Key Highlights

  • Enphase Energy reported third-quarter revenue of $293.3 million, down from $410.4 million a year earlier, and guided the fourth quarter to $225 million to $255 million.
  • Nabors Industries raised full-year adjusted EBITDA guidance to about $930 million, at the upper end of its prior range, and posted adjusted free cash flow of $74.5 million.
  • Precision Drilling guided fourth-quarter U.S. operating margin to US$9,500 to US$10,500 per day, from US$7,653 in the third quarter.
  • Daqo New Energy sold 46,910 metric tons of polysilicon at $4.12 per kg, against an average cash cost of $4.23 per kg.
  • Precision Drilling holds its call on Wednesday, October 28, and Enphase and Daqo both flagged fourth-quarter shifts in volume and sell-through.

Which Solar and Drilling Earnings Reports Landed on October 27, and What Did They Show?

Four energy names put out numbers on Tuesday, October 27, and each told a different story. Enphase Energy (NASDAQ:ENPH) reported third-quarter revenue of $293.3 million and a non-GAAP EPS of $0.41, then guided the next quarter lower. Nabors Industries (NYSE:NBR) grew revenue to $872.2 million and generated $74.5 million of adjusted free cash flow despite a net loss of $1.24 per share.

Precision Drilling (NYSE:PDS) reported revenue of C$531.7 million, up 15.0%, and guided U.S. margins sharply higher for the fourth quarter. Daqo New Energy (NYSE:DQ) sold roughly three times as much polysilicon as in the second quarter but still sold below its cash cost. Each section below condenses the company's own figures, followed by a comparison and the dates to watch.

Enphase Energy: Why Is the Fourth-Quarter Guide Lower After a Quarter That Missed the Screened Estimate?

Enphase makes solar microinverters and batteries. Third-quarter revenue of $293.3 million was flat on the second quarter's $291.9 million but down about 28.5% from $410.4 million a year earlier (calculated). Non-GAAP EPS of $0.41 compared with a screened estimate of $0.50, and GAAP EPS was $0.17 after investment impairments.

Fourth-quarter revenue guidance of $225 million to $255 million sits about 18% below the third quarter at the midpoint (calculated). Management pointed to the end of the Section 25D credit and higher interest rates weighing on U.S. residential demand, and non-GAAP gross margin was 45.0% against 49.2% a year ago. Cash and marketable securities were $931.8 million, and no shares were repurchased in 2026.

Nabors Industries: How Did Cash Flow Jump to $74.5 Million With a Per-Share Loss?

Nabors reported revenue of $872.2 million against $818.2 million and adjusted EBITDA of $245.5 million against $236.3 million. The net loss was $1.24 per share, versus a screened estimate of negative $0.90, while the year-ago quarter carried a $415.6 million gain on the sale of Quail Tools. International Drilling was the largest contributor, with a record daily adjusted gross margin of $19,060.

Full-year adjusted EBITDA is guided to about $930 million and adjusted free cash flow to $100 million to $110 million. Total debt fell to $2,022.8 million from $2,120.3 million at June 30 after a $100 million redemption of 9.125% notes. Management reiterated a target of a roughly $1 billion annualized EBITDA run rate heading into 2027.

Precision Drilling: Why Is Management Guiding U.S. Margins Up About 30%?

Precision reports in Canadian dollars. Revenue rose 15.0% to C$531.7 million and EPS was C$1.65, against a loss of C$0.51 a year earlier, though the screened estimate was 1.72. Active rigs averaged 123 versus 106, but adjusted EBITDA grew only 6.4% to C$125.1 million as U.S. reactivation costs weighed on margins.

Fourth-quarter U.S. margin is guided to US$9,500 to US$10,500 per day, and the 2026 capital budget rose to C$275 million to C$285 million from C$265 million. The company bought back 269,331 shares for about C$31 million in the quarter, and long-term debt fell to C$629.1 million. Its call on Wednesday, October 28 is expected to address the margin path and a Canada Revenue Agency matter with exposure of about C$155 million.

Daqo New Energy: Can Tripled Polysilicon Volumes Offset Prices Below Cash Cost?

Daqo, a China-based polysilicon producer, reported revenue of $194.2 million, up from $62.7 million in the second quarter and down about 20.6% from $244.6 million a year earlier (calculated). Sales of 46,910 metric tons compared with 15,190 in the second quarter. The net loss of $52.9 million, or $0.78 per ADS, was wider than the $0.48 loss as screened.

The average selling price of $4.12 per kg stayed below the $4.23 per kg cash cost. Management raised 2026 production guidance to 175,000 to 185,000 metric tons, guided the fourth quarter to 35,000 to 45,000 metric tons, and said it is evaluating lower near-term utilization. Cash and investments of $2.06 billion carry no debt.

Solar and Drilling Earnings Compared: Which Company Grew Revenue Fastest, and Where Are the Margins?

On year-over-year revenue, Precision Drilling grew 15.0%, Nabors about 6.6% (calculated), Daqo fell about 20.6% and Enphase fell about 28.5% (both calculated). The spread between the best and worst performers is about 43.5 percentage points (calculated). Nabors' adjusted EBITDA rose about 3.9% (calculated), below Precision's 6.4%.

On profitability, Nabors' adjusted EBITDA margin was about 28.1% (calculated), against Precision's 23.5% (derived). Daqo's price gap to cash cost was $0.11 per kg, or about 2.6% of cost (calculated). Enphase's fourth-quarter revenue midpoint of $240 million is about 18% below the third quarter (calculated), while Precision's U.S. margin midpoint of US$10,000 is about 30.7% above the third quarter (calculated). Nabors cut debt by about $97.5 million in the quarter (calculated) and Precision by about C$50.2 million since year-end (calculated). Daqo's cash and investments are about 2.2 times Enphase's (calculated), though the two are not comparable in business model.

What to Watch Next: Which Dates and Targets Matter After These Reports?

Precision Drilling's call on Wednesday, October 28 is the nearest event, with focus on the US$9,500 to US$10,500 margin path and the large Canadian upgrade. Nabors will be measured against its fourth-quarter targets of 75 Lower 48 rigs and about $19,500 in international daily margin, plus $60 million to $70 million of adjusted free cash flow.

Enphase has said it plans to show a megawatt-scale solid-state transformer system by the end of 2026, with fourth-quarter sell-through assumed to fall about 10%. For Daqo, the key readings are whether the average price moves above the $4.23 per kg cash cost and whether fourth-quarter output lands within 35,000 to 45,000 metric tons.