Nabors Industries Ltd.

Q2 consolidated revenue was $815 million, up $31 million or 4% sequentially. Adjusted EBITDA was $222 million, and EBITDA margin expanded 107 basis points to 27.2%. International drilling revenue was $432 million and EBITDA was $131 million; U.S. drilling revenue was $252 million and EBITDA was $94 million; drilling solutions revenue was $111 million and EBITDA was $40 million; rig technologies revenue was $37 million and EBITDA was $3.2 million. For Q3, management expects international drilling average rig count of 94 to 96 with daily gross margin of $18.1 thousand to $18.4 thousand, Lower 48 average rig count of about 73 with daily adjusted gross margin roughly flat at $13.8 thousand, consolidated EBITDA margin up by about 100 basis points, and adjusted free cash flow usage of about $40 million. For full-year 2026, Nabors now expects EBITDA of $920 million to $930 million, adjusted free cash flow of $20 million to $30 million, and consolidated capital expenditures of $710 million to $730 million, including $325 million to $335 million for SANAD new-builds.

Tony Petrello framed the quarter as evidence that Nabors is executing from strength, with strong operational performance, better utilization, and growing technology contribution. He emphasized international growth runway, especially SANAD in Saudi Arabia, plus improving Lower 48 pricing and the company’s strategy of combining premium rigs with technology. His tone was confident and upbeat, repeatedly pointing to disciplined capital allocation and long-term opportunity rather than near-term caution.

Miguel Rodriguez said the quarter exceeded guidance across every operating segment and that the operating impact from Middle East-related cost pressure was in line with expectations. He highlighted $222 million of adjusted EBITDA, 27.2% EBITDA margin, and strong falls through, including 71% in international drilling and 53% in U.S. drilling. On cash and capital, he said Q2 capex was $158 million, Q3 capex is expected at $245 million to $255 million, full-year capex at $710 million to $730 million, Q2 adjusted free cash flow was $12 million, and full-year adjusted free cash flow is now expected at $20 million to $30 million, even with SANAD consuming $60 million to $80 million. He also reiterated a commitment to reduce gross debt by at least $100 million in 2026 and keep net leverage around 1 turn over time.

Analysts focused on the durability of Lower 48 pricing and rig growth into 2027, Saudi Arabia’s next tranche of work, geothermal opportunity with Quaise, next-year capex, and the desired level of contracted backlog in the U.S. For Lower 48, management said the market is disciplined, super-spec utilization is tightening, and pricing should reach the mid-$30 thousands by year-end; Tony also said 2027 is too early for a rig-count forecast but suggested super-spec upgrades could drive demand. In Saudi Arabia, Tony said Aramco remains committed, the next tranche should be discussed within the next quarter, and another 10 suspended rigs could return through LSTK work. On capex, Miguel said 2027 spending likely would not be lower than 2026 because SANAD milestones and other growth opportunities could keep capital needs elevated. On contract duration, Tony said there is no single right percentage, though around 60% could make sense, and he emphasized choosing long-term, technology-oriented customers and using performance-based contracting.