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Nabors Industries
(NYSE:NBR)
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Rating:58Neutral
Price Target:
$91.00
▲(9.15% Upside)
Action:Reiterated
Date:08/27/26
The score is held back primarily by elevated leverage and uneven free cash flow conversion alongside recent sharp revenue contraction, despite improved profitability and strong operating cash generation. Valuation is a clear positive due to the low P/E, while technicals are neutral-to-slightly constructive. The earnings call and recent events add moderate support (raised EBITDA outlook and debt-management actions), but modest FCF guidance and SANAD-related cash use temper the upside.
Positive Factors
International Drilling Scale
SANAD’s 55-rig Saudi fleet, 28% market share and 34 remaining deliveries create a multi-year growth runway. International EBITDA growth and returned suspended rigs support scale, though execution depends on completing the build program.
Negative Factors
Elevated Leverage
High leverage leaves Nabors more exposed to downturns in drilling activity and interest costs than lower-debt peers. It also limits financial flexibility, making the company dependent on sustained operating performance and successful debt reduction.
Read all positive and negative factors
Positive Factors
Negative Factors
International Drilling Scale
SANAD’s 55-rig Saudi fleet, 28% market share and 34 remaining deliveries create a multi-year growth runway. International EBITDA growth and returned suspended rigs support scale, though execution depends on completing the build program.
Read all positive factors
Nabors Industries Key Performance Indicators (KPIs)
Any
Adjusted Operating Income by Segment
Measures profit from each business unit after excluding one-time items and accounting noise. Reveals which segments generate real earnings, where margins are improving or deteriorating, and how changes in dayrates, utilization, or cost control could affect the company’s ability to convert revenue into cash.
Measures profit from each business unit after excluding one-time items and accounting noise. Reveals which segments generate real earnings, where margins are improving or deteriorating, and how changes in dayrates, utilization, or cost control could affect the company’s ability to convert revenue into cash.
Data provided by:
The Fly
The FlyNabors Industries (NBR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.30B
Dividend YieldN/A
Average Volume (3M)266.47K
Price to Earnings (P/E)5.9
Beta (1Y)1.07
Revenue Growth6.05%
EPS GrowthN/A
CountryUS
Employees13,900
SectorEnergy
Sector Strength52
IndustryOil & Gas Drilling
Share Statistics
EPS (TTM)14.84
Shares Outstanding14,800,044
10 Day Avg. Volume208,835
30 Day Avg. Volume266,473
Financial Highlights & Ratios
PEG Ratio-0.02
Price to Book (P/B)1.21
Price to Sales (P/S)0.22
P/FCF Ratio-31.58
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$101.33Price Target Upside21.55% Upside
Rating ConsensusHold
Number of Analyst Covering6
EPS Forecast (FY)-2.25
Revenue Forecast (FY)$3.35B
Nabors Industries Business Overview & Revenue Model
Company Description
Nabors Industries Ltd. provides drilling and drilling-related services for land-based and offshore oil and natural gas wells in the United States and internationally. The company operates through four segments: U.S. Drilling, International Drillin...
How the Company Makes Money
Nabors primarily makes money by contracting its drilling rigs and related crews/services to exploration and production (E&P) companies under drilling contracts, generating revenue based on rig availability and utilization (e.g., dayrate-style arra...
Nabors Industries Earnings Call Summary
Earnings Call Date:Jul 28, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 27, 2026
Earnings Call Sentiment Positive
The call conveyed a predominantly positive tone: management reported broad-based outperformance versus guidance, raised full-year EBITDA outlook, showcased multiple commercial and technology wins (SANAD newbuilds, PACE‑X rigs, Canrig Titan, ROC software), and highlighted improving Lower 48 pricing and international momentum. Notable risks include modest free cash flow, significant SANAD-related capex and near-term cash consumption, regional cost friction tied to the Middle East conflict, some offshore softness, and limited activity in specific markets (e.g., Venezuela). Overall, the positives (strong execution, raised guidance, technology-led differentiation, market share gains) materially outweigh the lowlights.Positive Updates
Strong Consolidated Financial Performance
Consolidated revenue of $815M, up $31M or 4% sequentially. Adjusted EBITDA of $222M, beating guidance; EBITDA margin expanded 107 basis points to 27.2% with a ~54% fall-through of incremental revenue to EBITDA.
Negative Updates
Modest Free Cash Flow and Near-Term Cash Use
Adjusted free cash flow was only $12M in Q2 (modestly above guidance). Management expects consolidated adjusted free cash flow use of ~ $40M in Q3 (including SANAD consuming ~ $65M). Full-year adjusted free cash flow guidance is modest at $20M–$30M, constraining near-term deleveraging flexibility despite a stated $100M gross debt reduction target.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Consolidated Financial Performance
Consolidated revenue of $815M, up $31M or 4% sequentially. Adjusted EBITDA of $222M, beating guidance; EBITDA margin expanded 107 basis points to 27.2% with a ~54% fall-through of incremental revenue to EBITDA.
Read all positive updates
Company Guidance
Nabors guided to a constructive Q3: International Drilling average rigs 94–96 (exit Q3 at 96) with average daily gross margin $18.1k–$18.4k; Lower 48 average rigs ≈73 (exit 74) with daily adjusted gross margin ~ $13.8k (flat); combined Alaska & U.S. Offshore EBITDA ≈ $11M; NDS EBITDA up ~5% to ≈ $42M; Rig Technologies EBITDA $5–6M; and consolidated EBITDA margin up ~100 bps. Q3 CapEx is $245–255M (≈$130M for SANAD new-builds); full‑year CapEx $710–730M (SANAD $325–335M). They expect to use ≈$40M of consolidated adjusted free cash flow in Q3 (including ≈$65M cash consumption by SANAD), and now forecast full‑year adjusted EBITDA of $920–930M and adjusted free cash flow of $20–30M (with SANAD net consumption $60–80M), while targeting at least $100M of gross debt reduction in 2026 toward ~1x net leverage.Nabors Industries Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
38
Negative
Cash Flow
56
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.22B | 3.18B | 2.93B | 3.01B | 2.65B | 2.02B |
| Gross Profit | 807.49M | 621.08M | 554.31M | 1.22B | 987.76M | 730.23M |
| EBITDA | 1.31B | 1.40B | 813.23M | 915.15M | 709.39M | 481.52M |
| Net Income | 209.79M | 248.34M | -176.08M | -11.78M | -350.26M | -569.27M |
Balance Sheet | ||||||
| Total Assets | 4.42B | 4.79B | 4.50B | 5.28B | 4.73B | 5.53B |
| Cash, Cash Equivalents and Short-Term Investments | 509.83M | 940.74M | 397.30M | 1.07B | 452.31M | 991.49M |
| Total Debt | 2.13B | 2.57B | 2.53B | 3.20B | 2.57B | 3.29B |
| Total Liabilities | 2.98B | 3.35B | 3.30B | 4.00B | 3.51B | 4.13B |
| Stockholders Equity | 544.13M | 590.73M | 135.00M | 326.61M | 368.96M | 590.66M |
Cash Flow | ||||||
| Free Cash Flow | 39.65M | -22.68M | 13.51M | 97.01M | 127.64M | 194.74M |
| Operating Cash Flow | 702.30M | 693.27M | 581.43M | 637.86M | 501.09M | 428.78M |
| Investing Cash Flow | 15.62M | 97.09M | -555.46M | -570.42M | -368.71M | -117.22M |
| Financing Cash Flow | -930.58M | -566.79M | -662.05M | 592.59M | -661.53M | 488.42M |
Nabors Industries Technical Analysis
Neutral
83.37
Price Trends
84.84
Positive
89.95
Negative
77.47
Positive
Market Momentum
1.47
Positive
49.23
Neutral
19.04
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NBR, the sentiment is Neutral. The current price of 83.37 is below the 20-day moving average (MA) of 88.13, below the 50-day MA of 84.84, and above the 200-day MA of 77.47, indicating a neutral trend. The MACD of 1.47 indicates Positive momentum. The RSI at 49.23 is Neutral, neither overbought nor oversold. The STOCH value of 19.04 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for NBR.
Nabors Industries Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $4.21B | -29.57 | -5.27% | 2.83% | 16.57% | -328.07% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
63 Neutral | $2.93B | 2,329.50 | 0.03% | ― | 13.06% | -98.53% | |
60 Neutral | $6.42B | -3.04 | -20.24% | ― | 8.54% | -3.69% | |
58 Neutral | $1.30B | 5.90 | 36.75% | ― | 6.05% | ― | |
56 Neutral | $4.39B | -50.93 | -2.82% | 3.53% | -6.92% | 91.45% | |
52 Neutral | $1.38B | -5.66 | -21.28% | ― | 2.71% | -447.50% |
* Energy Sector Average
NBR
Nabors Industries
87.49
51.16
140.82%
HP
Helmerich & Payne
41.40
21.75
110.71%
PTEN
Patterson-UTI
11.75
6.28
114.89%
RIG
Transocean
5.60
2.50
80.65%
BORR
Borr Drilling
4.40
1.44
48.65%
SDRL
Seadrill Limited
46.59
14.89
46.97%
Nabors Industries Corporate Events
Business Operations and StrategyPrivate Placements and FinancingRegulatory Filings and Compliance
Nabors Deepens Strategic Investment in Quaise Geothermal Venture
Positive
Aug 27, 2026
On August 26, 2026, Nabors Industries invested $35 million in Quaise Energy’s Series B round via its Nabors Energy Transition Ventures unit, acquiring 5,425,515 Series B-1 preferred shares and paying with roughly 392,000 Nabors common shares...
Business Operations and StrategyPrivate Placements and Financing
Nabors Industries Obtains Waiver to Redeem Senior Notes
Positive
Jul 29, 2026
On July 23, 2026, Nabors Industries, Inc. and its parent entered into a waiver with Citibank, N.A. and other lenders to its amended and restated credit agreement dated June 17, 2024. The waiver temporarily lifts restrictions that would have limite...
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Nabors Shareholders Reject Executive Pay in AGM Votes
Negative
Jun 5, 2026
At Nabors Industries’ annual general meeting held on June 2, 2026, shareholders holding 80.61% of outstanding common stock participated in person or by proxy, and all director nominees were elected with majority support under the companyR...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.