Nabors Q2 revenue misses estimates on lower rig activity

Nabors Industries

28/07/2026 21:30

Overview
Drilling services firm's Q2 revenue rose 4% sequentially, slightly missing analyst expectations
Company posted Q2 net loss attributable to shareholders, with adjusted EBITDA rising from prior quarter
Q2 performance supported by increased rig activity, technology adoption, and improved free cash flow

Outlook
Nabors expects full-year adjusted EBITDA of $920 mln to $930 mln
Company sees full-year capital spending at $710 mln to $730 mln, down $25 mln at midpoint
Nabors expects full-year adjusted free cash flow of $20 mln to $30 mln

Result Drivers
INTERNATIONAL DRILLING - Growth in international operations, including SANAD joint venture rig additions in Saudi Arabia, contributed to improved results
LOWER 48 RIG ACTIVITY - Increased rig count and daily margin expansion in the U.S. Lower 48 market supported revenue growth
TECHNOLOGY ADOPTION - Deployment of advanced rigs and automation tools, such as PACE-X Ultra and Canrig TITAN, enhanced operational efficiency

Company press release: ID:nPn52PfcDa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Operating Revenue
Slight Miss*
$814.8 mln
$814.96 mln (5 Analysts)
Q2 Net Loss Attributable to Nabors
 
$22.3 mln
 
Q2 Adjusted EBITDA
 
$221.7 mln
 
Q2 Adjusted Operating Income
 
$61.1 mln
 
Q2 Pretax Profit
 
$14.88 mln
 
*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 5 "hold" and 1 "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 $115.00, about 46.2% above its July 27 closing price of $78.65

Reuters Recommended Reads
July 27 - Noble Q2 adjusted net income misses estimates; guidance cut on Brazil rig suspensions
July 27 - Baker Hughes posts smaller-than-expected Q2 revenue drop, tops profit estimates
July 28 - Expro Group Q2 adjusted EPS misses estimates on Middle East conflict 

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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.)