NBR · Nabors Industries Ltd.

Nabors Industries Ltd. announced its first quarter 2026 results, showing operating revenues of $783.5 million, slightly below the prior quarter's $797.5 million but up from $736.2 million year-over-year. The company reported a GAAP net loss attributable to shareholders of $15.2 million, reversing the $10.3 million net income from Q4 2025, primarily due to higher direct costs and interest expense. Adjusted EBITDA of $204.8 million reflected resilience amid seasonal pressures, with segment performance varying: International Drilling at $121 million (down from $131 million prior quarter due to higher Middle East costs and interruptions), U.S. Drilling at $88 million (improved Lower 48 activity offsetting declines elsewhere), Drilling Solutions at $39 million (international growth offset by lower U.S. third-party rigs), and Rig Technologies near breakeven. Rig activity strengthened in key areas, with Lower 48 averaging 65.3 rigs (up 9% sequentially to 66 currently) driven by demand for high-spec rigs, and International at 92.6 rigs bolstered by SANAD joint venture deployments in Saudi Arabia and reactivations in Latin America and Mexico. Balance sheet progress included redeeming the remaining $379 million 2028 notes, cutting total debt to $2.1 billion from year-end 2024 levels by $386 million, extending maturities beyond five years. Adjusted free cash flow improved year-over-year to negative $48 million, exceeding guidance midpoint by over $35 million via working capital efficiency outside SANAD. Q2 outlook signals momentum with Lower 48 rigs at 67-68, International at 93-95, and positive adjusted free cash flow of $10 million. Management highlighted portfolio diversification amid Middle East tensions, gaining U.S. market share, and Drilling Solutions' international EBITDA contribution rising to 65%, positioning for sustained execution and debt reduction.