Nabors Industries Earnings Call Transcripts
Fiscal Year 2026
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Q1 2026 saw resilient operational and financial performance amid Middle East conflict, with EBITDA of $205M and strong rig count growth in both international and U.S. markets. Capital discipline and technology leadership support an improved outlook, with free cash flow expected to exceed guidance.
Fiscal Year 2025
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Net debt reduced by $554 million and annualized interest by $45 million, with strong Q4 EBITDA of $222 million and full-year revenue up 8.7%. 2026 guidance targets stable EBITDA, international growth, and further debt reduction, supported by robust rig activity and technology innovation.
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Quail Tools sale enabled major debt reduction and improved leverage to 1.8x, the lowest in a decade. International drilling, especially in Saudi Arabia, drove EBITDA growth, while U.S. activity remains stable but pressured. CapEx and free cash flow guidance reflect ongoing investment and market uncertainties.
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Second quarter results showed strong EBITDA growth and improved cash flow, driven by the Parker Wellbore acquisition and robust international activity. CapEx guidance for 2025 was reduced, and the company remains focused on debt reduction and stable rig operations.
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Q1 saw stable revenue with international growth and Parker Wellbore offsetting U.S. declines. Margin pressure in the U.S. was balanced by strong international performance and synergy realization from the Parker acquisition. Guidance remains positive for rig additions and EBITDA growth in 2025.
Fiscal Year 2024
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Q4 2024 saw stable EBITDA but disappointing free cash flow due to delayed payments and accelerated CapEx. International growth remains robust, with SANAD new builds and the Parker Wellbore acquisition set to drive future value. 2025 guidance anticipates flat U.S. markets and strong international performance.
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Q3 2024 results met expectations with $222M adjusted EBITDA, strong international growth, and robust margins. The Parker Wellbore acquisition is set to double NDS's size and improve free cash flow, while international rig deployments and technology adoption drive future expansion.
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The acquisition expands the drilling solutions portfolio, adds scale in key markets, and brings significant cost synergies. The deal is valued at $472 million, improves leverage, and positions the company for growth in high-margin segments and international markets.
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Q2 2024 Adjusted EBITDA reached $218M, with strong international growth offsetting U.S. softness. Five more international rigs are set for deployment in 2024, and debt reduction remains a priority, supported by improved free cash flow and refinancing.