
— |
|
|
1,176 |
|
|
— |
|
|
— |
|
|
1,176 |
|
|
Add: dilutive effect of potential common shares |
|
— |
|
|
47 |
|
|
— |
|
|
— |
|
|
36 |
|
|
Weighted-average number of shares outstanding - diluted |
|
14,503 |
|
|
15,321 |
|
|
14,273 |
|
|
14,330 |
|
|
14,092 |
|
|
Earnings (losses) per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Diluted |
$ |
(1.24) |
|
$ |
16.85 |
|
$ |
(2.04) |
|
$ |
(4.81) |
|
$ |
17.54 |
|
|
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 September 30, 2026 |
||||||||||
|
|
|
Drilling |
|
International Drilling |
|
Drilling Solutions |
|
Rig Technologies |
|
Other reconciling items |
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating income (loss) |
|
$ 33,385 |
|
$ 64,275 |
|
$ 36,150 |
|
$ 3,037 |
|
$ (51,048) |
|
$ 85,799 |
|
Depreciation and amortization |
|
66,006 |
|
81,443 |
|
7,763 |
|
1,950 |
|
2,582 |
|
159,744 |
|
Adjusted EBITDA |
|
$ 99,391 |
|
$ 145,718 |
|
$ 43,913 |
|
$ 4,987 |
|
$ (48,466) |
|
$ 245,543 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, 2025 |
||||||||||
|
|
|
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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, 2026 |
||||||||||
|
|
|
Drilling |
|
International Drilling |
|
Drilling Solutions |
|
Rig Technologies |
|
Other reconciling items |
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating income (loss) |
|
$ 30,961 |
|
$ 45,860 |
|
$ 32,125 |
|
$ 1,497 |
|
$ (49,332) |
|
$ 61,111 |
|
Depreciation and amortization |
|
63,120 |
|
84,673 |
|
7,888 |
|
1,683 |
|
3,185 |
|
160,549 |
|
Adjusted EBITDA |
|
$ 94,081 |
|
$ 130,533 |
|
$ 40,013 |
|
$ 3,180 |
|
$ (46,147) |
|
$ 221,660 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30, 2026 |
||||||||||
|
|
|
Drilling |
|
International Drilling |
|
Drilling Solutions |
|
Rig Technologies |
|
Other reconciling items |
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating income (loss) |
|
$ 88,970 |
|
$ 150,892 |
|
$ 100,147 |
|
$ 2,646 |
|
$ (147,118) |
|
$ 195,537 |
|
Depreciation and amortization |
|
192,567 |
|
246,640 |
|
22,441 |
|
6,026 |
|
8,805 |
|
476,479 |
|
Adjusted EBITDA |
|
$ 281,537 |
|
$ 397,532 |
|
$ 122,588 |
|
$ 8,672 |
|
$ (138,313) |
|
$ 672,016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30, 2025 |
||||||||||
|
|
|
Drilling |
|
International Drilling |
|
Drilling Solutions |
|
Rig Technologies |
|
Other reconciling items |
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating income (loss) |
|
$ 102,816 |
|
$ 114,485 |
|
$ 133,260 |
|
$ 6,933 |
|
$ (156,428) |
|
$ 201,066 |
|
Depreciation and amortization |
|
185,877 |
|
246,210 |
|
44,760 |
|
7,574 |
|
5,625 |
|
490,046 |
|
Adjusted EBITDA |
|
$ 288,693 |
|
$ 360,695 |
|
$ 178,020 |
|
$ 14,507 |
|
$ (150,803) |
|
$ 691,112 |
|
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 |
|
Nine Months Ended |
||||||
|
|
|
|
September 30, |
|
June 30, |
|
September 30, |
||||
|
(In thousands) |
|
2026 |
|
2025 |
|
2026 |
|
2026 |
|
2025 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lower 48 - |
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating income (loss) |
|
$ 31,434 |
|
$ 13,689 |
|
$ 24,722 |
|
$ 73,561 |
|
$ 54,199 |
|
|
Plus: General and administrative costs |
|
5,018 |
|
4,745 |
|
4,974 |
|
15,316 |
|
14,043 |
|
|
Plus: Research and engineering |
|
1,253 |
|
1,121 |
|
1,198 |
|
3,594 |
|
2,832 |
|
|
GAAP Gross Margin |
|
37,705 |
|
19,555 |
|
30,894 |
|
92,471 |
|
71,074 |
|
|
Plus: Depreciation and amortization |
|
56,230 |
|
52,120 |
|
54,093 |
|
163,918 |
|
157,425 |
|
|
Adjusted gross margin |
|
$ 93,935 |
|
$ 71,675 |
|
$ 84,987 |
|
$ 256,389 |
|
$ 228,499 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other - |
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating income (loss) |
|
$ 1,951 |
|
$ 17,740 |
|
$ 6,239 |
|
$ 15,409 |
|
$ 48,617 |
|
|
Plus: General and administrative costs |
|
411 |
|
568 |
|
407 |
|
1,276 |
|
1,869 |
|
|
Plus: Research and engineering |
|
115 |
|
85 |
|
86 |
|
281 |
|
211 |
|
|
GAAP Gross Margin |
|
2,477 |
|
18,393 |
|
6,732 |
|
16,966 |
|
50,697 |
|
|
Plus: Depreciation and amortization |
|
9,776 |
|
10,612 |
|
9,027 |
|
28,649 |
|
28,452 |
|
|
Adjusted gross margin |
|
$ 12,253 |
|
$ 29,005 |
|
$ 15,759 |
|
$ 45,615 |
|
$ 79,149 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating income (loss) |
|
$ 33,385 |
|
$ 31,429 |
|
$ 30,961 |
|
$ 88,970 |
|
$ 102,816 |
|
|
Plus: General and administrative costs |
|
5,429 |
|
5,313 |
|
5,381 |
|
16,592 |
|
15,912 |
|
|
Plus: Research and engineering |
|
1,368 |
|
1,206 |
|
1,284 |
|
3,875 |
|
3,043 |
|
|
GAAP Gross Margin |
|
40,182 |
|
37,948 |
|
37,626 |
|
109,437 |
|
121,771 |
|
|
Plus: Depreciation and amortization |
|
66,006 |
|
62,732 |
|
63,120 |
|
192,567 |
|
185,877 |
|
|
Adjusted gross margin |
|
$ 106,188 |
|
$ 100,680 |
|
$ 100,746 |
|
$ 302,004 |
|
$ 307,648 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International Drilling |
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating income (loss) |
|
$ 64,275 |
|
$ 45,476 |
|
$ 45,860 |
|
$ 150,892 |
|
$ 114,485 |
|
|
Plus: General and administrative costs |
|
18,855 |
|
18,015 |
|
16,748 |
|
53,212 |
|
52,260 |
|
|
Plus: Research and engineering |
|
1,824 |
|
1,665 |
|
1,826 |
|
5,399 |
|
4,578 |
|
|
GAAP Gross Margin |
|
84,954 |
|
65,156 |
|
64,434 |
|
209,503 |
|
171,323 |
|
|
Plus: Depreciation and amortization |
|
81,443 |
|
82,075 |
|
84,673 |
|
246,640 |
|
246,210 |
|
|
Adjusted gross margin |
|
$ 166,397 |
|
$ 147,231 |
|
$ 149,107 |
|
$ 456,143 |
|
$ 417,533 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
Nine Months Ended |
||||||
|
|
|
September 30, |
|
June 30, |
|
September 30, |
||||
|
(In thousands) |
|
2026 |
|
2025 |
|
2026 |
|
2026 |
|
2025 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
|
$ 15,984 |
|
$ 302,466 |
|
$ (1,523) |
|
$ 18,723 |
|
$ 357,440 |
|
Income tax expense (benefit) |
|
20,443 |
|
117,571 |
|
16,405 |
|
53,732 |
|
155,655 |
|
Income (loss) before income taxes |
|
36,427 |
|
420,037 |
|
14,882 |
|
72,455 |
|
513,095 |
|
Investment (income) loss |
|
(4,143) |
|
(7,323) |
|
(2,131) |
|
(9,161) |
|
(20,048) |
|
Interest expense |
|
42,087 |
|
54,334 |
|
42,678 |
|
128,526 |
|
164,741 |
|
Gain on disposition of Quail Tools |
|
- |
|
(415,557) |
|
- |
|
- |
|
(415,557) |
|
Gain on bargain purchase |
|
- |
|
- |
|
- |
|
- |
|
(116,499) |
|
Other, net |
|
11,428 |
|
24,470 |
|
5,682 |
|
3,717 |
|
75,334 |
|
Adjusted operating income (loss) (1) |
|
85,799 |
|
75,961 |
|
61,111 |
|
195,537 |
|
201,066 |
|
Depreciation and amortization |
|
159,744 |
|
160,347 |
|
160,549 |
|
476,479 |
|
490,046 |
|
Adjusted EBITDA (2) |
|
$ 245,543 |
|
$ 236,308 |
|
$ 221,660 |
|
$ 672,016 |
|
$ 691,112 |
|
|
|
|
|
|
|
|
|
|
|
|
|
(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) |
||||||
|
|
|
|
|
|
|
|
|
|
|
September 30, |
|
June 30, |
|
December 31, |
|
(In thousands) |
|
2026 |
|
2026 |
|
2025 |
|
|
|
|
|
|
|
|
|
Current debt |
|
$ - |
|
$ - |
|
$ 377,492 |
|
Long-term debt |
|
2,022,758 |
|
2,120,276 |
|
2,117,187 |
|
Total Debt |
|
2,022,758 |
|
2,120,276 |
|
2,494,679 |
|
Less: Cash and short-term investments |
|
475,145 |
|
509,833 |
|
940,738 |
|
Net Debt |
|
$ 1,547,613 |
|
$ 1,610,443 |
|
$ 1,553,941 |
|
NABORS INDUSTRIES LTD. AND SUBSIDIARIES |
||||||||||
|
RECONCILIATION OF ADJUSTED FREE CASH FLOW TO |
||||||||||
|
NET CASH PROVIDED BY OPERATING ACTIVITIES |
||||||||||
|
(Unaudited) |
||||||||||
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
||||||
|
|
|
September 30, |
|
June 30, |
|
September 30, |
||||
|
(In thousands) |
|
2026 |
|
2025 |
|
2026 |
|
2026 |
|
2025 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities |
|
$ 238,893 |
|
$ 207,880 |
|
$ 135,242 |
|
$ 487,474 |
|
$ 447,425 |
|
Add: Capital expenditures, net of proceeds from sales of assets |
|
(164,370) |
|
(202,267) |
|
(122,900) |
|
(448,828) |
|
(503,277) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Free cash flow |
|
$ 74,523 |
|
$ 5,613 |
|
$ 12,342 |
|
$ 38,646 |
|
$ (55,852) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash paid for acquisition related costs (1) |
|
- |
|
- |
|
- |
|
- |
|
40,816 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted free cash flow |
|
$ 74,523 |
|
$ 5,613 |
|
$ 12,342 |
|
$ 38,646 |
|
$ (15,036) |
|
|
|
|
|
|
|
|
|
|
|
|
|
(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. |
||||||||||
|
NABORS INDUSTRIES LTD. AND SUBSIDIARIES |
||||
|
NON-GAAP FINANCIAL MEASURES |
||||
|
RECONCILIATION OF QUAIL TOOLS FINANCIAL MEASURES |
||||
|
(Unaudited) |
||||
|
|
|
|
|
|
|
|
|
Three months ended |
|
|
|
|
|
|
September 30, |
|
|
(In thousands) |
|
|
2025 |
|
|
|
|
|
|
|
|
Drilling Solutions operating revenues |
|
|
$ 141,942 |
|
|
Less: remaining Drilling Solutions business |
|
|
(107,744) |
|
|
Quail Tools operating revenues |
|
|
$ 34,198 |
|
|
|
|
|
|
|
|
Drilling Solutions adjusted operating income (loss) |
|
|
$ 49,982 |
|
|
Less: remaining Drilling Solutions business |
|
|
(35,720) |
|
|
Quail Tools adjusted operating income (loss) |
|
|
$ 14,262 |
|
|
Quail Tools depreciation and amortization |
|
|
6,043 |
|
|
Quail Tools adjusted EBITDA |
|
|
$ 20,305 |
|
View original content:https://www.prnewswire.com/news-releases/record-international-drilling-margin-75-million-in-adjusted-free-cash-flow-nabors-reports-third-quarter-2026-results-302921142.html
SOURCE Nabors Industries Ltd.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What were Nabors' third-quarter 2026 earnings and cash flow results?
Nabors reported a $11.165 million net loss attributable to shareholders and $74.5 million in adjusted free cash flow. Operating revenue was $872.2 million, while adjusted EBITDA reached $245.5 million. The shareholder loss narrowed from $22.330 million in the second quarter.
What is Nabors' full-year 2026 financial outlook?
Nabors expects approximately $930 million in adjusted EBITDA, $100–$110 million in adjusted free cash flow and $710–$720 million in capital spending. The adjusted EBITDA outlook reaches the upper end of prior guidance, while the adjusted free cash flow outlook is higher than previously guided.
Why was Nabors' third-quarter 2026 adjusted free cash flow above expectations?
Nabors attributed the better-than-expected cash flow to lower-than-forecast SANAD newbuild spending, controlled capital spending elsewhere and improved working capital. Certain SANAD construction milestones shifted to later periods. Higher cash interest payments partially offset the quarter's cash flow improvement.
How does the Quail Tools sale affect Nabors' year-over-year earnings comparison?
The third quarter of 2025 included $34 million in revenue, $20 million in EBITDA and $14 million in operating income from Quail Tools, which was sold in August 2025. That quarter also included a $415.557 million gain on the disposition.