Nabors Industries (NBI1) Q3 2026 Earnings Report
DE:NBI1 Q3 2026 EPS Results
- Actual EPS
- -EUR 1.11
- Consensus EPS
- -EUR 0.13
- Beat/Miss
- Missed by -EUR 0.98
- One Year Ago EPS
- EUR 15.09
DE:NBI1 Q3 2026 Revenue Results
- Actual Revenue
- EUR 780.96M
- Expected Revenue
- EUR 769.32M
- Beat/Miss
- Beat by +EUR 11.64M
- YoY Revenue Growth
- +6.60%
Earnings Announcement Details
- Quarter
- Q3 2026
- Date
- 10/27/2026
- Time
- After Close
- Conference Call
- Tuesday, October 27, 2026
Nabors Industries's next earnings date is estimated for February 9, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
The call was strongly positive overall. Highlights significantly outweighed the lowlights, with record international margins, higher EBITDA and free cash flow, debt reduction, Lower 48 pricing and utilization gains, expanding international opportunities, and an improved 2026 outlook. The principal challenges were Saudi rig suspensions and conflict-related delays, higher investment requirements for additional Lower 48 reactivations, and limited current scale in geothermal and Venezuela.
For the fourth quarter, Nabors expects international drilling rig count to average between 92 and 93 and exit at 92, with average daily gross margin at approximately $19,500; Lower 48 rig count to average approximately 75 and reach 76 to 77 rigs operating at year-end, with approximately 95% utilization and daily adjusted gross margin between $14,500 and $14,700; Alaska and U.S. offshore combined EBITDA of approximately $12 million; Drilling Solutions EBITDA growth of 5% to approximately $46 million; Rig Technologies EBITDA up $3 million to approximately $8 million; capital expenditures of $250 million-$260 million, including $140 million-$150 million for SANAD newbuild and approximately $90 million for the fifth tranche; and consolidated adjusted free cash flow of $60 million-$70 million, including approximately $20 million of cash consumption by SANAD. Full-year guidance is consolidated capital spending of $710 million-$720 million, including $295 million-$305 million for the SANAD newbuild program, EBITDA of approximately $930 million, second half EBITDA approximately 18% above the first half, an annualized run rate of $1 billion heading into 2027, and adjusted free cash flow in the $100 million-$110 million range, including approximately $20 million of cash consumption by SANAD; cash interest expense in 2027 is expected to be at least $50 million below 2025, with approximately $30 million of the reduction already realized in 2026, and the net leverage target remains approximately one times.
- Strong Third-Quarter Financial PerformanceAdjusted EBITDA totaled $246 million, exceeding expectations and rising $24 million, or 11%, sequentially. Revenue grew 7% sequentially, adjusted EBITDA margin expanded by approximately 100 basis points to 28.2%, and every segment met or exceeded guidance.
- Higher Free Cash Flow and Improved OutlookAdjusted free cash flow was $115 million better than outlook in the third quarter, with consolidated adjusted free cash flow of $75 million. The company raised its full-year adjusted free cash flow outlook to $100 million-$110 million, an $80 million increase from the prior-quarter guidance, primarily reflecting shifted newbuild milestone payments, controlled capital spending, and better working capital.
- Debt Reduction and Lower Interest ExpenseNabors redeemed $100 million of outstanding debt, including a portion of its 9.125% notes due in 2030. The action lowers annual interest expense by more than $9 million. Cash interest expense in 2027 is expected to be at least $50 million below 2025, with approximately $30 million of the reduction already realized in 2026. Net leverage declined to 1.7x, versus a target of approximately one times.
- International Drilling Margin RecordInternational drilling EBITDA increased $15 million, or 12%, sequentially. Average daily gross margin increased by more than $1,500 to a record above $19,000, while segment EBITDA margin expanded by 160 basis points to 32%. The company exited the quarter with 96 rigs operating.
- International Growth PipelineNabors identified more than 80 incremental drilling opportunities across 11 countries, with Oman, Venezuela, Kuwait, Algeria, and Argentina accounting for the largest number of active tenders. The company said the expanding prospect pipeline is supporting global rig utilization and positive pricing momentum.
- Saudi Arabia Market Leadership and Newbuild ProgressSANAD successfully deployed its 17th newbuild rig and expects to deploy its 18th during the fourth quarter. Including the planned 18th newbuild, SANAD expects to end the year with 52 rigs and a market-leading 27% share. The fifth tranche of rigs was signed during the question-and-answer session, and Nabors expects SANAD to deploy around five rigs in total during 2027.
- Argentina Expansion and Asset RedeploymentNabors operates 14 owned rigs plus one rig under an O&M contract in Argentina, with approximately 33% market share across five operators. The company started its 14th owned rig during the quarter by redeploying an idle U.S. unit, secured a multi-year contract, and is evaluating 10 additional opportunities. The redeployment converts idle capacity into earnings without new-build capital.
- Argentina Technology AdoptionNabors said its integrated managed pressure drilling technology has gained broad adoption in the Vaca Muerta. NDS was awarded a multi-well program for its FracView and DrillView LWD solutions, extending technology penetration with an established customer. Nearly all tracked Argentine rig prospects include MPD.
- Venezuela Contract and Growth OpportunityNabors was awarded a multi-year drilling contract in Venezuela and is bringing an idle U.S. rig back online to meet the customer's schedule. The company is tracking more than 20 additional rig opportunities, has five idle rigs in Venezuela ready to respond to activity increases, and expects Venezuelan operations to be accretive to reported international gross margin.
- Lower 48 Rig Count and Pricing GainsNabors expanded its Lower 48 rig count by three units during the quarter and ended with 74 rigs operating. Its Lower 48 rig count increased by 12 rigs, or 19%, year-to-date, nearly double the Baker Hughes count increase. Average daily revenue rose by more than $1,200 to approximately $34,800, while average daily margin increased by $232 to more than $14,000.
- Improved Lower 48 Contract CoverageNearly half of Nabors' Lower 48 rigs had at least six months remaining under contract at quarter-end, and the company expects approximately 55% coverage by year-end. The company cited continued demand for high-spec rigs, improving pricing, longer contract coverage, and a customer mix in which nearly 75% of working rigs served publicly traded operators.
- Drilling Solutions Growth and Cash ConversionDrilling Solutions EBITDA reached $44 million, up 10% sequentially and 5% above guidance. NDS margin expanded by 167 basis points to 38%, with 72% conversion of incremental revenue into EBITDA and approximately 88% of EBITDA converted into cash after CapEx. Year-to-date NDS cash-flow conversion was approximately 90%.
- Technology and Equipment MomentumNabors delivered four Canrig TITAN automated rig floor wrenches during the third quarter, and backlog for the next-generation tool exceeds 20 units. Rig Technologies EBITDA increased $1.8 million sequentially to $5 million, supported by stronger parts sales and capital equipment deliveries, including Titan wrenches and casing drive systems.
- Geothermal ExpansionNabors increased its investment in Quaise Energy and is now its largest equity holder. One Nabors rig is drilling Quaise's Project Obsidian in Oregon, the company was awarded a rig supporting Sage Geosystems, and it continues geothermal work in Indonesia. Nabors said it currently has two geothermal rigs drilling and has specialized equipment and packages ready for future deployments.
- Fourth-Quarter and 2027 Earnings OutlookFull-year EBITDA guidance was raised to approximately $930 million, the top of the prior guidance range, implying second-half EBITDA approximately 18% above the first half and an annualized run rate of $1 billion heading into 2027. For the fourth quarter, international daily gross margin is expected to reach approximately $19,500, Lower 48 daily adjusted gross margin is expected at $14,500-$14,700, Drilling Solutions EBITDA is expected to increase 5% to approximately $46 million, and Rig Technologies EBITDA is expected to improve to approximately $8 million.
- Capital Discipline and Growth InvestmentThird-quarter capital expenditures were $141 million, down $17 million sequentially and substantially better than guidance. Full-year consolidated capital spending is expected at $710 million-$720 million, including $295 million-$305 million for the SANAD newbuild program. Nabors said it will continue to invest prudently but decisively in growth CapEx and commit capital selectively when returns, contract duration, and commercial protections are attractive.
- NDS and International Pricing StrategyManagement attributed international margin strength to consistent demand across geographies, tightening rig capacity, operating efficiency, and broader adoption of NDS services such as MPD, TRS, and technology packages. NDS EBITDA increased by more than a third sequentially in the Emirates and grew 10% company-wide in the third quarter.
DE:NBI1 Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Feb 09, 2027 | 2026 (Q4) | 0.80- | 0.15 | ― | ― |
| Oct 27, 2026 | 2026 (Q3) | -0.13-1.11 | 15.09 | -107.36% (-16.20) | |
| Jul 28, 2026 | 2026 (Q2) | -1.17-1.83 | -2.43 | 24.72% (+0.60) | |
| Apr 28, 2026 | 2026 (Q1) | -2.23-1.38 | 1.95 | -170.64% (-3.33) | |
| Feb 11, 2026 | 2025 (Q4) | -1.680.15 | -5.97 | 102.55% (+6.12) | |
| Oct 28, 2025 | 2025 (Q3) | -1.7115.09 | -6.14 | 345.66% (+21.23) | |
| Jul 29, 2025 | 2025 (Q2) | -0.76-2.43 | -3.84 | 36.89% (+1.42) | |
| Apr 29, 2025 | 2025 (Q1) | -2.611.95 | -3.51 | 155.61% (+5.46) | |
| Feb 12, 2025 | 2024 (Q4) | -1.44-5.97 | -1.4 | -327.56% (-4.58) | |
| Oct 22, 2024 | 2024 (Q3) | -1.80-6.14 | -6.38 | 3.67% (+0.23) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
