Highlights

  • Third quarter 2026 operating revenues were $872 million, and net loss attributable to Nabors' shareholders was $11 million.
  • Adjusted EBITDA was $246 million, and adjusted free cash flow was $75 million for the third quarter of 2026.
  • Nabors redeemed $100 million of its 9.125% notes with cash on hand during the quarter.
  • The company anticipates 2026 adjusted EBITDA of approximately $930 million and adjusted free cash flow of $100 to $110 million.

Nabors Industries Ltd. (NYSE:NBR) shares were trading at USD 88.82 on October 28, 2026, up 9.22%, with a relative volume at time of 3.22. The drilling services company redeemed $100 million of its 9.125% notes during the third quarter and reported third quarter 2026 results and its fourth quarter outlook on October 27.

Nabors Industries Ltd. is incorporated in Bermuda and has its headquarters in Hamilton, Bermuda. The company describes itself as a provider of advanced technology for the energy industry, with operations in approximately 20 countries. It reports four segments: U.S. Drilling, International Drilling, Drilling Solutions and Rig Technologies. The company also has the SANAD land drilling joint venture in Saudi Arabia.

Third Quarter Results

Operating revenues were $872.2 million, compared with $814.8 million in the second quarter of 2026 and $818.2 million in the third quarter of 2025. Net income was $15,984 thousand. After net income attributable to noncontrolling interest of $27,149 thousand, the net loss attributable to Nabors was $(11,165) thousand, or $(1.24) per diluted share. For the third quarter of 2025, net income attributable to Nabors was $274,198 thousand, which included a gain on disposition of Quail Tools of $415,557 thousand.

Adjusted EBITDA was $245.5 million, compared with $221.7 million in the second quarter and $236.3 million a year earlier. Adjusted operating income was $85.8 million. These are non-GAAP measures.

For the nine months, operating revenues were $2,470,537 thousand and the net loss attributable to Nabors was $(48,661) thousand, or $(4.81) per diluted share.

Segment Results

International Drilling adjusted EBITDA was $146 million, compared with $131 million in the second quarter. The company reported International Drilling daily adjusted gross margin of $19,060 and an average of 94.9 rigs working. U.S. Drilling adjusted EBITDA was $99 million, compared with $94 million, with an average of 72.8 Lower 48 rigs working.

Drilling Solutions adjusted EBITDA was $44 million, compared with $40 million.

The SANAD joint venture 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. Management also referred to the suspension of five SANAD rigs.

Cash Flow, Debt and Balance Sheet

Consolidated adjusted free cash flow, a non-GAAP measure, was $75 million. The company said higher profitability, lower capital spending at SANAD and across the rest of Nabors, and lower working capital contributed, partially offset by higher cash interest payments.

At September 30, 2026, cash and short-term investments were $475,145 thousand and long-term debt was $2,022,758 thousand. At December 31, 2025, cash and short-term investments were $940,738 thousand and long-term debt was $2,117,187 thousand.

Chief Financial Officer Miguel Rodriguez said the company redeemed $100 million of its 9.125% notes with cash on hand as part of its commitment to reduce gross debt.

Fourth Quarter and Full-Year Outlook

Nabors expects a Lower 48 average rig count of 75 rigs and Lower 48 daily adjusted gross margin of $14,500 to $14,700 for the fourth quarter of 2026. It expects International average rig count of 92 to 93 rigs and daily adjusted gross margin of approximately $19,500. Drilling Solutions adjusted EBITDA is expected at approximately $46 million and Rig Technologies adjusted EBITDA at approximately $8 million.

The company expects fourth quarter capital expenditures of $250 to $260 million, including $140 to $150 million for SANAD newbuilds, and adjusted free cash flow of $60 to $70 million.

For full-year 2026, management anticipates adjusted EBITDA of approximately $930 million and consolidated adjusted free cash flow of $100 to $110 million, including approximately $20 million of cash consumption at SANAD. It expects capital spending of $710 to $720 million. Chairman, CEO and President Anthony Petrello said the company remains on track to achieve an annualized adjusted EBITDA run rate of approximately $1 billion heading into 2027.