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NBR posted Q4 EPS of 17 cents, beating estimates and reversing a year-ago loss.
International Drilling revenues rose to $423.8M, lifting operating profit year over year.
NBR sees the 2026 international rig count up to 98 and projects solid free cash flow.
Nabors Industries Ltd. (NBR - Free Report) reported a fourth-quarter 2025 adjusted profit of 17 cents per share, beating the Zacks Consensus Estimate of a loss of $2.93. Additionally, the metric is well above the prior-year quarter’s reported loss of $6.67 per share. This outperformance was mainly driven by higher adjusted operating income from its International Drilling and Drilling Solutions segments.
The oil and gas drilling company’s operating revenues of $797.5 million beat the Zacks Consensus Estimate of $797 million. The figure also increased from the year-ago quarter’s $729.8 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 $221.6 million from $220.5 million recorded a year ago. The metric was above our model estimate of $211 million.
NBR’s Q4 Segmental Performances
U.S. Drilling generated operating revenues of $240.6 million, down from the year-ago quarter’s $241.6 million. However, the figure topped our model estimate of $225.4 million.
Operating profit totaled $28.6 million compared with $39 million in the year-ago quarter. The figure missed our estimated profit of $29.1 million.
International Drilling’s operating revenues of $423.8 million increased from $371.4 million a year ago and beat our estimate of $411.4 million.
Operating profit totaled $49.6 million compared with the prior-year quarter’s $29.5 million and beat our estimate of $38.2 million.
Revenues from the Drilling Solutions segment totaled $107.9 million, up 42% from $76 million recorded in the prior-year quarter. However, the top line missed our estimate of $138.5 million.
The unit’s operating income of $34 million increased from the year-ago quarter’s $28.9 million but missed our model estimate of $34.5 million.
Revenues from Rig Technologies totaled $37.7 million, down 32.8% from the prior-year quarter’s $56.2 million. The figure was in line with our model estimate.
The segment’s operating profit totaled $1.3 million compared with the prior-year quarter’s $8.4 million. Moreover, the figure missed our estimate of $2.8 million.
Financial Position of NBR
Nabors’ total costs and expenses increased to $780.7 million from $756.3 million in the year-ago quarter. However, the amount was lower than our prediction of $820 million.
As of Dec. 31, 2025, this Zacks Rank #3 (Hold) company had $940.7 million in cash and short-term investments.
Long-term debt was about $2.1 billion, with a debt-to-capitalization of 78.2%. Capital expenditures totaled $114 million during the same time.
NBR’s Q1 & 2026 Guidance
NBR anticipates that its U.S. Drilling operations will see a lower 48 average rig count ranging between 64 and 65 rigs, accompanied by a daily adjusted gross margin of approximately $13,200 in the first quarter of 2026. Additionally, the combined adjusted EBITDA for Alaska and the Gulf of America is projected to reach around $16-$17 million in the quarter.
For its International operations, the company expects the average rig count to reach approximately 91-92 rigs, with a daily adjusted gross margin estimated at approximately $17,500-$17,600 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 $2 million.
In terms of capital expenditures, the company plans to allocate between $170 million and $180 million in the first quarter of 2026. Of this amount, approximately $85 million will be dedicated to new builds in Saudi Arabia.
Finally, NBR expects its adjusted free cash flow for the first quarter of 2026 to be around $80-$90 million, including free cash consumption at SANAD of $50-$60 million.
For the full year of 2026, NBR anticipates that its U.S. Drilling operations will see a lower 48 average rig count ranging between 61 and 64 rigs, accompanied by a daily adjusted gross margin of approximately $13,000-$13,400. Additionally, the combined adjusted EBITDA for Alaska and the Gulf of America is projected to reach around $55-$60 million in the quarter.
For its International operations, the company expects the average rig count to reach approximately 96-98 rigs, with a daily adjusted gross margin estimated at approximately $18,500.
Turning to the company’s Drilling Solutions segment, NBR expects adjusted EBITDA to reach approximately $160-$170 million. On the other hand, Rig Technologies’ adjusted EBITDA is anticipated to be around $22-$25 million.
In terms of capital expenditures, the company plans to allocate between $730 million and $760 million for the full year of 2026. Of this amount, approximately $360-$380 million will be dedicated to new builds in SANAD.
Finally, NBR expects its 2026 adjusted free cash flow excluding SANAD to be around $80-$90 million, with SANAD consuming $100-$120 million.
Important Earnings at a Glance
While we have discussed NBR’s fourth-quarter results in detail, let us take a look at three other key reports in this space.
Alberta-based, integrated energy company Suncor Energy Inc. (SU - Free Report) reported fourth-quarter 2025 adjusted operating earnings of 79 cents per share, which beat the Zacks Consensus Estimate of 77 cents. This outperformance can be attributed to strong production growth in its upstream segment. However, the bottom line declined from the year-ago quarter’s reported figure of 89 cents due to lower upstream price realizations.
Suncor Energy’s operating revenues of $8.8 billion beat the Zacks Consensus Estimate by 4%, primarily driven by increased sales volumes in both the upstream and downstream segments. However, the top line decreased approximately 1.3% year over year.
As of Dec. 31, 2025, SU had cash and cash equivalents of C$3.65 billion and long-term debt of C$9 billion. Its debt-to-capitalization was 16.7%.
One of the largest oil field service companies, Patterson-UTI Energy, Inc. (PTEN - Free Report) , reported a fourth-quarter 2025 adjusted net loss of 2 cents per share, narrower than the Zacks Consensus Estimate of an 11-cent loss, and an improvement from the year-ago quarter's loss of 12 cents. The better-than-expected performance was primarily backed by improvement in the company’s Completions Services segment and a reduction in operating costs and expenses.
Patterson-UTI Energy’s total revenues of $1.2 billion beat the Zacks Consensus Estimate by 5%. This was driven by higher-than-expected revenues from Completion Services. The Completion Services segment reported revenues of $701.6 million, which beat the consensus mark of $647 million. However, the top line decreased about 1% year over year. This underperformance can be attributed to the decrease in year-over-year revenue contribution from the Drilling Services, Drilling Products and Other Services segments.
As of Dec. 31, 2025, PTEN had cash and cash equivalents worth $420.6 million and long-term debt of $1.2 billion. Its debt-to-capitalization was 27.5%.
Magnolia Oil & Gas Corporation (MGY - Free Report) reported a fourth-quarter 2025 net profit of 37 cents per share, which beat the Zacks Consensus Estimate of 36 cents. This outperformance can be attributed to record quarterly production volumes driven by strong well productivity in the company’s Giddings asset. However, the bottom line decreased from the year-ago quarter’s 49 cents.
MGY’s total revenues were $318 million, which beat the Zacks Consensus Estimate of $312 million, driven by higher revenues from natural gas. However, the top line decreased 2.7% from $327 million recorded in the year-ago period, caused by lower oil and natural gas liquids revenues.
As of Dec. 31, 2025, Magnolia had cash and cash equivalents of $266.8 million. The company had long-term debt of $393.2 million, reflecting a debt-to-capitalization of 16.8%.
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Nabors' Q4 Earnings & Revenues Beat Estimates, Increase Y/Y
Key Takeaways
Nabors Industries Ltd. (NBR - Free Report) reported a fourth-quarter 2025 adjusted profit of 17 cents per share, beating the Zacks Consensus Estimate of a loss of $2.93. Additionally, the metric is well above the prior-year quarter’s reported loss of $6.67 per share. This outperformance was mainly driven by higher adjusted operating income from its International Drilling and Drilling Solutions segments.
The oil and gas drilling company’s operating revenues of $797.5 million beat the Zacks Consensus Estimate of $797 million. The figure also increased from the year-ago quarter’s $729.8 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 $221.6 million from $220.5 million recorded a year ago. The metric was above our model estimate of $211 million.
NBR’s Q4 Segmental Performances
U.S. Drilling generated operating revenues of $240.6 million, down from the year-ago quarter’s $241.6 million. However, the figure topped our model estimate of $225.4 million.
Operating profit totaled $28.6 million compared with $39 million in the year-ago quarter. The figure missed our estimated profit of $29.1 million.
International Drilling’s operating revenues of $423.8 million increased from $371.4 million a year ago and beat our estimate of $411.4 million.
Operating profit totaled $49.6 million compared with the prior-year quarter’s $29.5 million and beat our estimate of $38.2 million.
Revenues from the Drilling Solutions segment totaled $107.9 million, up 42% from $76 million recorded in the prior-year quarter. However, the top line missed our estimate of $138.5 million.
The unit’s operating income of $34 million increased from the year-ago quarter’s $28.9 million but missed our model estimate of $34.5 million.
Revenues from Rig Technologies totaled $37.7 million, down 32.8% from the prior-year quarter’s $56.2 million. The figure was in line with our model estimate.
The segment’s operating profit totaled $1.3 million compared with the prior-year quarter’s $8.4 million. Moreover, the figure missed our estimate of $2.8 million.
Financial Position of NBR
Nabors’ total costs and expenses increased to $780.7 million from $756.3 million in the year-ago quarter. However, the amount was lower than our prediction of $820 million.
As of Dec. 31, 2025, this Zacks Rank #3 (Hold) company had $940.7 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 $2.1 billion, with a debt-to-capitalization of 78.2%. Capital expenditures totaled $114 million during the same time.
NBR’s Q1 & 2026 Guidance
NBR anticipates that its U.S. Drilling operations will see a lower 48 average rig count ranging between 64 and 65 rigs, accompanied by a daily adjusted gross margin of approximately $13,200 in the first quarter of 2026. Additionally, the combined adjusted EBITDA for Alaska and the Gulf of America is projected to reach around $16-$17 million in the quarter.
For its International operations, the company expects the average rig count to reach approximately 91-92 rigs, with a daily adjusted gross margin estimated at approximately $17,500-$17,600 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 $2 million.
In terms of capital expenditures, the company plans to allocate between $170 million and $180 million in the first quarter of 2026. Of this amount, approximately $85 million will be dedicated to new builds in Saudi Arabia.
Finally, NBR expects its adjusted free cash flow for the first quarter of 2026 to be around $80-$90 million, including free cash consumption at SANAD of $50-$60 million.
For the full year of 2026, NBR anticipates that its U.S. Drilling operations will see a lower 48 average rig count ranging between 61 and 64 rigs, accompanied by a daily adjusted gross margin of approximately $13,000-$13,400. Additionally, the combined adjusted EBITDA for Alaska and the Gulf of America is projected to reach around $55-$60 million in the quarter.
For its International operations, the company expects the average rig count to reach approximately 96-98 rigs, with a daily adjusted gross margin estimated at approximately $18,500.
Turning to the company’s Drilling Solutions segment, NBR expects adjusted EBITDA to reach approximately $160-$170 million. On the other hand, Rig Technologies’ adjusted EBITDA is anticipated to be around $22-$25 million.
In terms of capital expenditures, the company plans to allocate between $730 million and $760 million for the full year of 2026. Of this amount, approximately $360-$380 million will be dedicated to new builds in SANAD.
Finally, NBR expects its 2026 adjusted free cash flow excluding SANAD to be around $80-$90 million, with SANAD consuming $100-$120 million.
Important Earnings at a Glance
While we have discussed NBR’s fourth-quarter results in detail, let us take a look at three other key reports in this space.
Alberta-based, integrated energy company Suncor Energy Inc. (SU - Free Report) reported fourth-quarter 2025 adjusted operating earnings of 79 cents per share, which beat the Zacks Consensus Estimate of 77 cents. This outperformance can be attributed to strong production growth in its upstream segment. However, the bottom line declined from the year-ago quarter’s reported figure of 89 cents due to lower upstream price realizations.
Suncor Energy’s operating revenues of $8.8 billion beat the Zacks Consensus Estimate by 4%, primarily driven by increased sales volumes in both the upstream and downstream segments. However, the top line decreased approximately 1.3% year over year.
As of Dec. 31, 2025, SU had cash and cash equivalents of C$3.65 billion and long-term debt of C$9 billion. Its debt-to-capitalization was 16.7%.
One of the largest oil field service companies, Patterson-UTI Energy, Inc. (PTEN - Free Report) , reported a fourth-quarter 2025 adjusted net loss of 2 cents per share, narrower than the Zacks Consensus Estimate of an 11-cent loss, and an improvement from the year-ago quarter's loss of 12 cents. The better-than-expected performance was primarily backed by improvement in the company’s Completions Services segment and a reduction in operating costs and expenses.
Patterson-UTI Energy’s total revenues of $1.2 billion beat the Zacks Consensus Estimate by 5%. This was driven by higher-than-expected revenues from Completion Services. The Completion Services segment reported revenues of $701.6 million, which beat the consensus mark of $647 million. However, the top line decreased about 1% year over year. This underperformance can be attributed to the decrease in year-over-year revenue contribution from the Drilling Services, Drilling Products and Other Services segments.
As of Dec. 31, 2025, PTEN had cash and cash equivalents worth $420.6 million and long-term debt of $1.2 billion. Its debt-to-capitalization was 27.5%.
Magnolia Oil & Gas Corporation (MGY - Free Report) reported a fourth-quarter 2025 net profit of 37 cents per share, which beat the Zacks Consensus Estimate of 36 cents. This outperformance can be attributed to record quarterly production volumes driven by strong well productivity in the company’s Giddings asset. However, the bottom line decreased from the year-ago quarter’s 49 cents.
MGY’s total revenues were $318 million, which beat the Zacks Consensus Estimate of $312 million, driven by higher revenues from natural gas. However, the top line decreased 2.7% from $327 million recorded in the year-ago period, caused by lower oil and natural gas liquids revenues.
As of Dec. 31, 2025, Magnolia had cash and cash equivalents of $266.8 million. The company had long-term debt of $393.2 million, reflecting a debt-to-capitalization of 16.8%.