Nabors Posts Wider-Than-Expected Loss in Q2, Beats Revenues

Adjusted EBITDA totaled $221.7 million, down from $248.5 million in the prior-year quarter but up from $204.8 million in the first quarter of 2026. The metric beat our model estimate of $217.2 million.

NBR’s Q2 Segmental Performances

U.S. Drilling generated operating revenues of $252.4 million, down from the year-ago quarter’s $255.4 million and higher than the prior quarter’s $241.1 million. However, the figure missed our model estimate of $279.2 million.

Operating profit totaled $30.9 million compared with $39.8 million in the year-ago quarter. The figure missed our estimated profit of $35.1 million.

Adjusted EBITDA from the segment totaled $94.1 million, down from $101.8 million a year ago but above $88.1 million in the previous quarter. The figure missed our model estimate of $102.4 million.

The Lower 48 average rig count increased to 67.8 rigs from 62.4 rigs in the prior-year quarter and 65.3 rigs in the first quarter of 2026. The company noted that it added five rigs in the Lower 48 market during the second quarter, bringing the current working rig count in the region to 73, up 15 rigs since November 2025.

International Drilling reported operating revenues of $432.5 million, up from $385 million in the year-ago quarter and $419.5 million in the first quarter. Moreover, the figure beat our estimate of $404 million.

Operating profit totaled $45.9 million compared with $36.1 million in the year-ago quarter. The figure beat our estimated profit of $42.4 million.

The segment’s adjusted EBITDA was $130.5 million, compared with $117.7 million a year ago and $121.3 million in the preceding quarter. The figure beat our estimate of $123 million. Average rigs working increased to 93.4 from 85.9 in the year-ago period.

Nabors stated that its SANAD land drilling joint venture deployed one newbuild rig in Saudi Arabia during the quarter, bringing total newbuild deployments to 16. Three more newbuilds are scheduled for 2026. The company also reactivated one previously suspended SANAD rig.

Drilling Solutions recorded operating revenues of $110.6 million, down from $170.3 million a year ago but up from $106.2 million in the prior quarter. The figure slightly beat our estimate of $110.1 million.

Operating profit totaled $32.1 million compared with $39.8 million in the year-ago quarter. The figure beat our estimated profit of $31.3 million.

Adjusted EBITDA totaled $40 million, compared with $76.5 million in the year-ago quarter and $38.7 million in the first quarter. Moreover, the figure beat our estimate of $39 million.

Rig Technologies generated operating revenues of $37.5 million, up from $36.5 million in the year-ago quarter and $27.2 million in the previous quarter. However, the figure slightly missed our estimate of $37.6 million.

Operating profit totaled $1.5 million compared with $1.7 million in the year-ago quarter. The figure beat our estimated profit of $1 million.

The segment’s adjusted EBITDA was $3.2 million, compared with $5.2 million a year ago and $0.5 million in the prior quarter. The figure beat our estimate of $3 million.

NBR’s Financial Position

Nabors’ total costs and expenses decreased to $802 million from $818 million in the year-ago quarter. Moreover, the amount was lower than our prediction of $806.4 million. As of June 30, 2026, Nabors had $509.8 million in cash and short-term investments. Long-term debt was about $2.1 billion, with a debt-to-capitalization of 79.6%.

Net cash provided by operating activities was $135.2 million in the second quarter. Capital expenditures, net of proceeds from asset sales, totaled $122.9 million, resulting in adjusted free cash flow of $12.3 million.

NBR’s Q3 Guidance

For the third quarter of 2026, Nabors expects the Lower 48 average rig count to be 73 rigs, with a Lower 48 daily adjusted gross margin of approximately $13,800. Alaska and the Gulf of America’s combined adjusted EBITDA is expected to be around $11 million.

For International Drilling, the company expects an average rig count of 94-96 rigs and a daily adjusted gross margin of approximately $18,100-$18,400. Drilling Solutions adjusted EBITDA is projected at about $42 million, while Rig Technologies adjusted EBITDA is expected to be in the range of $5-$6 million.

This Zacks Rank #2 (Buy) company expects third-quarter capital expenditures of $245-$255 million, including $130 million for newbuilds in Saudi Arabia. NBR also projects adjusted free cash flow of approximately $40 million, including free cash consumption at SANAD of around $65 million.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Important Earnings at a Glance

While we have discussed NBR’s second-quarter results in detail, let us take a look at three other key reports in this space.

Expand Energy Corporation EXE reported second-quarter 2026 adjusted earnings per share of $1.33, beating the Zacks Consensus Estimate of $1.22. The company’s bottom line increased from the year-ago adjusted profit of $1.10 per share, fueled by strong production and lower operating expenses.

Expand Energy’s ‘natural gas, oil and NGL’ revenues of $1.8 billion missed the Zacks Consensus Estimate of $2 billion. The top line was also below the year-ago figure of $2 billion.

As of June 30, 2026, the company had $663 million in cash and cash equivalents. Expand Energy had a long-term debt of $3.7 billion, reflecting a debt-to-capitalization of 16%.

NOV Inc. NOV reported second-quarter 2026 adjusted earnings of 31 cents per share, which beat the Zacks Consensus Estimate of 16 cents. The bottom line also increased 6.9% from the year-ago quarter’s 29 cents, driven by outperformance of the Energy Equipment segment.

The oil and gas equipment and services company’s total revenues of $2.1 billion beat the Zacks Consensus Estimate by $39 million. However, NOV’s revenues fell 2.5% from the year-ago quarter’s figure of $2.2 billion due to lower year-over-year revenues from the Energy Products and Services segment.

As of June 30, the company had cash and cash equivalents of $1.2 billion and long-term debt of $1.7 billion with a debt-to-capitalization of 21.3%.

Liberty Energy Inc. LBRT reported a second-quarter 2026 adjusted net profit of 9 cents per share, beating the Zacks Consensus Estimate of 7 cents. The outperformance was driven by the company’s focus on AI-driven technology advancements and strong operational execution. However, the bottom line decreased from the year-ago quarter’s profit of 12 cents due to increased year-over-year costs and expenses.

LBRT's revenues totaled $1.2 billion, which beat the Zacks Consensus Estimate of $1.1 billion. The top line also increased from the prior-year quarter’s $1 billion by 14%, supported by record utilization and a modest pricing uplift along with higher product sales.

As of June 30, Liberty Energy had approximately $555.4 million in cash and cash equivalents. The pressure pumper’s long-term debt of $1.3 billion represented a debt-to-capitalization of 39.5%.

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