Nabors Q3: Record International Margin, $75M Free Cash Flow, Raised FY26 Cash Guidance
NBR sits 91% above its 52-week low of $44.04.
Summary
Nabors posted $245.5 million of adjusted EBITDA and $74.5 million of adjusted free cash flow in Q3 2026, then raised full-year free cash flow guidance to $100-$110 million. The GAAP loss of $1.24 per share was driven by interest and minority-interest allocations, not weaker operations.
Key Events · Earnings and Guidance · NBR
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Q3 Adjusted EBITDA Jumps 11% Sequentially
Adjusted EBITDA was $245.5 million versus $221.7 million in Q2 2026, with every segment meeting or exceeding targets. Operating revenue rose 7% sequentially to $872.2 million.
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Free Cash Flow Guidance Raised for 2026
Adjusted free cash flow was $74.5 million in Q3 versus $12.3 million in Q2. Full-year 2026 adjusted free cash flow guidance is now $100-$110 million, which management called materially higher than previous guidance, on adjusted EBITDA of approximately $930 million.
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Record International Drilling Margin
International Drilling daily adjusted gross margin hit a record $19,060, up $1,526 or 8.7% sequentially, on 94.9 average rigs. Q4 guidance is approximately $19,500 per day on 92-93 rigs after five SANAD rigs were suspended.
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Debt Reduction Continues
Nabors redeemed $100 million of its 9.125% notes with cash on hand, cutting annual interest by more than $9 million. Net debt stood at $1.55 billion at September 30, 2026, against $2.02 billion of gross debt.
Analysis · NBR · Energy & Transportation
For a leveraged driller, the metrics that matter came in strong: adjusted EBITDA rose nearly 11% sequentially to $245.5 million, and adjusted free cash flow jumped to $74.5 million from $12.3 million. Management then raised full-year 2026 adjusted free cash flow guidance to $100-$110 million, calling it materially higher than prior guidance, and put adjusted EBITDA at roughly $930 million, the top of the old range. The GAAP net loss of $11 million ($1.24 per share) is the headline the wires ran, but it reflects $42 million of interest expense and noncontrolling-interest allocations rather than an operating deterioration. With $100 million of 9.125% notes redeemed in the quarter and net debt at $1.55 billion, the cash generation is going toward deleveraging, which is what matters for equity holders in a company with this debt load.
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At the time of this filing, NBR was trading at $84.03 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $1.2B. The 52-week trading range was $44.04 to $112.90. This filing was assessed with positive market sentiment and an importance score of 7 out of 10.