Nabors Q2 operating revenue misses estimates

Nabors Industries

29/07/2025 21:35

Overview

Nabors Q2 operating revenue of $833 mln missed analyst expectations, per LSEG data

Adjusted EBITDA for Q2 was $248 mln, beating analyst estimates, per LSEG data

Co reports Q2 net loss, compared to net income in Q1

Outlook

Nabors expects Q3 U.S. Drilling lower 48 average rig count of 57 - 59 rigs

Company forecasts Q3 U.S. Drilling lower 48 daily adjusted gross margin of approximately $13,300

Nabors sees Q3 international average rig count of 87-88 rigs

Company anticipates Q3 international daily adjusted gross margin of approximately $17,900

Nabors projects Q3 capital expenditures of $200-210 mln

Company expects Q3 adjusted free cash flow in line with Q2

Result Drivers

RIG DEPLOYMENTS - New rigs deployed in Saudi Arabia and Kuwait contributed to international drilling earnings

PARKER INTEGRATION - Integration of Parker Wellbore operations provided cost synergies and improved financial results

U.S. DRILLING - Higher rig counts in U.S. drilling segment offset challenges in Lower 48 market

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Operating Revenue
Miss
$832.79 mln
$851.10 mln (6 Analysts)
Q2 EPS
-$2.71
Q2 Adjusted EBITDA
Beat
$248.46 mln
$247.20 mln (6 Analysts)
Q2 Adjusted Operating Income
Beat
$73.40 mln
$12.40 mln (3 Analysts)
Q2 Pretax Profit
$20.87 mln


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 5 "hold" and 3 "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 $36.50, about 3.3% above its July 28 closing price of $35.29

Press Release: ID:nPn7X8nt3a

(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.)