Nabors Industries Ltd.

Second quarter consolidated revenue was $815 million, up $31 million, or 4%, sequentially. Adjusted EBITDA was $222 million, with EBITDA margin of 27.2%, up 107 basis points, and 54% fall-through. International Drilling revenue was $432 million and EBITDA was $131 million, with margin of 30.2%; U.S. Drilling revenue was $252 million and EBITDA was $94 million, with margin of 37.3%; Drilling Solutions revenue was $111 million and EBITDA was $40 million, with margin of 36.2%; Rig Technologies revenue was $37 million and EBITDA was $3.2 million. Lower 48 average daily revenue increased by $902 to $33.6 thousand and average daily margin increased by $107 to $13.8 thousand. For Q3, management expects international drilling average rig count of 94 to 96 and average daily gross margin of $18.1 thousand to $18.4 thousand; Lower 48 average working rig count of about 73 and average daily adjusted gross margin roughly flat at $13.8 thousand; Alaska/U.S. offshore EBITDA of about $11 million; Drilling Solutions EBITDA of about $42 million; and Rig Technologies EBITDA of $5 million to $6 million. Full-year 2026 EBITDA is now expected to be $920 million to $930 million, adjusted free cash flow $20 million to $30 million, and gross debt reduction at least $100 million. Full-year consolidated capex is expected to be $710 million to $730 million, including $325 million to $335 million for SANAD newbuilds.

Tony Petrello struck a confident tone, saying Nabors is “executing from a position of strength” and delivering on commitments. He emphasized three themes: international growth led by SANAD, improving Lower 48 conditions, and technology becoming a larger driver of earnings and differentiation. He highlighted milestones such as the Quaise geothermal project, Titan automated wrench commercialization, and ROC software wins as proof of the company’s strategy.

Miguel Rodriguez said every operating segment came in ahead of expectations, with particularly strong results in Lower 48 and International Drilling. He pointed to margin expansion, improved pricing, and longer contract duration in the Lower 48, plus strong execution in Saudi Arabia despite Middle East cost pressure. He also raised capex guidance to $710 million to $730 million for the year, noted Q2 adjusted free cash flow of $12 million, and said NDS converted about 90% of EBITDA into free cash flow. He said the company remains committed to capital discipline and reducing gross debt by at least $100 million in 2026.

Analysts focused on Lower 48 pricing and activity into 2027, and management said large operators remain disciplined while super-spec utilization is tightening, supporting a move toward the mid-$30 thousands daily revenue level by late 2026 and continued improvement into 2027. On Saudi Arabia, management said the next tranche of SANAD newbuilds should be discussed within the next quarter and that another 10 suspended rigs could return through LSTK work. Questions on geothermal drew a detailed response on Quaise, with Petrello describing its millimeter-wave approach, the need for rig integration changes, and the potential for a first 250 MW install. Analysts also asked about 2027 capex; management said it likely will not be lower than 2026 because of SANAD milestones and other strategic growth opportunities.