Nabors Industries Ltd. Aktienkurs
Vergleich mit Peer Group
📊 Peer Group
📈 Was ist das?
Die Peer Group sind die Unternehmen mit dem ähnlichsten Geschäftsmodell. Sie dienen als Vergleichsmaßstab, um eine Aktie einzuordnen.
🧮 Wie wird sie ausgewählt?
Nach Ähnlichkeit des Geschäftsmodells, also Unternehmen aus derselben Branche, mit vergleichbaren Produkten und einer ähnlichen Kundengruppe. Nur so vergleichst du Äpfel mit Äpfeln.
🏛️ Wofür ist sie wichtig?
Ob eine Aktie günstig oder teuer ist, lässt sich am ehesten im Vergleich beurteilen. Ein KGV von 18 oder ein EV/FCF von 20 wirkt je nach Maßstab günstig oder teuer. Die Peer Group liefert dabei den treffsichersten Maßstab: Unternehmen mit ähnlichem Geschäftsmodell, die denselben Bedingungen unterliegen.
🎯 Was bedeutet das für Anleger?
Liegt eine Kennzahl unter dem Peer-Durchschnitt, ist die Aktie relativ günstiger bewertet, über dem Durchschnitt entsprechend teurer. Ein Abschlag zur Peer Group kann eine Chance sein, aber auch einen Grund haben (zum Beispiel geringeres Wachstum). Der Vergleich ist ein Startpunkt, kein Urteil.
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📘 Marktkapitalisierung
📈 Was ist das?
Die Marktkapitalisierung zeigt, wie viel ein Unternehmen laut Börse aktuell wert ist.
🧮 Wie wird es berechnet?
🏛️ Wofür ist es wichtig?
Sie hilft Unternehmen in Größenklassen (Large, Mid, Small Cap) einzuordnen und gibt Hinweise auf Marktmacht und Stabilität.
🧮 Berechnung
🎯 Was bedeutet das für Anleger?
- Große Unternehmen gelten als stabiler, zahlen oft Dividenden, wachsen aber langsamer.
- Kleine Firmen können stärker wachsen, sind aber schwankungsanfälliger.
- Die Marktkapitalisierung ist ein guter Indikator für Unternehmensgröße, aber kein Maß für Unter- oder Überbewertung.
📘 Enterprise Value (Unternehmenswert)
📈 Was ist das?
Der Enterprise Value (EV) zeigt, was ein Unternehmen tatsächlich kostet, wenn man es komplett übernehmen würde – inklusive Schulden und abzüglich Cash.
🧮 Wie wird es berechnet?
(= Marktkapitalisierung + Nettoverschuldung)
🏛️ Wofür ist es wichtig?
Der EV ist eine realistischere Bewertungsbasis als die Marktkapitalisierung, da er die Kapitalstruktur berücksichtigt. Er ist Grundlage für Kennzahlen wie EV/FCF oder EV/Sales.
🧮 Berechnung
🎯 Was bedeutet das für Anleger?
- Der Enterprise Value zeigt, was ein Unternehmen tatsächlich wert ist – unabhängig davon, wie es finanziert ist.
- Er ist besonders wichtig für professionelle Investoren, da er eine objektivere Grundlage für Bewertungsvergleiche bietet als die Marktkapitalisierung allein.
- Ein Unternehmen mit hoher Verschuldung erscheint im EV teurer, eines mit viel Cash günstiger – auch wenn sie an der Börse gleich viel wert sind.
📘 Nettoverschuldung
📈 Was ist das?
Die Nettoverschuldung zeigt, wie viele Schulden nach Abzug des verfügbaren Cashs tatsächlich verbleiben.
🧮 Wie wird es berechnet?
🏛️ Wofür ist es wichtig?
Sie zeigt, wie stark ein Unternehmen von Fremdkapital abhängig ist – und wie gut es in der Lage ist, seine Schulden kurzfristig zu bedienen.
🧮 Berechnung
🎯 Was bedeutet das für Anleger?
- Eine niedrige oder negative Nettoverschuldung bedeutet hohe finanzielle Stabilität.
- Unternehmen mit viel Cash und geringer Verschuldung sind besser gerüstet für Krisen.
- Eine hohe Nettoverschuldung erhöht das Risiko – besonders bei steigenden Zinsen oder konjunkturellen Schwächen.
📘 Cash
📈 Was ist das?
Der Cashbestand zeigt, wie viele liquide Mittel einem Unternehmen sofort zur Verfügung stehen.
🧮 Wie wird es berechnet?
🏛️ Wofür ist es wichtig?
Er gibt Auskunft über die finanzielle Flexibilität: Ein hoher Cashbestand ermöglicht Investitionen, Rückkäufe oder Krisenresistenz.
🧮 Berechnung
🎯 Was bedeutet das für Anleger?
- Ein hoher Cashbestand zeigt finanzielle Stärke und Handlungsspielraum.
- Cash kann für Investitionen, Schuldentilgung oder Aktienrückkäufe genutzt werden.
- Allerdings: Zu viel ungenutztes Kapital kann auch auf mangelnde Investitionsideen hinweisen.
📘 Anzahl ausstehender Aktien
📈 Was ist das?
Die Anzahl ausstehender Aktien gibt an, wie viele Aktien eines Unternehmens aktuell im Umlauf sind und von Investoren gehalten werden.
🧮 Wie wird es berechnet?
🏛️ Wofür ist es wichtig?
Sie ist die Grundlage für viele Kennzahlen wie Gewinn je Aktie (EPS), Marktkapitalisierung oder KGV.
🧮 Berechnung
🎯 Was bedeutet das für Anleger?
- Je weniger Aktien im Umlauf sind, desto höher fällt z. B. der Gewinn je Aktie aus – wichtig für Bewertung und Dividendenrendite.
- Aktienrückkäufe verringern die Anzahl ausstehender Aktien – und steigern den Wert je Aktie.
- Kapitalerhöhungen haben den gegenteiligen Effekt: mehr Aktien → Verwässerung der bestehenden Anteile.
📘 Kurs-Gewinn-Verhältnis (KGV)
📈 Was ist das?
Das KGV zeigt, wie oft der Gewinn pro Aktie im aktuellen Aktienkurs enthalten ist – also wie „teuer“ eine Aktie im Verhältnis zum Gewinn ist.
🧮 Wie wird es berechnet?
🏛️ Wofür ist es wichtig?
Das KGV gehört zu den bekanntesten Bewertungskennzahlen. Es hilft Anlegern einzuschätzen, ob eine Aktie im Vergleich zu ihrem Gewinn eher günstig oder teuer erscheint.
🧮 Berechnung
📊 KGV (TTM) = bezogen auf den Gewinn der letzten 12 Monate (Trailing Twelve Months):🎯 Was bedeutet das für Anleger?
- Ein niedriges KGV kann auf eine günstige Bewertung hindeuten – oder auf Probleme im Geschäftsmodell.
- Ein hohes KGV kann Wachstumserwartungen widerspiegeln – oder eine überbewertete Aktie.
📘 Kurs-Umsatz-Verhältnis (KUV)
📈 Was ist das?
Das KUV zeigt, wie viel Anleger für 1 € Umsatz eines Unternehmens zahlen – unabhängig vom Gewinn.
🧮 Wie wird es berechnet?
🏛️ Wofür ist es wichtig?
Das KUV ist besonders bei wachstumsstarken oder noch nicht profitablen Unternehmen hilfreich. Es zeigt, wie hoch der Umsatz an der Börse bewertet wird.
🧮 Berechnung
Marktkapitalisierung = 1,26 Mrd. $ | Umsatz (TTM) = 3,21 Mrd. $
Marktkapitalisierung = 1,26 Mrd. $ | Umsatz erwartet = 3,38 Mrd. $
🎯 Was bedeutet das für Anleger?
- Ein niedriges KUV kann auf Unterbewertung hindeuten – oder auf schwache Margen.
- Ein hohes KUV kann hohe Erwartungen widerspiegeln – oder übermäßigen Optimismus.
- Besonders sinnvoll bei Wachstumsunternehmen, bei denen der Gewinn oder Free Cashflow (noch) keine Aussagekraft hat.
📘 Unternehmenswert zu Umsatz (EV/Sales)
📈 Was ist das?
EV/Sales zeigt, wie viel Anleger für 1 € Umsatz eines Unternehmens zahlen, wenn man auch Schulden und Cash berücksichtigt – es ist eine kapitalstrukturbereinigte Version des KUV.
🧮 Wie wird es berechnet?
🏛️ Wofür ist es wichtig?
Diese Kennzahl eignet sich besonders für den Vergleich von Unternehmen mit unterschiedlicher Verschuldung – sie zeigt, wie teuer ein Unternehmen tatsächlich im Verhältnis zum Umsatz ist.
🧮 Berechnung
Enterprise Value = 2,87 Mrd. $ | Umsatz (TTM) = 3,21 Mrd. $
Enterprise Value = 2,87 Mrd. $ | Umsatz erwartet = 3,38 Mrd. $
🎯 Was bedeutet das für Anleger?
- EV/Sales ist neutral gegenüber der Kapitalstruktur und eignet sich gut für Unternehmensvergleiche.
- Ein niedriges Verhältnis kann auf eine günstig bewertete Aktie hindeuten – ein hohes Verhältnis auf hohe Erwartungen oder Überbewertung.
- Besonders nützlich bei wachstumsstarken, noch nicht profitablen Firmen.
📘 Unternehmenswert zu Free Cashflow (EV/FCF)
📈 Was ist das?
EV/FCF zeigt, wie viele Jahre es dauern würde, bis ein Unternehmen seinen Unternehmenswert durch freien Cashflow „zurückverdient”.
🧮 Wie wird es berechnet?
🏛️ Wofür ist es wichtig?
Diese Kennzahl hilft, Unternehmen auf Basis ihrer tatsächlichen Cash-Erträge zu bewerten – unabhängig von Bilanzierungsregeln oder buchhalterischem Gewinn.
🧮 Berechnung
🎯 Was bedeutet das für Anleger?
- Ein niedriges EV/FCF deutet auf eine günstige Bewertung bei starker Cashgenerierung hin.
- Ein hohes EV/FCF kann entweder auf Optimismus oder auf temporär schwachen Cashflow hindeuten.
- Besonders hilfreich bei reifen, profitablen Unternehmen mit stabilen Cashflows.
📘 Kurs-Buchwert-Verhältnis (KBV)
📈 Was ist das?
Das KBV zeigt, wie hoch der Marktwert eines Unternehmens im Verhältnis zu seinem bilanziellen Eigenkapital ist.
🧮 Wie wird es berechnet?
🏛️ Wofür ist es wichtig?
Das KBV ist besonders bei Substanzwerten (z. B. Banken, Industrie) relevant. Es hilft Anlegern zu erkennen, ob ein Unternehmen unter oder über seinem buchhalterischen Vermögen bewertet ist.
🧮 Berechnung
🎯 Was bedeutet das für Anleger?
- Ein KBV unter 1 kann auf Unterbewertung oder schwache Rentabilität hindeuten.
- Ein KBV über 1 zeigt, dass der Markt dem Unternehmen Mehrwert über den Buchwert hinaus zuschreibt (z. B. Marken, Patente, Wachstum).
- Das KBV eignet sich besonders gut für Unternehmen mit stabilen, materiellen Vermögenswerten.
📘 Dividende je Aktie
📈 Was ist das?
Die Dividende je Aktie zeigt, wie viel Geld ein Unternehmen pro Aktie an seine Aktionäre ausschüttet – typischerweise jährlich oder quartalsweise.
🧮 Wie wird es berechnet?
🏛️ Wofür ist es wichtig?
Sie ist die absolute Größe der Auszahlung je Aktie – wichtig für alle, die regelmäßige Erträge suchen oder Dividendenstrategien verfolgen.
🧮 Berechnung
🎯 Was bedeutet das für Anleger?
- Eine stabile oder wachsende Dividende je Aktie ist oft ein Zeichen für ein solides Geschäftsmodell.
- Die Dividende je Aktie allein sagt aber nichts über die Rendite – dafür ist auch der Aktienkurs relevant (→ Dividendenrendite).
- Langfristig steigende Dividenden sind oft ein sehr gutes Merkmal (z. B. Dividenden-Aristokraten).
📘 Dividendenrendite
📈 Was ist das?
Die Dividendenrendite zeigt, wie hoch die Dividende eines Unternehmens im Verhältnis zum Aktienkurs ist.
🧮 Wie wird es berechnet?
🏛️ Wofür ist es wichtig?
Sie hilft dabei, Dividendenaktien vergleichbar zu machen – unabhängig vom absoluten Auszahlungsbetrag.
🧮 Berechnung
🎯 Was bedeutet das für Anleger?
- Eine stabile Dividendenrendite kann auf verlässliche Ausschüttungen hinweisen.
- Ein Vergleich der 1J- und 5J-Rendite hilft zu erkennen, ob das Dividendenwachstum mit dem Kurswachstum Schritt hält.
- Eine niedrige Rendite ist nicht zwingend negativ – sie kann auf starkes Kurswachstum hindeuten.
📘 Dividendenwachstum
📈 Was ist das?
Das Dividendenwachstum zeigt, wie stark ein Unternehmen seine Dividende je Aktie über die Zeit gesteigert hat.
🧮 Wie wird es berechnet?
5J: durchschnittliche jährliche Wachstumsrate (CAGR)
🏛️ Wofür ist es wichtig?
Stetig steigende Dividenden gelten als Zeichen für finanzielle Stärke und Aktionärsorientierung – besonders interessant für langfristige Investoren.
🧮 Berechnung
Dividendenwachstum 5J (CAGR)🎯 Was bedeutet das für Anleger?
- Ein stabiles Dividendenwachstum ist ein Zeichen nachhaltiger Ertragskraft.
- Ein hohes Dividendenwachstum kann ein erheblicher Hebel deiner Rendite sein:
- Wenn ein Unternehmen z. B. 1 € Dividende zahlt und diese über 5 Jahre jährlich um 15 % erhöht, bekommst du im 5. Jahr bereits 2 € je Aktie – doppelt so viel wie zu Beginn!
📘 Ausschüttungsquote (Payout)
📈 Was ist das?
Die Ausschüttungsquote zeigt, wie viel Prozent des Unternehmensgewinns (pro Aktie) als Dividende an die Aktionäre ausgeschüttet wird.
🧮 Wie wird es berechnet?
🏛️ Wofür ist es wichtig?
Die Quote hilft einzuschätzen, ob eine Dividende auf Dauer tragfähig ist – besonders im Verhältnis zum erzielten Gewinn.
🧮 Berechnung
🎯 Was bedeutet das für Anleger?
- Eine niedrige Ausschüttungsquote bedeutet: Das Unternehmen behält einen größeren Teil des Gewinns für Investitionen – typisch für Wachstumsunternehmen.
- Eine moderate Quote (z. B. 25–50 %) steht oft für ein gesundes Gleichgewicht zwischen Ausschüttung und Zukunftsinvestitionen.
- Hohe Ausschüttungsquoten können attraktiv wirken, sind aber riskanter, wenn die Gewinne schwanken oder sinken.
📘 Dividendensteigerungen in Folge (Erhöhungen)
📈 Was ist das?
Diese Kennzahl zeigt, wie viele Jahre in Folge ein Unternehmen seine Dividende pro Aktie erhöht hat – ohne Kürzung oder Aussetzung.
🧮 Wie wird es berechnet?
🏛️ Wofür ist es wichtig?
Ein langer Track Record kontinuierlicher Erhöhungen spricht für Verlässlichkeit, solide Finanzen und aktionärsfreundliche Unternehmenspolitik.
🎯 Was bedeutet das für Anleger?
- Ein langer Zeitraum mit Dividendensteigerungen stärkt das Vertrauen – besonders in Krisenzeiten.
- Solche Unternehmen gelten als verlässlich und planbar für Einkommensinvestoren.
- Je länger die Serie, desto stärker das Commitment gegenüber den Aktionären.
📘 Umsatz
📈 Was ist das?
Der Umsatz zeigt, wie viel ein Unternehmen insgesamt mit seinen Produkten und Dienstleistungen verdient – also den Bruttoerlös vor Abzug von Kosten.
🧮 Wie wird es berechnet?
🏛️ Wofür ist es wichtig?
Der Umsatz ist eine der zentralen Kennzahlen zur Einschätzung der Unternehmensgröße, Marktstellung und Wachstumskraft.
🧮 Berechnung
🎯 Was bedeutet das für Anleger?
- Ein wachsender Umsatz zeigt eine steigende Nachfrage und kann ein guter Frühindikator für Gewinnsteigerungen sein.
- Vergleiche von aktuellem und erwartetem Umsatz geben Hinweise auf das Marktumfeld und Analystenerwartungen.
- Wichtig: Starker Umsatz allein genügt nicht – auch Margen und Profitabilität zählen.
📘 EBITDA
📈 Was ist das?
EBITDA steht für „Earnings Before Interest, Taxes, Depreciation and Amortization“ – also Gewinn vor Zinsen, Steuern und Abschreibungen. Es zeigt das operative Ergebnis eines Unternehmens, bereinigt um bilanztechnische und finanzierungsbedingte Effekte.
🧮 Wie wird es berechnet?
🏛️ Wofür ist es wichtig?
EBITDA ist eine verbreitete Kennzahl zur Beurteilung der operativen Leistungsfähigkeit – insbesondere bei kapitalintensiven Unternehmen oder im internationalen Vergleich.
🧮 Berechnung
🎯 Was bedeutet das für Anleger?
- Ein hohes oder wachsendes EBITDA spricht für starke operative Erträge – unabhängig von Bilanzierung oder Steuerlast.
- EBITDA ist besonders nützlich, um Unternehmen branchenübergreifend zu vergleichen.
- Wichtig: EBITDA ist keine offizielle Gewinnkennzahl – Abschreibungen und Finanzierungskosten werden ausgeklammert.
📘 EBIT
📈 Was ist das?
EBIT steht für „Earnings Before Interest and Taxes“ – also Gewinn vor Zinsen und Steuern. Es zeigt das operative Ergebnis eines Unternehmens nach Abschreibungen, aber vor Finanzierungs- und Steueraufwand.
🧮 Wie wird es berechnet?
🏛️ Wofür ist es wichtig?
EBIT ist eine zentrale Kennzahl zur Beurteilung der Profitabilität aus dem Kerngeschäft – unabhängig von Kapitalstruktur oder Steuersystem.
🧮 Berechnung
🎯 Was bedeutet das für Anleger?
- Ein hohes EBIT deutet auf ein profitables Kerngeschäft hin – vor Zinslasten oder steuerlichen Effekten.
- Es erlaubt objektivere Vergleiche zwischen Unternehmen mit unterschiedlicher Finanzierung.
- Im Vergleich mit EBITDA zeigt EBIT bereits den Einfluss von Abschreibungen auf das operative Ergebnis.
📘 Nettogewinn
📈 Was ist das?
Der Nettogewinn ist der verbleibende Jahresüberschuss (oder -fehlbetrag) eines Unternehmens – nach Abzug aller Kosten, Steuern, Zinsen und Abschreibungen
🧮 Wie wird es berechnet?
🏛️ Wofür ist es wichtig?
Der Nettogewinn ist die zentrale Erfolgskennzahl – er zeigt, wie profitabel ein Unternehmen nach allen Kosten tatsächlich arbeitet.
🧮 Berechnung
🎯 Was bedeutet das für Anleger?
- Ein steigender Nettogewinn zeigt, dass das Unternehmen effizient wirtschaftet – trotz aller Kosten.
- Die Entwicklung des Gewinns beeinflusst z. B. direkt das KGV und weitere Kennzahlen.
- Im Zeitverlauf lässt sich ablesen, wie stabil und profitabel ein Geschäftsmodell wirklich ist.
📘 Free Cashflow (FCF)
📈 Was ist das?
Der Free Cashflow gibt Aufschluss über die echte finanzielle Stärke eines Unternehmens – unabhängig von Bilanzierungsregeln. Er zeigt, wie viel Spielraum für Dividenden, Aktienrückkäufe oder Schuldenabbau besteht.
🧮 Wie wird es berechnet?
🏛️ Wofür ist es wichtig?
FCF reflects a company’s real financial strength – regardless of accounting profits. It shows how much flexibility a company has for dividends, share buybacks, or debt reduction.
🧮 Berechnung
🎯 Was bedeutet das für Anleger?
- Ein hoher Free Cashflow bedeutet, dass ein Unternehmen echte Finanzkraft besitzt – unabhängig vom bilanzierten Gewinn.
- Er ist oft die solideste Grundlage für nachhaltige Dividenden und Aktienrückkäufe.
- Sinkender FCF kann ein Warnsignal sein – auch wenn der Gewinn stabil aussieht.
📘 Umsatzwachstum
📈 Was ist das?
Das Umsatzwachstum zeigt, wie stark sich die Erlöse eines Unternehmens im Vergleich zum Vorjahr verändert haben – tatsächlich (TTM) und auf Prognosebasis (erwartet).
🧮 Wie wird es berechnet?
Erwartet = (Umsatz erwartet ÷ Umsatz Vorjahr − 1) × 100
Erwartetes Wachstum basiert auf Analystenschätzungen für das laufende Geschäftsjahr.
🏛️ Wofür ist es wichtig?
Ein wachsender Umsatz ist ein zentrales Signal für steigende Nachfrage, Geschäftsausweitung und Marktanteilsgewinne – besonders bei Wachstumsunternehmen.
🧮 Berechnung
🎯 Was bedeutet das für Anleger?
- Wachstum ist der Motor langfristiger Wertsteigerung – besonders bei Technologie- und Wachstumsaktien.
- Wichtig ist nicht nur das aktuelle Wachstum, sondern auch dessen Nachhaltigkeit.
- Prognosen zeigen, ob Analysten weiteres Potenzial erwarten – oder eine Verlangsamung.
📘 EBITDA-Wachstum
📈 Was ist das?
Das EBITDA-Wachstum zeigt, wie stark das operative Ergebnis eines Unternehmens vor Zinsen, Steuern und Abschreibungen im Vergleich zum Vorjahr gestiegen oder gesunken ist.
🧮 Wie wird es berechnet?
Erwartet = (erwartetes EBITDA ÷ EBITDA Vorjahr − 1) × 100
Erwartetes Wachstum basiert auf Analystenschätzungen für das laufende Geschäftsjahr.
🏛️ Wofür ist es wichtig?
Ein steigendes EBITDA ist ein Zeichen für verbesserte operative Ertragskraft – unabhängig von Finanzierungsstruktur oder Abschreibungen.
🧮 Berechnung
🎯 Was bedeutet das für Anleger?
- Starkes EBITDA-Wachstum signalisiert operative Effizienz und Skalierung – besonders relevant in Wachstumsphasen.
- EBITDA-Wachstum ist ein Frühindikator für Margen- und Gewinnentwicklung – sollte aber stets im Zusammenhang mit Umsatz und EBIT betrachtet werden.
📘 EBIT Wachstum
📈 Was ist das?
Das EBIT-Wachstum zeigt, wie stark das operative Ergebnis eines Unternehmens (nach Abschreibungen, aber vor Zinsen und Steuern) im Vergleich zum Vorjahr gewachsen ist.
🧮 Wie wird es berechnet?
Erwartet = (erwartetes EBIT ÷ EBIT Vorjahr − 1) × 100
Erwartetes Wachstum basiert auf Analystenschätzungen für das laufende Geschäftsjahr.
🏛️ Wofür ist es wichtig?
Das EBIT-Wachstum ist ein direkter Indikator für die wirtschaftliche Entwicklung des operativen Geschäfts – unter Berücksichtigung der Kapitalintensität (Abschreibungen).
🧮 Berechnung
🎯 Was bedeutet das für Anleger?
- Steigendes EBIT signalisiert wachsende operative Rentabilität – auch unter Berücksichtigung von Abschreibungen.
- Das EBIT-Wachstum ist ein wichtiges Maß zur Beurteilung von Geschäftsmodellen mit hohen Investitionskosten.
- Im Zusammenspiel mit Umsatz- und EBITDA-Wachstum ergibt sich ein umfassendes Bild zur operativen Entwicklung.
📘 Nettogewinn-Wachstum
📈 Was ist das?
Das Nettogewinn-Wachstum zeigt, wie stark der Jahresüberschuss eines Unternehmens gegenüber dem Vorjahr gestiegen oder gesunken ist – sowohl tatsächlich (TTM) als auch auf Basis von Prognosen (erwartet).
🧮 Wie wird es berechnet?
Erwartet = (erwarteter Nettogewinn ÷ Nettogewinn Vorjahr − 1) × 100
Der erwartete Wert basiert auf Analystenschätzungen für das laufende Geschäftsjahr.
🏛️ Wofür ist es wichtig?
Der Gewinn ist die entscheidende Ergebnisgröße für ein Unternehmen. Ein wachsender Nettogewinn deutet auf steigende Effizienz, stabile Kostenkontrolle und nachhaltige Ertragskraft hin.
🧮 Berechnung
🎯 Was bedeutet das für Anleger?
- Wachsender Nettogewinn stärkt die Bewertung, Dividendenfähigkeit und Kursfantasie.
- Stagnierender oder rückläufiger Gewinn trotz Umsatzwachstum kann auf Margendruck hinweisen.
📘 Free Cashflow-Wachstum
📈 Was ist das?
Das Free-Cashflow-Wachstum zeigt, wie sich der freie Mittelzufluss eines Unternehmens im Vergleich zum Vorjahr verändert hat – also der Betrag, der nach allen operativen Ausgaben und Investitionen übrig bleibt.
🧮 Wie wird es berechnet?
🏛️ Wofür ist es wichtig?
Free Cashflow ist der echte, verfügbare Geldzufluss. Wachstum in diesem Bereich ist ein Zeichen für finanzielle Stärke und steigende Flexibilität bei Dividenden, Rückkäufen oder Investitionen.
🧮 Berechnung
🎯 Was bedeutet das für Anleger?
- Sinkender Free Cashflow kann auf steigende Investitionen, höhere Kosten oder stagnierende operative Erträge hindeuten.
- Besonders bei Dividendenwerten ist das FCF-Wachstum wichtig – denn Dividenden werden letztlich aus dem verfügbaren Cash gezahlt.
- Ein negativer Trend sollte genauer analysiert werden – er ist nicht zwangsläufig schlecht, aber potenziell ein Warnsignal.
📘 Bruttomarge
📈 Was ist das?
Die Bruttomarge zeigt, wie viel vom Umsatz nach Abzug der direkten Herstellungskosten (Material, Produktion) als Bruttogewinn übrig bleibt – also der „Rohgewinn“ eines Unternehmens.
🧮 Wie wird es berechnet?
Auch: Bruttomarge = Bruttogewinn ÷ Umsatz × 100
🏛️ Wofür ist es wichtig?
Die Bruttomarge gibt Aufschluss über die Profitabilität eines Produkts oder Geschäftsmodells vor Fixkosten, Steuern und Zinsen. Sie zeigt, wie effizient ein Unternehmen produzieren oder einkaufen kann.
🧮 Berechnung
🎯 Was bedeutet das für Anleger?
- Eine hohe Bruttomarge deutet auf starke Preissetzungsmacht und effiziente Herstellung hin.
- Sinkende Bruttomargen können auf Kostensteigerungen oder Preisdruck hindeuten.
- Besonders im Vergleich zu Wettbewerbern liefert die Bruttomarge wertvolle Einblicke in die Geschäftsqualität.
📘 EBITDA-Marge
📈 Was ist das?
Die EBITDA-Marge zeigt, wie viel vom Umsatz als operativer Gewinn vor Zinsen, Steuern und Abschreibungen (EBITDA) übrig bleibt. Sie misst die operative Effizienz – ohne Verzerrungen durch Finanzierung oder Buchwerte.
🧮 Wie wird es berechnet?
🏛️ Wofür ist es wichtig?
Die EBITDA-Marge hilft zu verstehen, wie viel operativer Gewinn ein Unternehmen aus jedem Euro Umsatz erzielt – unabhängig von Kapitalstruktur oder steuerlichem Umfeld.
🧮 Berechnung
🎯 Was bedeutet das für Anleger?
- Eine hohe EBITDA-Marge zeigt starke operative Ertragskraft – unabhängig von Bilanzierungseffekten.
- Die Marge ermöglicht gute Vergleiche zwischen Unternehmen und Branchen.
- Ein stabiler oder wachsender Wert kann auf effiziente Kostenkontrolle und Skalierbarkeit hindeuten.
📘 EBIT-Marge
📈 Was ist das?
Die EBIT-Marge zeigt, wie viel Prozent des Umsatzes als operativer Gewinn nach Abschreibungen, aber vor Zinsen und Steuern übrig bleiben.
🧮 Wie wird es berechnet?
🏛️ Wofür ist es wichtig?
Die EBIT-Marge misst die operative Ertragskraft eines Unternehmens unter Berücksichtigung der Kapitalintensität (z. B. Maschinen, Anlagen). Sie eignet sich gut zum Vergleich von Geschäftsmodellen mit unterschiedlich hohen Abschreibungen.
🧮 Berechnung
🎯 Was bedeutet das für Anleger?
- Eine hohe EBIT-Marge zeigt, dass ein Unternehmen auch nach Abschreibungen effizient arbeitet.
- Sie ist besonders relevant in kapitalintensiven Branchen.
- Langfristig stabile oder steigende Margen sind ein Zeichen wirtschaftlicher Stärke und Preissetzungsmacht.
📘 Nettomarge
📈 Was ist das?
Die Nettomarge zeigt, wie viel vom Umsatz am Ende als „Reingewinn“ übrig bleibt – also nach Abzug aller Kosten, Zinsen, Steuern und Abschreibungen.
🧮 Wie wird es berechnet?
🏛️ Wofür ist es wichtig?
Die Nettomarge gibt an, wie effizient ein Unternehmen über alle Stufen hinweg wirtschaftet. Sie zeigt, wie viel Gewinn tatsächlich je Euro Umsatz übrig bleibt.
🧮 Berechnung
🎯 Was bedeutet das für Anleger?
- Eine hohe Nettomarge zeigt, dass ein Unternehmen nicht nur operativ stark ist, sondern auch seine Finanzierung und Steuerbelastung im Griff hat.
- Vergleiche mit Wettbewerbern geben Einblicke in die wirtschaftliche Qualität.
- Sinkende Nettomargen trotz Umsatzwachstum können ein Warnsignal sein – etwa für steigende Kosten oder sinkende Effizienz.
📘 Free Cashflow Marge
📈 Was ist das?
Die Free-Cashflow-Marge zeigt, wie viel vom Umsatz nach Abzug aller operativen Ausgaben und Investitionen tatsächlich als freier Mittelzufluss übrig bleibt.
🧮 Wie wird es berechnet?
🏛️ Wofür ist es wichtig?
Diese Marge misst die echte Liquidität, die ein Unternehmen erwirtschaftet – unabhängig von Bilanzierungsregeln oder Abschreibungen. Sie ist besonders relevant für Dividenden, Rückkäufe und Investitionen.
🧮 Berechnung
🎯 Was bedeutet das für Anleger?
- Eine hohe Free-Cashflow-Marge zeigt, dass ein Unternehmen nachhaltig liquide Mittel erwirtschaftet.
- Sie ist ein starkes Signal für finanzielle Stabilität und Ausschüttungspotenzial.
- Wichtig ist der langfristige Trend – sinkende Werte können auf steigende Investitionen oder rückläufige operative Effizienz hindeuten.
📘 Eigenkapitalquote
📈 Was ist das?
Die Eigenkapitalquote zeigt, wie hoch der Anteil des Eigenkapitals an der Bilanzsumme eines Unternehmens ist – also wie stark es sich aus eigenen Mitteln finanziert.
🧮 Wie wird es berechnet?
🏛️ Wofür ist es wichtig?
Eine hohe Eigenkapitalquote steht für finanzielle Stabilität, Krisenfestigkeit und gute Bonität. Sie ist besonders relevant bei der Beurteilung der Verschuldung.
🧮 Berechnung
🎯 Was bedeutet das für Anleger?
- Eine hohe Eigenkapitalquote signalisiert finanzielle Stabilität – besonders in Krisenzeiten.
- Ein niedriger Wert kann auf ein höheres Risiko oder eine aggressive Verschuldung hinweisen.
- Wichtig: Die Eigenkapitalquote sollte immer gemeinsam mit der Eigenkapitalrendite betrachtet werden. Nur so lässt sich beurteilen, ob ein Unternehmen nicht nur solide, sondern auch effizient wirtschaftet.
📘 Eigenkapitalrendite (ROE)
📈 Was ist das?
Die Eigenkapitalrendite zeigt, wie effizient ein Unternehmen mit dem Kapital seiner Aktionäre arbeitet – also wie viel Gewinn es pro Euro Eigenkapital erwirtschaftet.
🧮 Wie wird es berechnet?
🏛️ Wofür ist es wichtig?
Die Eigenkapitalrendite ist eine zentrale Rentabilitätskennzahl. Sie hilft Anlegern zu erkennen, ob das Unternehmen eine attraktive Verzinsung auf das eingesetzte Eigenkapital erwirtschaftet.
🧮 Berechnung
🎯 Was bedeutet das für Anleger?
- Eine hohe Eigenkapitalrendite spricht für ein starkes, effizientes Geschäftsmodell.
- Besonders interessant ist sie bei kapitalintensiven Firmen oder solchen mit hoher Eigenkapitalquote.
- Wichtig: Ein sehr hoher ROE kann auch auf hohe Schulden hinweisen – daher sollte sie immer im Kontext mit der Eigenkapitalquote betrachtet werden.
📘 Return on Capital Employed (ROCE)
📈 Was ist das?
ROCE misst die Gesamtrentabilität eines Unternehmens – also wie effizient es das eingesetzte Kapital (Eigen- und Fremdkapital) zur Gewinnerzielung nutzt.
🧮 Wie wird es berechnet?
Das eingesetzte Kapital ist das gesamte betriebsnotwendige Kapital, unabhängig von der Finanzierungsquelle.
🏛️ Wofür ist es wichtig?
ROCE eignet sich besonders gut für den Vergleich unterschiedlich finanzierter Unternehmen. Es zeigt, wie effektiv ein Unternehmen Kapital investiert – unabhängig von der Kapitalstruktur.
🧮 Berechnung
🎯 Was bedeutet das für Anleger?
- Ein hoher ROCE zeigt, dass ein Unternehmen sein Kapital effizient einsetzt – unabhängig davon, ob es durch Eigen- oder Fremdkapital finanziert ist.
- Je höher der ROCE im Vergleich zu ähnlichen Unternehmen, desto mehr Wert schafft das Unternehmen mit seinem investierten Kapital.
- Besonders wichtig ist der ROCE bei Firmen mit hohen Investitionen – z. B. in Industrie, Energie oder Infrastruktur.
📘 Return on Invested Capital (ROIC)
📈 Was ist das?
ROIC zeigt, wie effizient ein Unternehmen das Kapital investiert, das langfristig im operativen Geschäft gebunden ist – unabhängig davon, ob es aus Eigen- oder Fremdkapital stammt.
🧮 Wie wird es berechnet?
- NOPAT = „Net Operating Profit After Taxes“
- Investiertes Kapital = operatives Vermögen abzüglich nicht-verzinster Schulden
🏛️ Wofür ist es wichtig?
ROIC ist eine der präzisesten Kennzahlen zur Bewertung der Kapitalrendite – besonders im Vergleich zur Eigenkapitalrendite, weil es Verzerrungen durch Schulden vermeidet. Er zeigt, ob ein Unternehmen Mehrwert für alle Kapitalgeber schafft.
🧮 Berechnung
🎯 Was bedeutet das für Anleger?
- Ein hoher ROIC zeigt, wie gut ein Unternehmen mit dem tatsächlich investierten (betriebsnotwendigen) Kapital wirtschaftet.
- Im Unterschied zu ROCE wird nur Kapital betrachtet, das wirklich zur Finanzierung operativer Aktivitäten dient – und verzinst werden muss.
- Besonders hilfreich, um die Kapitalrendite von Unternehmen mit viel „überschüssigem“ Kapital oder zinsfreien Verbindlichkeiten realistisch zu vergleichen.
📘 Verschuldungsgrad (Leverage Ratio)
📈 Was ist das?
Der Verschuldungsgrad zeigt, wie stark ein Unternehmen durch verzinsliche Schulden (z. B. Kredite und Anleihen) im Verhältnis zum Eigenkapital finanziert ist.
🧮 Wie wird es berechnet?
🏛️ Wofür ist es wichtig?
Die Kennzahl hilft, das finanzielle Risiko und die Abhängigkeit von Fremdkapital zu beurteilen. Ein hoher Verschuldungsgrad kann die Eigenkapitalrendite steigern – birgt aber auch erhöhte Risiken bei Zinsanstiegen oder Liquiditätsengpässen.
🧮 Berechnung
🎯 Was bedeutet das für Anleger?
- Ein niedriger Verschuldungsgrad steht für finanzielle Stabilität und Unabhängigkeit.
- Ein hoher Wert kann auf erhöhte Risiken hinweisen – insbesondere bei schwankenden Zinsen oder konjunkturellen Schwächen.
- Wichtig: Immer im Kontext zur Branche und Kapitalintensität bewerten.
📘 Ergebnis je Aktie (EPS)
📈 Was ist das?
Das Ergebnis je Aktie (EPS) zeigt, wie viel Gewinn auf eine einzelne Aktie entfällt – und ist eine der wichtigsten Kennzahlen zur Bewertung von Unternehmen.
🧮 Wie wird es berechnet?
Die verwässerte Aktienanzahl berücksichtigt auch potenzielle neue Aktien, etwa durch Optionen, Wandelanleihen oder andere Umtauschrechte.
🏛️ Wofür ist es wichtig?
EPS bildet die Basis für viele Bewertungskennzahlen wie KGV, PEG oder Payout Ratio. Es macht den Gewinn für Aktionäre vergleichbar – unabhängig von der Unternehmensgröße.
🧮 Berechnung
🎯 Was bedeutet das für Anleger?
- EPS hilft, die Profitabilität pro Aktie zu erfassen – und ist besonders wichtig im Zeitvergleich oder im Vergleich mit Analystenschätzungen.
- Steigendes EPS kann ein Zeichen für stabiles Wachstum oder Aktienrückkäufe sein.
- Wichtig: Verwende verwässertes EPS für realistische Bewertungen – besonders bei stark aktienbasierten Vergütungssystemen.
📘 Free Cashflow je Aktie (FCF je Aktie)
📈 Was ist das?
Der Free Cashflow je Aktie zeigt, wie viel freier Mittelzufluss einem Unternehmen pro Aktie zur Verfügung steht – nach Investitionen, aber vor Dividenden oder Schuldentilgung.
🧮 Wie wird es berechnet?
🏛️ Wofür ist es wichtig?
Der FCF je Aktie zeigt, wie viel liquide Mittel pro Aktie tatsächlich im Unternehmen verbleiben – wichtig für Dividenden, Aktienrückkäufe oder Schuldentilgung. Im Gegensatz zum Gewinn ist er schwerer manipulierbar und daher besonders aussagekräftig.
🧮 Berechnung
🎯 Was bedeutet das für Anleger?
- Ein hoher Free Cashflow je Aktie ist ein Zeichen für hohe finanzielle Flexibilität.
- Er zeigt, wie viel Kapital ein Unternehmen effektiv einsetzen oder ausschütten kann.
- Besonders relevant für dividendenstarke Unternehmen oder solche mit starker Kapitalrendite.
📘 Short Interest
📈 Was ist das?
Short Interest zeigt, wie viele Aktien eines Unternehmens aktuell leerverkauft wurden – also von Investoren geliehen und verkauft, in der Erwartung fallender Kurse.
🧮 Wie wird es berechnet?
Der Wert zeigt den Anteil der Aktien, der aktuell auf fallende Kurse spekuliert wird.
🏛️ Wofür ist es wichtig?
Short Interest dient als Stimmungsindikator: Ein hoher Wert deutet auf Skepsis oder negative Erwartungen gegenüber dem Unternehmen hin – kann aber auch zu einem „Short Squeeze“ führen, wenn der Kurs plötzlich steigt.
🧮 Berechnung
🎯 Was bedeutet das für Anleger?
- Ein niedriger Short Interest deutet auf Vertrauen in das Unternehmen hin.
- Ein hoher Wert kann ein Warnsignal sein – oder eine Chance, wenn sich die Stimmung dreht.
- Besonders spannend in volatilen Märkten oder vor wichtigen Quartalszahlen.
📘 Employees
📈 Was ist das?
Die Mitarbeiteranzahl zeigt, wie viele Personen ein Unternehmen weltweit beschäftigt – ein Indikator für Größe, Struktur und Geschäftsmodell.
🧮 Wie wird es berechnet?
🏛️ Wofür ist es wichtig?
Sie hilft bei der Einschätzung von Skaleneffekten, Effizienz und Personalkosten. Zusammen mit Umsatz und Gewinn lassen sich Kennzahlen wie Produktivität je Mitarbeiter ableiten.
🧮 Berechnung
🎯 Was bedeutet das für Anleger?
- Viele Mitarbeiter bedeuten große operative Komplexität – aber auch hohes Umsatzpotenzial.
- Produktivität je Mitarbeiter ist ein wichtiger Indikator für Effizienz.
- Besonders spannend bei stark wachsenden Tech- oder Industrieunternehmen.
📘 Umsatz je Mitarbeiter
📈 Was ist das?
Der Umsatz je Mitarbeiter zeigt, wie viel Erlös ein Unternehmen durchschnittlich pro Beschäftigtem erwirtschaftet – eine Kennzahl für Effizienz und Produktivität.
🧮 Wie wird es berechnet?
Die Mitarbeiterzahl stammt in der Regel aus dem letzten verfügbaren Jahresbericht.
🏛️ Wofür ist es wichtig?
Diese Kennzahl hilft, Geschäftsmodelle zu vergleichen – insbesondere zwischen arbeitsintensiven und technologiegetriebenen Unternehmen. Ein hoher Wert deutet auf Automatisierung, Effizienz oder hohen Wertschöpfungsanteil hin.
🧮 Berechnung
🎯 Was bedeutet das für Anleger?
- Ein hoher Umsatz je Mitarbeiter spricht für ein skalierbares und margenstarkes Geschäftsmodell.
- Ein niedriger Wert kann auf arbeitsintensive Prozesse oder geringere Wertschöpfung hinweisen.
- Besonders hilfreich beim Vergleich von Tech- vs. Industrieunternehmen.
Nabors Industries Ltd. Aktie Analyse
Analystenmeinungen
12 Analysten haben eine Nabors Industries Ltd. Prognose abgegeben:
Analystenmeinungen
12 Analysten haben eine Nabors Industries Ltd. Prognose abgegeben:
Nabors Industries Ltd. Events
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Nabors Industries Ltd. — Q2 2026 Earnings Call
1. Management Discussion
Good day, and welcome to the Second Quarter 2026 Nabors Industries Ltd. Earnings Conference Call. [Operator Instructions] Please note this event is being recorded.
I would now like to turn the conference over to Mr. William Conroy, Vice President of Investor Relations. Please go ahead, sir.
Good morning, everyone. Thank you for joining Nabors' Second Quarter 2026 Earnings Conference Call. Today, we will follow our customary format with Tony Petrello, our Chairman, President and Chief Executive Officer; and Miguel Rodriguez, our Chief Financial Officer, providing their perspectives on the quarter's results along with insights into our markets and how we expect Nabors to perform in these markets.
In support of these remarks, a slide deck is available, both as a download within the webcast and in the Investor Relations section of nabors.com. Instructions for the replay of this call are posted on the website as well. With us today, in addition to Tony, Miguel and me, are other members of the senior management team.
Since much of our commentary today will include our forward expectations, they may constitute forward-looking statements within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934. Such forward-looking statements are subject to certain risks and uncertainties as disclosed by Nabors from time to time in our Securities and Exchange Commission. As a result of these factors, our actual results may vary materially from those indicated or implied by such forward-looking statements.
Also, during the call, we may discuss certain non-GAAP financial measures, such as net debt, adjusted operating income, adjusted EBITDA and adjusted free cash flow. All references to EBITDA made by either Tony or Miguel during their presentations, whether qualified by the word adjusted or otherwise, mean adjusted EBITDA as that term is defined on our website and in our earnings release.
Likewise, unless the context clearly indicates otherwise, references to cash flow mean adjusted free cash flow as that non-GAAP measure is defined in our earnings release. We have posted to the Investor Relations section of our website a reconciliation of these non-GAAP financial measures to the most recently comparable GAAP measures. With that, I will turn the call over to Tony to begin.
Good morning. Thank you for joining us to review our second quarter results. Once again, we delivered strong operational execution and achieved several strategic milestones. Let's start with our financial results.
Adjusted EBITDA totaled $222 million, well above our expectations. We exceeded the guidance we provided last quarter across all four reporting segments. Daily margins were especially strong in our Lower 48 and international drilling businesses. This metric expanded sequentially in both operations, outperforming our guidance. Those gains reflect disciplined commercial execution, operational excellence and outstanding work by our teams around the world.
The quarter also included several significant milestones. First, our SANAD joint venture placed another newbuild rig into service, its 16th. SANAD also returned one previously suspended rig to work. Two of SANAD's three suspended rigs are now back on contract.
We also began drilling on Quaise Energy project Obsidian in Oregon. This project represents the first commercial application of super hot enhanced geothermal systems. The project is ultimately targeted to deliver gigawatt-scale geothermal power. Additionally, we commissioned two of our highest specification PACE-X Ultra rigs for Caturus, one in South Texas and the other in East Texas.
In our Rig Technologies business, Canrig introduced its first advanced, fully automated TITAN rig floor wrench into commercial service. Early field results have been exceptional. TITAN combines superior torque accuracy, faster connection time, consistent makeup in bite and lower cost of ownership in a simpler machine. That is an unmatched combination in a rig floor wrench today.
Finally, NDS' ROCKit drill string oscillation software secured an important competitive win. ROCKit displaced an incumbent competitor on multiple third-party rigs. This win demonstrates ROCKit's technology leadership and compelling value proposition.
Next, I'll discuss our key international markets. I'll also outline why Nabors is strongly positioned to gain share and grow earnings in each of them. Our international footprint focuses on key markets across the Middle East and Latin America. Saudi Arabia remains the cornerstone of this business. The Saudi land rig market continues to recover. Approximately 196 land rigs are currently operating in the Kingdom. That number is up by four compared to last quarter. It is up by 35 from this market's recent low in the third quarter of 2025. The current count still stands 28 rigs below the peak in early 2024.
Our SANAD joint venture currently operates 55 rigs in the Kingdom. That number includes 16 rigs delivered through the newbuild program and two previously suspended rigs that have returned to service. With a 28% market share, SANAD is the largest land drilling contractor in Saudi Arabia. In addition to this scale, our fleet aligns well with the Kingdom's strategic priorities. Of the industry's land rigs running currently in the Kingdom, approximately 2/3 work in natural gas. SANAD's gas exposure is even greater with nearly 3/4 in gas. This positions SANAD at the center of Saudi Aramco's investment in expanding natural gas production.
Despite regional geopolitical tensions, SANAD's operations have continued without interruption, and the growth ahead is substantial. 34 rigs remain to be delivered under the 50-rig newbuild program. SANAD has a clear runway for additional earnings growth over the next several years.
Beyond Saudi Arabia, our Gulf business continues to perform exceptionally well. In both Kuwait and Oman, our rigs have operated continuously since the commencement of the conflict. In Kuwait, we have three deep gas exploration rigs running. They are on long-term contracts that commenced in 2025. The opportunity extends well beyond today's fleet. Kuwait continues investing in gas development. Current tender activity for additional high-specification rigs supports our expectation that this market will expand.
In Oman, we have four rigs running. They continue to perform well. Multiple tenders are now underway, which could create additional opportunities across several operators. Taken together, Saudi Arabia, Kuwait and Oman provide a strong growth corridor in our international portfolio. Our high-specification fleet and long-standing customer relationships position us well to capture incremental work.
On top of our rig businesses in the region, NDS has established significant market positions in Saudi Arabia and the UAE. NDS holds the #1 market share in casing running in both countries. These two geographies already rank as the second and third largest international contributors to NDS' EBITDA.
Next, I'll shift over to Latin America, starting with Argentina. Argentina continues to be one of Nabors' most compelling international success stories. We are currently operating 13 rigs in the country. Another is earning revenue under an O&M contract. The client base is well diversified. Our fleet currently works for five different operators. With a 30% market share, Nabors holds the largest position in the country. We are now mobilizing another rig to Argentina. That will bring the Nabors total to 14 rigs, further extending our leadership in this market. Of our working fleet in Argentina, at the end of the quarter, five were formerly idle units in the Lower 48. This demonstrates our ability to optimize assets globally under long-term contracts. We can generate attractive returns without incurring incremental newbuild capital.
The value of Argentina extends beyond drilling. Our Drilling Solutions business has become deeply embedded in the development of the Vaca Muerta. The client base there has widely adopted the NDS technology portfolio. NDS accounts for approximately 46% of our EBITDA in Argentina in the first half of 2026. This marks the highest contribution of any country in our portfolio, illustrating our strategy of the rig as a platform in action. We combine premium drilling rigs with differentiated technology to optimize performance, increase margins, deepen customer relationships and expand returns beyond the rig itself.
We believe Argentina is one of the most attractive international growth markets. Our view is supported by world-class resources, compelling project economics and an increasingly stable operating environment.
I'll wrap up the international market discussion with Venezuela. The outlook there has improved materially this year. Today's drilling activity remains limited with less than a handful of rigs running. By comparison, in 2013, more than 85 rigs were operating. Given the large resource base in the country and the proximity to suitable refining capacity, Venezuela holds enormous potential.
Nabors has a long history in Venezuela. One of our predecessor companies, Loffland Brothers, started there nearly 70 years ago. Today, we have five idle rigs in the country. We are well positioned should activity resume. Several large operators have expressed interest in restarting drilling programs. Under the right commercial conditions, Venezuela has the potential to become another meaningful contributor to our international business over time.
To summarize, the international environment, the broader picture is encouraging. Across our existing international footprint, we are tracking opportunities representing more than 40 incremental rigs. This number, spread among 10 countries, indicates a robust market for additional rigs. That opportunity set reflects the strength of our customer relationships, the quality of our rig fleet and the increasing demand for high-performance drilling and technology solutions. As always, our approach remains disciplined and selective. We will pursue only those opportunities that meet our return thresholds and strengthen long-term shareholder value.
I'll conclude my remarks on the international markets with the following: Our Arabian Gulf operations continue without interruption, demonstrating the resilience of our people, infrastructure and customer relationships. SANAD continues to strengthen its leadership position in Saudi Arabia through newbuild deliveries and returning suspended rigs to service. Argentina showcases the power of our integrated strategy, combining drilling and technology to deliver industry-leading returns. Venezuela presents an improving long-term opportunity where our fleet and technology positions us to capture additional upside.
Next, let me turn to the U.S. Lower 48. The industry strengthened during the second quarter. From the end of the first quarter to the end of the second quarter, the Baker Hughes Lower 48 land rig count increased by 31 rigs or 6%. This marks a notable upward turn after the modest decline in the first quarter. This compares to the most recent high of 568 set in February 2025. The Baker quarterly average rig count increased by five rigs or 1% in the second quarter.
Looking a bit deeper at the Lower 48 industry in the second quarter, the Baker end-to-end oil rig count increased by 8%. The gas rig count declined slightly. By region, the oil-directed increase was concentrated in the Permian, the Austin Chalk and the Granite Wash. And in terms of operator type per Enverus, public operators held flat, while private operator activity increased sequentially by 17%.
To sum up, the growth in the Lower 48 rig market during the quarter, it was oil, it was in Texas, and it was generally smaller operators. Our experience, however, looked different, and we believe better. We added five rigs to our count during the second quarter. These were a mix of oil, gas and geothermal. Our activity was diversified across regions.
Importantly, two of those contracts came from a super major. That distinction matters. Larger operators tend to run longer duration drilling programs. They adopt advanced technologies earlier and provide greater earnings visibility than smaller independents. By quarter end, nearly 70% of our working Lower 48 fleet serves publicly traded operators. That customer mix continues to differentiate Nabors.
Let me conclude with a few comments on this market's economics. The improving utilization environment is beginning to translate into stronger financial performance. During the quarter, our Lower 48 daily revenue improved by more than $900 sequentially. At the same time, we added term to our Lower 48 contract backlog. By quarter end, more than 45% of our rigs in this market had at least six months of remaining duration. We expect to be at approximately 50% in the third quarter.
Looking ahead, our quarterly survey of large Lower 48 operators indicates a constructive outlook. This group accounted for approximately 43% of this market's working rig count. They increased their rig count by 12 rigs during the second quarter. This increase was concentrated among four operators.
A quarter ago, the survey indicated a 15-rig addition through the end of the year. Those were mainly in just two operators. In the second quarter, these two operators account for just a few of the group's increased rig count. Also a quarter ago, we mentioned that the sentiment reflected in the survey favored incremental activity above the expected rig count. Some of this positive sentiment translated into actual rig additions during the quarter. Now looking through the end of 2026, the survey reveals another 11 rigs expected to be added, concentrated in two operators. Taken together, customer plans, improving utilization and stronger commercial conditions all support our confidence in continued activity and pricing momentum through the balance of this year and into 2027.
Next, I will make a few remarks about our technology and innovation. Technology remains one of Nabors' most important competitive advantages. Our strategy is straightforward: develop technologies that improve drilling performance, expand customer returns and increase the earnings power of every rig we operate. The second quarter again demonstrated that strategy at work. On Nabors' own Lower 48 rigs, NDS revenue increased sequentially by 11%, outpacing fleet growth. Growth was led by MPD and RigCloud, demonstrating continued customer adoption of higher-value software and automation solutions.
The same pattern is evident on third-party rigs. While third-party average rig count increased only 1%, NDS revenue grew 12%. Strong demand for our software products produced this result. That spread illustrates an important point. Our technology business is growing because customers are adopting more of our solutions.
Earlier, I mentioned the deployment of two PACE X Ultra rigs. Those rigs entered service fully equipped with the MDS technology suite, including technology offerings, daily revenue meaningfully exceeds $40,000 per rig. That demonstrates the economic power of integrating premium rigs with premium technology and highlights our rig as a platform strategy at work. It creates higher revenue, stronger margins, deeper customer relationships and greater differentiation than either business could achieve independently. That remains one of Nabors' clearest competitive advantages.
Now let me turn to Miguel to discuss our financial results in detail.
Thank you, Tony, and good morning, everyone. As Tony highlighted, we delivered a strong second quarter, exceeding the outlook we provided in April. This performance was broad-based with every operating segment ahead of expectations, led by Lower 48 and international drilling. In international drilling, our Middle East operations continued without disruption and maintain a powerful tempo despite conflict-related challenges in the region. The financial impact of the related cost pressure was broadly in line with our guidance, reflecting exceptionally strong execution by our teams and the resilience of our global supply chain.
In our Lower 48 operation, rig count and margins exceeded our expectations, supported by improved pricing, longer contract duration and deep relationships with high-quality customers, all while maintaining disciplined commercial execution. Collectively, these results underscore the strength of our portfolio, the durability of our earnings power and our ability to convert improved activity into a stronger financial performance.
Turning to the financials. I will review our second quarter sequential performance and then provide our outlook for the third quarter. Then I will conclude with updates on capital allocation and adjusted free cash flow. In the second quarter, consolidated revenue was $815 million, an increase of $31 million or 4% sequentially, with growth across every operating segment. EBITDA reached $222 million, exceeding the upper end of our implied guidance. EBITDA margin expanded 107 basis points to 27.2% with a very strong 54% fall-through. This performance reflects outstanding portfolio-wide execution.
Turning to our segment results. International drilling revenue was $432 million, an increase of $13 million or 3.1%. EBITDA increased to $131 million, up $9 million or 7.6%. EBITDA margin expanded 127 basis points to 30.2% with a robust 71% fall-through. The segment's EBITDA performance exceeded the target implied by our guidance for activity and daily margins.
Average rig count increased from 92.6 to 93.4. Growth was driven by the deployment of two SANAD rigs in Saudi Arabia, the 16 newbuild and the resumption of eight previously suspended rigs and the full quarter contribution from rigs that commenced operations in the first quarter. These additions were partially offset by the contract roll-off of two lower-margin rigs, one in Algeria and one in India. Average daily rig margin increased to $17,534, up $654 sequentially and above the high end of our guidance range. The improvement reflects the benefit of recent rig deployments, strong commercial and operational execution and normal contract transitions across the portfolio.
Moving on to U.S. drilling. Revenue increased to $252 million, up $11 million or 4.7% sequentially. EBITDA increased to $94 million, up $6 million or 6.8%. EBITDA margin expanded 75 basis points to 37.3% with a solid 53% fall-through. These results exceeded our implied guidance, driven by our performance in the Lower 48, which resulted from stronger activity, improved pricing and continued operating discipline, yielding a robust Lower 48 EBITDA improvement of 11%.
Our combined Alaska and offshore businesses performed in line with our expectations. Within U.S. drilling, Lower 48 revenue increased to $207 million, up $15 million or 7.8%, driven by activity growth and improved pricing. During the quarter, we added five rigs across all our major basins while maintaining commercial discipline. This growth reflects the strength of our client relationships, the demand of our highest specification fleet and our operational execution.
Average working rig count increased by 2.5 to 67.8, reaching the upper bound of our guidance range. We exited the second quarter with 71 rigs working and have since increased activity to 73 rigs. Average daily revenue increased by $902 to $33,555, driven by rigs rolling on to new contracts at higher rates.
Leading-edge pricing continues to improve, supporting our expectation for progressively higher rates as utilization tightens. Currently, leading-edge daily revenue has increased into the low to mid-$30,000 range. We are confident that our pricing will reach or exceed the mid-$30,000 as we progress through the balance of this year and into 2027. Average daily margin increased by $607 to $13,784, approximately $500 higher than our guidance, driven by pricing gains in a tightening market and a strong operational performance.
Turning to Alaska and U.S. offshore. On a combined basis, revenue was $46 million and EBITDA was $15 million, resulting in an EBITDA margin of 33.5%, in line with our guidance.
Now to Drilling Solutions. NDS revenue increased by $4 million or 4.2% to $111 million. EBITDA increased by $1 million, up 3.5% to $40 million, resulting in an EBITDA margin of 36.2%. EBITDA was 3% above our guidance, primarily supported by higher penetration across both Nabors and third-party rigs in the Lower 48, up by 11% and 12%, respectively.
Internationally, continued growth in Saudi Arabia and Argentina was partially offset by lower asset sales in certain markets. NDS remains a strong cash generator, converting approximately 90% of EBITDA into free cash flow during the quarter, underscoring the strength of its capital-light operating model.
Now on to Rig Technologies. Revenue increased to $37 million, up 37.7%, while EBITDA improved to $3.2 million, modestly exceeding our guidance. The improvement was driven by higher activity across the portfolio, led by a stronger performance in the Middle East.
Turning to our third quarter outlook. In International drilling, we expect average rig count to range between 94 and 96, supported by the deployment of the 17 SANAD newbuild rig in Saudi Arabia, the redeployment of an idle U.S. rig to Argentina and the commencement of a short-term geothermal contract in Indonesia. We expect to exit the third quarter with 96 rigs working.
Average daily gross margin is expected to improve to a range of $18,100 to $18,400. This increase reflects the contribution from higher-margin rig additions and continued strong execution despite persistent cost friction related to the Middle East conflict.
Turning to U.S. drilling. We expect the average Lower 48 working rig count to increase to approximately 73 and to exit the quarter with 74 rigs operating. Daily adjusted gross margin is expected to remain approximately flat with the second quarter at $13,800 as fewer near-term renewal opportunities limit additional pricing gains. We expect U.S. industry activity to build progressively, supported by stable oil prices and an improving outlook for natural gas demand. At the same time, operators remain disciplined in allocating capital, reinforcing a selective performance-driven market that aligns well with Nabors' highest specification fleet and operating capabilities.
As industry utilization continues to improve, the supply of readily deployable super-spec rigs is becoming increasingly constrained. Against that backdrop, we will continue to evaluate reactivation opportunities through a disciplined capital allocation framework, investing only where expected returns and contract duration justify the capital required. We are encouraged by the incremental opportunities we see through the remainder of the year.
Turning to Alaska and U.S. offshore combined, we expect EBITDA of approximately $11 million, reflecting lower activity in the offshore business. For Drilling Solutions, we expect EBITDA to increase by 5% sequentially to approximately $42 million, driven by continued technology adoption and activity growth. For Rig Technologies, EBITDA is expected to improve to a range of $5 million to $6 million. Overall, we expect our consolidated EBITDA margin to increase by approximately 100 basis points in the third quarter.
Next, I will discuss our capital allocation and adjusted free cash flow. Second quarter capital expenditures totaled $158 million, essentially in line sequentially and below our guidance range, primarily due to timing of a few SANAD newbuild milestones. Total CapEx included $46 million associated with the Kingdom's newbuild program. Looking ahead to the third quarter, we expect capital expenditures of $245 million to $255 million, including approximately $130 million for the SANAD newbuilds.
For the full year, we now expect consolidated capital expenditures of $710 million to $730 million, including $325 million to $335 million for the SANAD newbuild program. The reduction in SANAD's newbuild outlook reflects the movement of certain construction milestones into early 2027.
Beyond SANAD, improving activity in the Lower 48 and certain international markets could create additional investment opportunities. We are very well positioned to participate selectively, deploying capital only where the customer and opportunity are strategic and the commercial terms meet our return thresholds. We remain firmly committed to capital discipline and expect spending to remain within our updated guidance range.
Turning to free cash flow. During the second quarter, Nabors generated consolidated adjusted free cash flow of $12 million, modestly above our guidance. The mix differ from our expectations, reflecting the timing of SANAD newbuild milestones and slower collections in Mexico and the United States. SANAD generated positive free cash flow of $38 million, while the business outside SANAD used approximately $26 million. We view the collections headwind as timing related and expect this will normalize over the balance of the year. For the third quarter, we expect to use approximately $40 million of consolidated adjusted free cash flow, including approximately $65 million of cash consumption by SANAD.
The second quarter demonstrated the strength of our operating platform with each business segment outperforming our expectations. We are encouraged by the momentum in the Lower 48, the strong tempo in our international performance and the continued growth across our technology businesses. Reflecting our strong first half performance and the continued business momentum, we now expect full year EBITDA of $920 million to $930 million, above both our prior expectations and the prior year level. We believe we are well positioned to exceed our full year adjusted free cash flow guidance and now expect to generate $20 million to $30 million, even with SANAD consuming $60 million to $80 million.
We remain committed to reducing gross debt by at least $100 million during 2026, consistent with our long-term objective of reducing net leverage to approximately one turn. With that, I will turn the call back to Tony.
Thank you, Miguel. Let me leave you with three thoughts. First, we exceeded our implied EBITDA guidance across every reporting segment. That reflects disciplined execution throughout the company. Second, our international franchise continues to strengthen. It is unique and second to none. SANAD added another newbuild, returned additional suspended capacity to work and remains on track with its expansion program, creating a long runway for profitable growth. Third, the Lower 48 continues to validate our strategy. Premium rigs, integrated technology and operational excellence are expanding margins, increasing customer adoption and improving the quality of our earnings.
If there are two takeaways from today's discussion, they are Nabors is executing from a position of strength, and we deliver on our commitments. Our international business continues to grow. Our Lower 48 franchise is capturing improving market conditions. Our technology portfolio is becoming an increasingly important driver of earnings and differentiation. And across the company, we're improving margins, strengthening cash generation and raising the quality of the business.
We're pursuing growth with discipline. We're allocating capital where returns justify investment. And we're leveraging our global platform and technology leadership to create durable value for our shareholders. We still see significant opportunity ahead, and we're well positioned to capture it. Thank you for your time this morning. We'll now take your questions.
[Operator Instructions] And our first question for today will come from Joe Laetsch with Morgan Stanley.
2. Question Answer
So I wanted to start on the U.S. Lower 48. So you added five rigs during the quarter, currently sit at 73, expect to exit 3Q at 74 rigs and then expand slightly from there. I know it's a bit early, but could you just talk to how you're thinking about the puts and takes on activity and pricing as we get into the fourth quarter as well as into 2027? And then I think you talked about pricing reaching or exceeding the mid-$30,000 level.
I think that's exactly right. I think we see a market where there continues to be disciplined by the major players, a lot of confidence in the market, but no one is getting carried away and more of the activity up and down has been the privates returning to the market. But the good news is the super-spec percentage is going up of utilization. And once it hits a certain number, as you all know, that's when pricing starts to accelerate. So we see, as we go into the second half of the year, things are going to accelerate. And as you observed, yes, that target number of the mid-30s is -- we see that reaching that towards the end of the year.
Great. That's helpful. And then shifting to the international side. So within Saudi, reactivations are progressing, and it seems like there's strong momentum for incremental rigs as well. Can you just talk to how discussions are going for the fifth tranche of new rigs and how that's progressing?
Sure. I mean, Aramco is very committed to the program, and it's all been positive, as you can see from what we've done, notwithstanding all the turmoil over there, we've continued to execute on track. And we expect that the next tranche will be discussed very shortly actually, probably within the next quarter, and we'll have complete visibility on it, but we're confident that the program is going to continue.
And by the way, looking at Saudi in general, I think it's all positive signs. Obviously, the 196 rigs I mentioned, I think one of the things that you all have been interested in is the number of suspended rigs of the 40 rigs still remain suspended from the downturn that occurred. And of the 40 rigs, I think during the next short period of time, you may see another 10 come back in the form of LSDK work, which also would help Nabors not just on the rig side, but also on the service side because we're a big player there. As you know, our NDS operation there on the casing running services is #1 player in Saudi Arabia. So we see that as additional upside there as well.
The next question will come from Derek Podhaizer with Piper Sandler.
I wanted to add to Joe's first question around just the outlook on the rig count, maybe just to hone in a little bit more on 2027, just assuming everything -- the strip stays around $70. I mean, everything sounds super positive. I think your survey mentioned another 11 rigs through year-end. But you also comment on potential tightness around the supply with super-spec rigs. So could you help maybe walk through that as far as how many rigs from a market perspective could potentially be added in 2027 and then what it means for Nabors' rig count?
2027 is a ways off still. So I don't want to get over my skis. But I think in terms of the super-specs, the pitch here is that most of the operators, especially the large ones that are really focused on the longer laterals are all demanding higher-spec rigs. And so existing rigs, I think, are going to be upgraded along those lines. And I could see maybe a half a dozen rigs occurring of upgrades over the next 12 months by operators asking for that kind of stuff. And I think what's going to happen is in terms of the ability of the market to do that, I think we're well positioned because, obviously, with Canrig, we make most of the equipment that we need. So I think we're well poised to do that.
But in terms of a guess of next year's rig count, I'm not ready to talk about that. I think the market is disciplined right now and everything is falling into place. I think right now, we're focused on continued utilization of the current rigs and seeing some tightening of the pricing as things move forward, particularly as operators demand more upgrades of existing equipment.
Got it. Okay. That's really helpful, Tony. I actually want to ask a question around geothermal. I mean you guys have been a long-time investor in the geothermal start-up space. I know Quaise is one of your first investments there. So great to hear that you're up drilling with them up in Oregon. Maybe just discuss some of the upside that you have with Quaise as they look to build out gigawatt scale, enhanced geothermal. I believe they have a different design. I think they melt rock versus drill rock. So maybe talk about that. And then maybe just talk about the actual rig. Have you had to make technology upgrades to it? What's the pricing of a geothermal rig versus an oil and gas rig? So maybe just more around the opportunity and the design of what you're doing with Quaise.
Sure. As you know, Nabors five years ago before geothermal was even topical by anybody, we identified it as the most underappreciated renewable out there because it's obviously baseload and renewable and we went down this path and Quaise was one of the ones that really attracted us because of their differentiated technology. As you know, we don't like to be just a me-too player, and we were intrigued by their millimeter technology, which came out of MIT. And so -- and it actually has obviously defense department kind of capabilities as well.
And so basically, the concept is this millimeter technology, you can actually destroy rock rather than drill it down to super critical temperatures, which is 500 C. When you get down to that depth, obviously, the typical conventional rigs can't get there, things melt and other things happen. So that was -- and the concept of Quaise is to make geothermal ubiquitous. Obviously, geothermal works where you have hot rock, but the number of places where you have the hot rock is not necessarily convenient everywhere. Whereas if you can actually get to super hot rock, then geothermal becomes ubiquitous, which has been our quest in terms of what we've been looking for in the geothermal space, and that's why it's so attractive.
On this particular project right now, the first project, Quaise is still in development of the millimeter technology, but what they've now done is shift it to actually be a developer with existing technology as well. So the first project is actually going to use more of a conventional kind of approach, but it's laying the basis and foundation for the millimeter testing.
This millimeter equipment, by the way, needs integration into the rig. So it's a special gyrotron. And a gyrotron needs changes to a rig, it needs changes to the top drive, et cetera, which again, Nabors is unique about, and that's part of the plan here to make it commercial. Interestingly, Quaise, I think they've publicly announced that they have a contract with Google. The first installment is 250 megawatts. The first well is for 50-megawatt installment. And so this is the beginning of a campaign.
So we have -- we think it's a really good path. We think compared to the other company went public, if you look at the two side by side, I think Quaise does everything Fervo has, but it has the addition of the path to a ubiquitous kind of geothermal market, which would be geothermal everywhere, which would be a great story. So that's why we're super excited about it. We believe in the management and the company, and I can't say enough good things about it.
The next question will come from Keith MacKey with RBC.
I know it's early for 2027, but just thinking about the capital plan for '26 and how that might differ from '27. Can you maybe just start to pull apart some of the pieces of what might be more, what might be less? I'm thinking maybe SANAD should be lower next year just given the fifth tranche hasn't been awarded yet. But can you kind of help us walk through that, just in general, how we should be thinking about things for next year versus this year?
I mean, look, I think you're very correct. It's quite early. But I mean, if we start with a baseline of at least H2 x 2 in terms of EBITDA, meaning higher than $1 billion, we need to think about a CapEx that it will not be lower than 2026, right? I mean -- and starting with that, I will say that you have to consider that SANAD milestones probably will be in the range of the $330 million, $350 million probably, considering five rigs building permanently, right? I mean you will see probably five rigs deployed in 2027, but starting to build another five. So in general, I mean, I will suggest that the CapEx will be probably in line with 2026, if not slightly higher.
And number two, not only the sustaining capital of our rigs and the NDS portfolio, but certainly, there are opportunities that we are exploring in the pipeline that are strategically not only for the customer, but also for the location and the potential scale going forward that we may need to add to our growth CapEx into 2027. So I will not expect really CapEx to be lower than 2026. I hope that helps.
Yes, that's helpful.
Good news, just to make sure your quote was that the second half run rate based on what we've told you today is we see we're running at a $1 billion run rate for the second half of this year, which at least. That's the good news.
And the encouraging part of this is that really the second half outlook, which already is 17%, at least higher than the first half for 2026 is all based on contracted activity and planned rig deployments, right? So really, the downside risk to that second half is, I mean, extremely small, I would say.
Yes. I appreciate that. Just maybe on your U.S. contract book, so you're at 45% for at least 6 months, looking likely are going to get to 50% in Q3. Can you just talk about your approach to that? Certainly, a higher percentage of contracted rigs this cycle versus last cycle. What do you think is the right number for Nabors? And how do you kind of balance the decision to either have a higher portion of your rigs contracted versus a lower portion of your rigs contracted?
I think there's no single answer because it really depends on the timing of what happens. When you do long-term contracts, it's always a function of where the market is at the current time and what the delta is. And so I wouldn't say there's an absolute number percentage-wise, but probably a 60% number is out there as a number that could make sense.
I think the real critical question is who you just decide to do a long-term contract with. That's more important to me and the content of the long-term contract. In other words, we want to put our rigs with people that are, number one, long-term players in the marketplace. Number two, are believers in technology that can actually use a more bundled approach for our services, and that's more of our focus in terms of entering into these long-term contracts as simply as opposed to just locking up a rig, for example, with somebody. And that really guides our logic here as we move forward.
So that we think offers much more upside and that gives us a road map for additional things. And so if you look at some of our technology initiatives, for example, they all come from people that believe in our road map and that is synergistic, those kind of relationships with creating the technology and then developing it and rolling it out.
Our example of our rig automation stuff is an example of that, where right today we have two super majors, each have an automated rig but we just got an order for an additional two of that -- of those, and that's with an operator who we have long-term contracts with to actually see the benefit of them. So it's not just the initial price, it's the content plus the relationship and plus the appetite for them to really use all the services that we have to offer.
Got it. And if I could just follow up quickly on that. Just how does performance-based metrics work into your contracting strategy? Is that a key part of the technology integration as well? Or what's your view on that these days?
Absolutely. In fact, as you know, the NDS portion is basically value pricing because it's all performance features. It's performance software, it's performance services. And so that portion of it is clearly -- and the rigs as well have key performance metrics where there's some sharing of upside. So uniformly in almost all the contracts, there's some element of that uniformly. So -- and that's just a common thing today.
The interesting thing is with NDS, while I mentioned NDS on this topic, the great thing about NDS is the delivery mechanism to do that is really back to the former question here of CapEx is really remarkable because NDS' conversion rate, I think in this quarter, was 90% free cash flow conversion rate on its EBITDA, which is really a remarkable number. So just bear that in mind, too. And that -- those services are really part and parcel of this value-driven proposition for the customers. So that shows we have something that's machined, it's effective and it actually is really great in terms of capital efficiency on top of it all.
And this will conclude our question-and-answer session. I would like to turn the conference back over to Mr. William Conroy for any closing remarks. Please go ahead.
I'm going to let Tony Petrello just make a few remarks, and then I'll close the call out. Tony?
Yes. I would just like to say that I think Nabors has the right portfolio of assets in the right markets with the right capabilities to take advantage of this unique opportunity. We're executing from a position of strength. The international environment is robust, and our business is well positioned. Lower 48 is capturing better market conditions and technology is becoming a larger driver of earnings and differentiation. We're fundamentally improving the quality of our business and poising ourselves for great growth in the future. So we see a lot of significant opportunity ahead. Thanks for your consideration today. Thank you.
Jeff, with that, we'll end the call here. If there are any follow-up questions, please contact us. Thanks again.
The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.
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Nabors Industries Ltd. — Q2 2026 Earnings Call
Nabors Industries Ltd. — Q2 2026 Earnings Call
Nabors übertrifft Q2‑Erwartungen mit $222M Adjusted EBITDA, starker Margin‑Expansion, SANAD‑Auslieferungen und wachsender Technologieumsätze.
📊 Quartal auf einen Blick
- Umsatz: $815M (+4% gegenüber Q1)
- Adjusted EBITDA: $222M (über der Guidance)
- EBITDA‑Margin: 27,2% (+107 Basispunkte QoQ)
- Adjusted Free Cash Flow: $12M (leicht über Guidance); Q3 erwarteter Verbrauch ≈ $40M
- CapEx: $158M in Q2; Jahresprognose $710–730M (inkl. SANAD)
🎯 Was das Management sagt
- SANAD‑Rollout: Weitere Newbuild‑Auslieferung (16. Rig) und Reaktivierungen; 28% Marktanteil in Saudi‑Arabien und klarer Wachstums‑Runway.
- Rig‑as‑a‑Platform: Integration von Premium‑Rigs mit NDS‑Software (MPD, RigCloud, ROCKit) hebt Tageserlöse und Margen.
- Kapitaldisziplin: Selective CapEx‑Investitionen, Ziel: Bruttoverschuldung um ≥ $100M reduzieren; SANAD‑Cashbedarf berücksichtigt.
🔭 Ausblick & Guidance
- International Q3: Ø Rig‑Zahl 94–96, Exit bei 96; vorläufige tägliche Bruttomargen $18.100–18.400.
- Lower 48 Q3: Ø ≈73 Rigs, Exit 74; Tagesmarge ~ $13.800 (gegenüber Q2 stabil); mittelfristig führende Preise in die Mitte/oberes $30k‑Range erwartet.
- Konsolidierte Ziele: Volljahres‑EBITDA $920–930M; Free Cash Flow jetzt $20–30M für 2026, SANAD konsumiert kurzfristig Cash.
- Risiken: Kosten‑Friktionen im Nahen Osten, zeitliche Verzögerungen bei SANAD‑Meilensteinen und Forderungseinziehungstiming.
❓ Fragen der Analysten
- Lower 48 Pricing: Analysten hoben Nachfrage nach Super‑Spec‑Rigs und Ziel „mid‑$30k“ an; Management erwartet Beschleunigung gegen Jahresende.
- SANAD‑Tranche: Nachfrage zu fünfter Tranche; Management signalisiert baldige Gespräche, konkrete Zusagen aber noch nicht gegeben.
- Geothermie/Quaise: Fragen zu Technologie und Rig‑Integration beantwortet: Millimeter‑Wellen (Gyrotron) erfordern Rig‑Modifikationen; erstes Projekt nutzt konventionelle Technik als Testfeld.
⚡ Bottom Line
Nabors liefert operativ besser als erwartet: Margen steigen, Technologie treibt Zusatzumsatz, und SANAD schafft internationales Wachstumspotenzial. Anleger sollten positives Momentum und verbesserte Guidance anerkennen, zugleich SANAD‑Cashbedarf, regionale Kostenrisiken und CapEx‑Ambitionen beobachten. Langfristiger Fokus bleibt auf margenstarkem Wachstum und Schuldenabbau.
Nabors Industries Ltd. — Q1 2026 Earnings Call
1. Management Discussion
Good day, and welcome to the Nabors Industries Limited First Quarter 2026 Earnings Conference Call. [Operator Instructions] Please note this event is being recorded.
I would now like to turn the conference over to William Conroy, Vice President of Corporate Development and Investor Relations. Please go ahead.
Good morning, everyone. Thank you for joining Nabors' First Quarter 2026 Earnings Conference Call. Today, we will follow our customary format with Tony Petrello, our Chairman, President and Chief Executive Officer; and Miguel Rodriguez, our Chief Financial Officer, providing their perspectives on the quarter's results, along with insights into our markets, and how we expect Nabors to perform in these markets. In support of these remarks, a slide deck is available, both as a download within the webcast and in the Investor Relations section of nabors.com. Instructions for the replay of this call are posted on the website as well.
With us today, in addition to Tony, Miguel and me, are other members of the senior management team. Since much of our commentary today will include our forward expectations, they may constitute forward-looking statements within the meaning of the Securities Act of 1933, and the Securities Exchange Act of 1934. Such forward-looking statements are subject to certain risks and uncertainties, as disclosed by Nabors from time to time in our filings with the Securities and Exchange Commission. As a result of these factors, our actual results may vary materially from those indicated or implied by such forward-looking statements.
Also, during the call, we may discuss certain non-GAAP financial measures, such as net debt, adjusted operating income, adjusted EBITDA and adjusted free cash flow. All references to EBITDA made by either Tony or Miguel during their presentations, whether qualified by the word adjusted or otherwise, mean adjusted EBITDA, as that term is defined on our website and in our earnings release. Likewise, unless the context clearly indicates otherwise, references to cash flow mean adjusted free cash flow as that non-GAAP measure is defined in our earnings release. We have posted to the Investor Relations section of our website a reconciliation of these non-GAAP financial measures to the most recently comparable GAAP measures.
With that, I will turn the call over to Tony to begin.
Good morning. Thank you for joining us to review our first quarter results. The quarter included several important operational and strategic milestones. I will highlight those today. I will begin with the situation in the Middle East and its effects on our business.
Today, our rig footprint in the Gulf region consists of 53 rigs operating under our [indiscernible] drilling joint venture in Saudi Arabia, 4 rigs working in Oman and 3 rigs in Kuwait. We conduct large casing running operations in both Saudi Arabia and Abu Dhabi. Our [ Canrig ] subsidiary is also active across the region. It operates with manufacturing and repair facilities in Saudi Arabia and Dubai. Across the region, our staff number is approximately 7,000, including SANAD. To date, we have maintained our pre-conflict operating tempo across each of these operations.
Our clients in the region continue to follow through on planned activity. Importantly, they have not communicated any material change to their forward plans. The impact on our financial results so far has been limited. Miguel will address the financial implications in his remarks. Many of you have asked whether Lower 48 operators have increased their activity in response to higher oil prices?
First, oil futures are steeply backward-dated, while supportive for incremental production, forward pricing remains below current month levels. This tempers the near-term activity expectations. Second, changes in drilling plans require confidence in sustained pricing. Given current volatility, it remains early for broad-based revisions to existing drilling programs. In the Middle East, approximately 7.5 million barrels a day of production was shut in according to the EIA. This total could actually increase in April. Restoring the shut-in production will require time, capital and operational execution. As a result, supply disruptions in the Middle East may persist beyond the near term. This dynamic should provide underlying support for both commodity prices and activity levels in other regions, including the United States. In short, we see tightening supply, we see durable demand, markets will adjust.
Let me now turn to our financial results for the quarter. Adjusted EBITDA totaled $205 million. Notwithstanding the financial consequences from the conflict, our performance was essentially in line with the expectations we outlined on our last earnings call. This outcome reflects progress across our key strategic priorities. Operational excellence in the Lower 48, measured growth in the international markets, technology that improves returns for our customers and for Nabors. We expect them to drive further improvement through the year.
Let me turn to the market environment and our positioning. The oil market shifted sharply in early March as the hostilities began. Since then, near month WTI has remained volatile around $90. The current oil market is more constructive than in 2025. However, operators have not broadly adjusted activity in response to these price levels. As I noted earlier, the futures curve remains backward-dated. We remain aware of global supply and demand balances alongside inventory trends. These trends may offer the opportunity for additional drilling activity, which we are positioned to capture.
Next, let me address Venezuela. We have 5 rigs in the country. While our fleet remains idle, we have maintained a small local staff. We have operated in the country since the 1940s. The resource base remains significant and the long-term opportunity is substantial. Under the right circumstances, Venezuela presents a meaningful opportunity. Recently, a number of operators have expressed urgency to expand their operations in Venezuela. We are ready to support their activity. Discussions are underway to determine suitable commercial terms. We will structure these agreements to protect our capital in country.
Turning to the U.S. market. Operators are evaluating the global dynamics we discussed earlier. For the most part, large public operators are not moving quickly to increase capital spending even with higher oil prices. Resolution of the conflict, along with a clear view of its impact on global supply, would allow operators to adjust their plans with greater confidence. Since the end of February, near-month WTI has moved more than 10% on 7 trading days. This level of volatility complicates planning and capital allocation. Our approach in this market is to continue doing what we've been doing, deploy advanced technology that increases efficiency and improve operator EURs and returns. We pair this with tight cost control and capital discipline.
Turning to natural gas. Several factors are shaping its near-term outlook. The conflict is affecting global LNG flows with disruptions to exports through the Strait of Hormuz. This may increase LNG exports from the United States. Also in the U.S., year-over-year natural gas demand for electricity generation declined in 11 of the past 12 months. Renewables have displaced some gas-fired generation. These dynamics are reflected in current natural gas pricing.
Over the longer term, U.S. LNG exports and domestic consumption are expected to increase. Additional Gulf Coast LNG export capacity will come online, including projects such as Golden Pass, Port Arthur and CP2. Data center power generation requirements continue to expand. These could add up to 6 Bcf a day of natural gas demand by 2030. In international markets, including the Middle East and Latin America, expanding gas development continues to support drilling activity. In the Lower 48, gas-directed activity currently comprises more than 20% of our working rig count. We can respond quickly to increased demand across gas-producing basins.
Next, I will share a few perspectives on Nabors' current business. In the Lower 48, the momentum that started toward the end of 2025 has continued through the first quarter. We added 4 rigs during the first quarter, and a total of 8 rigs since November 2025. This progression was a positive surprise. That brought our rig count to 66 at quarter end. Our count currently stands at 66. Since the beginning of the year, these incremental rigs have primarily come from public operators. They are spread across producing areas with 4 in the Permian, 3 in the Haynesville and in the Eagle Ford. We believe this diversity across basins is healthy.
Turning to SANAD. The newbuild fleet in Saudi Arabia continues to expand. SANAD deployed the 15th newbuild during the first quarter. 4 more new rigs are planned to commence working during 2026, bringing the newbuild total to 19. The 20th should start up in early 2027. As planned, notwithstanding the current conflict, SANAD has also resumed operations on one of its suspended rigs. The second is scheduled to start up late this quarter. These additions, which both occurred in March, are a testament to the capability of our workforce in the Kingdom. While conditions in the Middle East remain fluid, this level of activity reflects the customers' commitment to its prior development plans.
Operators across the Eastern Hemisphere are advancing plans to expand activity. In Latin America, the activity improvement in Mexico continued in the quarter. Late in the first quarter, we restarted a rig there earlier than planned. That brings our total to 4 working. All of these are offshore platform rigs. They're large high-spec units with economics above the segment average. In Argentina, we started 1 rig in the first quarter as planned. We have another rig scheduled to work there in the third quarter. The second rig should bring our rig count in the country to 14. This further strengthens our position as the leading drilling contractor in Argentina.
Now I'll turn to the U.S. market. Since the beginning of this calendar year, the Baker Hughes weekly Lower 48 land rig count has declined by 3 rigs. Nabors' rig count in this market has increased by 4. To date, higher oil prices have had limited impact on overall market activity or our rig count. Over the same period, our rig churn has moderated.
Let me add some context on our Lower 48 performance. Our count began rising in December, supported by groundwork laid earlier in the year. This performance reflects our high-spec rigs, advanced technology, experienced crews and strong field performance. We have also grown our rig count while maintaining pricing discipline. Looking ahead, we are increasing our forecast to reflect more rigs in the current quarter. We expect to maintain that higher level through the second half of the year.
We also surveyed the expected drilling activity of the largest Lower 48 operators. The group accounted for approximately 44% of this market's working rig count at the end of the quarter. The first quarter data reflects announced M&A activity. The results provide useful insight into operator behavior. In aggregate, these operators reduced their rig count during the first quarter. This is consistent with broader market trends. Looking ahead, the group expects to add approximately 15 rigs through the end of the year. These additions are concentrated among 2 operators, both have indicated they are responding to current market conditions. Beyond these operators, the overall sentiment generally favors incremental activity, though this tone is not expressed in expected rig counts. We continue to prove our ability to execute commercially and operationally. Now the survey shows Lower 48 industry utilization is headed higher. With this combination, we believe our rig pricing will increase progressively through 2026 and into 2027, reaching the mid-30s.
I will now comment on the key drivers of our results. I'll begin with our International Drilling segment. Notwithstanding disruptions in several markets, this business continues to expand. For perspective, since the end of 2023, the Baker Lower 48 rig count has declined by approximately 12%. Nabors international rig count increased by 16% over the same period. The rig count in markets where we operate was essentially flat during this time. We achieved our growth even as we wound down operations in several countries. Canada also had rigs suspended, and it elected not to renew certain contracts. This performance demonstrates the value of our geographically diversified portfolio of businesses.
Today, we see additional prospects across the Middle East, Asia Pacific and in Latin America. In the Eastern Hemisphere, we see approximately 20 opportunities in markets where we operate or which we consider attractive. Beyond Venezuela, where I mentioned prospects to resume operations are improving, we see additional opportunities across Latin America, primarily in Argentina with a smaller number in Colombia. We prioritize operations that utilize our innovative technology, offer multiyear term contracts and generate attractive financial returns. In Saudi Arabia, in addition to the planned rig starts through early 2027, SANAD is advancing discussions with the client for the next group of 5 newbuild rigs. We expect to conclude these discussions in the coming months. That group will bring the total number of newbuilds to 25.
Turning to performance in the U.S. On our previous earnings conference call, we suggested our daily gross margin in the Lower 48 was stabilizing. That proved to be the case in the first quarter. For the second quarter, we expect a modest uptick. Commercial and operational performance support this outlook. We maintain pricing integrity and control costs. Our rig count is outperforming the industry. We are well positioned to capitalize on future opportunities to add to our working rig fleet.
Let me briefly update you on our high-end rigs, including the PACE-X Ultra. The PACE-X Ultra rig established the benchmark as the industry's first rig with a [ 10,000 Psi ] mud system. It is also equipped with expanded setback and upgraded rig components. The first unit continues to work for [indiscernible] in South Texas. It delivers the high performance that our client and we expected. We have agreements to deploy 2 more PACE-X Ultras later this year, and we are in discussions with multiple operators to upgrade specific rig capabilities. These upgrades enable them to drill increasingly challenging wells. The PACE-X Ultra's economics reflect the rig's market-leading capabilities and value proposition. Including the NDS content on these rigs, daily revenue is well above the $40,000 mark, and they work on term contracts. These developments reinforce the value of our rigs. Our solutions contribute directly to customer performance while generating attractive returns for neighbors.
Next, let me discuss our technology and innovation. We include a full drilling automation package from NDS on our PACE-X Ultra rig. We also include our integrated [ MPD ] package. This combination positions the PACE-X Ultra as the most capable drilling system in the U.S. market. We are committed to expanding NDS' services globally, particularly among the NOC customer base. During this quarter, we had modest international growth. We believe there's a strong appetite as operators follow the U.S. by prioritizing efficiency and performance gains.
I'll conclude with our capital structure. To be clear, our highest priority remains debt reduction. On top of the substantial progress we made in 2025, during the first quarter, we redeemed the balance of the notes due in 2028. This action reduces future interest expense and supports free cash flow generation. As Miguel will detail, we outperformed our free cash flow expectation for the first quarter, largely outside of SANAD. This cash flow provides capacity to further reduce debt and strengthen the balance sheet.
To summarize before turning over to Miguel, the first quarter brought unexpected volatility to the global energy industry. Our diversified portfolio across businesses and geographies helps us manage that volatility and continue to perform.
Now let me turn to Miguel to discuss our financial results in detail.
Thank you, Tony, and good morning, everyone. Before turning to our results, I want to briefly address the evolving market backdrop particularly in light of the Middle East conflict.
From an operational perspective, our business in the region has remained stable. We continue to operate in Saudi Arabia, Kuwait, Oman and the Emirates without disruption, maintaining a consistent cadence of activity. As planned, our SANAD joint venture added rigs in Saudi Arabia during the first quarter. That said, the conflict did introduce some operational inefficiencies during the quarter, primarily affecting logistics, supply chain and crew rotations.
In the U.S., our customers, especially the majors and public [ E&Ps ] have remained disciplined in their approach to activity levels. We are encouraged by the progress of our rig additions in the Lower 48. These gains reflect a strong commercial execution from the fourth quarter, rather than a broad-based shift in customer behavior. While we believe the Lower 48 market is showing early signs of improvement, overall activity levels have not yet changed meaningfully. With that context, I will review our first quarter performance and outline our guidance for the second quarter. I will then conclude with updates on capital allocation, adjusted free cash flow and capital structure.
Now turning to the first quarter. Our consolidated revenue was $784 million. The sequential decline was driven by two main factors. First, the expected seasonal reduction in our Rig Technologies segment, reflecting lower capital equipment deliveries [indiscernible] sales. This was compounded by approximately $3 million of logistics disruptions in the Middle East.
Second, the previously announced step down in day rate for our [ marquee ] rig in the Gulf of America, which transitioned to a workover rate at the start of the year. Consolidated EBITDA was $205 million, representing an EBITDA margin of 26.1%, down 164 basis points sequentially. The decline was driven primarily by our International Drilling and Rig Technology segments. Importantly, our EBITDA was consistent with the expectations we communicated during our previous earnings call. Our EBITDA results include approximately $3.5 million of adverse impact related to the Middle East conflict across our International Drilling and Rig Technology segments.
Now I will provide you with details for each of the segment results. International Drilling revenue was $419 million, a decline of $4 million or 1% sequentially. EBITDA was $121 million, decreasing $10 million, or 7.6% quarter-over-quarter, yielding an EBITDA margin of 28.9%. The sequential decline in EBITDA reflects anticipated labor costs in Saudi Arabia associated with Ramadan and the East holiday. In addition, time-related impacts from the unplanned transition of 2 rigs moving from oil-directed to gas-directed drilling. Results were also impacted by the previously announced conclusion of certain short-term high-margin activities in the Eastern Hemisphere during the fourth quarter, continued activity disruptions in Colombia and incremental costs related to the Middle East conflict.
Our average daily gross margin was $16,880, which fell below our guidance range. This was driven by several factors. The aforementioned transition of two SANAD JV rigs from oil to gas drilling, which require contractual inspections and acceptance procedures, temporarily disrupting the planned drilling schedules. While strategically beneficial, these transitions weighed on our first quarter results. Operational challenges related to the Middle East conflict, including impacts on logistics, supply chain and crew rotations, resulting in a shortfall of approximately $2 million, and the continuation of activity disruptions in Colombia, combined with the adverse impact of a stronger Colombian peso weighing on our cost structure.
Average rig count for the quarter was 92.6, slightly above the high end of our guidance range. Our active rig count was 93 rigs. Drivers of our rig count growth included the commencement of the 15 newbuild rig in Saudi Arabia, the resumption of previously suspended rig also in the Kingdom, the redeployment of 1 rig in Argentina, and the earlier-than-planned reactivation of an offshore platform rig in Mexico late in the quarter. These additions were partially offset by the previously announced roll-off of 3 very low-margin workover rigs in Saudi Arabia, which SANAD elected not to renew for economic reasons, and a small number of contract expirations in other international markets during the quarter.
Moving on to U.S. Drilling. Revenue was $241 million, essentially flat sequentially. EBITDA was $88 million, representing a margin of 36.5%. EBITDA exceeded our guidance, driven by stronger-than-expected activity in the Lower 48. Alaska and Offshore results were in line with the expectations. Looking specifically at the Lower 48, revenue was $192 million, an increase of $11 million, up 5.9% sequentially, reflecting higher activity. Average rig count increased by 5.5 to 65.3 rigs, above the top of our guidance range.
During the quarter, we added rigs across several basins. The continued robust progress in our rig additions reflects a strong coordination between our commercial and operations teams, combined with pricing discipline, excellent service quality and rigorous execution, which all have been well supported by our high-quality customer portfolio. Currently, we have 66 rigs working. Average daily revenue declined modestly to $32,650, reflecting some repricing as rigs rolled on to new contracts. Leading-edge daily revenue remains in the low $30,000 range. Average daily margin was $13,177, in line with our expectations.
Turning to Alaska and U.S. offshore. On a combined basis, revenue was $49 million, EBITDA was $17 million, a decline of $9 million sequentially, with EBITDA margin of 34.7%. These results were in line with our guidance and primarily reflect changes in the work scope and mix.
Now turning to Drilling Solutions. NDS revenue was $106 million, largely flat sequentially. EBITDA was $39 million, resulting in a margin of 36.4%. These results were in line with our guidance, reflecting growth in our international markets, offset by a modest decline in the U.S. from third-party rigs. Importantly, the segment converted approximately 94% of EBITDA to free cash flow during the quarter, a new record and underscoring its low capital intensity.
Now on to Rig Technologies. Revenue was $27 million, down $11 million sequentially. EBITDA was approximately $0.5 million, a decrease of $4 million from the prior quarter and below our guidance. The sequential decline was expected. Following a strong year-end sales in the prior quarter, EBITDA was further impacted by parts delivery delays related to the Middle East conflict, representing approximately $1.5 million, or roughly 50% incrementals.
Turning to the second quarter. Our EBITDA guidance assumes a $6 million to $8 million impact, considering that the inefficiencies in the Middle East will persist through the quarter across our segments, but primarily within International Drilling. In International Drilling, we expect average rig count to range from 93 to 95 rigs. This reflects the addition of 2 rigs in Saudi Arabia, including the commencement of the 16 newbuild rig, and the redeployment of a second rig previously suspended, as well as the contribution from rigs that commenced activity in Q1.
Average daily gross margin is expected to improve to a range of $17,400 to $17,500. This increase reflects the benefit of the incremental rigs and a full recovery from the first quarter impacts related to Ramadan and heat, along with a return to more stable drilling activity. Our outlook, however, does not demonstrate the full earnings power of our international franchise as it incorporates the estimated impact from inefficiencies related to the Middle East conflict. While we remain cautious regarding the evolving situation in the region, the quality of our fleet, combined with our continued superior execution and performance position us well for a strong second half of the year. Accordingly, we expect to deliver full year segment results fairly in line with our full year guidance.
Turning to U.S. Drilling. We expect the average Lower 48 rig count to increase to a range of 67 to 68 rigs. This includes some level of churn, albeit at a much reduced level compared to prior quarters. Daily adjusted gross margin for the second quarter is expected to average approximately $13,300, a modest sequential improvement driven by pricing. While the overall market environment remains somewhat constrained, we see targeted opportunities to add our rigs. This is driven by our strong and disciplined operational and commercial execution, combined with our solid customer portfolio. We will continue to evaluate incremental opportunities based on asset availability, capital requirements and crew capacity.
Therefore, we are updating our activity outlook for the Lower 48 drilling business with an improved full year outlook. We currently expect to exit the second quarter with approximately 69 rigs, and to maintain activity at or near that level through the remainder of the year. At these utilization levels, we expect our pricing to trend higher over time, moving from the low $30,000 range to reach the mid-30,000s as we progress through this year and into 2027.
For Alaska and U.S. offshore combined, we expect EBITDA of approximately $15 million, reflecting the conclusion of an offshore O&M contract and planned maintenance for one of our rigs, which is also offshore. Over the medium to long term, we expect strong operations in Alaska. Drilling Solutions EBITDA is expected to be approximately $39 million, which is in line with the first quarter. Finally, Rig Technologies EBITDA is expected to be approximately $3 million.
Next, I will discuss our capital allocation, adjusted free cash flow and liquidity. First quarter capital expenditures totaled $159 million, below our guidance range, mainly due to timing shifts in the SANAD newbuild milestones. Our Q1 CapEx included $72 million related to the [indiscernible] Kingdom newbuild program in Saudi Arabia. Total capital spending was broadly in line with the fourth quarter, which amounted to $158 million, including $78 million of newbuild-related spend. Looking ahead, we will continue our disciplined and flexible approach to capital investments.
For the second quarter, we anticipate capital expenditures in the range of $180 million to $190 million, including $75 million to $80 million for the SANAD newbuild program. For the full year, we expect capital expenditures to remain in line with our prior outlook of $730 million to $760 million, including $360 million to $380 million for the SANAD newbuilds. However, the timing and level of spend remains subject to market conditions and project base. The cadence of the SANAD newbuild milestones may shift between quarters. Potential activity above our current guidance in the U.S. will be evaluated carefully in the context of market visibility, asset readiness and requirements, overall return and funding thresholds and contract term. We remain firmly committed to managing capital spend at or below our guided range.
Turning to free cash flow. During the first quarter, Nabors consumed $48 million of consolidated adjusted free cash flow. We exceeded our midpoint guidance range by more than $35 million. Importantly, free cash flow outside of SANAD was nearly breakeven, representing a meaningful out-performance relative to our expectations. This beat was mainly driven by a better-than-expected working capital progression and capital expenditures below planned levels. While this free cash flow outside of SANAD may be modest in absolute terms, it marks a very solid result, given that our first quarter is typically the most cash-intensive period of the year, driven by payments of cash interest, property taxes and annual bonuses, among others.
This distinction in the origin of cash is important as free cash flow generated outside of the SANAD JV is available to neighbors for debt service and other corporate purposes. For the second quarter, we expect to generate approximately $10 million of consolidated adjusted free cash flow, with China consuming approximately $10 million. Based on the continued momentum in our Lower 48 business, a constructive outlook for our international operations and the compounding effect of our capital discipline, we are well positioned to exceed our full year guidance.
Finally, I would like to make a few comments regarding our continued progress on our capital structure. During the first quarter, we redeemed the remaining $379 million of senior guaranteed notes maturing in 2028, extending our nearest maturity to June 2029, leaving a very manageable $250 million maturity at that time. We remain focused on further strengthening our balance sheet and capital structure with an objective of reducing net debt leverage to approximately 1x over the long term. I will provide updates as we progress towards this goal.
With that, I will turn the call back to Tony.
Thank you, Miguel. I will close with a few points. First, we continue to support our clients in the Middle East even as the operating environment has become significantly more challenging. We've maintained operational continuity and mitigated risk with strong management. In Saudi Arabia, specifically, our SANAD JV remains on track for growth. The newbuild deployment schedule is unchanged. Discussions for the fifth tranche of new rigs are progressing. Each tranche is expected to generate more than $60 million in annual EBITDA. This program represents a significant differentiated long-term growth opportunity in our industry.
Second, in the Lower 48, a strong performance has resulted in growth in our rig count as well as free cash flow. Customers continue to select our high-spec rigs and integrated NDF solutions to improve both performance and returns. We expect to deliver further progress through the year.
Third, our free cash flow reflects disciplined operations across the business. We are firmly committed to using free cash flow to reduce debt. The message today is clear. Nabors is a stronger company. We deliver. Returns are improving. The business is more resilient. We are creating value in Saudi Arabia and across our international franchise. We are expanding technology-driven earnings, and we are continuing to improve the financial quality of the business. There is more work to do, but we are on the right path, and we are confident in the value creation ahead.
Thank you for your time this morning. We'll now take your questions.
[Operator Instructions] The first question comes from Dan Kutz with Morgan Stanley.
2. Question Answer
So I wanted to ask, so with the U.S. Lower 48 rig count where you're at today, 66 rigs, that's up from a low of around -- of just under 60 and then you guys have, kind of, guided to going to 69 in the second half of this year. Can you talk about how -- for the rigs that you've reactivated, or planning on reactivating so far, some of the mobilization, or restart costs and how that's translated to, maybe some pricing upside with customers?
But, maybe perhaps more importantly, what does the Nabors' Lower 48 supply stack look like beyond that 69 active rigs planned for the second half? I think the last time that you were at that level was roughly 2 years ago. What would it take? What's Nabors's appetite? What's the cost involved? What's the pricing you need to see to reactivate rigs beyond the current plans for the second half of this year?
Sure. So beyond the 69, I think I divide into two categories. The first category between the next 11 or 12 rigs on top of that, that tranche is a relatively digestible number. And then beyond that, there's a second level, another roughly 15 rigs, which the cost gets incrementally higher. So that's where we do it. The first tranche, we're ready able willing to execute. On both tranches, obviously, there will be price increases associated with it. So -- and we don't see that as being much of a problem.
Got it. Fair enough. And then maybe just one on capital allocation. So could you remind us if you've put out, or what type of net leverage target you guys are targeting longer term or through cycle? Basically, what I'm driving at is, is there a net leverage level where you might be comfortable? I feel like you've been very clear that using free cash to reduce debt is at the top of the capital allocation priority list, and that's in addition to the SANAD newbuild program and maintenance, obviously.
But I guess, at what point would you be comfortable? What, kind of, net leverage level or liquidity level would you be comfortable moving some other capital allocation priorities up the list, whether it's shareholder returns or accelerating PACE-X's Ultra upgrade investments, or any other investments? Maybe it's too to upgrade and mobilize stack U.S. rigs for some international unconventional opportunities? Just how do you think about -- what the longer-term kind of balance sheet and liquidity level that you would need to see to consider some other uses of capital and what would potentially be on that list of capital uses?
Thank you, Dan. So look, I mean, first of all, starting with the PACE-X Ultra. We are in the process of deploying 2 additional Ultras during the remainder of the year. These rigs, I want to reiterate, are the best possible rigs you can think in the entire Lower 48 market, not only for the technology aspects on the rig itself, but the full integration with the Nabors portfolio of services. I mean the performance of the first rig has been outstanding, and I invite you to basically look at our press releases, et cetera, around the PACE Ultra, but we will continue to invest on this type of integrated technologies and type of rig as we continue to see interest from our key customers. That's number one.
Number two, I think we have been clear in the fact that our medium- to long-term road map in terms of net leverage is around the 1x, right? This is a medium- to long-term objective. Tony and I will remain very optimistic about our progress and the outlook, not only in '26, but into 2027 and beyond towards this goal. Once we get there, or close, we will seriously contemplate other capital allocation initiatives. One of them will certainly be returned to shareholders, whether it's in the form of share buybacks or dividends, or both for that matter. But first of all, I think our shareholders will get a better benefit by us continuing to reduce gross debt. And that remains the #1 goal.
The next question comes from Derek Podhaizer with Piper Sandler.
So on the Lower 48, you added 8 rigs since last year, sitting at 66, you expect to move to 69 by the end of the quarter. From there, you called for a steady rig count in the back half of the year, but now you're expecting privates to add incremental rigs as the 8 rigs you described were added primarily from the publics. Talked about the survey, 2 operators adding 15 rigs. In this setup, shouldn't we see some upside to your second half rig count above the 69 versus being steady? Like could you just help us maybe with the moving pieces here and how we should think about it?
Yes. I mean, obviously, if all things click and there's no setbacks, there should be upside in the story here. And we've made no secret about the fact that we have 2 additional rigs in process. But we're actually being -- trying to be cautious as well because this market has the ability also to turn on the dime here. So we don't want to get over our skis right now. So we're real comfortable changing the guidance that we have for the year to the 69 number, but we're not yet ready to move it to the next number.
That's fair. No, I appreciate that. I guess flipping over to Saudi. You have the newbuild program going. You're obviously accelerating the next tranche or not, but you're considering that to happen over the next couple of months. I'm just trying to think through maybe your upside torque if Saudi were to add incremental activity once we get to a world post resolution here. It sounds like all your suspensions are going back to work. Is there any sort of ability to accelerate the newbuild program from the initial cadence? Or is there a potential for adding rigs into the JV that are outside of the country? Just some maybe thoughts around, kind of, upside torque to if we see Saudi add incremental rigs in a post-conflict world.
Sure. Well, first of all, let's put the whole thing in context of Saudi Arabia market as a whole. I mean there's currently 251 operating rigs in general, 192 onshore, 59 offshore. And of the original suspensions, 82 were onshore, 37 were offshore, and there's been a resumption of 36 offshore and 4 onshore. Now we don't think all those suspended rigs are going to come back necessarily, maybe up to another 20 or so, and there's line of sight to at least 12.
So -- but the fact is that the fact where we are and [indiscernible] has done so far, I think it's a very positive sign. Obviously, this market does demand incremental production from them, they will have to reassess their plans. And we are in a great position, I think, to be part of that. Whether it's additional rigs within the Nabors' existing fleet from other markets or not, or acceleration of a newbuild program, either one we could do. Probably acceleration of newbuild program won't actually solve the short-term need. So my guess is if it's going to come, it will come from Nabors' other assets somewhere else. So that's what I would say.
The other thing I would say is that our relative position there has really improved a lot. I mean our operating fleet is now really weighted to the natural gas development. We remarked how we actually changed in the quarter some rigs to oil to gas. 90% of our rigs are now directed to gas projects, just to give you an idea. And Nabors share of the gas work is about 40% tenant share of the gas is about 40%. So we have a very large substantial capability there. And our overall market position is obviously 28%. And so we really have to acknowledge Aramco's role here, and they've been steadfast in supporting tenants [indiscernible] everything, including this current very challenging environment.
The other thing is we actually have -- as part of the story there is the growth of the [indiscernible] situation is the rollout of technology. And so NDS is now beginning to make inroads there as well with bringing all their performance products out there, casing running. We're already a large casing running player in the region. In fact, this is an interesting number for you, probably not aware of it. Globally, Nabors is on land is now the third largest casing money provider. And in the U.S., we're the second largest. And in that region of the world, we're a really key player with a substantial operation in the UAE.
And so when you look at this current environment and you look at what may happen post this dispute in terms of the need for these NOCs to resume activity, and maybe if you take into account UAEs and the recent announcement and their aspirations to grow production, I think we're really well established in the region to take advantage of all that. So does that make sense [indiscernible] any color that you wanted?
The next question comes from Scott Gruber with Citigroup.
So encouraging comments, obviously, on the activity volumes that you've already seen and that are forthcoming, but also on the rate side in the U.S. So just curious around the drivers behind the rate inflation you see coming. I assume there's a component of market tightness, but curious around if there's a component to getting compensated for these upgrades. So maybe just some color on that move into the mid-30s. Is that mainly market? Or is it kind of a combination of market and compensation for upgrades?
I think it's a combination of things. Absolutely, it's a combination of things. First of all, you got to remember in the past few years, there's been a reduction in the overall number of marketable rigs. That's number one. But number two, if you look at well programs, the demand and well programs have actually increased, particularly amongst the larger customers where you want to do 4- or 5-mile laterals. That involves upgrading rigs components, and they all recognize that, that means extra cost, therefore, extra pricing as well. But all that extra stuff is actually very high return add-ons. So that actually plays into our strength at Nabors because I think we're unique amongst all the -- even our competitors where our existing rigs are more than capable of handling any of these large upgrades like the 10,000 psi with the expanded setback and all that other stuff.
I mean that [ X rig ] was designed from day 1 from when we first rolled it out to be that kind of rig. And so now it's just -- it's actually -- the market is finally caught up to the X rig. And so that puts us in a great position. But I think it's that combination. And of course, obviously, when you look at basins, there's different drivers in each basin in terms of the pricing, depending on which ones you're looking at. Obviously, West Texas, there's tightening. The churn has come down, but pricing is directionally up. South Texas, I'd say it's a strong improvement in that basin.
I think there the churn is cut in half and the rapid market tightening, which is increased demand, therefore, pricing is affected positively. North Dakota, it's slightly higher. There, it's more driven by pockets of customers increasing rig count with some with some planned acceleration into 2027. So pricing directionally is up as well. East Texas, obviously, is flat with churn still persisting and utilization is under pressure.
Pricing is, I would say, about flat, maybe a little bit biased up, but that's all the gas story, which we're well acquainted with. And Northeast is steady and flat, obviously, due to pipeline constraints still being the big overhang. So that's basically the drivers there, and that all affects the overall dynamics of the pricing. But as I said, I think the combination of reduction in market size of available rigs, the demands of operators for increased capabilities, Nabors' strength of adding technology to these rigs.
And I think you're also right that everyone is obviously focused on performance contracts to try to get -- recognize more value that we're providing to the operator and try to realize that as a part of the benefit that enters the equation, too. So you put that all together, that's the drive for a path to increase pricing, I think, as we move forward and better returns on capital going forward. And -- but you have to exercise discipline to get there and make sure that you execute your performance that justifies it. Those are the 2 requirements that could all happen.
That makes sense. I appreciate that color. And then did I hear a comment correctly that Saudi did not review -- renew a couple of contracts on a few workover rigs? And if so, can you provide a bit more color there? It's just a bit surprising in light of kind of restart needs? And generally, what are you hearing from customers in the region around calling on workover rigs.
If I may, I think we were very clear about these rigs coming down during our last earnings call, where we mentioned that SANAD has elected rightly so, not to extend these workover contracts due to pricing considerations. And they were very marginal anyway in terms of EBITDA and free cash flow contributions to the venture. So you are correct. I mean, these rigs came down. But we announced this during our last earnings call.
What we need to continue to remain focused is in the trajectory of our additions in the international, Saudi included, the number of rigs that we added in Q1, which basically outperformed our own expectations primarily by the late addition of Mexico with Saudi remaining on plan even with all the headwinds, adding the 15 as well as one of the suspended rigs. Coming back to work, and then in Q2, we expect really to remain on track in Saudi and elsewhere. And our outlook of reaching the 101 rigs at the end of the year remains unchanged, as a matter of fact. And Q2, just to be very clear, we are going to exit at 95 rigs.
Got it. And I realize these workover rigs have always kind of contributed minimally. But just kind of given the backdrop, like is Saudi coming back to try to contract those rigs again or are other customers calling?
I definitely, I mean, the SANAD team remains poised to put these rigs back to work at the real fashion. But I think as Tony mentioned before, right, there are still a number of suspended rigs that -- I mean, we don't know how many of those are going to come back to work. I think if my memory serves me well, it's about 46 rigs that they still need to come back to work. There are probably opportunities for these workover rigs. But I think if I am Aramco, I will give priority to those that are more into gas drilling, or oil drilling, right, as opposed to workover. But I mean, the team is working on putting this back to work. They are not in our 101 exit by the end of the year.
Yes. I don't know if you're talking to -- there's a separate class of rigs called workover rigs that are not drilling rigs. [indiscernible] when a drilling rig is doing certain workover jobs, which is a different class of rigs. There is another class of rigs, workover rigs, which we're not in -- is not in that business, and that's a separate business. And that business depends on what Aramco's plans are in terms of activating production and whether that class of rigs will actually be increased in a market where they need to accelerate production. You could see some extra workovers actually happening in that workover class. But that's a whole different class of rigs.
The next question comes from Keith Mackey with RBC.
Maybe just to start out on free cash flow. Miguel, you mentioned you'd be in a good position to exceed your free cash flow guidance for the year. Can you just kind of run us through some of the factors there? I know you've maintained your capital guidance, but at the same time, there's some incremental rigs in the U.S. and maybe a bit of upgrade capital there and reactivation capital there that you might not have expected to occur initially? So can you kind of just take us through some of the big pieces of free cash flow? And then to the extent that you're comfortable kind of where you think the year might land given how things have unfolded so far?
Yes. Sure, Keith. Look, I will not tell you where are we going to land. The only thing that I can tell you very clearly and firmly is that with the improved outlook in Lower 48, our constructive view around international and the number of opportunities that we continue to see even outside of the Middle East and considering the headwinds around the conflict persisting, combined with a very strong capital and pricing discipline. I mean, Tony and I, we firmly believe that we are going to outperform our earlier guidance around adjusted free cash flow.
Where is that going to come from? It's going to probably come from primarily by incremental EBITDA, clearly, as a result of the improved activity outlook and remaining firm around the international performance. We are maintaining, as you rightly mentioned, our CapEx range, which by itself is a testament of our discipline around where we deploy the money and what are our thresholds. And certainly, we continue to be, I mean, making a very strong progress about our working capital in general, right? And Q1 is a good evidence of this, right?
I mean I think these are the key building blocks that I can give you. I'm sure you are going to run your models and you will arrive to something that will likely make sense. But we remain very robust and optimistic about the outlook in the U.S., the strength of our international franchise, and our ability to continue to manage and be disciplined around pricing and working capital and CapEx.
As your question anticipates, I think you -- obviously, there's a clear focus on really optimizing incremental capital expenditures. And as the year has gone before, that's been an increasing priority, particularly with the aspirations of having some of these new contracts. So the notion of getting more -- extracting more from what we have today is a high priority here. And hopefully, that translates into the numbers that you're hearing about. But that is also one of the dynamics that work here.
Got it. I appreciate the comments. Just turning to the Middle East. It's relatively impressive you're able to maintain the same operational tempo given everything that's gone on there. And yes, the broader international outlook still kind of gets to 101 rigs by the end of the year.
Can you just talk about, kind of, what you're seeing on the ground in the Middle East, how you're able to maintain drilling operations with minimal disruptions? And just finally, given that we're seeing some persistent production shut-ins, do you think customers will continue to be able to drill for the foreseeable future? Or will there have to just be some slowdown in drilling programs at some point? Any color around that would be helpful.
Let me give -- first give you some color on operationally what we've been navigating. Basically, it's been a huge logistics strain. On the travel side, obviously, you have the issues of crew rotation. There's fewer airlines, for example, in Saudi, Turkish Airlines, Saudi and Fly Dubai and Emirates are just now resuming, for example. No European airlines serve Saudi. And so all that puts strain on the situation.
Just to give you an idea on supply side, we actually had a need for drill pipe in our current operations that we had to drill pipe in [indiscernible]. But given the situation there, we couldn't get it out, which meant internally, we had to use stuff from operating rigs to fill gaps, which also is a driver of cost. So you can assume there's a lot of activity now spent just trying to use up everything we have optimally to service any holes.
And on top of that, obviously, with our vast majority of imports coming through the port of [ Daman ] on the Gulf side in the Eastern province, that's been an issue. And so what we're really doing now is we're shipping stuff from the Red Sea, 850 miles by trucking, just to give you an idea. So that's a huge time and extra expense as well.
So -- but all these things are navigatable. I think one thing that I'd like to comment on is our people in the region have been incredibly supportive of continuing operations. Our major customers, Saudi Aramco, in particular, totally supportive of everything any concerns about safety and everything they respond to that. But by and large, I think all the -- notwithstanding all the conflict going around and rockets flying in the region, our crews don't raise their hands and say they want to get out there. They're all focused on doing the job every day, and they're all committed to it. And so I think that's a great sign of the commitment of everybody to make it all happen. So that's number one thing I would say about it.
So in general, let me just say that, that together with the fact that we see a stronger 48 with pricing improving and a balance sheet improvement [ 26 to 27 ]. I think we're constructive on the international despite the headwinds, and we see growth in the Middle East and outside the region in Latin America. And then we think our capital discipline, that whole package, I think, puts us in a great position to outperform and meet the free cash flow guidance that Miguel said, but that's the whole package.
That's all the time we have for questions today. I would like to turn the conference call back over to William Conroy for closing remarks. Please go ahead.
Thank you very much, everyone, for joining us. If you have any questions or care to follow up, please reach out to us. And thank you, [indiscernible], for hosting the call this morning.
The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.
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Nabors Industries Ltd. — Q1 2026 Earnings Call
Nabors Industries Ltd. — Q4 2025 Earnings Call
1. Management Discussion
Good day, and welcome to the Nabors Industries Limited Fourth Quarter 2025 Earnings Conference Call. [Operator Instructions] Please note that this event is being recorded.
I would now like to turn the conference over to William Conroy, Vice President of Corporate Development and Investor Relations. Please go ahead.
Good morning, everyone. Thank you for joining Nabors' Fourth Quarter 2025 Earnings Conference Call. Today, we will follow our customary format with Tony Petrello, our Chairman, President and Chief Executive Officer; and Miguel Rodriguez, our Chief Financial Officer, providing their perspectives on the quarter's results, along with insights into our markets and how we expect Nabors to perform in these markets.
In support of these remarks, a slide deck is available, both as a download within the webcast and in the Investor Relations section of nabors.com. Instructions for the replay of this call are posted on the website as well. With us today, in addition to Tony, Miguel and me, are other members of the senior management team. Since much of our commentary today will include our forward expectations, they may constitute forward-looking statements within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934. Such forward-looking statements are subject to certain risks and uncertainties as disclosed by Nabors from time to time in our filings with the Securities and Exchange Commission. As a result of these factors, our actual results may vary materially from those indicated or implied by such forward-looking statements.
Forward-looking statements. Also, during the call, we may discuss certain non-GAAP financial measures, such as net debt, adjusted operating income, adjusted EBITDA and adjusted free cash flow. All references to EBITDA made by either Tony or Miguel during their presentations, whether qualified by the word adjusted or otherwise, mean adjusted EBITDA as that term is defined on our website and in our earnings release.
Likewise, unless the context clearly indicates otherwise, references to cash flow mean adjusted free cash flow as that non-GAAP measure is defined in our earnings release. We have posted to the Investor Relations section of a reconciliation of these non-GAAP financial measures to the most recently comparable GAAP measures.
With that, I will turn the call over to Tony to begin.
Good morning. Thank you for joining us today as we review our fourth quarter results, we will also highlight a number of accomplishments we achieved throughout the year.
I'll begin this morning with those. During 2025 and through the beginning of this year, we completed the sequence of significant transactions, beginning with the purchase of Parker Wellbore for Nabors shares and assumption of debt, followed by the sale of Quell tools, and finishing with debt redemptions and a significant debt refinancing. Compared to the end of 2024, we reduced net debt by $554 million. This improvement significantly derisked our capital structure.
At the same time, we will reduce annualized cash interest expense by approximately $45 million. We also have a portfolio of businesses remaining from Parker that we project will contribute at least $70 million in adjusted EBITDA this year.
Now let me turn to our financial results for the quarter. Adjusted EBITDA totaled $222 million. This performance was better than the expectations we set on our previous earnings conference call. These results were primarily due to first, stronger overall performance in our U.S. Drilling segment, including our Lower 48 average rig count and daily margin and increased EBITDA from our legacy Drilling Solutions segment, excluding Quell in the third quarter.
NS' casing running and managed pressure drilling business led this improvement. Sequentially, our total EBITDA, excluding the contribution from Quell in the third quarter, once again improved. This result reinforces several of our strategic priorities, namely our focus on performance excellence in the Lower 48 rig market, expanding in the international drilling market where we generate attractive returns, we also benefit from the stability of multiyear contracts and developing and deploying innovative technology, which advances the capabilities and efficiencies of the drilling process.
Our commitment to these priorities led to our recent accomplishments, we are confident they will lead us to future success as well. Next, I'll address the broader market environment and neighbors position in those markets. Let me start with the commodities. Oil prices were a downward trend in the second half of 2025. This lasted through the U.S. announcement to import Venezuela crude in early January. Subsequently, there was a production interruption in Kazakhstan to help trigger an increase. These were followed by uncertainty around tariffs related to Greenland and protests in Iran.
We are evaluating the lasting effect of these items, including the potential reaction by our client base. These events occurred against the backdrop of global oil supply exceeding demand. The EIA's figures showed a surplus each month of 2025. Looking ahead, we see several issues that could impact oil prices, including continuing uncertainty around future tariff actions, oil production increases, both inside and outside OPEC.
The recent interruption at Tengiz in Kazakhstan, reported inventory builds in certain markets, higher demand concentrated in Asia and ongoing conflicts involving Ukraine and Iran. Our global drilling markets each have their own drivers. With our current geographic reach, we are well positioned to benefit from improvements in those countries.
Next, I'll comment on Venezuela. We have operated in Venezuela since the '40s. At our peak, we had 18 rigs working there for multiple customers. More recently, we worked into 2020 when our client wound down operations, that was due in part to problems with payments and OFAC regulations.
Today, we have 5 idle rigs and a small number of key local personnel in-country, with suitable commercial terms and security arrangements, we are prepared to return to work there. We are already in discussions with multiple operators across the Middle East and North Africa, several markets have aspirations to increase their production capacity.
Our business portfolio aligns with these expansion plans. Turning to the U.S. market. Operators in Lower 48 appear focused on maintaining production. At the same time, they are positioned to react quickly should oil prices no longer support their investment return metrics. Our approach in this market is to exercise cost discipline while we deploy advanced technologies, our innovations, all my operator investment returns with enhanced production and efficiencies.
The outlook for natural gas remains positive over the next several years. In the U.S., LNG exports and domestic consumption should ramp up. Elsewhere in the Middle East and Latin America continued expansion of natural gas supports drilling activity. In the Lower 48, the gas-directed industry rig count increased by more than 20% in 2025. Nabors gas rig count increased by 50%, and Currently, gas directed activity comprises approximately 20% of our overall rig count in the Lower 48.
We stand ready to respond to any increased demand across catch producing basins. Next, I'll add a few perspectives on our current business. In the Lower 48, our momentum accelerated during the fourth quarter. We had 4 rigs in December and finished at the high watermark for the quarter, 62 rigs. Since then, we've added more rigs. Our rig count recently stood at 66. The additions are mainly for public operators, they are spread across producing areas with 4 in the Permian, 3 in the Eagle Ford and 2 in the Haynesville.
This diversity is encouraging, it suggests favorable operating economics across basis. Next, I'll spend a moment on SANAD, our joint venture in Saudi Arabia. The newbuild fleet there continues to expand. SANAD deployed the 14th new build during the fourth quarter, five more rigs are planned to commence work during 2026, bringing the total to 19, the 20th should start up in early 2027. During the fourth quarter, SANAD received notices for 2 of its 3 suspended rigs to resume operations. The first is scheduled to start up late this quarter, the second -- late in the second quarter, the rigs will work under their existing contracts. Their contract terms are extended by the suspension period. SANAD recently elected not to renew 3 of its owned rigs.
These were contributed by our partner to the JV during its formation. These smaller rigs, in effect operated as workover rigs. They generated very little EBITDA and free cash flow. The JV is evaluating alternatives to return them to work. In the meantime, SANAD can utilize the experienced crew from these rigs as planned deployments during the quarter. This should help mitigate the effects of a tight labor market in the Kingdom.
Across other markets in the Eastern Hemisphere, we are seeing potential activity growth. Currently, we are tracking nearly 20 opportunities for additional rigs in countries where we currently operate. This total sends an encouraging signal on the state of the Eastern Hemisphere market. In Latin America, our activity outlook in Mexico has improved. We currently have 3 offshore platform rigs working, with the improvement in our clients' payment posture, as Miguel will discuss, we see the potential for a more stable operating cadence there. We expect to restart a fourth platform rig there earlier this year.
Turning to Argentina. We expect to start 1 rig this quarter. We have a second rig scheduled to start work there in the third quarter. That deployment would bring our rig count in Argentina to 14. That is up 1 from our last earnings call. Our leading position in this market enables us to opportunistically capture additional work.
Next, I'll comment on the U.S. market. Thus far, we have not seen oil prices at the level that concerned us a quarter ago. The Baker Hughes weekly Lower 48 land rig count decreased by 3 rigs from the end of September through the end of December. This trend continues the perishability we saw in the third quarter.
We again surveyed the expected drilling activity of the largest Lower 48 operators, this group accounted for approximately 42% of this market's working rig count at the end of the quarter. Taken together, these operators expect the rig count to remain largely stable through the end of 2026.
Looking more closely, 2 companies indicate declines. The rest are essentially unchanged with a few indicating small increases -- now I will make some comments on the key drivers of our results. I'll start with our International Drilling segment. This business has been relatively stable compared to the high volatility in the U.S. In recent years, and looking to the future, the international markets are a source of growth. We see prospects across the Middle East, Asia Pacific and in Latin America. We will focus on opportunities that benefit from our advanced technology offer long-term visibility with multiyear contracts and generate attractive returns.
In Saudi Arabia, beyond the pending additions I mentioned earlier, SANAD continues to advance discussions with its client for the fifth tranche of new build rates. We expect these to conclude in the coming months. This tranche will bring the total number of new builds to 25.
Now I'll discuss our performance in the U.S. In the fourth quarter, our Daily gross margin in the Lower 48 exceeded our guidance. This resulted from our disciplined approach to pricing and our ability to reduce operating costs. With our performance in the fourth quarter and guidance for the first quarter, we believe our daily margin is stabilizing. Before moving on, I will offer an update on our high-end rigs, including the PACE-X Ultra. The first unit has been working for caterists in South Texas since mid-September. We had higher expectations for this rig. It has delivered. We are now working toward an agreement to deploy a second PACE-X Ultra. This powerful rig is an upgrade to our existing PACE-X rates.
The PACE-X Ultra combines a 10,000 PSI mud system high-end racking and mass capacity and an upgraded high-torque Canrig top drive. As an upgrade, the PACE-X Ultra is cost effective for both us and for our clients. As this rig continues to prove its value, we are confident that interest in it will grow further. We are working with another operator to upgrade an existing PACE-X rig with higher setback capacity. This upgraded unit has been tagged to drill the operator's 4-mile lateral wells, its longest in the Permian Basin.
We are also in discussions to simply upgrade a PACE-X rig for South Texas. We are encouraged by these developments, having multiple operators select our high-end drilling technology demonstrates the versatility and capability we can deliver to the market. At the same time, we generated attractive returns on these investments.
Next, let me discuss our technology and innovation. An integral element of our PACE-X Ultra rig is the full automation package supplied by Nabors Drilling Solutions. We also integrate our managed pressure drilling package, and we provide casing-running services. Looking more broadly, our penetration of NDS services on Nabors own rigs in the Lower 48 was stable. We averaged 7 services per rig.
Our strategy for NDS to target third-party rigs continue to pay off. In this segment, NDS outperformed the market. In the fourth quarter, on third-party rigs in Lower 48 NDS revenue, excluding [ Quale ], increased sequentially by 10%. That increase came in a market where the third-party average rig count increased by just 1%.
NDS remains a key element in our strategy. Its services generate value for clients and with low capital intensity for Nabors as well. I'll finish my update this morning with some comments on our capital structure. We said many times, our highest priority remains the reduction of our debt. We made considerable progress over the last year.
Our net debt is down by more than $550 million. It stands at the lowest level since 2005. This improvement is also contributing to our free cash flow as our interest expense declines. Going forward, with our [indiscernible] to generate free cash flow outside SANAD, we are committed to further debt reduction.
I'll conclude my remarks with the following, our outlook for 2026 envisions EBITDA performance that matches last year's. We forecast increases in several of our operations. Those should offset the disposition of [indiscernible]. This prospect demonstrates the strong earnings power we have across our company.
Now let me turn the call over to Miguel to discuss our financial results in detail.
Thank you, Tony, and good morning, everyone. I will begin by reaffirming our unwavering commitment to continue to strengthen our balance sheet and enhancing our capital structure. Delevering remains our highest financial priority, and we will endure to take decisive actions to keep reducing gross debt.
At the same time, our organization is well positioned to operate at peak performance and deliver durable growth and long-term value. Our financial targets are designed to be appropriately rigorous to drive the business forward. Today, I will start with an overview of our full year performance and a detailed discussion of our fourth quarter results.
Next, I will outline our guidance for the first quarter and full year 2026. Then I will provide a brief update on the integration of Parker Wellbore, I will conclude with remarks on capital allocation, adjusted free cash flow and the recent actions we have taken to materially strengthen our capital structure. Full year 2025 revenue was $3.2 billion, reflecting growth of 8.7% year-over-year driven primarily by the acquisition of Parker and a strong international expansion.
Full year adjusted EBITDA was $913 million, $31 million higher than the prior year. This performance was driven by the same underlying factors. Now turning to the fourth quarter results. Fourth quarter consolidated revenue was $798 million, a decrease of $21 million or 2.5% sequentially. The divestiture of [indiscernible] tools resulted in a reduction of $34 million compared to the third quarter. This impact was partly offset by continued growth in our International Drilling segment.
Without the contribution of Quell in the third quarter consolidated revenue grew $14 million or 1.7% sequentially. EBITDA was $222 million, representing an EBITDA margin of 27.8%, down 110 basis points sequentially. This result exceeded the expectations we laid out in October.
In absolute dollars, EBITDA decreased $15 million or 6.2% versus the third quarter, driven primarily by the divestiture of Quell. In the third quarter, Quell contributed EBITDA of $20 million. Excluding this impact, our EBITDA grew by 2.6% and led by our international drilling operations, NDS and Rig Technologies segments. These gains were partially offset by a decline of just 1% in our U.S. drilling segment. EBITDA from Alaska and offshore combined exceeded the guidance for our last earnings call as these operations experienced fewer maintenance days than anticipated.
Lower 48 EBITDA improved sequentially and was approximately 6% above our guidance. Now I will provide you with details for each of the segment's results. International drilling revenue was $424 million, growth of $17 million or 4.1% sequentially. EBITDA for the segment was $131 million increasing $4 million or 2.9% quarter-over-quarter, yielding an EBITDA margin of 31%, down 35 basis points.
International drilling EBITDA increased sequentially though it came in modestly below the guidance provided on our last earnings call. Our average daily rig margin of $17,630 decreased sequentially by $301 and was below the lower bound of our guidance. The daily margin shortfall was mainly driven by a combination of activity disruptions in Colombia during most of the quarter, impacting our logistics and drilling plans, more maintenance days than anticipated in Saudi Arabia based on updates to our customers' drilling schedule and some inefficiencies from rig start-ups during the quarter.
These were partially offset by a stronger activity than plan in Mexico. During the fourth quarter, international drilling average rig count increased by 4 rigs to 93.3%, exceeding our expectation by 2.3 rigs. In addition to the full quarter contribution from rigs that commenced in the third quarter, the strong growth in average rig count mainly reflects the deployment of our new build in Saudi Arabia, 2 rigs deployed in Argentina and the rigs that we expected to be suspending in Mexico due to activity and budget allocation uncertainty continue to operate through the quarter. We exited the quarter with 94 rigs operating.
Moving on to U.S. Drilling. Fourth quarter revenue was $241 million, reflecting a 3.7% sequential decline. EBITDA totaled $93 million, a decrease of 1% sequentially, resulting in an EBITDA margin of 38.7%, an improvement of 105 basis points. These results exceeded the guidance for our last earnings call due to a stronger-than-expected performance in our Lower 48 business with the last kind offshore also modestly above our outlook.
Looking specifically at the Lower 48, revenue of $181 million decreased by $4 million or 2.2% sequentially on a modest increase in average rate count of 0.6 to 59.8 rigs despite of ongoing commodity price volatility and broader market challenges. This is higher than the upper band of the guidance range we provided during the last earnings call.
We exited the fourth quarter with 62 rigs operating and currently, there are 66 rigs working. Our rig counts ramped higher toward the latter part of the quarter, as we capitalize on opportunities to add rigs in the Eagle for sale and the Permian. We are very pleased with the progress in a rather complex market at present. Average daily revenue declined by $1,079 to $32,938. The majority of the volume was driven by lower reimbursables, which have minimal impact on margins, approximately $250 of the decrease was attributable to the base day rate, which remained largely consistent with prior quarters.
In our most recently signed contracts expected daily revenue remains in the low $30,000 range, unchanged from prior quarters. Average daily margin of $13,303 increased by $152 or 1.2%, reflecting a relatively stable base daily revenue and the benefits of cost absorption and optimization initiatives, including reduction in repairs and maintenance expenses.
Turning to Alaska and U.S. offshore. On a combined basis, our Alaskan offshore drilling operations generated revenue of $59 million in the fourth quarter a 7.9% decrease sequentially. EBITDA was $26 million, down $2 million. EBITDA margin was 43.9%, essentially in line with Q3 and moderately above our guidance. We are experiencing changes in the scope as a mix of work in these markets. In the medium to long term, however, we expect operations in Alaska to remain strong.
Our Drilling Solutions segment generated revenue of $108 million in the fourth quarter and EBITDA of $41 million, resulting in an EBITDA margin of 38.3%. In the third quarter, Quell revenue and EBITDA were $34 million and $20 million, respectively. Normalized for the sale of Quell, NDS revenue increases slightly and EBITDA grew by 2.3% versus the third quarter.
NDS EBITDA margin, excluding Quell was 37.5% in the third quarter, representing a sequential improvement of 83 basis points in the fourth quarter driven by international growth across services, including casing running, managed pressure drilling and performance software.
Now on to Rig Technologies. Revenue was $38 million in the fourth quarter, a sequential increase of 6% and EBITDA was $5 million, up $1 million from the prior quarter the improvement is predominantly related to year-end equipment sales.
Next, let me outline our expectations for the first quarter and full year. Starting with the quarter on U.S. drilling. Given our strong position in a number of Lower 48 basins and current market conditions, we expect a sequential increase in average rig count to a range of 64 to 65 rigs. This includes our anticipation of some level of rig turn during the quarter. For the first half of the year, we expect activity in our Lower 48 drilling business to remain relatively steady.
Daily adjusted gross margin for the first quarter is expected to average approximately $13,200 with base daily revenue remaining largely stable. Rig additions during the quarter will incur some higher start-up related costs. For Alaska and U.S. offshore drilling combined, we expect EBITDA in the range of $16 million to $17 million for the quarter. This outlook reflects a step down in daily margins driven primarily by a change in the scope of work of our marquee offshore platform rig as well as reduced activity levels in Alaska.
International drilling average rig count is expected to be in the range of 91 to 92 rigs. This reflects the commencement of the 15 new build rig in Saudi Arabia, redeployment of 1 of the suspended rigs in the latter part of the quarter, also in Saudi Arabia. The redeployment of 1 rig in Argentina and the full quarter contribution from rig startups that began in the fourth quarter. These additions are partially offset by a decline of 3 very low-margin workover rigs in Saudi Arabia.
As Tony mentioned, Canada elected not to renew those contracts for economic reasons. The drop of these rigs will have no material impact on our full year international EBITDA and cash flow progression. We expect average daily gross margin to be essentially in line with the fourth quarter in the range of $17,500 to $17,600. While this reflects the benefit of our robust rig additions, we also expect some seasonal slowdown in the Middle East and the conclusion of certain short-term high-margin activities during the quarter.
Drilling Solutions EBITDA is expected to be approximately $39 million, reflecting a marginal decline in both the U.S. and international markets. Finally, Rig Technologies EBITDA should be approximately $2 million. For the full year, we expect our EBITDA to grow by 6% to 8% normalized for Quell, with the continued growth of our international and Nabors Drilling Solutions businesses.
We will aim to maintain the same EBITDA level as reported in 2025. Starting with U.S. drilling, we expect Lower 48 to average 61 to 64 rigs, reflecting a cautious view for the second half of the year. Average daily gross margin is expected to range between $13,000 and $13,400. A last kind of shore combined EBITDA of $55 million to $60 million, for international drilling, we expect average [indiscernible] count of 96 to 98 rigs with a December exit at or above 101 rigs. This growth includes commencements in Saudi with 5 in into new builds during the year, and 2 suspended rigs returning to work in the first half of the year.
In addition, we expect to redeploy 2 rigs in Argentina. Average daily gross margin is targeted at $18,500 or 5% up as we continue to deploy rigs at better pricing levels. I do want to note, our full year guidance does not factor for any reactivation of our 5 available rigs in Venezuela. Nabors Drilling Solutions EBITDA is expected to grow by 6% to 7% normalized for Quell to reach $160 million to $170 million largely led by a strong growth in international markets.
Finally, Rig Technologies EBITDA is expected to range between $22 million and $25 million. Now I will provide an update on our integration of Parker, which is progressing in line with our expectations. As previously discussed, following the sale of Quell, Nabors retained the remaining Parker operations. I am pleased to report that we achieved our 2025 EBITDA target for these businesses of approximately post acquisition and including synergies.
During the fourth quarter, we realized synergies at an annualized run rate of $63 million. This is slightly above our already ambitious target of $60 million and demonstrates our agility and laser focus on execution. We remain on track to generate at least $70 million of EBITDA in 2026 from the retaining Parker businesses supported by the full run rate impact of synergies and the continued robust performance of these operations.
We are very pleased with the progress of the market integration and the pace of the synergy realization. The combined organization is well positioned to continue delivering both operational and financial benefits in the quarters ahead.
Next, I will discuss our capital allocation, adjusted free cash flow and liquidity. In the fourth quarter, total capital expenditures were $158 million lower than the guidance provided on our prior earnings call. This amount includes $78 million related to the kingdom newbuild program, also below our guidance. Total CapEx in the third quarter was $188 million.
Capital expenditures in 2025 totaled $695 million, including $274 million for the net new builds. Looking ahead, we will maintain our disciplined approach to capital investments. For the first quarter, we anticipate capital expenditures between $170 million and $180 million, including approximately $85 million supporting the new build rigs.
For the full year 2026, we are targeting capital expenditures in the range of $730 million to $760 million, including $360 million to $380 million for Senet newbuilds. The increase of roughly $100 million in the Enkingdom newbuild spend primarily reflects the number of construction milestones that shifted from 2025 into 2026.
This increase should be partially offset by lower expected reactivation capital in our international operations as we completed several redeployments in 2025 in a number of markets. and do not expect to repeat the same quantum of associated spending. We also expect to reduce capital spending in Nabors Drilling Solutions following the sale of Quell. Supported by customer demand, we will continue to invest in key automation projects as well as selectively high-grading our rigs in the Lower 48.
Turning to free cash flow. During the fourth quarter, we generated adjusted free cash flow of $132 million. This exceptional performance drove our full year adjusted free cash flow to approximately $117 million. Significantly exceeding our revised post [indiscernible] guidance of approximately $80 million. The outperformance in the quarter was driven by a combination of factors, including stronger EBITDA, lower-than-expected capital expenditures, higher-than-anticipated collections in Mexico, helping drive a sequential working capital improvement of approximately $40 million.
A sizable percentage of our 2024 Mexico receivables were settled by PEMEX in the fourth quarter in addition to timely payment of a meaningful portion of our 2025 services. a major step forward in Mexico. In addition, our quarter benefit from onetime claim settlements. For the full year 2025, SANAD consumed approximately $55 million in adjusted free cash flow. Excluding SANAD, the rest of our business unit generated approximately $175 million, a remarkable delivery for the year.
For the first quarter, we expect to consume $80 million to $90 million of consolidated adjusted free cash flow, with SANAD alone consuming approximately $50 million to $60 million. In addition, our first quarter is normally loaded with heavier cash interest payments, annual bonuses and property taxes. For the full year 2026, we expect SANAD's adjusted free cash flow to consume between $100 million and $120 million with the rest of our businesses generating in the range of $80 million to $90 million.
With these funds on some cash in hand, we plan to further reduce Nabor's gross debt by at least $100 million during the year. Now I would like to make a few comments regarding our progress on our capital structure during the fourth quarter and our subsequent actions that reduce gross debt. I will also highlight the broader progress achieved over the course of the year.
In early October, we received $250 million from Superior representing an early payment of the seller financing note completing the consideration for the sale of Quell. In early November, we issued $700 million of 7% and 8% senior priority guaranteed notes due November 2032. Proceeds from this issuance were used to retire the remaining $546 million of outstanding senior priority guaranteed notes maturing in May 2027.
Subsequent to quarter end, we redeemed the remaining $379 million of senior guaranteed notes maturing in 2028, effectively expanding our maturity runway to June 2029 with a very manageable $215 million maturity. As a result of these actions, two of the credit rating agencies upgraded ratings on elements of Nabor's debt structure. Stepping back and looking at the year more broadly, we made substantial progress through several major transformational transactions, as previously mentioned by Tony, that meaningfully enhance our capital structure.
As a result, we improved our credit ratings, extended our maturity profile into 2029 and with a weighted average maturity increasing to 5.3 years from 3.7 years as of the third quarter, reduced net debt by more than $554 million and improve our net leverage ratio to approximately 1.7x the lowest since 2008. These are significant accomplishments, and I want to thank everyone involved at Nabors for their efforts and execution.
With that, I will turn the call back over to Tony.
Thank you, Miguel. I will finish this morning with a few points. First, the transformation of our capital structure shifts significant value to our equity investors. We have also lowered our annual interest payments. This will boost our free cash flow.
Second, in the Lower 48, our efforts to deploy industry-leading capabilities are paying off. Our high-spec rig solutions are gaining traction, demonstrated by the recent increase in our own rig count. Third, in our International drilling business, we have seen a significant turn for the better in Mexico.
Events in Venezuela could lead to increased oil activity there. Funding SANAD's newbuild program results in the consumption of cash at the JV until crossover, Notwithstanding the near-term free cash flow outlook this investment opportunity remains one of the industry's most attractive avenues for growth. Each annual tranche of new builds at 5 per year should generate incremental annualized EBITDA of more than $60 million.
Our current valuations of drillers in the Middle East, that translates into more than $500 million of value creation each year. In short, our international franchise offers multiple growth prospects. We aim to capture our share of these in ways that generate significant value. That concludes my remarks. Thank you for your time this morning. We'll now take your questions.
[Operator Instructions] First question today comes from Derek Podhaizer with Piper Sandler.
2. Question Answer
I just want to start with your Lower 48 outlook. You've talked about the rig count increasing to that 64% to 65% range. That's up from 60% you just did in the quarter. This buck to trend a little bit from some of the other drillers that we've heard over the last couple of weeks, doubted like in your opening comments, it's more public E&P driven. But maybe could you just expand on the drivers behind the increasing rig count, maybe the customer type, the basins, public first private? Just a little bit more color on that would be great.
Sure. So Yes. Today, just to rephrase, we're running 66 rigs. And looking at last quarter, the rig count was stable, but there was a lot of churn. You had basins going up and down. You had a mix between gas and oil in the shifting, and that has resulted in neighbor shifts as well.
So if you look at us right now, we're now 80% public and our gas rig count is 20%, which is double from where before. The other thing that's interesting is looking at the type of drilling that's going on, which is the longer laterals, the trend is clearly in that direction. Give me some statistics here. If you look at West Texas, the change in West Texas of laterals of 3 or 4-mile laterals, they accounted for that bucket was 90% of our wells in 2025 versus 12% in 2024. The growth in laterals generally for for us in terms of pushing more than 3-mile laterals, was 25% in 2025. That's up from 15% to 16% in 2024. If you look at the number of 4-mile laterals, which is a really small tiny bit -- that number actually quadrupled our percentage. And why is that important? That's important because Nabors, I think, has a fleet of PACE-X rigs that are well suited to drilling these kind of wells. And you saw from the ultra we've actually improved on our base case on that as well.
So all that, I think, has positioned us really well in the market. And we remain pretty bullish on the long-term picture for gas, and we think that are spent played out as well.
So that in summary. And on top of that, obviously, we've basically just maintained discipline and trying to focus on performance day-to-day, and that accounts for some of the changes of some recent wins. But as you said from our outlook, we remain cautious about the market -- and I'm pleasantly surprised by the commodity price, as I mentioned, and we think though we're in a great position right now going forward.
If I may add all, if you look at the remainder of the year, we are looking at H2 with a lot of caution, given what's going on in the market. But I mean, we are very confident about our customers and our team to keep the momentum and as a reminder, with the outlook that we have provided for the full year really translates in a couple of rigs going up versus 2025. And the range that we provided is quite short relative to our peers, if you will.
The next question comes from Keith MacKey with RBC.
Can you just comment -- can you comment a little bit more on what you're seeing on the ground in Saudi Arabia. I know the SANAD newbuild program looks like it's moving along quite well. But certainly, in the Kingdom, there's going to be a number of rigs to be activated throughout the year. And Tony, as you mentioned, the labor market there is fairly tight. So can you just comment on your confidence around time lines that both the reactivation rigs and the new build rigs will essentially go to work on schedule? And how do you generally manage that? And what are you seeing on the ground in the industry?
Sure. Well, let's put the whole thing in some context. Right now, the rig count in the Kingdom, I think land is about 168, offshore 60 and I think there's about 35 LSTK rigs working, which is about around 260-plus rigs in the Kingdom.
At the market peak, 80 land rigs were idled and 23 came into the market. So that's a net down of 57. And I think -- we've heard that there's 40 rigs out of 83 that were suspended that received notices to return to drilling, 2 of the 3 are obviously SANAD and we're highly confident those 2 weeks ago on the schedule I just outlined, which is the second and third quarter. There's no question about that from our point of view. But for everybody else that leaves us is a rig that still have to go back to work.
And I think the labor market is heating up over there. I think given our position in the Kingdom mill and our vertical integration, we have no problem with those rigs and we have no problem with the 5 new builds at all. So I think we're highly confident of our rig count going forward there. I think the large scale resumption of Aramco putting back all these rigs to work, which about nearly half, I think they have -- are in the process of going back is an incredibly positive signal to the market, I think. That's the macro thing I get out of this thing. It shows -- Aramco is usually ahead of the market in terms of where things are going. And this I think means that in 2027 -- people are looking at 2027 being a good year and races try to position itself to do that. That's why I'll read on it. So I don't know if there's enough color for you.
Just 1 comment, Keith. On the suspended rig, we are expecting them to come back 1 in March and 1 in June. One in the latter part of Q1 and the second one in the latter part of Q2.
Next question comes from Scott Gruber with Citigroup.
I wanted to ask a question on Mexico. Good to hear that, the platform rig will be going back to work. But we've seen some headlines suggesting a potential pretty healthy step-up in upstream spending in Mexico this year. Are you having any negotiations to put additional rigs to work in Mexico beyond the fourth platform rig?
Right now, the the fourth platforms there, and there's always been other discussions about supporting other rigs there. We actually have some other services that were supporting other rigs, including PEMEX on rigs there in addition. But I think right now, we're really focused on making these 3 really profitable and the fourth one moving forward. But yes, I think the market is a little more positive. And obviously, the payment mechanism turning around is a big deal.
So that too.
Got it. And then I think there was some $50 million, $60 million of CapEx that may have slid from '25 to '26 within the [indiscernible] program. Is that accurate? And how should we think about the the kind of run rate for a 5-rig annual program in terms of CapEx? Is that still about $300 million? Or is it a bit higher now?
Yes. I mean -- So Scott, really the plan for the year originally was to be around $360 million. We are at the 274 mark in 2025, which means, as you rightly mentioned, we are probably around the $85 million. That is moving from 1 year to another from what was planned originally. I think that the right way to think about the upcoming years is probably '26 around $360, $380, we guided with '27 going down from these levels because we will be catching up in '26, maybe '27, around the $320 million, $330 million. That's probably the right way to think about it, which factors correctly, the 5 rigs built.
The only thing I answer that, Scott, is I saw you write up yesterday and -- or last night. And I think when you analyze the situation, you can't look at the consolidated free cash flow number. I think that's a misnomer. When you have to look at SANAD and its needs and its needs are satisfied by SANAD, neighbors away from SANAD, as Miguel referred to, we'll have $80 million to $90 million of free cash flow. That cash flow is available for net debt reduction. And so this notion that there's a concern about ability to meet net debt reduction is not fully the whole picture.
The other point I'd make is, if you look at our portfolio as a whole, I mean, if you look at international as a whole, when you count the Saudi rigs of 5 plus the 2 [indiscernible] work to 7 and then there's another 3 rigs, the Mexico rig in 2 Argentiat's 10 rigs okay? If you look at 2024, Nabors had 9 net rigs. This year, we're adding 10. There's nobody in the industry that has that kind of visibility that -- and all those are locked in. And beyond that, there's these 5 big programs additionally. And so when you look at the value of Nabors portfolio, I think your comments about valuation and how you look at it or just that not really on point because no one has that kind of built in growth and that kind of strong client base, we're the #1 oil company partner in the world in the largest market in the world. And I don't think that analysis takes any to that in account in the analysis of -- specifically of the free cash flow. So I just thought I'd share that with you.
No, I appreciate the comments. I just think from a high level people have been waited for that consolidated free cash inflection point and it does seem to be approaching any, I think, with the momentum...
We remain on pace with what we have been communicating when we expect China to cross over -- and as you can see from what we originally guided for '25 was a consumption of 150. We ended the year because of the CapEx moving from 1 year to another at 55%, but the guidance of 2026 in terms of cash flow consumption is much lower than what was guided for '25, which tells you that the EBITDA progression and growth in SANAD continues to build. And then once you stabilize the CapEx milestones, as I mentioned for '27, you will be very close to the turning point in terms of crossing over.
Yes, the other thing is you look at the other 1 in the Kingdom in terms of investing there their EBITDA payout going into these deals has been around 7 and their free cash flow pays more closer to 10 years. And so our investments are orders back to better than any of those terms of any of those deals have been made elsewhere in the Kingdom for sure. So again, I think that's why I strongly believe that the value that you need to put on this is much higher than what has been recognized so far.
The next question comes from John Daniel with Daniel Energy Partners.
First one, hopefully, you can hear me okay. The second half caution, which is probably prudent. Is that based off of known rig releases or just an expectation of stuff that might come from E&P M&A, et cetera, and efficiencies.
It's more just the constant -- all the external noise, the EIA, even as of last week, is talking about oversupply and the market reaction, even though I don't think the market is logical when we think a rent is going to not have a blow up or your cranes get resolved that all of a sudden, the whole market goes the other way.
I don't think that's so founded because I think the oil markets in the physical side turning -- it's more like turning a direct barge than it is at [indiscernible], but the reactions are that way. And obviously, those kind of swings were still subject to -- so it's really that anything really cracking here. As I said, we've been pleasantly surprising. You can see from our progress so far, we're doing pretty well. But we're cautious, and we'll have everybody really focused on the cost structure here. to plan for if the downside does occur. That's the way we're thinking about it.
Our team, John, is very strongly positioned to keep the momentum, and we are very confident about the team in Lower 48 and our customers. But we will be very happy to provide a subsequent update if we see really the market changing from our conservative guidance for the second half, right?
Fair enough. My second question and final one is can you guys elaborate a little bit on the new can rig wrenches and what that could mean for Nabors? And just a little bit more color on the cycle time improvement?
Sure. So basically, what the rent is, it's a bite rents opposed to the standard titerench, and it's loaded with feedback and automation. So as you know, we have our Razor rig out there, and this is another will be another component in that, where rental to be capable in fully autonomous mode, in its initial dressing on the first couple of wells in the past month or so, -- it has a stellar record of 1 by grabs because of all this automation in sensors.
So -- and for the larger pipe that people are using, the more for the complicated wells, this rent is well-suited to as well. So we're highly positive about it. We've actually had drilling contractors come and look at the ranch. The initial reaction is really high. So our first priority to get some of these leverage rigs and then we'll we're hoping that actually can rig will actually have a lot of third-party demand for these [indiscernible] as well.
So we're really happy.
This concludes our question-and-answer session. I would like to turn the conference back over to Mr. Conroy for any closing remarks.
Thanks very much, everyone, for participating. If you have any questions, please don't hesitate to follow up with the IR team. With that, Clay, we'll wrap up here.
Thank you. The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.
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Nabors Industries Ltd. — Q4 2025 Earnings Call
Nabors Industries Ltd. — Q3 2025 Earnings Call
1. Management Discussion
Good morning, and welcome to Nabors Industries Third Quarter 2025 Earnings Conference Call. [Operator Instructions] Please note, this event is being recorded.
I would now like to turn the conference over to William Conroy, VP of Corporate Development and Investor Relations. Please go ahead.
Good morning, everyone. Thank you for joining Nabors' Third Quarter 2025 Earnings Conference Call. Today, we will follow our customary format with Tony Petrello, our Chairman, President and Chief Executive Officer; and Miguel Rodriguez, our Chief Financial Officer, providing their perspectives on the quarter's results, along with insights into our markets and how we expect Nabors to perform in these markets. In support of these remarks, a slide deck is available, both as a download within the webcast and in the Investor Relations section of nabors.com.
Instructions for the replay of this call are posted on the website as well. With us today, in addition to Tony, Miguel and me, are other members of the senior management team. Since much of our commentary today will include our forward expectations, they may constitute forward-looking statements within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934. Such forward-looking statements are subject to certain risks and uncertainties as disclosed by Nabors from time to time in our filings with the Securities and Exchange Commission.
As a result of these factors, our actual results may vary materially from those indicated or implied by such forward-looking statements. Also, during the call, we may discuss certain non-GAAP financial measures, such as net debt, adjusted operating income, adjusted EBITDA and adjusted free cash flow. All references to EBITDA made by either Tony or Miguel during their presentations, whether qualified by the word adjusted or otherwise, mean adjusted EBITDA as that term is defined on our website and in our earnings release.
Likewise, unless the context clearly indicates otherwise, references to cash flow mean adjusted free cash flow as that non-GAAP measure is defined in our earnings release. We have posted to the Investor Relations section of our website a reconciliation of these non-GAAP financial measures to the most recently comparable GAAP measures.
With that, I will turn the call over to Tony to begin.
Good morning. Thank you for joining us today as we review our third quarter results. We will highlight a number of positive accomplishments. In particular, we have completed the transaction to sell Quail Tools. This is a transformational development for our capital structure. I will start my remarks with details of this transaction.
The terms of the deal are straightforward. On August 20, we sold the Quail business for a total consideration of $625 million. This amount includes a working capital adjustment. We received $375 million in cash at closing and a $250 million seller note, which was fully prepaid earlier this month. To be explicit, we have collected the entire proceeds.
Next, I'll discuss the merits of the transaction. When we acquired Parker on March 11 of this year, we estimated its operations would generate full year EBITDA of $150 million. Quail accounted for about $143 million of this EBITDA. Further, we were confident we would realize cost synergies during 2025 totaling $40 million. Consideration for Parker consisted of 4.8 million shares of Nabors valued at $180 million, assumed net debt of $93 million and less than $1 million of cash. This valued the acquisition at $274 million.
We estimated full year EBITDA of $190 million, including synergies. That translated to paying a very attractive 1.4x EBITDA. Now we have sold Quail for $625 million. We estimated Quail by itself would generate 2025 EBITDA of $150 million. With those metrics, we sold Quail for approximately 4.2x EBITDA. These valuations speak for themselves. Combining both steps of the Parker and Quail deals, it is important to note that we effectively sold Nabors shares at approximately $130 per share.
Moreover, following the Parker transaction, we have completed considerable restructuring efforts. We now expect the non-Quail businesses that were earning $7 million of EBITDA to earn $70 million in 2026. For this remaining business, we effectively paid $94 million or about a 1.4x multiple. In the third quarter, we used the proceeds to pay down approximately $330 million of debt. Adjusting our quarter end capital structure for the subsequent repayment of the seller note, pro forma net debt stood at approximately $1.7 billion. This is our lowest net debt in more than 10 years.
We expect to deploy the entire proceeds from the Quail sale to debt reduction. In summary, we effectively issued common shares at a 350% premium to the market. We are reducing net debt by more than 20% this year, and we retain a business portfolio that includes the leading casing running contractor in the Middle East.
Now let me turn to our financial results for the quarter. Adjusted EBITDA totaled $236 million. This performance was better than the expectations we laid out in September after the sale of Quail. Several factors contributed to these results: improved performance in our International Drilling segment, increased EBITDA from our legacy Drilling Solutions, excluding Quail and lower corporate expenses as we realize additional cost synergies from the Parker acquisition.
I want to highlight that our total EBITDA, excluding Quail, improved in the quarter. I am pleased with these accomplishments. They provide further confidence to our performance outlook in the coming quarters.
Next, I'll address the broader market environment. Global oil prices reflect a combination of factors. Most recently, the U.S. announced sanctions targeting 2 of Russia's largest oil producers. There is also the potential for secondary sanctions. Crude oil prices reacted sharply to this announcement. Should these actions impact Russian production, we would expect global producers, including a number of our customers to step in.
We are carefully evaluating the ultimate impact of this action and any lasting impact on commodity prices. However, there remain a number of conflicting issues, including recent actions and lingering uncertainty around tariffs, oil production increases, both inside and outside OPEC, reported excess inventories and higher demand outside of the OECD.
The sanction announcement was positive for oil prices. However, there remains the probability that global supply could potentially exceed demand. This outcome was weighing on oil prices prior to the sanctions announcement. We believe the effect on our global drilling markets could be mixed. Each market has its own drivers. U.S. Lower 48 has evolved to a very short-cycle market. We would expect a rapid activity response to lower oil prices there.
Domestic E&Ps remain focused on meeting their production goals. This focus, coupled with economic uncertainty, improved drilling and completion efficiency leads to a muted activity outlook in the near term. We believe that U.S. activity should begin to stabilize and could see an uptick in the latter part of 2026. This market is complex. Numerous factors have influenced. With our diversification across geographies, we expect our international markets would lessen the effect of any potential further short-term decline in the U.S.
As for natural gas, the outlook remains constructive over the next several years as expected U.S. LNG exports ramp up. In addition, large-scale natural gas development in the Middle East and Latin America should help drive drilling activity. The gas-directed industry rig count in the Lower 48 has increased thus far in 2025. Nabors rig count in the gas basins has grown since February. Natural gas activity in the U.S. appears poised for further recovery over the coming quarters. We are prepared to meet that demand.
Next, I will comment on our third quarter results. Adjusted EBITDA in our International Drilling segment increased sequentially by more than 8%. SANAD, our land drilling joint venture in Saudi Arabia, drove most of this growth. The other significant driver was Kuwait. The 3 previously announced rig start-ups there contributed to the segment's growth.
Next, I want to spend a moment on Nabors Drilling Solutions. Excluding Quail, NDS' EBITDA increased in the third quarter. In the Lower 48, the average Baker Hughes land rig count declined by 5% in the third quarter versus the second quarter. NDS' EBITDA without Quail in the Lower 48 was up slightly. This outperformance compared to the market confirms the strong value proposition we have developed at NDS.
Turning to Lower 48 drilling business. Our average rig count exceeded our guidance. Our average activity in natural gas basins increased slightly. Oil-directed activity, especially in the Permian, declined. We entered the third quarter at 60 rigs. We held in a tight range throughout the quarter. The quarter ended at the high watermark, 62. Since then, a few operators have released rigs. Recently, our rig casted at 59. Our Lower 48 business continues to feel some pressure. A number of clients, especially in the oil basins, are still adjusting their activity.
Next, I'll discuss the international markets. Let me start with Saudi Arabia. Drilling and completions activity seems to have stabilized recently. A rebound in the near to medium term may also be possible. Aramco remains committed to increasing gas production capacity through 2030. The client there recently conducted a tender for onshore and offshore rigs. The potential number of rigs to be awarded is significant, considering the large number of suspended rigs.
We believe awards on land could return as many as half of the number of suspended land rigs by the second half of 2026. SANAD participated in the tender with its suspended units. We should know the results in the next several weeks. In the third quarter, SANAD delivered strong results. It deployed another newbuild rig. With the balance of new build awards in hand, SANAD's future newbuild deployment schedule calls for 1 more in 2025, 4 in 2026 and 2 in 2027, which would complete the fourth tranche of new builds or 20 rigs in total.
This solidifies SANAD's growth trajectory over the coming years. Elsewhere in the Eastern Hemisphere, there is potential for further activity growth. Currently, we are aware of approximately 2 dozen opportunities for additional rigs. Nearly 2/3 of those are in markets where we currently operate. This number is encouraging. These additions would support both industry utilization and pricing.
In Latin America, our activity outlook in Mexico remains uncertain. We currently have 3 offshore platform rigs working. As it stands now, 2 of those 3 are likely to suspend work during the fourth quarter. This is reflected in our outlook. Our customer in Mexico continues to express interest in working these rigs. The rigs were specifically designed for its offshore platform requirements. However, the customers' initiatives to conserve cash are impacting its activity levels.
Turning to Argentina. As we previously announced, we have 2 rigs scheduled to start in the fourth quarter. These are for 2 different clients. We have a third rig scheduled to start work in Argentina in the second quarter next year. These deployments would bring our rig count in Argentina to 13 in early 2026.
Next, I'll comment on the U.S. market. The Baker Hughes weekly Lower 48 land rig count increased by 3 rigs from the end of June through the end of September. This apparent stability was a welcome shift in the market after the reductions completed earlier this year. Once again, we surveyed the expected drilling activity of the largest Lower 48 operators. The group accounted for approximately 42% of the market's working rig count at the end of the quarter.
In the aggregate, these operators expect the rig count to remain unchanged through the end of 2025. Digging deeper, 8 of the 13 companies surveyed expect some change. This indicates widespread fine-tuning of activity up and down across the group. We see modest downside risk to our own current rig count through year-end.
Now I will make some comments on the key drivers of our results. I'll start with our International Drilling segment. In this business, we consistently focused on long-term development markets that via technology and performance. With this approach, we have established a portfolio that includes operations in 12 countries. This breadth serves us well as prospects in individual markets can vary over time.
Across multiple markets, we continue to start up previously awarded rigs. These included 1 rig in Kuwait, a rig in India, marking our return to that drilling market, and we added 2 rigs in Colombia. In Saudi Arabia, beyond the future additions I mentioned earlier, SANAD is already in discussions with its client for the fifth tranche of newbuild rigs. We expect these discussions to conclude in the coming months. This tranche will bring the total number of new builds to 25. The program calls for 50 rigs over 10 years. Once this fifth tranche is deployed, SANAD will be halfway to completing the industry's most compelling growth opportunity.
I've said multiple times that the visibility afforded by the newbuild program is unmatched in the industry. With that, SANAD shareholders remain committed to realizing the value that is accumulating in the venture.
Now I'll discuss our performance in the U.S. Once again, our geographic diversification across the major U.S. markets demonstrated its value. Adjusted EBITDA from our operations in the Gulf and in Alaska combined exceeded our guidance. Alaska, specifically the North Slope, remains constructive. LNG developments would improve this outlook. We're tracking multiple future projects there.
As expected, our Lower 48 daily rig margins declined in the third quarter. The effects of continuing rig churn and progressively more demanding drilling contributed to an increase in our daily rig expense. Daily revenue in the Lower 48 also increased, though less than our costs. Before I move on, I want to highlight an important development during the third quarter. We deployed the most powerful rig in the Lower 48 for Caturus in the Eagle Ford.
This rig, which we call the PACE-X Ultra is an upgrade to one of our existing X rigs. The PACE-X Ultra combines a 10,000 psi circulating system, 35,000 feet of racking capacity, 1 million pound mast and an upgraded high-torque [ Can ] rig top drive. We worked closely with Caturus to develop the PACE-X Ultra's specifications. The rig recently completed drilling its first pad. I am pleased to report that its performance exceeded expectations. It drilled its first 2 wells ahead of their targets.
In particular, in the lateral, it averaged more than 240 feet per hour. As an upgrade to an existing rig, this is a cost-effective solution to drilling requirements that are beginning to exceed the capabilities of the existing industry fleet. We are optimistic that more will follow this one.
Next, let me discuss our technology and innovation. On the PACE-X Ultra rig I just discussed, NDS deployed a full automation package and its integrated managed pressure drilling. It also provides casing running services. Looking more broadly, our penetration of NDS services on Nabors' own rigs in the Lower 48 increased. We averaged 7 services per rig. This is an all-time high. And on third-party rigs in the Lower 48, NDS revenue, excluding Quail, increased slightly. That increase came in a market where the third-party average rig count declined by 6%. These successes demonstrate the wide-ranging demand for the NDS portfolio even in challenging markets.
Next, let me make some comments on our capital structure. Our highest priority is the reduction of our debt. The Quail transaction demonstrates our commitment to this objective. Our net debt now stands at the lowest level in many years. We are dedicated to making even more progress.
Now let me turn the call over to Miguel to discuss our financial results in detail.
Thank you, Tony, and good morning, ladies and gentlemen. I want to start by reiterating my steadfast commitment to our goals to improve balance sheet leverage and strengthen our capital structure. Reducing our gross debt undoubtedly remains our top priority. Our organization is poised to continue performing at its maximum potential and delivering sustained value.
Our financial goals and objectives will be set in a way that while ambitious and demanding are at the same time realistic and achievable. In addition, we have recently increased our disclosure around our business portfolio, especially SANAD, and we will continue to build on that progress.
Today, I will review our third quarter results and outline our guidance for the fourth quarter. Then I will provide an update on the integration of Parker Wellbore. I will close with some comments on capital allocation, adjusted free cash flow and recent actions that have materially improved our capital structure.
Third quarter consolidated revenue was $818.2 million, a decrease of $14.6 million or 1.8% sequentially. The divestiture of Quail Tools resulted in a reduction of $28.4 million compared to the second quarter. This was partly offset by continued growth in our International Drilling segment. Our consolidated revenue without the contribution of Quail grew sequentially.
EBITDA was $236.3 million, representing an EBITDA margin of 28.9%, down 96 basis points sequentially. These results exceeded the expectations we laid out in September after the sale of Quail Tools. In absolute dollars, EBITDA decreased $12.2 million or 4.9% with the effect of the Quail Tools divestiture representing $16.7 million of the sequential decline. I want to highlight the strong performance recorded by our International Drilling and Drilling Solutions segments, excluding Quail. Total EBITDA without Quail grew sequentially.
Now I will provide you with details for each of the segment's results. International drilling revenue was $407.2 million, solid growth of $22.3 million or 5.8% sequentially. EBITDA for the segment was $127.6 million, increasing $10 million or 8.5% quarter-over-quarter, yielding an EBITDA margin of 31.3%, up 76 basis points and 44.4% fall-through. Our average daily margin was $17,931, a sequential increase of $397 and was in line with the [ open ] bound of the guidance from our last earnings call. The improvement was mainly driven by stronger activity in our Eastern Hemisphere markets, including the deployment of a new build in Saudi Arabia for a total of 4 year-to-date, the deployment of a rig in Kuwait, totaling 3 rigs working during the third quarter and the start-up of a legacy Park rig in India.
In addition, rig start-ups that occurred in Q2 contributed to our incremental revenue and EBITDA in the third quarter. The international drilling average rig count increased by more than 3 rigs to 89. Our quarter end exit rig count was 91.
Moving on to U.S. drilling. Third quarter revenue was $249.8 million, a 2.2% sequential decline. EBITDA totaled $94.2 million, a decrease of 7.5%, resulting in an EBITDA margin of 37.7%. These results exceed the guidance from our last earnings call, mainly due to stronger performance in Alaska.
Looking specifically at our Lower 48 business, revenue of $185.4 million decreased by $4.7 million or 2.5% sequentially, reflecting a decline in average rig count of 3.2 rigs to 59.2 rigs slightly higher than the open bound of the guidance range we provided during the last earnings call. We exited Q3 with 62 rigs operating and recently stood at 59 rigs.
Despite the lower sequential activity as a result of moderating industry demand in the Permian Basin, revenue per day improved by $551 to $34,017, including $220 from reimbursable revenue with little to no impact on margins. Our base revenue per day remained stable in the quarter in our most recently signed contracts, expected daily revenue remains at the low $30,000 range.
Average daily rig margin was $13,151, a decrease of 5.4% sequentially, driven primarily by lower activity, labor inefficiencies and cost absorption related to higher-than-expected activity churn in the latter part of the quarter and higher repair and maintenance expenses as a reflection of harsher drilling conditions on several of our rigs.
Turning to Alaska and U.S. offshore. On a combined basis, our Alaska and offshore drilling businesses generated revenue of $64.4 million in the third quarter a 1.4% decrease sequentially. EBITDA was $28.4 million, generated at 44.1% margin, essentially in line with Q2. Our Alaska drilling operations remained strong in the North Slope.
Our Drilling Solutions segment generated revenue of $141.9 million in the third quarter and EBITDA of $60.7 million, resulting in a 42.7% margin. Quail Tools revenue and EBITDA for the third quarter were $34.2 million and $20.3 million respectively. Normalized for the sale of Quail Tools, NDS EBITDA increased modestly versus the second quarter. Notably, NDS EBITDA margin without Quail reached 37.5%, an improvement of 79 basis points sequentially, reflecting growth in casing running and performance software in the U.S.
Now on to Rig Technologies. Revenue was $35.6 million in the third quarter, a sequential decrease of 2.5% and EBITDA was $3.8 million, down $1.4 million from the prior quarter. The decline reflects reduced demand for aftermarket offerings in the current market environment.
Next, let me outline our expectations for the fourth quarter with total EBITDA to be essentially in line with the third quarter, excluding Quail. Turning first to U.S. drilling. As previously highlighted by Tony, given the outlook and market conditions for the next few quarters, with activity anticipated to remain relatively steady from current levels, we cautiously expect the average rig count in our Lower 48 drilling business to be in the range of 57 to 59 rigs for the fourth quarter.
Daily adjusted gross margin is anticipated to average approximately $13,000. We foresee some decline in our average daily revenue as we renew contracts at leading-edge day rates that are lower than the third quarter average. We also expect a slightly lower OpEx. For Alaska and U.S. offshore drilling combined, we expect additional scheduled maintenance days in the quarter with EBITDA of approximately $25 million.
International drilling average rig count is projected to be approximately 91 rigs. This mainly reflects 1 newbuild deployment in Saudi Arabia, 2 rig deployments in Argentina, partially offset by up to 2 rigs in Mexico potentially being suspended temporarily following activity and budget allocation uncertainty.
We expect daily adjusted gross margin in the $18,100 to $18,200 range. Drilling Solutions EBITDA is expected to be approximately $39 million, reflecting a full quarter without the Quail business and some marginal decline in the Lower 48 market. Finally, Rig Technologies EBITDA should increase sequentially to $5.5 million, mainly from committed capital equipment deliveries.
Let me now provide an update on our integration of Parker Wellbore, which is progressing in line with our expectations. Following the sale of Quail Tools, Nabors retained the balance of the Parker Wellbore operations. These retained businesses seamlessly integrate in our Nabors portfolio and are expected to produce approximately $55 million of EBITDA in 2025 post acquisition and including synergies.
We continue to realize synergies as planned from cost savings related to overlapping administrative functions, procurement efficiencies and redundant facilities. These initiatives are and will continue generating incremental EBITDA and cash flow, and we remain confident in delivering $40 million in cost synergies in 2025.
Based on our estimated EBITDA for the fourth quarter of 2025, this should translate into more than $60 million of cost synergies in 2026, with an estimated EBITDA from the retained businesses of $70 million. In summary, we are very pleased with the smooth progress of the Parker integration and robust realization on synergies in line with our plans. The combined organization is ideally positioned to continue delivering both operational and financial benefits in the coming quarters.
Next, I would like to discuss our CapEx, adjusted free cash flow and liquidity. Then I will conclude with details of how the Quail transaction has transformed our capital structure and reset our financial flexibility.
Total capital expenditures for Nabors in the third quarter were $188 million, including $81 million related to the SANAD newbuild program. Total CapEx in the second quarter was $199 million. For the fourth quarter, we are currently targeting capital expenditures between $180 million and $190 million. As a result, we are now revising our capital expenditure outlook to be slightly up in the range of $715 million to $725 million, of which approximately $300 million support the newbuild in Kingdom program.
The slight increase from our previous guidance accounts for the earlier-than-anticipated successful deployment of our PACE-X Ultra rig in the Lower 48 market and other key automation projects planned for some of our rigs. From these and other drilling projects, we expect to receive upfront payments from our customers of approximately $9 million during the fourth quarter, bringing the total upfront receipts to approximately $42 million for the year, all of which are related to long-term contracts.
Although we are not ready to offer capital spending guidance for 2026, we don't expect it will come down from the 2025 levels. This will be largely attributable to approximately $60 million of new build milestones originally planned for 2025, moving to 2026. We will provide firm guidance during our fourth quarter earnings call.
During third quarter, we generated adjusted free cash flow of $6 million. This accounts for the negative impact of approximately $18.2 million on our adjusted free cash flow from the divestiture of the Quail Tools business. In addition, our collections from Pemex were only $12 million, falling short of our expectations by more than $13 million.
During the third quarter, PEMEX implemented payment mechanisms targeted to address revenue earned during 2025. In October, we received $11.2 million under this mechanism, and we expect more robust collections over the remainder of Q4. There is no structure yet available to resolve the outstanding services from 2024. There is progress being made by PEMEX, although it is very slow based.
We expect adjusted free cash flow in the fourth quarter to be approximately $10 million, considering timely settlement of outstanding receivables related to our 2025 operations in Mexico. We continue to work relentlessly with our customer to invoice and collect for our 2024 services. However, we have not considered these amounts in our fourth quarter guidance. These delays represent a timing factor in our adjusted free cash flow estimates.
On a full year basis, we expect our adjusted free cash flow to be breakeven. The primary drivers of the variance from our full year guidance of $80 million are the impact of the Quail divestiture for the remainder of the year after the sale, totaling approximately $56 million and the outstanding collections from PEMEX related to 2024.
These are partly offset by proceeds from sales on noncore assets associated with the Parker Wellbore acquisition in excess of $40 million, most of which have already been realized in prior quarters. Out of our full year estimated adjusted free cash flow, we expect SANAD to consume approximately $70 million with around $45 million to be consumed in the fourth quarter.
Excluding SANAD, the rest of our business units are expected to generate $70 million of adjusted free cash flow for the full year with approximately $55 million in the fourth quarter, the strongest free cash flow generated quarter of the year.
In addition to my earlier comments and the remarks made by Tony on the Parker and Quail transactions, each exceptional and transformative in their own merits, I would like to highlight the significant accomplishments we made during the third quarter regarding our capital structure and next steps.
In August, we completed the sale of Quail Tools for a total consideration of $625 million, inclusive of the working capital adjustment, consisting of $375 million in cash received at closing and a $250 million seller financing note. We immediately applied the cash proceeds to repay all outstanding borrowings under our revolving credit facility. And later in the quarter, we redeemed $150 million of the notes due in 2027.
Subsequent to quarter end, we received full prepayment of the $250 million seller note, well ahead of its scheduled maturity. We intend to deploy these proceeds to further reduce gross debt, concentrating on our outstanding notes maturing in 2028. In addition, we plan to refinance our 2027 outstanding notes.
Taken together, these actions reflect our unconditional commitment to improve balance sheet leverage and to strengthen our capital structure. Our net debt leverage metric at the end of the third quarter and accounting for the receipt of the $250 million seller note on a pro forma basis stands at 1.8x, which is the lowest it has been in more than 10 years. I am looking forward to meeting more of you and helping you gain a further understanding of Nabors.
With that, I will turn the call back over to Tony.
Thank you, Miguel. I will finish this morning with a few points. First, the Quail transaction has enabled a significant transformation in our capital structure. Now we are looking at opportunities to decrease debt further. In addition to improving our capital structure, we expect to materially reduce our annual cash interest payments that should result in a boost to our free cash flow.
Second, we have seen recent relative stability in U.S. drilling activity, our own and the industries, but we also recognize some uncertainty in the global macro environment. We are prepared to adjust our operations accordingly. Third, our international business continues to demonstrate its value, highlighted by the continued expansion at SANAD. Each successive new build deployment adds material cash flow through the joint venture. As a result, value is building in SANAD. The next tranche of new builds will take that value even higher. And our growth across markets beyond the Kingdom highlights our success in expanding our broad-based international franchise.
That concludes my remarks. Thank you for your time this morning. We'll now take your questions.
The first question comes from Dan Kutz with Morgan Stanley.
2. Question Answer
So, maybe just on the U.S. Lower 48, appreciate all the color that you guys shared in terms of your own views and customer views on where you think activity trends from here. I guess, against that activity outlook, how would you -- anything you'd share beyond the fourth quarter on kind of daily revenue and cost or margin trends, assuming that the kind of broadly flat activity outlook that you guys shared would play out as you guys see it?
Sure. Yes. I think one thing to note, if you look at our numbers for this quarter, our daily revenue actually increased sequentially by about [ $500 ] per day. That was as a result of performance bonuses under contracts where we're trying to have operators recognize more of the value of what we're delivering because of the record times. So obviously, that's an objective for us going forward in the year. Now the net result of that, as became clear from Miguel's comments about our cost structure is because of the churn in the last quarter, that did not drop to the bottom line. In fact, it was more than offset I think looking forward, one of the objectives, and I'll let Miguel talk to it on operating expense is to actually make sure that more of that does drop to the bottom line and the priority is to actually make more realization from that as a mission going forward as well.
So that's how I would say it.
Yes. Thank you, Tony. So, one thing that I will add is that one thing that encourage us actually is the fact that we have seen the daily revenue on a leading edge basis to be fairly stable over the past several quarters. So, at around the low $30,000 per day. Right now, when we look at the fleet, we are maybe around $700 away from that level. As the rig fleet reprices, once we get there, basically, we will be talking around a gross margin per day of $13,000. That's the reason why we are guiding our fourth quarter to be at that level, combined with a decline in the OpEx.
So in terms of the activity levels for the quarter, we saw a lot of churn in the latter part of the quarter. We expect some level of churn to remain in Q4. But once we reach the low $30,000s in terms of daily revenue per day, excluding reimbursable items, if you will, I feel very strongly that the drilling team will be able to maintain the $13,000 per day going forward. We will see some erosion in pricing a little bit from current levels in Q4. From there, we should not see major pricing erosion, absent a bigger decline than what we are anticipating for the following quarters.
Great. That's all really helpful. And then maybe going to the comments around Saudi onshore activity, kind of 2 components of the question, one at the macro level and then one specific to Nabors. So of the -- and correct me if I'm wrong, but I think maybe there's been 30 or 40 onshore rig suspensions and against your comment that there's tendering activity and potential for as much as half of those suspended rigs to come back. Any sense for how much of that could actually be net activity adds versus just bringing back suspended rigs when other rigs roll off of contracts in the Kingdom? And then specific to Nabors, I think there were 3 at least rigs suspended. Wondering if you guys are participating in the -- in the tendering? Or anything you could share about potential for those to go back to work?
Sure. I mean, look, overall, I mean, since the start of the suspensions in 2024, on a cumulative basis, we have seen in excess of 80 rigs being suspended in land, right? We are not commenting about offshore here, but in land, we are talking about cumulatively around 80 rigs. A number of rigs have been added on unconventional projects here and there. But what we are hearing actually from the market is that Aramco may be contemplating to add back probably around 50% of the cumulative suspensions, right?
So, a tender has been issued. A number of drilling contractors have responded to this tender. The customer is evaluating as we speak. And we will know the results probably during the course of Q4. The expectation or what we are hearing from the market is that potentially 50% of the suspended rigs will come back to work, right?
Yes. Just also realize that of the 80, 21 have actually come back online during the same period. So the net number down is 59.
That's right.
So, that's what he is talking about. And then there's -- and you're correct about 3, SANAD has 3. And as we indicated, we'll find out what happens with our rigs as well.
Of course, I mean, we answered to the tender for our 3 rigs, and we are waiting on the results.
Next question comes from Derek Podhaizer with Piper Sandler.
Maybe still going on the last conversation, the question Dan brought up about Saudi. I'm just curious kind of the philosophy around Aramco and these new tenders and bringing back some of the suspended activity. Is there anything different this time around versus prior cycles? Just thinking about the requirements around the rig, maybe through like a technology lens. I mean, I think there's going to be more gas development, more unconventional development, trying to bring that Western technology over to Saudi. Tony, you've been through many cycles. Like have you seen any difference now in the tendering and what they're looking for versus historically?
Well they're slow to move in terms of changing their requirements. The Schedule G requirement is still out there, and they haven't made a change to that yet. But we do -- we are aware that the fact is that because of stuff that we presented to them as well as others, that they are looking at introducing more technology there. That doesn't necessarily mean different rigs, but changes to the rig with automation and software and other things like that. So there is an interest on that. And that only applies to Saudi, that applies to also the ADNOC operations to Kuwait as well. The whole region is realizing that if they really want to get a quantum change level in performance, they have to start actually doing some things differently. But in terms of specifics on rigs themselves, I would say no. And Nabors has 80% of its fleet in SANAD is gas directed. So we're well positioned with the shift to the gas market to be -- to serve that.
I think the other point is we have in the pipeline, we mentioned the or automation on the Caturus rig for the U.S. on the shale. That philosophy there is similar to what we did with the X rig back in 2011 when we announced the X rig, you remember that was the first pads specific rig and back then where we had the pump capacity, the power, and we also introduced the notion of XY walking rigs. remember the whole debate whether you needed that versus slide rigs. And I think we were saying XY or need in that slide. Anyway, the cannabis rig is a new paradigm to do that.
And that rig has automation -- an automation package that's going to go in. And that kind of automation package, Saudi, the Saudi market is now looking at as well. In fact, we have a contract to actually to deploy an upgrade to our existing fully automated rig with our one major customer here in the U.S., and we have 2 other customer contracts lined up, including in the Middle East for that as well.
So the changes our foot, I would say, if that's a long way of getting to your answer, but that changes our foot along the lines you're talking about.
Got it. No, I appreciate all the color. It's very helpful. So obviously, a lot of detail in the opening comments. Just want to hone in on the leverage levels here. Obviously, exciting to see you guys at 1.8x on a pro forma basis, lowest in 10 years. So where could we go from here? Just thinking about the different levers that you could pull to continue to delever the balance sheet. Obviously, you'll be saving $45 million in interest expense annually. And just thinking about the ability to pull cash out of SANAD. Obviously, we'd love to see more collections out of Mexico. You have organic free cash flow generation ex SANAD new build. Just maybe help us understand the different levers you expect to pull over the course of next year, just considering that you don't see CapEx being down year-over-year? Just trying to think about where this $1.8 billion can go to over the next year or so.
So this is an excellent question to be very honest. I mean, first of all, I mean, when we talk about the 1.8 on a net leverage basis, I think in the next few months, you will see that our gross debt will move from the $2.4 billion to around the $2.1 billion because we plan to really use the $250 million proceeds to pay down some of our outstanding notes.
Now going from the 1.8x forward and the CapEx, although we are not very ready to provide guidance, as I mentioned before, one thing that you need to consider is the fact that the SANAD CapEx will be the one going up in terms of the milestones. That said, in 2026, we should expect some reduction in the CapEx in the rest of the Nabors businesses, which should, everything being equal, free up additional cash flow from the rest of the business.
One thing that I wanted to point out very clearly in the cash flow of 2025 and potentially beyond is that when you think about the breakeven cash flow of the consolidated Nabors, that includes SANAD are around $70 million, which means that the rest of the Nabors businesses post the sale transaction of Quail are going to generate $70 million, 7-0. Most of that will happen in Q4.
On an adjusted basis, if you remove the impact of the Kingdom Bricks, the Nabors consolidated businesses are generated around $300 million, which I will say is equivalent to a 30% free cash flow conversion, which I believe is very, very strong for a drilling contractor. And we are choosing together with Aramco, obviously, to reinvest the standard cash flow into the business for longer-term or 10-plus year contracts. That's the decision that we have made in terms of SANAD for the Kingdom Bricks and the future of the Saudi business there.
That said, we expect the rest of the Nabors businesses to continue to generate cash flow and use the proceeds really to continue to pay down debt from here. Where are we going to stop? I think Tony and I want to take the company on a net debt basis to something around the $1.1 billion, $1.2 billion, nothing lower than that. So we are absolutely in the right trajectory. We are not done yet.
Yes. In this climate, by the way, it's kind of interesting. We were asked that question 15 years ago, what my number was -- was always 2:1. And obviously, the world has changed and the way people think about it has changed. But what's also changing, I think now based on the press this point with Mr. Gates and his view on climate change is the concept that this industry doesn't have a half-life of 2030 anymore. People are starting to realize that if you're going to build x 100 gigawatts a year of power, 10 gigawatts more a year of power or 100 gigawatts more power than the new number is, that means natural gas can be a part of it. That means we're going to be a part of it, and that's going to go on for a long time. And therefore, I think the whole way we're thinking about capital is going to start to change as well. So I would just say that, which also means that you all need to really think about your terminal value multiples for valuation for the whole sector.
There you go.
I'm just going to get that out there. So...
The next question comes from Arun Jayaram with JPMorgan Chase.
Tony, I want to get your insights on if Saudi is going to be bringing back a decent chunk of the previously suspended rigs. Any insights on what you think is driving that? Is this to rebuild productive capacity in the Kingdom, stem declines but I assume this is on the oil side, but just one of the more unique data points we've heard in earnings season, so I want to get more thoughts from your perspective.
I think it's more on the gas side. And remember, on their gas production, they get an extra bonus because there's a lot of condensate that comes out of that gas. And economically, that gas -- that condensate doesn't count against the oil quota as well for the OPEC requirements. So you get kind of a double bonus there. I think Saudi, I won't pretend to know anything inside because you guys all have multiple sources that you're hearing about Saudi, including the big 3 guys. But I mean, from my point of view, they are always the first mover. And so they're looking at a market basically in 2027, and I think they're realizing and coming to conclusion, whether it's to build their extra capacity or to ensure that the curve -- the decline curves that they're having are met, whatever those are, they're preparing for a 2027 event. And I think that's what's really going on, and they're moving before the market is moving.
And so from that point of view, I think it's a good sign if they actually go through with it. We'll see whether -- how much they go through it. Like I said, this is just what the talk is right now from our perspective. But we know these concrete receipts have been done. And therefore, it is a positive development, I think a positive signal for at least 2027.
Great. And then, Tony, I just want to get your broad thoughts on the growth in unconventional activity outside of North America. Maybe you could give some insights on what you're seeing kind of around the globe. You mentioned in Argentina, you're up to, what, 13 rigs or so, at least on the contracted basis. Algeria is obviously spot. But just wanted to see if you could shed some more light on that.
Well, I think, you hit me on the head. I mean, Argentina, I think, is a great story with the elections -- with the change -- with the elections now over, I think whatever instability there was associated with that, I think it settled. And I think even ourselves with the 13, we see additional growth opportunities in Argentina. Algeria is another story. But oh, by the way, back in Argentina, I think actually that may -- they may actually be looking at becoming an LNG exporter market as well. So just giving you some insight there. I think Alaska, potentially gas up there could be a good story, including for an export market if they figure that out. And Algeria and the Middle East is for sure. So I think there's many signposts around the world right now where the gas story is real. And given what's happening on the whole power thing. You saw the announcement with Google in terms of their power data needs, et cetera. And all these guys are now saying they're not making the requirement anymore that they realize they can't get there with renewables, and therefore, they're all realizing natural gas is going to be part of it. So, I think that's going to drive a wholesale move around the world everywhere for natural gas from my point of view.
That's all the time we have for questions today. I would like to turn the conference back over to William Conroy for any closing remarks. Please go ahead.
Thank you, Asha. If there are any additional questions, please reach out to us directly. With that, we'll wind up the call here.
The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.
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Nabors Industries Ltd. — Q3 2025 Earnings Call
Finanzdaten von Nabors Industries Ltd.
Umsatz
Der Umsatz stellt die Summe aller Einnahmen eines Unternehmens z. B. für dessen Produkte oder Dienstleistungen dar.
Umsatz (TTM) einfach erklärtDirekte Kosten
Direkte Kosten sind die Kosten, die direkt im Zusammenhang mit der Herstellung des Produkts oder der Dienstleistung entstehen.
Bruttoertrag
Der Bruttoertrag gibt an, wie viel vom Umsatz nach Abzug der direkten Herstellkosten im Unternehmen verbleibt. Berechnet man den prozentualen Anteil vom Umsatz, spricht man von der Bruttomarge (engl. Gross Margin).
Brutto Marge einfach erklärtVertriebs- und Verwaltungskosten
Die Vertriebs- & Verwaltungskosten (engl. Selling, General & Administrative expenses, kurz SG&A) beinhalten alle Aufwände für Marketing und den Verkauf sowie die allgemeine Verwaltung des Unternehmens.
Forschungs- und Entwicklungskosten
Die Forschungs- und Entwicklungskosten (engl. research & development costs, kurz R&D) geben Auskunft darüber, wie viel das Unternehmen in die Forschung und die Entwicklung seiner Produkte investiert. Vor allem prozentual vom Umsatz und im Vergleich zu direkten Wettbewerbern sind die Kosten interessant.
EBITDA
Das EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) ist der Gewinn des Unternehmens vor Zinsen, Steuern und Abschreibungen. Berechnet man den prozentualen Anteil vom Umsatz, spricht man von der EBITDA-Marge.
Abschreibungen
Abschreibungen stellen Wertminderungen von Vermögensgegenständen des Unternehmens dar (z.B. durch Abnutzung von Maschinen).
EBIT (Operatives Ergebnis)
Das EBIT (engl. Earnings Before Interest and Taxes) ist der Gewinn des Unternehmens vor Zinsen und Steuern, das auch als operatives Ergebnis bezeichnet wird. Berechnet man den prozentualen Anteil vom Umsatz, spricht man von
der EBIT-Marge.
Nettogewinn
Der Nettogewinn stellt den Gewinn oder Verlust nach Abzug aller Kosten dar.
Nettogewinn einfach erklärtaktien.guide Premium
| Jun '26 |
+/-
%
|
||
| Umsatz | 3.214 3.214 |
6 %
6 %
100 %
|
|
| - Direkte Kosten | 1.979 1.979 |
10 %
10 %
62 %
|
|
| Bruttoertrag | 1.235 1.235 |
0 %
0 %
38 %
|
|
| - Vertriebs- und Verwaltungskosten | 296 296 |
7 %
7 %
9 %
|
|
| - Forschungs- und Entwicklungskosten | 54 54 |
3 %
3 %
2 %
|
|
| EBITDA | 883 883 |
1 %
1 %
27 %
|
|
| - Abschreibungen | 636 636 |
1 %
1 %
20 %
|
|
| EBIT (Operatives Ergebnis) EBIT | 247 247 |
8 %
8 %
8 %
|
|
| Nettogewinn | 209 209 |
251 %
251 %
7 %
|
|
Angaben in Millionen USD.
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Firmenprofil
Nabors Industries Ltd. beschäftigt sich mit der Bereitstellung von Plattformarbeiten über und Bohrplattformen. Sie ist in den folgenden Segmenten tätig: U.S. Drilling, Canada Drilling, International Drilling, Drilling Solutions und Rig Technologies. Das Segment U.S. Drilling umfasst Landbohrungen in den Bundesstaaten und in Alaska sowie Offshore-Betriebe im Golf von Mexiko. Das Segment Kanada besteht aus landgestützten Bohranlagen in Kanada. Das Segment International konzentriert sich auf die Aufrechterhaltung einer Präsenz auf dem Öl- und Gasmarkt, vor allem in Saudi-Arabien, Algerien, Argentinien, Kolumbien, Kasachstan und Venezuela. Das Segment Drilling Solutions bietet Bohrtechnologien wie patentierte Steuersysteme und Software-Systeme für die Instrumentierung von Bohranlagen an, die die Bohrleistung und die Platzierung von Bohrlöchern verbessern. Das Segment Rig Technologies umfasst Canrig, das Top-Drives, Laufstege, Schraubenschlüssel, Ziehwerke und bohrtechnische Ausrüstung wie Robotersysteme und Bohrlochwerkzeuge herstellt und vertreibt. Das Unternehmen wurde 1952 von Clair Nabors gegründet und hat seinen Hauptsitz in Hamilton auf den Bermudas.
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| Hauptsitz | Bermuda |
| CEO | Mr. Petrello |
| Mitarbeiter | 13.900 |
| Gegründet | 1952 |
| Webseite | www.nabors.com |


