Key Highlights

  • Nabors Industries reported third quarter operating revenues of USD 872.2 million, up 7% sequentially.
  • Adjusted EBITDA was USD 245.5 million, up nearly 11% from the second quarter.
  • Net loss attributable to Nabors shareholders was USD 11 million for the quarter.
  • International Drilling adjusted EBITDA reached USD 146 million, reflecting record daily adjusted gross margin in that segment.

Sequential Revenue and EBITDA Growth

Nabors Industries Ltd (NYSE:NBR) reported third quarter operating revenues of USD 872.2 million, up 7% from the second quarter. Adjusted EBITDA was USD 245.5 million, up nearly 11% sequentially, while the company reported a net loss attributable to Nabors shareholders of USD 11 million for the quarter.

The company said record International Drilling daily adjusted gross margin, a larger Lower 48 working fleet, and growth in its Drilling Solutions segment drove the sequential improvement in results.

Segment Performance Shows Broad-Based Gains

International Drilling adjusted EBITDA increased to USD 146 million, the company's largest segment contributor, reflecting the record daily margin performance cited in the quarter's results. U.S. Drilling adjusted EBITDA increased to USD 99 million, supported by growth in the Lower 48 rig count, which the company said grew as expected during the quarter.

Drilling Solutions adjusted EBITDA increased to USD 44 million, driven by growth in both the Lower 48 market and international markets. Rig Technologies adjusted EBITDA increased to USD 5 million, up from USD 3 million in the prior period, rounding out gains across all four of the company's reporting segments.

Market Outlook and Capacity Utilization

The company said it remains constructive on the drilling market outlook, citing advanced drilling technology adoption as a factor supporting both rig count and daily margin trends going forward. Lower 48 rig count growth during the quarter met the company's internal expectations, while daily adjusted gross margin again exceeded the company's guidance for that segment.

Continued strength in International Drilling daily margins, which reached a record level this quarter, could support further adjusted EBITDA growth, while the pace of Lower 48 rig additions remains tied to broader oilfield activity levels and commodity price trends.

Segment Metrics to Track

International Drilling margin trends relative to the record level reported this quarter, continued Lower 48 rig count growth within U.S. Drilling, and Drilling Solutions segment growth across both domestic and international markets are among the items the company has flagged for investors. Adjusted EBITDA growth relative to this quarter's nearly 11% sequential increase remains the primary profitability metric to track across the company's four segments.

The company's emphasis on advanced drilling technology adoption, cited as a driver of both rig count and daily margin trends, is a theme investors may continue to watch across subsequent quarters as the broader drilling market evolves. Rig Technologies, while the smallest of the four segments by adjusted EBITDA contribution, posted the largest percentage gain this quarter, a trend worth monitoring for signs of broader momentum in that business line.