Nabors Industries Q2 Earnings on Deck: Here's How It Will Fare

Highlights of NBR’s Q1 Earnings & Surprise History

In the last reported quarter, the Hamilton-based oil and gas drilling service company’s adjusted loss was $1.54 per share, narrower than the Zacks Consensus Estimate of a loss of $2.39. This was mainly backed by higher adjusted operating income from its International Drilling segment. Operating revenues of $783.5 million beat the Zacks Consensus Estimate of $779 million, driven by higher contributions from the U.S. Drilling, International Drilling and Drilling Solutions segments.

As for its surprise track record, NBR’s earnings missed the Zacks Consensus Estimate in two of the trailing four quarters and beat the mark twice, delivering an average surprise of 13.6%.

This is depicted in the graph below:

Trend in NBR’s Estimate Revision

The Zacks Consensus Estimate for second-quarter 2026 earnings has been revised 1.9% downward in the past 30 days. The estimated figure indicates a 43.2% year-over-year bottom-line increase. The Zacks Consensus Estimate for revenues indicates a decrease of 2.5% from the year-ago period’s level.

Factors to Consider Ahead of NBR’s Q2 Release

NBR earns revenues by providing critical services to the oil and gas sector. The demand for these services — and thus their revenues — depends on factors such as commodity prices, exploration and production activity, competition and overall economic conditions.

The company’s revenues are likely to have decreased in the quarter to be reported. The Zacks Consensus Estimate for second-quarter revenues is lower than the year-ago figure of $832.8 million, caused by lower contribution from NBR’s Drilling Solutions segment. Based on our model, revenues from the Drilling Solutions segment are projected to decrease 35.3% year over year. Nabors Industries' second-quarter results could remain under pressure as persistent Middle East conflict-related inefficiencies are expected to reduce EBITDA due to logistics disruptions, supply-chain bottlenecks and higher crew rotation costs. Management also highlighted a still-cautious U.S. drilling environment, while offshore maintenance, contract roll-offs and elevated capital spending could further weigh on margins and cash flow.

On a bullish note, lower year-over-year total costs are likely to have improved NBR’s bottom-line performance. We expect the company’s total costs and other deductions to reach $806.4 million in the second quarter, which is down from the year-ago quarter’s level of $818 million. According to our model, General and Administrative, Depreciation and Amortization and Interest Expenses are expected to decrease 8.7%, 7.8% and 9.6% year over year, respectively.

What Does Our Model Predict for NBR?

The proven Zacks model does not conclusively predict an earnings beat for Nabors Industries this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates. However, that is not the case here.

Earnings ESP of NBR: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, for this company, is -1.95%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

NBR’s Zacks Rank: NBR currently carries a Zacks Rank #2.

Stocks to Consider

Here are some firms from the energy space that you may want to consider, as these have the right combination of elements to post an earnings beat this reporting cycle.

ProPetro Holding Corp. PUMP has an Earnings ESP of +52.38% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

ProPetro is scheduled to release earnings on July 29. The Zacks Consensus Estimate for current quarter earnings indicates year-over-year growth of about 85.7%. Valued at around $1.6 billion, PUMP’s shares have surged 122.4% in a year.

Cactus, Inc. WHD has an Earnings ESP of +7.04% and a Zacks Rank #2 at present. It is scheduled to release earnings on July 29.

The Zacks Consensus Estimate for WHD’s 2026 earnings indicates year-over-year growth of about 8.6%. Valued at around $4.4 billion, WHD’s shares rose 21% in a year.

Oil States International, Inc. OIS currently has an Earnings ESP of +27.27% and a Zacks Rank #3. It is scheduled to release earnings on July 30.

Notably, the Zacks Consensus Estimate for OIS’ 2026 earnings indicates year-over-year growth of about 43.2%. Valued at around $517.1 million, OIS’ shares have gained 55.3% in a year.

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