Nabors Industries (NBR) Q2 2026 earnings summary

Executive summary

• Delivered strong operational execution in Q2 2026, with all segments exceeding internal targets and notable outperformance in Lower 48 and International Drilling, despite Middle East disruptions.

• Operating revenues for Q2 2026 reached $815 million, up 4% sequentially, with net loss attributable to shareholders at $22 million and adjusted EBITDA at $222 million.

• Growth was driven by international drilling momentum, increased Lower 48 activity, and improved free cash flow, supported by disciplined capital allocation and technology adoption.

• General and administrative expenses and depreciation/amortization declined due to cost reductions and the sale of Quail Tools, LLC.

• Technology and innovation remain central, with increased adoption of NDS solutions, deployment of advanced rigs, and automation technologies.

Financial highlights

• Q2 2026 operating revenues were $815 million, up 4% sequentially but down 2% year-over-year; adjusted EBITDA was $222 million, up from $205 million in Q1 2026 but down from $248 million in Q2 2025.

• Adjusted free cash flow for Q2 2026 was $12 million, rebounding from negative $48.2 million in Q1 2026.

• International Drilling Q2 2026 adjusted EBITDA: $131 million, up from $121 million in Q1 2026; U.S. Drilling Q2 2026 adjusted EBITDA: $94 million, up from $88 million in Q1 2026.

• Cash and short-term investments at June 30, 2026: $510 million; net debt: $1.61 billion; total debt: $2.50 billion.

• Interest expense for H1 2026 was $86.4 million, down 22% year-over-year due to lower average debt.

Outlook and guidance

• Full-year 2026 adjusted EBITDA expected at $920–$930 million, above prior guidance and 2025 levels; adjusted free cash flow forecasted at $20–$30 million.

• Lower 48 rig count projected to exit Q3 at 74 rigs, with daily adjusted gross margin ~$13,800; International Drilling daily adjusted gross margin $18,100–$18,400.

• Capital expenditures for 2026 revised to $710–$730 million, with $325–$335 million for SANAD newbuilds.

• Management expects to remain in compliance with all credit agreement covenants for the next 12 months.

• Focus remains on selective international growth, operational excellence in the U.S., and technology-led differentiation.