Nabors Q2 Revenue Slightly Misses, but Lower 48 Rig Outlook Lifts Momentum
NBR has more than doubled off its 52-week low of $30.9.
Summary
Nabors Q2 revenue barely missed consensus, but an adjusted EBITDA beat and another boost to the Lower 48 rig count outlook signal accelerating momentum in the second half.
Key Events · Earnings and Guidance · NBR
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Q2 Revenue Slightly Below Consensus
Operating revenues of $814.8M missed the $814.96M consensus by a narrow margin, while net loss attributable to Nabors was $22.3M, or $2.04 per share.
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Adjusted EBITDA Beats, Margins Improve
Adjusted EBITDA of $221.7M exceeded expectations, driven by international daily gross margin of $17,534 (up $654 sequentially) and Lower 48 margin of $13,784 (up $607).
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Lower 48 Rig Count Outlook Raised Again
Nabors now expects to exit Q3 with approximately 74 rigs running in the Lower 48, up from 67.8 in Q2, and to expand slightly from there through year-end.
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Full-Year Guidance Implies Second-Half Acceleration
Full-year adjusted EBITDA guidance of $920-$930M and adjusted free cash flow of $20-$30M, with capital spending reduced by $25M at the midpoint to $710-$730M.
Analysis · NBR · Energy & Transportation
Nabors posted Q2 revenue of $814.8M, just below the $814.96M consensus, alongside a net loss of $22.3M. Adjusted EBITDA of $221.7M topped expectations, however, and the company raised its Lower 48 rig count outlook for the third time—now projecting an exit rate of 74 rigs in Q3. Full-year adjusted EBITDA guidance of $920–$930M and free cash flow of $20–$30M point to strengthening profitability. The quarter underscores international strength and market share gains in the Lower 48, which more than offset the slight top-line shortfall.
At the time of this filing, NBR was trading at $76.00 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $1.1B. The 52-week trading range was $30.90 to $112.90. This filing was assessed with neutral market sentiment and an importance score of 7 out of 10.