Overview

• Energy technology provider's Q4 operating revenue declined, missing analyst expectations

• Adjusted EBITDA for Q4 beat analyst expectations

• Company significantly reduced debt, improving leverage metrics and future cash flow

Outlook

• Nabors expects Q1 2026 U.S. Drilling rig count of 64 - 65 rigs

• Company sees Q1 2026 capital expenditures at $170 - $180 mln, including approximately $85 million for newbuilds in Saudi Arabia

• Nabors forecasts full-year 2026 international rig count of 96 - 98 rigs

Result Drivers

• DEBT REDUCTION - Nabors reduced its net debt by approximately $554 mln since the end of 2024, improving leverage metrics and lowering interest expenses

• INTERNATIONAL DRILLING - Improved performance in International Drilling segment, with adjusted EBITDA increasing by 11% due to stronger drilling activity in Canada and Indonesia

• NEW TECHNOLOGY - Introduction of Canrig automated floor wrench reduced cycle time by 30%, generating significant customer interest

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 4 "hold" and 2 "sell" or "strong sell"

• The average consensus recommendation for the oil & gas drilling peer group is "buy."

• Wall Street's median 12-month price target for Nabors Industries Ltd is $64.50, about 5.6% below its February 10 closing price of $68.34

Press Release: ID:nPn5RpNxga

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)