Nabors Industries Q4 2025 Financial Report Analysis
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4 days ago
0mins
Should l Buy NBR?
Source: PRnewswire
- Revenue Decline: Nabors reported Q4 2025 operating revenues of $798 million, a 2.4% decrease from $818 million in Q3, indicating weak market demand that may impact future investment decisions.
- Significant Net Income Drop: The net income attributable to Nabors' shareholders fell to $10 million in Q4 from $274 million in Q3, resulting in earnings per share plummeting from $16.85 to $0.17, reflecting a substantial decline in profitability.
- Debt Reduction and Cash Flow Improvement: The company reduced its debt by $388 million since the end of 2024, with expected annual interest expense savings of $45 million, leading to a significant increase in adjusted free cash flow to $132 million in Q4 from $6 million in Q3.
- International Business Growth: The International Drilling segment's adjusted EBITDA rose to $131.3 million from $127.6 million in Q3, demonstrating successful business expansion in markets like Argentina, Saudi Arabia, and Colombia, thereby enhancing the company's competitive position globally.
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Analyst Views on NBR
Wall Street analysts forecast NBR stock price to fall
6 Analyst Rating
2 Buy
3 Hold
1 Sell
Hold
Current: 63.880
Low
50.00
Averages
61.67
High
66.00
Current: 63.880
Low
50.00
Averages
61.67
High
66.00
About NBR
Nabors Industries Ltd. is a provider of advanced technology for the energy industry. The Company operates in over 20 countries and provides drilling and drilling-related services for land-based and offshore oil and natural gas wells, with a fleet of rigs and drilling-related equipment. Its segments include U.S. Drilling, International Drilling, Drilling Solutions, and Rig Technologies. Its RigCLOUD platform is an edge computing system designed to support workflow management, performance monitoring, and user-specific configurations. Its fleet includes over 284 actively marketed rigs for land-based drilling operations in the United States and various countries throughout the world and 26 actively marketed rigs for offshore platform drilling operations in the United States and multiple international markets. It provides performance tools, directional drilling services, tubular running services, and technologies for use on its own rig fleet and rigs operated by third parties.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Nabors Industries Q4 2025 Earnings Call Highlights
- Significant Debt Reduction: Nabors completed a series of significant transactions in 2025, reducing net debt by $554 million and lowering annualized cash interest expense by approximately $45 million, which enhances the company's financial flexibility and reduces financing costs.
- Strong Revenue Growth: Full-year revenue for 2025 reached $3.2 billion, reflecting an 8.7% year-over-year increase primarily driven by the acquisition of Parker, with expected adjusted EBITDA contribution of at least $70 million in 2026, showcasing the company's potential for international market expansion.
- Technology-Driven Performance: The PACE-X Ultra rig has been operational for Catalyst in South Texas since mid-September, exceeding expectations, indicating that the company's ongoing investment in technological innovation will drive future business growth.
- Optimistic Outlook: Management anticipates EBITDA growth of 6% to 8% for 2026, with an expected average rig count of 96 to 98 for international drilling, demonstrating the company's strategic expansion plans and confidence in future growth.
See More
Nabors (NBR) Q4 2025 Earnings Call Transcript
See More
Nabors Q4 Earnings Exceed Expectations
- Strong Earnings Performance: Nabors reported a Q4 GAAP EPS of $0.17, beating expectations by $1.13, which highlights a significant improvement in profitability and boosts investor confidence.
- Robust Revenue Growth: The company achieved Q4 revenue of $797.53 million, a 9.3% year-over-year increase, exceeding market expectations by $1.71 million, indicating a sustained recovery in its business that may attract more investor interest.
- Debt Reduction Initiatives: Nabors successfully redeemed 7.5% notes due in 2028, cutting net debt by approximately $366 million, a move that will enhance the company's financial structure and reduce future interest burdens.
- Positive Market Reaction: Following the earnings release, the market's response to Nabors' quant rating reflects a positive sentiment, indicating investor optimism regarding the company's future growth potential.
See More
Nabors Industries Q4 2025 Financial Report Analysis
- Revenue Decline: Nabors reported Q4 2025 operating revenues of $798 million, a 2.4% decrease from $818 million in Q3, indicating weak market demand that may impact future investment decisions.
- Significant Net Income Drop: The net income attributable to Nabors' shareholders fell to $10 million in Q4 from $274 million in Q3, resulting in earnings per share plummeting from $16.85 to $0.17, reflecting a substantial decline in profitability.
- Debt Reduction and Cash Flow Improvement: The company reduced its debt by $388 million since the end of 2024, with expected annual interest expense savings of $45 million, leading to a significant increase in adjusted free cash flow to $132 million in Q4 from $6 million in Q3.
- International Business Growth: The International Drilling segment's adjusted EBITDA rose to $131.3 million from $127.6 million in Q3, demonstrating successful business expansion in markets like Argentina, Saudi Arabia, and Colombia, thereby enhancing the company's competitive position globally.
See More
Nabors Industries Fully Redeems $379M Senior Notes, Reducing Net Debt to $1.55B
- Debt Redemption: Nabors fully redeemed its $379M 7.5% Senior Guaranteed Notes due January 15, 2026, indicating proactive debt management aimed at reducing financial costs and improving capital structure.
- Net Debt Reduction: As of December 31, 2025, Nabors' net debt decreased to $1.55B, down approximately $366M in Q4 2025, reflecting the company's ongoing efforts to cut debt, which enhances its financial health.
- Cash Position: The company reported $940M in cash and short-term investments at the end of 2025, indicating strong liquidity that supports future operational and investment needs while mitigating financial risks.
- Leverage Improvement: Nabors achieved its lowest net leverage ratio since 2008, demonstrating significant progress in financial stability, which is likely to boost investor confidence and attract more capital.
See More
Hara Capital Acquires 173K Shares of Noble Corporation Worth $4.9 Million
- New Position Disclosure: Hara Capital LLC disclosed a new position in Noble Corporation by acquiring 173,597 shares valued at $4.9 million in Q4, marking it as the firm's sixth-largest equity investment and reflecting confidence in the company.
- Asset Allocation Shift: This acquisition positions Noble to account for 2.7% of Hara Capital's reportable 13F assets, highlighting its significance within the firm's total U.S. equity assets of $179.74 million.
- Market Performance Analysis: Despite Noble's stock price declining by 2.9% over the past year while the S&P 500 gained 18.8%, its 6.1% dividend yield continues to attract investor interest, indicating stable cash flow capabilities.
- Contract Growth Potential: Noble reported third-quarter revenue of $798 million, down 0.4% year-over-year; however, management noted new contracts signed, with a backlog reaching $7 billion, indicating strong future growth potential.
See More
Nabors Industries Q4 2025 Earnings Call Highlights
- Significant Debt Reduction: Nabors completed a series of significant transactions in 2025, reducing net debt by $554 million and lowering annualized cash interest expense by approximately $45 million, which enhances the company's financial flexibility and reduces financing costs.
- Strong Revenue Growth: Full-year revenue for 2025 reached $3.2 billion, reflecting an 8.7% year-over-year increase primarily driven by the acquisition of Parker, with expected adjusted EBITDA contribution of at least $70 million in 2026, showcasing the company's potential for international market expansion.
- Technology-Driven Performance: The PACE-X Ultra rig has been operational for Catalyst in South Texas since mid-September, exceeding expectations, indicating that the company's ongoing investment in technological innovation will drive future business growth.
- Optimistic Outlook: Management anticipates EBITDA growth of 6% to 8% for 2026, with an expected average rig count of 96 to 98 for international drilling, demonstrating the company's strategic expansion plans and confidence in future growth.
See More
Nabors (NBR) Q4 2025 Earnings Call Transcript
See More
Nabors Q4 Earnings Exceed Expectations
- Strong Earnings Performance: Nabors reported a Q4 GAAP EPS of $0.17, beating expectations by $1.13, which highlights a significant improvement in profitability and boosts investor confidence.
- Robust Revenue Growth: The company achieved Q4 revenue of $797.53 million, a 9.3% year-over-year increase, exceeding market expectations by $1.71 million, indicating a sustained recovery in its business that may attract more investor interest.
- Debt Reduction Initiatives: Nabors successfully redeemed 7.5% notes due in 2028, cutting net debt by approximately $366 million, a move that will enhance the company's financial structure and reduce future interest burdens.
- Positive Market Reaction: Following the earnings release, the market's response to Nabors' quant rating reflects a positive sentiment, indicating investor optimism regarding the company's future growth potential.
See More
Nabors Industries Q4 2025 Financial Report Analysis
- Revenue Decline: Nabors reported Q4 2025 operating revenues of $798 million, a 2.4% decrease from $818 million in Q3, indicating weak market demand that may impact future investment decisions.
- Significant Net Income Drop: The net income attributable to Nabors' shareholders fell to $10 million in Q4 from $274 million in Q3, resulting in earnings per share plummeting from $16.85 to $0.17, reflecting a substantial decline in profitability.
- Debt Reduction and Cash Flow Improvement: The company reduced its debt by $388 million since the end of 2024, with expected annual interest expense savings of $45 million, leading to a significant increase in adjusted free cash flow to $132 million in Q4 from $6 million in Q3.
- International Business Growth: The International Drilling segment's adjusted EBITDA rose to $131.3 million from $127.6 million in Q3, demonstrating successful business expansion in markets like Argentina, Saudi Arabia, and Colombia, thereby enhancing the company's competitive position globally.
See More
Nabors Industries Fully Redeems $379M Senior Notes, Reducing Net Debt to $1.55B
- Debt Redemption: Nabors fully redeemed its $379M 7.5% Senior Guaranteed Notes due January 15, 2026, indicating proactive debt management aimed at reducing financial costs and improving capital structure.
- Net Debt Reduction: As of December 31, 2025, Nabors' net debt decreased to $1.55B, down approximately $366M in Q4 2025, reflecting the company's ongoing efforts to cut debt, which enhances its financial health.
- Cash Position: The company reported $940M in cash and short-term investments at the end of 2025, indicating strong liquidity that supports future operational and investment needs while mitigating financial risks.
- Leverage Improvement: Nabors achieved its lowest net leverage ratio since 2008, demonstrating significant progress in financial stability, which is likely to boost investor confidence and attract more capital.
See More
Hara Capital Acquires 173K Shares of Noble Corporation Worth $4.9 Million
- New Position Disclosure: Hara Capital LLC disclosed a new position in Noble Corporation by acquiring 173,597 shares valued at $4.9 million in Q4, marking it as the firm's sixth-largest equity investment and reflecting confidence in the company.
- Asset Allocation Shift: This acquisition positions Noble to account for 2.7% of Hara Capital's reportable 13F assets, highlighting its significance within the firm's total U.S. equity assets of $179.74 million.
- Market Performance Analysis: Despite Noble's stock price declining by 2.9% over the past year while the S&P 500 gained 18.8%, its 6.1% dividend yield continues to attract investor interest, indicating stable cash flow capabilities.
- Contract Growth Potential: Noble reported third-quarter revenue of $798 million, down 0.4% year-over-year; however, management noted new contracts signed, with a backlog reaching $7 billion, indicating strong future growth potential.
See More
