Want to see NBR full AI Analyst Report?
Top Page
Nabors Industries
(NYSE:NBR)
Select Model
Select Model
Rating:64Neutral
Price Target:
$86.00
▲(8.15% Upside)
Action:Reiterated
Date:06/06/26
The score is held back primarily by elevated financial risk—very high leverage and weak recent free-cash-flow generation despite improved operating results. Offsetting this are a technically strong uptrend, a low P/E valuation, and a generally constructive earnings outlook that includes continued activity/pricing improvements and ongoing debt-reduction actions, though near-term disruptions and margin pressure remain key risks.
Positive Factors
Revenue & Margin Recovery
Sustained, sharp TTM revenue growth alongside improved gross and EBITDA margins indicates the company’s core drilling and services franchise is re‑engaging with customers. Persistent higher activity and better per‑rig economics should support durable operating leverage and margin stability over the next several quarters.
Negative Factors
Very High Leverage
Extremely elevated leverage meaningfully constrains financial flexibility and increases default and refinancing risks if activity softens. High net debt magnifies earnings volatility, limits strategic optionality for M&A or buybacks, and requires sustained cash generation and disciplined deleveraging to restore balance‑sheet resilience.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue & Margin Recovery
Sustained, sharp TTM revenue growth alongside improved gross and EBITDA margins indicates the company’s core drilling and services franchise is re‑engaging with customers. Persistent higher activity and better per‑rig economics should support durable operating leverage and margin stability over the next several quarters.
Read all positive factors
Nabors Industries Key Performance Indicators (KPIs)
Any
Adjusted Operating Income by Segment
Measures profit from each business unit after excluding one-time items and accounting noise. Reveals which segments generate real earnings, where margins are improving or deteriorating, and how changes in dayrates, utilization, or cost control could affect the company’s ability to convert revenue into cash.
Measures profit from each business unit after excluding one-time items and accounting noise. Reveals which segments generate real earnings, where margins are improving or deteriorating, and how changes in dayrates, utilization, or cost control could affect the company’s ability to convert revenue into cash.
Data provided by:
The Fly
The FlyNabors Industries (NBR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.19B
Dividend YieldN/A
Average Volume (3M)298.09K
Price to Earnings (P/E)5.9
Beta (1Y)1.09
Revenue Growth10.21%
EPS GrowthN/A
CountryUS
Employees13,900
SectorEnergy
Sector Strength52
IndustryOil & Gas Drilling
Share Statistics
EPS (TTM)13.52
Shares Outstanding14,795,909
10 Day Avg. Volume287,374
30 Day Avg. Volume298,087
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 Cap2.47
Enterprise Value/Revenue0.91
Enterprise Value/Gross Profit3.70
Enterprise Value/Ebitda2.20
Forecast
1Y Price Target
$104.00Price Target Upside30.78% Upside
Rating ConsensusHold
Number of Analyst Covering7
EPS Forecast (FY)-1.69
Revenue Forecast (FY)$3.33B
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 in the United States and internationally. The company operates through four segments: U.S. Drilling, International Drillin...
How the Company Makes Money
Nabors primarily makes money by contracting its drilling rigs and related crews/services to exploration and production (E&P) companies under drilling contracts, generating revenue based on rig availability and utilization (e.g., dayrate-style arra...
Nabors Industries Earnings Call Summary
Earnings Call Date:Apr 28, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 28, 2026
Earnings Call Sentiment Positive
The call presented a constructive and cautiously optimistic view: operational momentum in the Lower 48 (rig additions and higher sequential revenue), continued international expansion (SANAD newbuilds and geographic diversification), strong product performance (PaceX Ultra and high NDS cash conversion), and tangible progress on debt reduction and free cash flow versus prior expectations. Headwinds include measurable impacts from the Middle East conflict (logistics, crew rotations, short-term EBITDA hits), a sequential decline in consolidated margins, Rig Technologies softness, and temporary regional disruptions (Colombia, Venezuela). Management maintained disciplined capital guidance and reiterated long-term leverage targets, signaling confidence in recovery and value creation.Positive Updates
Consolidated Revenue
Q1 consolidated revenue of $784 million.
Negative Updates
EBITDA Margin Pressure
Consolidated adjusted EBITDA margin of 26.1% in Q1, down 164 basis points sequentially; consolidated EBITDA declined and was impacted by International Drilling and Rig Technologies weakness.
Read all updates
Q1-2026 Updates
Positive
Negative
Consolidated Revenue
Q1 consolidated revenue of $784 million.
Read all positive updates
Company Guidance
For Q2 Nabors guided for a modest EBITDA drag of $6–8 million from Middle East inefficiencies while expecting International Drilling average rig count of 93–95 with average daily gross margin rising to $17,400–$17,500 (up from Q1’s $16,880), US Lower‑48 average rigs of 67–68 (expecting to exit Q2 at ~69) with daily adjusted gross margin ~ $13,300 and pricing moving from the low‑$30k range toward the mid‑$30k range into 2026–27 (PaceX Ultra rigs generate daily revenue well above $40k); segment outlooks include Drilling Solutions EBITDA ≈ $39M and Rig Technologies EBITDA ≈ $3M. CapEx for Q2 is guided to $180–190M (SANAD $75–80M) with full‑year CapEx unchanged at $730–760M (SANAD $360–380M). Cash flow guidance calls for ~ $10M consolidated adjusted free cash flow in Q2 (with SANAD consuming ~ $10M) after Q1 consumed $48M (beating the midpoint by >$35M and with FCF outside SANAD roughly breakeven). SANAD newbuilds are advancing (15 deployed, 4 more in 2026 to 19, 20th in early‑2027; discussions to expand to 25; each tranche expected to generate >$60M of annual EBITDA). Capital‑structure priorities remain debt reduction (redeemed $379M 2028 notes, nearest maturity now June 2029, long‑term net leverage target ~1x).Nabors Industries Financial Statement Overview
Summary
Income Statement
68
Positive
Balance Sheet
28
Negative
Cash Flow
52
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.23B | 3.18B | 2.93B | 3.01B | 2.65B | 2.02B |
| Gross Profit | 795.79M | 621.08M | 554.31M | 1.22B | 987.76M | 730.23M |
| EBITDA | 1.34B | 1.40B | 813.23M | 915.15M | 709.39M | 481.52M |
| Net Income | 207.97M | 248.34M | -176.08M | -11.78M | -350.26M | -569.27M |
Balance Sheet | ||||||
| Total Assets | 4.39B | 4.79B | 4.50B | 5.28B | 4.73B | 5.53B |
| Cash, Cash Equivalents and Short-Term Investments | 500.85M | 940.74M | 397.30M | 1.07B | 452.31M | 991.49M |
| Total Debt | 2.13B | 2.57B | 2.53B | 3.20B | 2.57B | 3.31B |
| Total Liabilities | 2.94B | 3.35B | 3.30B | 4.00B | 3.51B | 4.13B |
| Stockholders Equity | 568.94M | 590.73M | 135.00M | 326.61M | 368.96M | 590.66M |
Cash Flow | ||||||
| Free Cash Flow | 2.92M | -22.68M | 13.51M | 97.01M | 127.64M | 194.74M |
| Operating Cash Flow | 718.87M | 693.27M | 581.43M | 637.86M | 501.09M | 428.78M |
| Investing Cash Flow | 2.50M | 97.09M | -555.46M | -570.42M | -368.71M | -117.22M |
| Financing Cash Flow | -948.03M | -566.79M | -662.05M | 592.59M | -661.53M | 488.42M |
Nabors Industries Technical Analysis
Negative
79.52
Price Trends
94.86
Negative
87.87
Negative
70.35
Positive
Market Momentum
-4.64
Positive
38.86
Neutral
39.74
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NBR, the sentiment is Negative. The current price of 79.52 is below the 20-day moving average (MA) of 86.45, below the 50-day MA of 94.86, and above the 200-day MA of 70.35, indicating a neutral trend. The MACD of -4.64 indicates Positive momentum. The RSI at 38.86 is Neutral, neither overbought nor oversold. The STOCH value of 39.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
66 Neutral | $3.68B | -30.41 | -3.67% | 5.42% | -9.41% | 88.02% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
64 Neutral | $1.19B | 5.94 | 40.63% | ― | 10.21% | ― | |
62 Neutral | $3.30B | -8.66 | -14.16% | 3.24% | 29.73% | -272.28% | |
59 Neutral | $5.84B | -1.69 | -32.79% | ― | 12.90% | -274.70% | |
57 Neutral | $2.54B | -35.17 | -0.84% | ― | 7.91% | -120.67% | |
55 Neutral | $1.39B | 26.91 | 3.14% | 5.99% | 5.84% | -19.93% |
* Energy Sector Average
NBR
Nabors Industries
80.28
45.61
131.55%
HP
Helmerich & Payne
32.75
16.15
97.32%
PTEN
Patterson-UTI
9.40
3.15
50.42%
RIG
Transocean
5.14
2.25
77.85%
BORR
Borr Drilling
4.37
2.29
110.10%
SDRL
Seadrill Limited
39.74
8.82
28.53%
Nabors Industries Corporate Events
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Nabors Shareholders Reject Executive Pay in AGM Votes
Negative
Jun 5, 2026
At Nabors Industries’ annual general meeting held on June 2, 2026, shareholders holding 80.61% of outstanding common stock participated in person or by proxy, and all director nominees were elected with majority support under the companyR...
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.