Nabors Industries (NBR) AI Stock Analysis

• Market Cap: $760.82M
• Dividend Yield: N/A
• Average Volume (3M): 387.96K
• Price to Earnings (P/E): 5.4
• Beta (1Y): 1.29
• Revenue Growth: 6.52%
• EPS Growth: N/A
• Country: US
• Employees: 12,400
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Drilling
• EPS (TTM): 16.85
• Shares Outstanding: 14,561,171
• 10 Day Avg. Volume: 353,937
• 30 Day Avg. Volume: 387,961
• PEG Ratio: >-0.01
• Price to Book (P/B): 3.90
• Price to Sales (P/S): 0.18
• P/FCF Ratio: 38.93
• Enterprise Value/Market Cap: 4.66
• Enterprise Value/Revenue: 1.14
• Enterprise Value/Gross Profit: 3.24
• Enterprise Value/Ebitda: 2.71
• 1Y Price Target: $60.00
• Price Target Upside: 14.83% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 6
• EPS Forecast (FY): 15.4
• Revenue Forecast (FY): $3.18B

• Rating: 69 Neutral
• Price Target: $64.00 ▲(22.49% Upside)

Nabors Industries' overall score is driven by strong technical indicators and attractive valuation. Financial performance shows improvement but is hindered by high leverage and cash flow challenges. Recent corporate events and strategic initiatives provide a positive outlook, though challenges in the U.S. market and reduced free cash flow expectations remain concerns.

Positive Factors

Debt Reduction

Significant debt reduction enhances financial flexibility and reduces financial risk, positioning Nabors for sustainable growth.

International Market Growth

Strong performance in international markets, particularly Saudi Arabia, indicates robust growth potential and market expansion.

Technological Advancements

Advanced rig technology enhances operational efficiency and competitive positioning, supporting long-term business sustainability.

Negative Factors

High Leverage

High leverage can strain financial resources and limit flexibility, posing risks if market conditions deteriorate.

Challenges in U.S. Market

Declining activity in key U.S. markets like the Permian Basin could impact revenue and growth prospects.

Negative Free Cash Flow

Ongoing cash flow challenges may hinder investment in growth opportunities and affect financial stability.

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, and Rig Technologies. It provides tubular running, wellbore placement, directional drilling, measurement-while-drilling (MWD), equipment manufacturing, and rig instrumentation services; and logging-while-drilling systems and services, as well as drilling optimization software. The company also offers REVit, an automated real time stick-slip mitigation system; ROCKit, a directional steering control system; SmartNAV, a collaborative guidance and advisory platform; SmartSLIDE, an advanced directional steering control system; and RigCLOUD, which provides the tools and infrastructure to integrate applications to deliver real-time insight into operations across the rig fleet. In addition, it manufactures and sells top drives, catwalks, wrenches, drawworks, and other drilling related equipment, such as robotic systems and downhole tools; and provides aftermarket sales and services for the installed base of its equipment. As of December 31, 2021, the company marketed approximately 301 rigs for land-based drilling operations in the United States, Canada, and in 20 other countries worldwide; and 29 rigs for offshore platform drilling operations in the United States and internationally. Nabors Industries Ltd. was founded in 1952 and is based in Hamilton, Bermuda.

How the Company Makes Money

Nabors Industries generates revenue primarily through its drilling services, which include the operation of land and offshore drilling rigs. The company earns money by charging its customers for drilling operations based on contracts that can be structured on a day-rate or performance-based payment system. Key revenue streams include the rental of drilling rigs, drilling fluids, and other ancillary services. Additionally, Nabors has a technology segment that develops and sells advanced drilling technologies and software solutions, providing another avenue for revenue generation. The company also benefits from strategic partnerships with major oil and gas companies, which help secure long-term contracts and enhance its market presence.

Nabors Industries Financial Statement Overview

Summary

Nabors Industries shows improved profitability and revenue growth, but faces challenges with high leverage and negative free cash flow. The company needs to focus on cost management and cash flow generation to sustain growth and reduce financial risk.

Income Statement

Nabors Industries shows a positive trend in revenue growth with a 2.85% increase in the TTM period. The company has improved its profitability with a net profit margin of 6.62% in the TTM, compared to negative margins in previous years. However, the gross profit margin has decreased from 40.53% in 2024 to 35.14% in the TTM, indicating some pressure on cost management. The EBIT and EBITDA margins have improved significantly, reflecting better operational efficiency.

Balance Sheet

The company has a high debt-to-equity ratio of 2.50 in the TTM, which is a reduction from previous years but still indicates significant leverage. Return on equity has improved to 47.88% in the TTM, a positive sign of profitability. However, the equity ratio remains low, suggesting a reliance on debt financing, which could pose risks if market conditions change.

Cash Flow

Nabors Industries has seen a 12.10% growth in free cash flow in the TTM, but it remains negative, indicating challenges in generating sufficient cash. The operating cash flow to net income ratio is 0.88, showing a decent conversion of earnings to cash. However, the free cash flow to net income ratio is negative, highlighting ongoing cash flow challenges despite improved profitability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.12B	2.93B	3.01B	2.65B	2.02B	2.13B
Gross Profit	1.10B	554.31M	1.22B	987.76M	730.23M	798.03M
EBITDA	1.31B	813.23M	915.15M	709.39M	481.52M	560.95M
Net Income	206.43M	-176.08M	-11.78M	-350.26M	-569.27M	-805.64M
Balance Sheet
Total Assets	4.83B	4.50B	5.28B	4.73B	5.53B	5.50B
Cash, Cash Equivalents and Short-Term Investments	428.08M	397.30M	1.07B	452.31M	991.49M	481.75M
Total Debt	2.36B	2.53B	3.15B	2.57B	3.27B	2.98B
Total Liabilities	3.27B	3.30B	4.00B	3.51B	4.13B	3.80B
Stockholders Equity	579.78M	135.00M	326.61M	368.96M	590.66M	1.15B
Cash Flow
Free Cash Flow	-165.59M	13.51M	97.01M	127.64M	194.74M	154.24M
Operating Cash Flow	596.34M	581.43M	637.86M	501.09M	428.78M	349.76M
Investing Cash Flow	-246.60M	-555.46M	-570.42M	-368.71M	-117.22M	-165.46M
Financing Cash Flow	-539.55M	-662.05M	592.59M	-661.53M	488.42M	-148.00M

Nabors Industries Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 52.25
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NBR, the sentiment is Positive. The current price of 52.25 is below the 20-day moving average (MA) of 53.14, above the 50-day MA of 49.50, and above the 200-day MA of 38.05, indicating a neutral trend. The MACD of 0.69 indicates Positive momentum. The RSI at 51.77 is Neutral, neither overbought nor oversold. The STOCH value of 30.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NBR.

Nabors Industries Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HP	73 Outperform	$2.77B	-16.89	-5.87%	3.24%	35.89%	-148.39%
NBR	69 Neutral	$760.82M	5.41	47.77%	―	6.52%	―
BORR	68 Neutral	$1.23B	13.59	7.08%	5.99%	5.83%	-11.86%
SDRL	66 Neutral	$2.04B	65.66	1.18%	―	-9.31%	-91.57%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
RIG	60 Neutral	$4.44B	-1.24	-32.05%	―	16.93%	-335.82%
PTEN	56 Neutral	$2.24B	―	-4.00%	5.42%	-16.59%	83.95%

Nabors Industries Corporate Events

Nabors Industries Completes $700M Notes Sale

On November 10, 2025, Nabors Industries completed the sale of $700 million in senior priority guaranteed notes, which will mature in 2032, to several major financial institutions. The proceeds from this transaction, amounting to approximately $687.9 million after expenses, will be used to retire existing notes due in 2027 and for general corporate purposes, potentially impacting the company’s financial structure and market positioning.

Nabors Industries Upsizes Note Offering to $700 Million

On November 4, 2025, Nabors Industries Ltd. announced that its subsidiary, Nabors Industries, Inc., commenced an offering of $550 million in Senior Priority Guaranteed Notes due 2032, which was later upsized to $700 million. The proceeds from this offering are intended to redeem the outstanding 7.375% Senior Priority Guaranteed Notes due 2027, reflecting Nabors’ strategic financial management and positioning within the energy sector.

Nabors Industries Appoints New Chief Financial Officer

On October 1, 2025, Nabors Industries announced the appointment of Miguel Rodriguez as the new Chief Financial Officer, succeeding William Restrepo who retired on September 30, 2025. Rodriguez, who has been with Nabors since 2019, brings over 25 years of finance experience and has previously worked at SLB Drilling Group. His appointment comes with a comprehensive compensation package, including a base salary, bonuses, and equity awards, as well as a severance agreement outlining benefits in the event of termination. This leadership change is expected to influence Nabors’ financial strategy and operations, potentially impacting stakeholders and the company’s market positioning.

Nabors Industries Acquires Parker Wellbore, Divests Quail Tools

On September 3, 2025, Nabors Industries‘ CFO, Mr. William Restrepo, participated in a panel discussion at the Barclays 39th Annual Energy-Power Conference, focusing on land drilling. The discussion was based on an Investor Presentation published by the company on September 2, 2025. Nabors has recently made significant moves, including the acquisition of Parker Wellbore and the divestiture of Quail Tools, aiming to enhance its financial position and operational capabilities. These transactions are expected to deliver substantial synergies and financial benefits, such as reducing net debt by over 25% and achieving annual interest savings of more than $50 million.