Nabors Industries (NBR) Q3 2025 earnings summary

Executive summary

• Completed the acquisition of Parker Wellbore and divested Quail Tools for $625 million, transforming the portfolio and capital structure, and enabling significant debt reduction and interest savings.

• Proceeds from Quail Tools sale used to reduce net debt by over 25%, with pro forma net debt at $1.67 billion and leverage at 1.8x, the lowest in over a decade.

• Net income for Q3 2025 surged to $274 million, reversing prior losses, primarily due to the Quail Tools sale and Parker acquisition.

• Adjusted EBITDA for Q3 2025 was $236 million, exceeding post-divestiture expectations, driven by international drilling and Parker integration synergies.

• International operations, especially in Saudi Arabia, India, and Kuwait, showed strong growth and future deployment plans.

Financial highlights

• Q3 2025 consolidated revenue was $818 million, down 1.8% sequentially but up 12% year-over-year, mainly due to portfolio changes.

• Adjusted EBITDA was $236 million (28.9% margin), down from $248 million in Q2 2025, with the Quail sale accounting for most of the decline.

• Net income for Q3 2025 was $274 million, compared to a net loss in the prior quarter, driven by the Quail Tools gain.

• International Drilling daily adjusted gross margin exceeded $17,900, with EBITDA up 8.5% to $127.6 million.

• Drilling Solutions segment delivered a 51% adjusted gross margin and contributed 21% of total adjusted EBITDA.

Outlook and guidance

• Q4 2025 guidance: U.S. Drilling Lower 48 average rig count of 57–59, daily gross margin around $13,000, with some pricing erosion expected.

• International drilling rig count projected at 91, with daily gross margin in the $18,100–$18,200 range.

• Drilling Solutions EBITDA expected at $39 million; Rig Technologies EBITDA to rise to $5–$6 million.

• CapEx for Q4 targeted at $180–$190 million; full-year CapEx revised to $715–$725 million.

• On track to deliver $40 million of cost synergies in 2025 and over $60 million in 2026 from the Parker acquisition.