Nabors Industries Ltd. (NBR) saw its stock surge 10.24% in after-hours trading on Tuesday, following the release of its third-quarter 2025 financial results. The oilfield services provider reported a significant increase in net income, driven largely by a one-time gain from the sale of its Quail Tools business.

For the third quarter, Nabors posted a net income of $302.46 million, a substantial improvement from the previous quarter's net loss of $31 million. The company's operating revenue came in at $818.19 million, slightly below analyst expectations of $838.9 million. However, the headline figure that likely caught investors' attention was the $314 million after-tax gain from the Quail Tools sale, which contributed significantly to the bottom line.

Despite the revenue miss, Nabors demonstrated strong operational performance with adjusted EBITDA of $236.31 million and adjusted operating income of $75.96 million, the latter beating analyst estimates. The company also reported progress in integrating acquired Parker Wellbore businesses and reducing its gross debt to the lowest level in over a decade. These factors, combined with the company's improved financial position following the asset sale, appear to have fueled investor optimism, resulting in the sharp after-hours stock price increase.