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Nabors Q3 Loss Wider Than Expected, Revenues Increase Y/Y
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Key Takeaways
Nabors reported a Q3 loss of $3.67 per share, wider than both estimates and last year's loss.
Revenues rose 11.8% year over year to $818.2M, lifted by International Drilling and Drilling Solutions.
NBR guides for Q4 rig counts of up to 59 in the U.S. and 91 internationally, with modest EBITDA gains.
Nabors Industries Ltd. (NBR - Free Report) reported a third-quarter 2025 adjusted loss of $3.67 per share, wider than the Zacks Consensus Estimate of a loss of $2.37. This underperformance was mainly due to lower adjusted operating income from its U.S. Drilling and Rig Technologies segments. Additionally, the metric also widened from the prior-year quarter’s reported loss of $3.35 per share.
The oil and gas drilling company’s operating revenues of $818.2 million missed the Zacks Consensus Estimate of $842 million due to lower revenue contributions from the aforementioned segments. However, the figure increased from the year-ago quarter’s $731.8 million, driven by stronger revenue contributions from the International Drilling and Drilling Solutions segments.
Nabors Industries Ltd. Price, Consensus and EPS Surprise
On the other hand, adjusted EBITDA increased to $236.3 million from $221.7 million recorded a year ago. However, it fell short of our model estimate of $270.8 million.
NBR’s Q3 Segmental Performances
U.S. Drilling generated operating revenues of $249.8 million, down 1.9% from the year-ago quarter’s $254.8 million. However, the figure topped our model estimate of $226.4 million.
Operating profit totaled $31.4 million compared with $41.7 million in the year-ago quarter. The figure also missed our estimated profit of $47.2 million.
International Drilling’s operational revenues of $407.2 million increased from $368.6 million a year ago. Moreover, the unit’s top line beat our estimate of $399.5 million.
Operating profit totaled $45.5 million compared with the prior-year quarter’s $32.2 million. Moreover, the figure beat our estimate of $38.1 million.
Revenues from the Drilling Solutions segment totaled $141.9 million, up 78.4% from $79.5 million recorded in the prior-year quarter. However, the top line missed our estimate of $160.9 million.
Additionally, the unit’s operating income of $50 million increased from the year-ago quarter’s $29.2 million and came in line with our estimate.
Revenues from Rig Technologies totaled $35.6 million, down 22.3% from the prior-year quarter’s $45.8 million. Moreover, the figure missed our estimate of $53.7 million.
The segment’s operating profit totaled $0.9 million compared with the prior-year quarter’s $2.8 million. Moreover, the figure missed our estimate of $4.1 million.
Financial Position of NBR
Nabors’ total costs and expenses decreased to $405.5 million from $766.3 million in the year-ago quarter. Additionally, the amount was also lower than our prediction of $810.4 million.
As of Sept. 30, 2025, this Zacks Rank #3 (Hold) company had $428.1 million in cash and short-term investments.
Long-term debt was about $2.3 billion, with a debt-to-capitalization of 80.2%. Capital expenditures totaled $202.3 million during the same time.
NBR’s Q4 & 2025 Guidance
NBR anticipates that its U.S. Drilling operations will see a lower 48 average rig count ranging between 57 and 59 rigs, accompanied by a daily adjusted gross margin of approximately $13,000 in the fourth quarter of 2025. Additionally, the combined adjusted EBITDA for Alaska and the Gulf of America is projected to reach around $25 million in the quarter.
For its International operations, the company expects the average rig count to reach approximately 91 rigs, with a daily adjusted gross margin estimated at approximately $18,100-$18,200 during the period.
Turning to the company’s Drilling Solutions segment, NBR expects adjusted EBITDA to reach approximately $39 million. On the other hand, Rig Technologies’ adjusted EBITDA is anticipated to be around $5 million to $6 million.
In terms of capital expenditures, the company plans to allocate between $180 million and $190 million in the fourth quarter of 2025. Of this amount, approximately $90-$95 million will be dedicated to new builds in Saudi Arabia.
Finally, NBR expects its adjusted free cash flow for the fourth quarter of 2025 to be around $10 million. However, the company expects its full-year adjusted free cash flow to be breakeven, a considerable variance from its earlier full-year guidance of $80 million, due to Quail divestiture and outstanding collections from PEMEX related to 2024. Nabors also forecasts a modest downside risk to its own current rig count through year-end and expects its daily revenues to remain in the low $30,000 range.
Important Earnings at a Glance
While we have discussed NBR’s third-quarter results in detail, let us take a look at three other key reports in this space.
Oil and gas equipment and services provider TechnipFMC plc (FTI - Free Report) reported third-quarter 2025 adjusted earnings of 75 cents per share, which beat the Zacks Consensus Estimate of 65 cents. The bottom line also topped the year-ago quarter’s reported profit of 64 cents. The outperformance is primarily driven by strong results in the Subsea segment.
Houston, TX-based oil and gas equipment and services provider’s revenues of $2.6 billion beat the Zacks Consensus Estimate by 1.2%. Moreover, the top line increased from the year-ago quarter’s reported figure of $2.3 billion.
As of Sept. 30, FTI had cash and cash equivalents worth $876.6 million and long-term debt of $404.1 million, with a debt-to-capitalization of 10.8%.
The oil and gas equipment and services company NOV Inc. (NOV - Free Report) reported third-quarter 2025 adjusted earnings of 11 cents per share, which missed the Zacks Consensus Estimate of 24 cents. The bottom line also decreased from the year-ago quarter’s 33 cents due to the underperformance of the Energy Products and Services segment.
The company’s total revenues of $2.2 billion beat the Zacks Consensus Estimate by 1.9%, driven by stronger-than-expected revenues from the Energy Equipment segment, which was backed by its growing backlog. However, revenues declined 0.7% from the year-ago quarter’s figure due to the challenging macro environment and softening of oilfield activity.
As of Sept. 30, 2025, the company had cash and cash equivalents of $1.2 billion and long-term debt of $1.7 billion with a debt-to-capitalization of 20.6%. NOV had $1.5 billion available on its primary revolving credit facility during the same time.
Another oil and gas equipment and services provider, Halliburton Company (HAL - Free Report) , reported a third-quarter 2025 adjusted net income per share of 58 cents, beating the Zacks Consensus Estimate of 50 cents. The outperformance primarily reflects successful cost reduction initiatives. However, the bottom line fell from the year-ago adjusted profit of 73 cents due to softer activity in the North American region.
Revenues of $5.6 billion declined 1.7% year over year but beat the Zacks Consensus Estimate by 4%.
As of Sept. 30, 2025, the company had approximately $2 billion in cash/cash equivalents and $7.2 billion in long-term debt, representing a debt-to-capitalization ratio of 41.1. HAL generated $488 million of cash flow from operations in the third quarter, leading to a free cash flow of $276 million.
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Nabors Q3 Loss Wider Than Expected, Revenues Increase Y/Y
Key Takeaways
Nabors Industries Ltd. (NBR - Free Report) reported a third-quarter 2025 adjusted loss of $3.67 per share, wider than the Zacks Consensus Estimate of a loss of $2.37. This underperformance was mainly due to lower adjusted operating income from its U.S. Drilling and Rig Technologies segments. Additionally, the metric also widened from the prior-year quarter’s reported loss of $3.35 per share.
The oil and gas drilling company’s operating revenues of $818.2 million missed the Zacks Consensus Estimate of $842 million due to lower revenue contributions from the aforementioned segments. However, the figure increased from the year-ago quarter’s $731.8 million, driven by stronger revenue contributions from the International Drilling and Drilling Solutions segments.
Nabors Industries Ltd. Price, Consensus and EPS Surprise
Nabors Industries Ltd. price-consensus-eps-surprise-chart | Nabors Industries Ltd. Quote
On the other hand, adjusted EBITDA increased to $236.3 million from $221.7 million recorded a year ago. However, it fell short of our model estimate of $270.8 million.
NBR’s Q3 Segmental Performances
U.S. Drilling generated operating revenues of $249.8 million, down 1.9% from the year-ago quarter’s $254.8 million. However, the figure topped our model estimate of $226.4 million.
Operating profit totaled $31.4 million compared with $41.7 million in the year-ago quarter. The figure also missed our estimated profit of $47.2 million.
International Drilling’s operational revenues of $407.2 million increased from $368.6 million a year ago. Moreover, the unit’s top line beat our estimate of $399.5 million.
Operating profit totaled $45.5 million compared with the prior-year quarter’s $32.2 million. Moreover, the figure beat our estimate of $38.1 million.
Revenues from the Drilling Solutions segment totaled $141.9 million, up 78.4% from $79.5 million recorded in the prior-year quarter. However, the top line missed our estimate of $160.9 million.
Additionally, the unit’s operating income of $50 million increased from the year-ago quarter’s $29.2 million and came in line with our estimate.
Revenues from Rig Technologies totaled $35.6 million, down 22.3% from the prior-year quarter’s $45.8 million. Moreover, the figure missed our estimate of $53.7 million.
The segment’s operating profit totaled $0.9 million compared with the prior-year quarter’s $2.8 million. Moreover, the figure missed our estimate of $4.1 million.
Financial Position of NBR
Nabors’ total costs and expenses decreased to $405.5 million from $766.3 million in the year-ago quarter. Additionally, the amount was also lower than our prediction of $810.4 million.
As of Sept. 30, 2025, this Zacks Rank #3 (Hold) company had $428.1 million in cash and short-term investments.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Long-term debt was about $2.3 billion, with a debt-to-capitalization of 80.2%. Capital expenditures totaled $202.3 million during the same time.
NBR’s Q4 & 2025 Guidance
NBR anticipates that its U.S. Drilling operations will see a lower 48 average rig count ranging between 57 and 59 rigs, accompanied by a daily adjusted gross margin of approximately $13,000 in the fourth quarter of 2025. Additionally, the combined adjusted EBITDA for Alaska and the Gulf of America is projected to reach around $25 million in the quarter.
For its International operations, the company expects the average rig count to reach approximately 91 rigs, with a daily adjusted gross margin estimated at approximately $18,100-$18,200 during the period.
Turning to the company’s Drilling Solutions segment, NBR expects adjusted EBITDA to reach approximately $39 million. On the other hand, Rig Technologies’ adjusted EBITDA is anticipated to be around $5 million to $6 million.
In terms of capital expenditures, the company plans to allocate between $180 million and $190 million in the fourth quarter of 2025. Of this amount, approximately $90-$95 million will be dedicated to new builds in Saudi Arabia.
Finally, NBR expects its adjusted free cash flow for the fourth quarter of 2025 to be around $10 million. However, the company expects its full-year adjusted free cash flow to be breakeven, a considerable variance from its earlier full-year guidance of $80 million, due to Quail divestiture and outstanding collections from PEMEX related to 2024. Nabors also forecasts a modest downside risk to its own current rig count through year-end and expects its daily revenues to remain in the low $30,000 range.
Important Earnings at a Glance
While we have discussed NBR’s third-quarter results in detail, let us take a look at three other key reports in this space.
Oil and gas equipment and services provider TechnipFMC plc (FTI - Free Report) reported third-quarter 2025 adjusted earnings of 75 cents per share, which beat the Zacks Consensus Estimate of 65 cents. The bottom line also topped the year-ago quarter’s reported profit of 64 cents. The outperformance is primarily driven by strong results in the Subsea segment.
Houston, TX-based oil and gas equipment and services provider’s revenues of $2.6 billion beat the Zacks Consensus Estimate by 1.2%. Moreover, the top line increased from the year-ago quarter’s reported figure of $2.3 billion.
As of Sept. 30, FTI had cash and cash equivalents worth $876.6 million and long-term debt of $404.1 million, with a debt-to-capitalization of 10.8%.
The oil and gas equipment and services company NOV Inc. (NOV - Free Report) reported third-quarter 2025 adjusted earnings of 11 cents per share, which missed the Zacks Consensus Estimate of 24 cents. The bottom line also decreased from the year-ago quarter’s 33 cents due to the underperformance of the Energy Products and Services segment.
The company’s total revenues of $2.2 billion beat the Zacks Consensus Estimate by 1.9%, driven by stronger-than-expected revenues from the Energy Equipment segment, which was backed by its growing backlog. However, revenues declined 0.7% from the year-ago quarter’s figure due to the challenging macro environment and softening of oilfield activity.
As of Sept. 30, 2025, the company had cash and cash equivalents of $1.2 billion and long-term debt of $1.7 billion with a debt-to-capitalization of 20.6%. NOV had $1.5 billion available on its primary revolving credit facility during the same time.
Another oil and gas equipment and services provider, Halliburton Company (HAL - Free Report) , reported a third-quarter 2025 adjusted net income per share of 58 cents, beating the Zacks Consensus Estimate of 50 cents. The outperformance primarily reflects successful cost reduction initiatives. However, the bottom line fell from the year-ago adjusted profit of 73 cents due to softer activity in the North American region.
Revenues of $5.6 billion declined 1.7% year over year but beat the Zacks Consensus Estimate by 4%.
As of Sept. 30, 2025, the company had approximately $2 billion in cash/cash equivalents and $7.2 billion in long-term debt, representing a debt-to-capitalization ratio of 41.1. HAL generated $488 million of cash flow from operations in the third quarter, leading to a free cash flow of $276 million.