Nabors Industries (NBR)
NYSE:NBR
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Nabors Industries
(NYSE:NBR)
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Rating:68Neutral
Price Target:
$90.00
▲(12.19% Upside)
Action:ReiteratedDate:04/08/26
The score reflects improving financial health and profitability alongside a strong technical uptrend and very low P/E valuation. These positives are tempered by weaker free-cash-flow conversion and earnings-call guidance pointing to near-term cash consumption driven by higher capex and SANAD buildout.
Positive Factors
Capital structure improvement
Substantial deleveraging and extended maturities materially strengthen medium‑term financial resilience. Lower leverage and reduced interest expense increase flexibility to fund SANAD buildouts, absorb cyclical demand swings and pursue opportunistic investments without immediate refinancing pressure.
Negative Factors
Weak free cash flow conversion
Negative free cash flow despite positive earnings signals capital intensity and working‑capital drag that reduce financial flexibility. Over the medium term this constrains capacity to self‑fund expansion, increases reliance on external financing, and raises execution risk during downturns.
Read all positive and negative factors
Positive Factors
Negative Factors
Capital structure improvement
Substantial deleveraging and extended maturities materially strengthen medium‑term financial resilience. Lower leverage and reduced interest expense increase flexibility to fund SANAD buildouts, absorb cyclical demand swings and pursue opportunistic investments without immediate refinancing pressure.
Read all positive factors
Nabors Industries (NBR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.18B
Dividend YieldN/A
Average Volume (3M)347.75K
Price to Earnings (P/E)2.9
Beta (1Y)1.20
Revenue Growth6.52%
EPS GrowthN/A
CountryUS
Employees12,400
SectorEnergy
Sector Strength52
IndustryOil & Gas Drilling
Share Statistics
EPS (TTM)0.17
Shares Outstanding14,673,186
10 Day Avg. Volume317,741
30 Day Avg. Volume347,752
Financial Highlights & Ratios
PEG Ratio-0.02
Price to Book (P/B)1.21
Price to Sales (P/S)0.22
P/FCF Ratio-31.58
Enterprise Value/Market Cap2.38
Enterprise Value/Revenue0.88
Enterprise Value/Gross Profit2.95
Enterprise Value/Ebitda2.14
Forecast
1Y Price Target
$79.33Price Target Upside-1.11% Downside
Rating ConsensusHold
Number of Analyst Covering6
EPS Forecast (FY)-5.4
Revenue Forecast (FY)$3.25B
Nabors Industries Business Overview & Revenue Model
Company Description
Nabors Industries Ltd. provides drilling and drilling-related services for land-based and offshore oil and natural gas wells. The company operates through five segments: U.S. Drilling, Canada Drilling, International Drilling, Drilling Solutions, a...
How the Company Makes Money
Nabors makes money primarily by contracting its drilling rigs and related personnel to E&P companies to drill and complete oil and natural gas wells. Revenue is typically generated under customer contracts that pay a negotiated rate for rig time a...
Nabors Industries Key Performance Indicators (KPIs)
Nabors Industries Earnings Call Summary
Earnings Call Date:Feb 11, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 28, 2026
Earnings Call Sentiment Positive
Overall, the call conveyed a predominantly positive operational and financial trajectory: substantial debt reduction, improved credit profile, robust integration synergies from Parker, strong international rig additions (SANAD), and free cash flow outperformance in 2025. These positives outweigh the near-term headwinds — notably SANAD cash consumption, commodity price uncertainty, some regional operational disruptions (Colombia, Venezuela), and sequential revenue/EBITDA impacts from the Quail divestiture. Management maintained cautious guidance for H2 2026 but provided concrete plans to continue delevering and grow EBITDA normalized for Quail.Positive Updates
Material Net Debt Reduction and Capital Structure Improvement
Reduced net debt by $554 million vs. end of 2024, improved net leverage to ~1.7x (lowest since 2008), extended weighted average debt maturity to 5.3 years (from 3.7) and executed debt refinancings (issued $700M notes, redeemed near-term maturities), lowering annualized cash interest expense by ~ $45 million.
Negative Updates
Sequential Revenue and EBITDA Headwind from Quail Divestiture
Consolidated Q4 revenue decreased $21 million sequentially (‑2.6% Q/Q); part of the decline reflects the divestiture of Quail (Q3 contribution: $34M revenue and $20M EBITDA), and absolute EBITDA fell $15 million (‑6.2% Q/Q) versus Q3.
Read all updates
Q4-2025 Updates
Positive
Negative
Material Net Debt Reduction and Capital Structure Improvement
Reduced net debt by $554 million vs. end of 2024, improved net leverage to ~1.7x (lowest since 2008), extended weighted average debt maturity to 5.3 years (from 3.7) and executed debt refinancings (issued $700M notes, redeemed near-term maturities), lowering annualized cash interest expense by ~ $45 million.
Read all positive updates
Company Guidance
The company guided to a steady but cautious 2026 outlook: for Q1 it expects U.S. Drilling average rigs of 64–65 (Lower 48 daily adjusted gross margin ~ $13,200), Alaska & U.S. Offshore EBITDA $16–17M, International Drilling average rigs 91–92 (daily gross margin $17,500–$17,600), Drilling Solutions EBITDA ~ $39M and Rig Technologies EBITDA ~ $2M, with consolidated adjusted free cash flow expected to consume $80–90M in Q1 (SANAD consuming ~$50–60M). For full‑year 2026 the company targets Lower 48 average rigs 61–64 with daily gross margin $13,200–$13,400, International Drilling 96–98 rigs (Dec exit ≥101) with average daily gross margin ~$18,500 (≈+5%), Drilling Solutions EBITDA $160–170M (6–7% normalized growth), Rig Technologies EBITDA $22–25M, capex $737–760M (SANAD new‑builds $360–380M), SANAD free cash flow consumption $100–120M (rest of business generating $80–90M), aims to grow EBITDA 6–8% normalized for Quail while essentially matching 2025 EBITDA, expects retained Parker businesses to contribute at least $70M EBITDA in 2026 (synergies run‑rate ~$63M), and plans to reduce gross debt by at least $100M during the year.Nabors Industries Financial Statement Overview
Summary
Income Statement
66
Positive
Balance Sheet
58
Neutral
Cash Flow
52
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 3.18B | 2.93B | 3.01B | 2.65B | 2.02B |
| Gross Profit | 621.08M | 554.31M | 1.22B | 987.76M | 730.23M |
| EBITDA | 912.67M | 813.23M | 915.15M | 709.39M | 481.52M |
| Net Income | 248.34M | -176.08M | -11.78M | -350.26M | -569.27M |
Balance Sheet | |||||
| Total Assets | 4.79B | 4.50B | 5.28B | 4.73B | 5.53B |
| Cash, Cash Equivalents and Short-Term Investments | 940.74M | 397.30M | 1.07B | 452.31M | 991.49M |
| Total Debt | 2.57B | 2.53B | 3.20B | 2.57B | 3.31B |
| Total Liabilities | 3.35B | 3.30B | 4.00B | 3.51B | 4.13B |
| Stockholders Equity | 590.73M | 135.00M | 326.61M | 368.96M | 590.66M |
Cash Flow | |||||
| Free Cash Flow | -22.68M | 13.51M | 97.01M | 127.64M | 194.74M |
| Operating Cash Flow | 693.27M | 581.43M | 637.86M | 501.09M | 428.78M |
| Investing Cash Flow | 97.09M | -555.46M | -570.42M | -368.71M | -117.22M |
| Financing Cash Flow | -566.79M | -662.05M | 592.59M | -661.53M | 488.42M |
Nabors Industries Technical Analysis
Neutral
80.22
Price Trends
77.36
Positive
66.59
Positive
52.54
Positive
Market Momentum
1.48
Positive
48.04
Neutral
32.45
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NBR, the sentiment is Neutral. The current price of 80.22 is below the 20-day moving average (MA) of 82.73, above the 50-day MA of 77.36, and above the 200-day MA of 52.54, indicating a neutral trend. The MACD of 1.48 indicates Positive momentum. The RSI at 48.04 is Neutral, neither overbought nor oversold. The STOCH value of 32.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for NBR.
Nabors Industries Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $1.18B | 2.88 | 57.72% | ― | 6.52% | ― | |
67 Neutral | $1.82B | 23.49 | 4.41% | 5.99% | 5.83% | -11.86% | |
66 Neutral | $3.81B | ― | -2.83% | 5.42% | -16.59% | 83.95% | |
66 Neutral | $7.22B | -1.36 | -32.62% | ― | 16.93% | -335.82% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
58 Neutral | $3.46B | -7.33 | -11.45% | 3.24% | 35.89% | -148.39% | |
56 Neutral | $2.96B | -54.06 | -2.68% | ― | -9.31% | -91.57% |
* Energy Sector Average
NBR
Nabors Industries
80.22
51.62
180.49%
HP
Helmerich & Payne
34.68
16.28
88.44%
PTEN
Patterson-UTI
10.05
4.60
84.54%
RIG
Transocean
6.52
4.30
193.69%
BORR
Borr Drilling
5.90
3.97
205.70%
SDRL
Seadrill Limited
47.52
28.51
149.97%
Nabors Industries Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Nabors Industries Expands Letter of Credit Facility Capacity
Positive
Apr 7, 2026
On April 7, 2026, Nabors Industries, Inc. and its parent company executed an incremental joinder to their amended and restated credit agreement with a bank group led by Citibank, N.A. The change increased the maximum amount available under the com...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.