Nabors Industries Earnings Call Transcripts
Fiscal Year 2026
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Q2 2026 results exceeded expectations, with strong revenue and EBITDA growth across all segments, driven by operational excellence, technology adoption, and international expansion. Guidance for full-year EBITDA and free cash flow was raised, and the company remains disciplined in capital allocation and debt reduction.
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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 international growth and successful Parker Wellbore integration, offsetting U.S. margin pressures and rig count volatility. EBITDA declined sequentially, but guidance remains strong with robust international deployments and synergy realization expected in 2025.
Fiscal Year 2024
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Adjusted EBITDA for Q4 2024 was $221 million, with international growth offsetting U.S. market weakness and delayed Mexican receivables impacting free cash flow. 2025 guidance anticipates flat U.S. activity, robust international expansion, and continued heavy investment in Saudi Arabia, with Parker Wellbore acquisition expected to add synergies.
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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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Nabors will acquire Parker Wellbore for $472 million in shares and assumed debt, expanding its drilling solutions and global footprint. The deal brings significant synergies, improves leverage, and positions the company for growth in key markets and technology-driven services.
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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.