Bermuda's Nabors misses Q4 operating revenue estimates

Nabors Industries

11/02/2026 21:25

Overview

Energy technology provider's Q4 operating revenue declined, missing analyst expectations

Adjusted EBITDA for Q4 beat analyst expectations

Company significantly reduced debt, improving leverage metrics and future cash flow

Outlook

Nabors expects Q1 2026 U.S. Drilling rig count of 64 - 65 rigs

Company sees Q1 2026 capital expenditures at $170 - $180 mln,  including approximately $85 million for newbuilds in Saudi Arabia

Nabors forecasts full-year 2026 international rig count of 96 - 98 rigs

Result Drivers

DEBT REDUCTION - Nabors reduced its net debt by approximately $554 mln since the end of 2024, improving leverage metrics and lowering interest expenses

INTERNATIONAL DRILLING - Improved performance in International Drilling segment, with adjusted EBITDA increasing by 11% due to stronger drilling activity in Canada and Indonesia

NEW TECHNOLOGY - Introduction of Canrig automated floor wrench reduced cycle time by 30%, generating significant customer interest

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Operating Revenue
Miss
$797.53 mln
$808.53 mln (4 Analysts)
Q4 EPS
$0.17
Q4 Net Income
$16.99 mln
Q4 Adjusted EBITDA
Beat
$221.56 mln
$218.72 mln (4 Analysts)
Q4 Adjusted Operating Income
Beat
$62.37 mln
$7.27 mln (3 Analysts)
Q4 Pretax Profit
$24.43 mln


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 4 "hold" and 2 "sell" or "strong sell"

The average consensus recommendation for the oil & gas drilling peer group is "buy."

Wall Street's median 12-month price target for Nabors Industries Ltd is $64.50, about 5.6% below its February 10 closing price of $68.34

Press Release: ID:nPn5RpNxga

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)