Nabors Industries (NBR) Q2 2025 earnings summary

Executive summary

• Second quarter 2025 operating revenues rose to $833 million, with adjusted EBITDA reaching $248.5 million, driven by Parker Wellbore integration and international expansion.

• The Parker Wellbore acquisition was completed in March 2025, adding significant assets, $0.6 million in cash, and 4.8 million shares, resulting in a $116.5 million bargain purchase gain.

• Net loss attributable to shareholders for Q2 2025 was $30.9 million, a slight improvement from Q2 2024, mainly due to the absence of prior one-time gains.

• SANAD joint venture deployed newbuild rigs and was awarded five additional rigs, supporting international growth through 2027.

• High-specification PACE® rigs set drilling records in multiple U.S. basins, enhancing operational performance.

Financial highlights

• Q2 2025 operating revenues were $832.8 million, up from $734.8 million in Q2 2024, with adjusted EBITDA at $248.5 million, up from $206.3 million in Q1 2025.

• Adjusted free cash flow improved to $41 million in Q2 from negative $61 million in Q1.

• U.S. Drilling revenue was $255 million, with EBITDA at $101.8 million; International Drilling revenue was $385 million, with EBITDA at $117.7 million.

• Drilling Solutions revenue rose to $170.3 million, with EBITDA at $76.5 million and gross margin at 53%.

• Net debt as of June 30, 2025, was $2.29 billion.

Outlook and guidance

• Lower 48 rig count expected to remain stable through year-end, with daily margins forecasted at $13,300 for Q3.

• International segment EBITDA and rig count projected to increase in Q3, driven by newbuild deployments in Saudi Arabia and Kuwait.

• Full-year capital expenditures projected at $700–$710 million, with $300 million for SANAD newbuilds and $60 million for Parker Wellbore.

• Adjusted free cash flow for the full year is expected to meet prior guidance, with continued focus on debt reduction and leverage optimization.

• Significant opportunity for additional international rigs through year-end 2025.