Nabors Industries (NBR) Q1 2026 earnings summary

Executive summary

• Q1 2026 operating revenues reached $784 million, up year-over-year, with increased activity in U.S. and international drilling, including the full-quarter impact of the Parker acquisition.

• Adjusted EBITDA was $205 million, with a net loss of $15.2 million attributable to shareholders, reflecting higher costs and the absence of a prior-year bargain purchase gain.

• Lower 48 rig count increased to 66, with eight rigs added since November 2025, and international activity expanded, particularly in Saudi Arabia and Latin America.

• Maintained operational cadence in the Middle East, with SANAD JV deploying its 15th newbuild rig and continued expansion in Latin America.

• Drilling Solutions delivered a 94% free cash flow conversion, the highest on record, and received industry recognition for service and innovation.

Financial highlights

• Q1 2026 consolidated revenue was $784 million, with adjusted EBITDA of $205 million (26.1% margin), and net loss attributable to shareholders of $15.2 million.

• International Drilling revenue was $419 million, EBITDA $121 million (28.9% margin); U.S. Drilling revenue was $241 million, EBITDA $88 million (36.5% margin).

• Drilling Solutions revenue was $106 million, EBITDA $39 million (36.4% margin), with record free cash flow conversion.

• Rig Technologies revenue was $27 million, EBITDA less than $1 million, both down sequentially due to lower sales and supply chain delays.

• Net cash provided by operating activities was $113.3 million, with cash and short-term investments at $500.9 million as of March 31, 2026.

Outlook and guidance

• Lower 48 average rig count expected at 67–68 for Q2 2026, with daily adjusted gross margin of ~$13,300.

• International average rig count projected at 93–95, with daily adjusted gross margin of $17,400–$17,500.

• Full-year capital expenditures expected at $730–760 million, with $360–380 million for SANAD new builds.

• Free cash flow guidance expected to be exceeded, driven by incremental EBITDA and disciplined CapEx.

• Management expects to remain in compliance with all credit covenants and believes liquidity is sufficient for at least the next 12 months.