Nabors Industries (NBR) investor relations material

Executive summary

• Completed Parker Wellbore acquisition, Quail Tools divestiture, and major debt refinancing, reducing net debt by $554 million and annualized interest expense by $45 million, reaching a net leverage of 1.7x, the lowest since 2008.

• Achieved full-year revenue of $3.2 billion (up 8.7% year-over-year) and Adjusted EBITDA of $913 million, driven by Parker acquisition and international expansion.

• Fourth quarter 2025 operating revenues were $798 million, with adjusted EBITDA of $222 million and adjusted free cash flow of $132 million, supported by improved collections and lower capital spending.

• International segment showed robust growth, with newbuild deployments and rig reactivations in Saudi Arabia and Argentina, and Parker Wellbore businesses contributing 11% sequential EBITDA growth.

• Drilling Solutions delivered a 48% adjusted gross margin in Q4 and contributed 15% of total adjusted EBITDA.

Financial highlights

• Q4 consolidated revenue was $798 million, down 2.5% sequentially due to Quail Tools sale; excluding Quail, revenue grew 1.7%.

• Q4 adjusted EBITDA was $221.6 million, with segment contributions: U.S. Drilling $93.2 million, International Drilling $131.3 million, Drilling Solutions $41.3 million, and Rig Technologies $4.9 million.

• Adjusted free cash flow for Q4 was $132 million, driving full-year adjusted free cash flow to $117 million, well above guidance.

• Net debt at year-end 2025 was $1.55 billion, down from $2.11 billion at the end of 2024.

• Q4 EBITDA margin was 27.8%, down 110 bps sequentially; excluding Quail, EBITDA grew 2.6%.

Outlook and guidance

• 2026 EBITDA expected to match 2025, with 6%-8% growth normalized for Quail; international segment expected to deliver over $70 million adjusted EBITDA from Parker Wellbore synergies.

• Lower 48 rig count expected to average 61-64 in 2026, with daily gross margin between $13,000 and $13,400; international rig count to reach 96-98, with December exit at or above 101.

• Drilling Solutions expected 2026 adjusted EBITDA of $160–$170 million; Rig Technologies $22–$25 million.

• SANAD new build CapEx for 2026 projected at $360-$380 million, with CapEx declining in 2027.

• Plan to reduce gross debt by at least $100 million in 2026.