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Nabors (NBR) Up 10.4% Since Last Earnings Report: Can It Continue?
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It has been about a month since the last earnings report for Nabors Industries (NBR - Free Report) . Shares have added about 10.4% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Nabors due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Nabors Posts Wider-Than-Expected Loss in Q2, Beats Revenues
Nabors Industries reported a second-quarter 2026 adjusted loss of $2.04 per share, wider than the Zacks Consensus Estimate of a loss of $1.54. However, the metric is lower than the prior-year quarter’s reported loss of $2.71 per share, backed by higher year-over-year operating profit from the International Drilling segment.
The oil and gas drilling company’s operating revenues of $814.8 million beat the Zacks Consensus Estimate of $812 million, driven by higher year-over-year revenues from the International Drilling segment. However, the top line decreased from the year-ago quarter’s $832.8 million, caused by lower contributions from the U.S. Drilling and Drilling Solutions segments.
Adjusted EBITDA totaled $221.7 million, down from $248.5 million in the prior-year quarter but up from $204.8 million in the first quarter of 2026. The metric beat our model estimate of $217.2 million.
Segmental Performances
U.S. Drilling generated operating revenues of $252.5 million, down from the year-ago quarter’s $255.4 million and higher than the prior quarter’s $241.1 million. However, the figure missed our model estimate of $279.2 million.
Operating profit totaled $31 million compared with $39.8 million in the year-ago quarter. The figure missed our estimated profit of $35.1 million.
Adjusted EBITDA from the segment totaled $94.1 million, down from $101.8 million a year ago but above $88.1 million in the previous quarter. The figure missed our model estimate of $102.4 million.
The Lower 48 average rig count increased to 67.8 rigs from 62.4 rigs in the prior-year quarter and 65.3 rigs in the first quarter of 2026. The company noted that it added five rigs in the Lower 48 market during the second quarter, bringing the current working rig count in the region to 73, up 15 rigs since November 2025.
International Drilling reported operating revenues of $432.5 million, up from $385 million in the year-ago quarter and $419.5 million in the first quarter. Moreover, the figure beat our estimate of $404 million.
Operating profit totaled $45.9 million compared with $36.1 million in the year-ago quarter. The figure beat our estimated profit of $42.4 million.
The segment’s adjusted EBITDA was $130.5 million, compared with $117.7 million a year ago and $121.3 million in the preceding quarter. The figure beat our estimate of $123 million. Average rigs working increased to 93.4 from 85.9 in the year-ago period.
Nabors stated that its SANAD land drilling joint venture deployed one newbuild rig in Saudi Arabia during the quarter, bringing total newbuild deployments to 16. Three more newbuilds are scheduled for 2026. The company also reactivated one previously suspended SANAD rig.
Drilling Solutions recorded operating revenues of $110.6 million, down from $170.3 million a year ago but up from $106.2 million in the prior quarter. The figure slightly beat our estimate of $110.1 million.
Operating profit totaled $32.1 million compared with $39.8 million in the year-ago quarter. The figure beat our estimated profit of $31.3 million.
Adjusted EBITDA totaled $40 million, compared with $76.5 million in the year-ago quarter and $38.7 million in the first quarter. Moreover, the figure beat our estimate of $39 million.
Rig Technologies generated operating revenues of $37.5 million, up from $36.5 million in the year-ago quarter and $27.2 million in the previous quarter. However, the figure slightly missed our estimate of $37.6 million.
Operating profit totaled $1.5 million compared with $1.7 million in the year-ago quarter. The figure beat our estimated profit of $1 million.
The segment’s adjusted EBITDA was $3.2 million, compared with $5.2 million a year ago and $0.5 million in the prior quarter. The figure beat our estimate of $3 million.
Financial Position
Nabors’ total costs and expenses decreased to $802 million from $818 million in the year-ago quarter. Moreover, the amount was lower than our prediction of $806.4 million. As of June 30, 2026, Nabors had $509.8 million in cash and short-term investments. Long-term debt was about $2.1 billion, with a debt-to-capitalization of 79.6%.
Net cash provided by operating activities was $135.2 million in the second quarter. Capital expenditures, net of proceeds from asset sales, totaled $122.9 million, resulting in adjusted free cash flow of $12.3 million.
How Have Estimates Been Moving Since Then?
It turns out, estimates review flatlined during the past month.
The consensus estimate has shifted -364.71% due to these changes.
VGM Scores
At this time, Nabors has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a score of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Nabors has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Nabors is part of the Zacks Oil and Gas - Drilling industry. Over the past month, Noble Corporation PLC (NE - Free Report) , a stock from the same industry, has gained 10.2%. The company reported its results for the quarter ended June 2026 more than a month ago.
Noble Corporation PLC reported revenues of $719.69 million in the last reported quarter, representing a year-over-year change of -15.2%. EPS of $0.01 for the same period compares with $0.13 a year ago.
For the current quarter, Noble Corporation PLC is expected to post earnings of $0.13 per share, indicating a change of -31.6% from the year-ago quarter. The Zacks Consensus Estimate has changed -45.7% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #4 (Sell) for Noble Corporation PLC. Also, the stock has a VGM Score of D.
View the Zacks #1 Rank List
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Nabors (NBR) Up 10.4% Since Last Earnings Report: Can It Continue?
It has been about a month since the last earnings report for Nabors Industries (NBR - Free Report) . Shares have added about 10.4% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Nabors due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Nabors Posts Wider-Than-Expected Loss in Q2, Beats Revenues
Nabors Industries reported a second-quarter 2026 adjusted loss of $2.04 per share, wider than the Zacks Consensus Estimate of a loss of $1.54. However, the metric is lower than the prior-year quarter’s reported loss of $2.71 per share, backed by higher year-over-year operating profit from the International Drilling segment.
The oil and gas drilling company’s operating revenues of $814.8 million beat the Zacks Consensus Estimate of $812 million, driven by higher year-over-year revenues from the International Drilling segment. However, the top line decreased from the year-ago quarter’s $832.8 million, caused by lower contributions from the U.S. Drilling and Drilling Solutions segments.
Adjusted EBITDA totaled $221.7 million, down from $248.5 million in the prior-year quarter but up from $204.8 million in the first quarter of 2026. The metric beat our model estimate of $217.2 million.
Segmental Performances
U.S. Drilling generated operating revenues of $252.5 million, down from the year-ago quarter’s $255.4 million and higher than the prior quarter’s $241.1 million. However, the figure missed our model estimate of $279.2 million.
Operating profit totaled $31 million compared with $39.8 million in the year-ago quarter. The figure missed our estimated profit of $35.1 million.
Adjusted EBITDA from the segment totaled $94.1 million, down from $101.8 million a year ago but above $88.1 million in the previous quarter. The figure missed our model estimate of $102.4 million.
The Lower 48 average rig count increased to 67.8 rigs from 62.4 rigs in the prior-year quarter and 65.3 rigs in the first quarter of 2026. The company noted that it added five rigs in the Lower 48 market during the second quarter, bringing the current working rig count in the region to 73, up 15 rigs since November 2025.
International Drilling reported operating revenues of $432.5 million, up from $385 million in the year-ago quarter and $419.5 million in the first quarter. Moreover, the figure beat our estimate of $404 million.
Operating profit totaled $45.9 million compared with $36.1 million in the year-ago quarter. The figure beat our estimated profit of $42.4 million.
The segment’s adjusted EBITDA was $130.5 million, compared with $117.7 million a year ago and $121.3 million in the preceding quarter. The figure beat our estimate of $123 million. Average rigs working increased to 93.4 from 85.9 in the year-ago period.
Nabors stated that its SANAD land drilling joint venture deployed one newbuild rig in Saudi Arabia during the quarter, bringing total newbuild deployments to 16. Three more newbuilds are scheduled for 2026. The company also reactivated one previously suspended SANAD rig.
Drilling Solutions recorded operating revenues of $110.6 million, down from $170.3 million a year ago but up from $106.2 million in the prior quarter. The figure slightly beat our estimate of $110.1 million.
Operating profit totaled $32.1 million compared with $39.8 million in the year-ago quarter. The figure beat our estimated profit of $31.3 million.
Adjusted EBITDA totaled $40 million, compared with $76.5 million in the year-ago quarter and $38.7 million in the first quarter. Moreover, the figure beat our estimate of $39 million.
Rig Technologies generated operating revenues of $37.5 million, up from $36.5 million in the year-ago quarter and $27.2 million in the previous quarter. However, the figure slightly missed our estimate of $37.6 million.
Operating profit totaled $1.5 million compared with $1.7 million in the year-ago quarter. The figure beat our estimated profit of $1 million.
The segment’s adjusted EBITDA was $3.2 million, compared with $5.2 million a year ago and $0.5 million in the prior quarter. The figure beat our estimate of $3 million.
Financial Position
Nabors’ total costs and expenses decreased to $802 million from $818 million in the year-ago quarter. Moreover, the amount was lower than our prediction of $806.4 million. As of June 30, 2026, Nabors had $509.8 million in cash and short-term investments. Long-term debt was about $2.1 billion, with a debt-to-capitalization of 79.6%.
Net cash provided by operating activities was $135.2 million in the second quarter. Capital expenditures, net of proceeds from asset sales, totaled $122.9 million, resulting in adjusted free cash flow of $12.3 million.
How Have Estimates Been Moving Since Then?
It turns out, estimates review flatlined during the past month.
The consensus estimate has shifted -364.71% due to these changes.
VGM Scores
At this time, Nabors has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a score of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Nabors has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Nabors is part of the Zacks Oil and Gas - Drilling industry. Over the past month, Noble Corporation PLC (NE - Free Report) , a stock from the same industry, has gained 10.2%. The company reported its results for the quarter ended June 2026 more than a month ago.
Noble Corporation PLC reported revenues of $719.69 million in the last reported quarter, representing a year-over-year change of -15.2%. EPS of $0.01 for the same period compares with $0.13 a year ago.
For the current quarter, Noble Corporation PLC is expected to post earnings of $0.13 per share, indicating a change of -31.6% from the year-ago quarter. The Zacks Consensus Estimate has changed -45.7% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #4 (Sell) for Noble Corporation PLC. Also, the stock has a VGM Score of D.