Nabors Industries Q2 earnings call highlights. July 30, 2026 Key points. * Nabors exceeded its Q2 outlook, reporting $222 million in adjusted EBITDA on $315 million of revenue, with EBITDA margin expanding to 27.2%. The company raised its 2026 EBITDA forecast to $920 million-$930 million and expects $20 million-$30 million in adjusted free cash flow. * International and U.S. drilling operations strengthened. Saudi Arabia-led international drilling margins surpassed guidance, while Lower 48 activity rose to 73 working rigs with improved pricing and daily margins; Nabors expects further pricing gains through 2026 and into 2027. * Technology growth supports profitability, but SANAD spending remains a cash-flow headwind. Drilling Solutions revenue increased 4.2% sequentially, while full-year capital spending is projected at $710 million-$730 million, including significant SANAD new-build investment. Nabors continues targeting at least $100 million of gross debt reduction in 2026. * Interested in Nabors Industries? Here are five stocks we like better. Nabors Industries NYSE: NBR reported second-quarter 2026 adjusted EBITDA of $222 million, exceeding its prior outlook across all four reporting segments, as stronger daily margins in its U.S. Lower 48 and international drilling operations helped lift profitability. Chairman, President and Chief Executive Officer Tony Petrello said the company's performance reflected "disciplined commercial execution, operational excellence, and outstanding work" by its global teams. Chief Financial Officer Miguel Rodriguez said consolidated revenue was $315 million, up $31 million sequentially, while EBITDA margin expanded 107 basis points to 27.2%. The company raised its full-year EBITDA outlook to between $920 million and $930 million, citing first-half performance and continued momentum across its drilling and technology businesses. Nabors also now expects full-year adjusted free cash flow of $20 million to $30 million, including expected cash consumption of $60 million to $80 million at its SANAD joint venture. International drilling gains led by Saudi Arabia. International Drilling revenue rose 3.1% sequentially to $432 million, while segment EBITDA increased 7.6% to $131 million. Average daily rig margin increased by $654 to $17,534, exceeding the high end of the company's guidance range. Saudi Arabia remained central to Nabors' international strategy. The company's SANAD joint venture placed its 16th new-build rig into service during the quarter and returned one previously suspended rig to work. SANAD now operates 55 rigs in the kingdom, representing a 28% market share, according to Petrello. Petrello said approximately 196 land rigs are operating in Saudi Arabia, up 35 from the market's recent low in the third quarter of 2025 but still 28 below its early-2024 peak. He said SANAD has 34 rigs remaining for delivery under its 50-rig new-build program, creating a multiyear growth runway. The company expects International Drilling average rig count of 94 to 96 in the third quarter, including the deployment of SANAD's 17th new-build rig, an idle U.S. rig moving to Argentina, and a short-term geothermal contract in Indonesia. Nabors expects international daily gross margin of $18,100 to $18,400 in the third quarter. In Argentina, Nabors operated 13 rigs at quarter-end, with another rig earning revenue under an operations and maintenance contract. The company is mobilizing an additional rig to the country, which would bring its total to 14. Petrello said Nabors holds roughly a 30% market share in Argentina and that five working rigs there had previously been idle in the Lower 48. Drilling Solutions represented about 46% of Nabors' Argentina EBITDA in the first half, Petrello said, reflecting adoption of the company's technology portfolio in the Vaca Muerta region. Nabors also said it has five idle rigs in Venezuela and believes the country could become a longer-term opportunity if drilling activity resumes under suitable commercial conditions. Lower 48 activity and pricing improved. U.S. Drilling revenue increased 4.7% sequentially to $252 million, while EBITDA rose 6.8% to $94 million. Within the Lower 48, revenue rose 7.8% to $207 million as Nabors added five rigs across major basins and benefited from improved pricing. Average Lower 48 working rig count increased by 2.5 rigs to 67.8 during the quarter. Nabors exited the period with 71 rigs working and subsequently increased activity to 73 rigs. Average daily revenue rose $902 to $33,555, while average daily margin increased $607 to $13,784. Rodriguez said leading-edge daily revenue had moved into the low-to-mid-$30,000 range, and the company expects pricing to reach or exceed the mid-$30,000 range through the remainder of 2026 and into 2027. The company expects an average Lower 48 working rig count of approximately 73 in the third quarter and 74 rigs operating at quarter-end, with daily adjusted gross margin remaining near $13,800. Petrello said the industry's higher-specification rig utilization is increasing, which could support pricing gains. He added that Nabors expects some existing rigs to be upgraded as larger operators seek equipment suited to longer laterals. However, he declined to provide a forecast for 2027 market rig counts. By quarter-end, nearly 70% of Nabors' working Lower 48 fleet served publicly traded operators, and more than 45% of its rigs had at least six months of remaining contract duration. The company expects that latter figure to reach about 50% in the third quarter. Technology business continued to expand. Nabors' Drilling Solutions business generated $111 million of revenue, up 4.2% sequentially, and EBITDA of $40 million, up 3.5%. The segment's EBITDA margin was 36.2%. Revenue from Drilling Solutions on Nabors-operated Lower 48 rigs increased 11% sequentially, while revenue on third-party rigs increased 12%, despite only a 1% increase in third-party average rig count. Rodriguez attributed the growth to higher technology penetration, including managed pressure drilling and RigCLOUD offerings. The company expects Drilling Solutions EBITDA to rise about 5% sequentially to approximately $42 million in the third quarter. Rodriguez said the business converted roughly 90% of EBITDA into free cash flow during the second quarter. Nabors also highlighted several technology developments, including the commercial introduction of Canrig's automated Titan rig floor wrench and a competitive win for its ROCKit drill-string oscillation software on multiple third-party rigs. The company commissioned two PACE-X Ultra rigs for Caturus in Texas, each equipped with the full Nabors technology suite. Petrello said daily revenue for those rigs, including technology offerings, "meaningfully exceeds $40,000 per rig." Capital spending and cash flow outlook. Second-quarter capital expenditures totaled $158 million, including $46 million related to SANAD's in-kingdom new-build program. Nabors expects third-quarter capital expenditures of $245 million to $255 million, including about $130 million for SANAD new builds. For the full year, Nabors reduced its capital expenditure outlook to $710 million to $730 million, including $325 million to $335 million for the SANAD program, reflecting the movement of some construction milestones into early 2027. Nabors generated $12 million of adjusted free cash flow in the second quarter. SANAD produced $38 million of positive free cash flow, while operations outside SANAD used about $26 million, which Rodriguez attributed partly to slower collections in Mexico and the United States. The company expects consolidated adjusted free cash flow usage of roughly $40 million in the third quarter, including approximately $65 million of SANAD cash consumption. Rodriguez said Nabors remains committed to reducing gross debt by at least $100 million during 2026 and continues to target net leverage of approximately one turn over the long term. About Nabors Industries (NYSE:NBR). Nabors Industries Ltd. is a global oil and gas drilling contractor that provides land and offshore drilling rigs, drilling equipment and related services to energy companies around the world. The company's operations span two core segments: drilling and evaluation, which includes land-based and platform drilling rigs as well as wellbore survey services, and wellbore technologies, offering pressure control equipment, downhole tools and specialized maintenance services. Nabors' integrated model combines rig operations with engineered products and field support, positioning it as a full-service provider in the upstream sector. The company maintains a diverse, modern fleet of automated and conventional drilling rigs and has pioneered advanced drilling technologies, including automated drilling controls and managed pressure drilling systems. 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Nabors Industries releases Q2 2026 financial results. Nabors Industries Ltd. AlphaStreet Newsdesk powered by AlphaStreet Intelligence NBR | EPS -$2.04 vs -$1.35 est (-51.1%) | Rev $817M | Net Loss $22.3M Nabors Industries Ltd. reported a wider-than-expected loss for the second quarter of 2026, as the offshore drilling contractor faced headwinds despite strength in its international operations. The company posted a diluted loss of $2.04 per share, missing Wall Street's estimate of a $1.35 loss by 51.1%. Revenue totaled $817M for the quarter, down 2.6% from $839M in Q2 2025. The bottom line showed a net loss of $22.3M. Despite the revenue decline, Nabors showed improvement from the prior year period. The per-share loss narrowed to $2.04 from $2.71 in Q2 2025, a 24.7% improvement. The company maintained operations with 171.2 average total rigs working during the quarter, reflecting the challenging environment facing the drilling services sector. Discover more Analyst ratings tracker Quarterly earnings summaries Stock market commentary International Drilling provided a bright spot for Nabors, leading segment performance with $432.5M in revenue, up 12.3% year-over-year. This growth helped offset weakness in other business lines as the company navigated fluctuating demand for drilling services. Management provided an optimistic outlook for the current quarter, projecting adjusted EBITDA between $920.0M and $930.0M. Wall Street analysts remain mixed on the stock, with consensus ratings standing at 4 buy, 6 hold, and 1 sell. A detailed analysis of Nabors Industries Ltd.'s quarter follows shortly on AlphaStreet. This content is for informational purposes only and should not be considered investment advice. AlphaStreet Intelligence analyzes financial data using AI to deliver fast and accurate market information. Human editors verify content.