The strong Q3 beat and materially raised FCF guidance signal accelerating operational momentum and balance sheet improvement. Watch for Q4 2026 results to validate the ~$1B annualized EBITDA run rate target and further debt reduction progress.
Price Chart
Executive Summary
Nabors reported Q3 2026 operating revenues of $872M (up 7% sequentially and above the $861.5M consensus) and adjusted EBITDA of $246M (up ~11% sequentially). The company generated $75M in adjusted free cash flow, raised full-year 2026 adjusted free cash flow guidance to $100-$110M (materially above prior guidance), and guided to an annualized adjusted EBITDA run rate of ~$1B heading into 2027. International Drilling posted a record daily adjusted gross margin of $19,060, and all four segments exceeded or met targets.
Key Financial Metrics
Key Facts
- Q3 2026 operating revenues of $872.2M, up 7% sequentially from $814.8M and above the $861.5M consensus
- Adjusted EBITDA of $245.5M, up ~11% sequentially from $221.7M
- Adjusted free cash flow of $74.5M, up from $12.3M in Q2 2026 and $5.6M in Q3 2025
- International Drilling daily adjusted gross margin reached a record $19,060, up 8.7% sequentially
- Lower 48 average rig count grew to 72.8 from 67.8 sequentially, with daily adjusted gross margin of $14,016 exceeding guidance
- Full-year 2026 adjusted EBITDA guidance raised to ~$930M (upper end of prior range)
- Full-year 2026 adjusted free cash flow guidance raised to $100-$110M (materially higher than prior guidance)
- Gross debt reduced by $100M via redemption of 9.125% notes; net debt fell to $1.55B from $1.61B in Q2 2026
- Net loss attributable to Nabors was $11.2M (GAAP diluted EPS -$1.24), compared to consensus EPS of -$0.90
Financial Impact
Revenue beat consensus by ~$10.7M (1.2%); adjusted EBITDA up ~11% sequentially; adjusted free cash flow surged to $74.5M from $12.3M; full-year FCF guidance raised to $100-$110M from prior levels
Segment Breakdown
| Segment | Revenue | Growth |
|---|---|---|
| U.S. Drilling | $274.9M | +10.0% |
| International Drilling | $458.5M | +6.0% |
| Drilling Solutions | $116.1M | +4.9% |
| Rig Technologies | $41.7M | +11.4% |
Risk Factors
- Suspension of five SANAD rigs in Saudi Arabia could pressure international rig count in Q4 2026
- Full-year adjusted EBITDA guidance of ~$930M includes the impact of those suspensions
- Net loss continues despite operational improvements, driven by high depreciation and interest costs
- Oil and gas price volatility could impact customer spending and rig demand
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 7 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001104659-26-119167 |
| Document: tm2628332d1_ex99-2.htm | 0001104659-26-119167 |
| Document: tm2628332d1_8k.htm | 0001104659-26-119167 |
| Document: 0001104659-26-119167-index-headers.html | 0001104659-26-119167 |
| Document: 0001104659-26-119167-index.html | 0001104659-26-119167 |
| Document: 0001104659-26-119167.txt | 0001104659-26-119167 |
| 8-K Data (Synthetic) | 0001104659-26-119167 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 27, 2026 5d ago | 8-K | No price | awaiting T+20 | awaiting T+20 | No price |
Oct 27, 2026 5d ago | Press Release | $89.87 | awaiting T+20 | awaiting T+20 | $90.78 (+1.01%) |
Sep 11, 2026 7w ago | Press Release | $86.97 | awaiting T+20 | awaiting T+20 | $90.78 (+4.38%) |
Sep 8, 2026 7w ago | 8-K | $91.87 $81.22 | ▼ −11.59% | ▼ −13.56% | $90.78 (−1.19%) |
US Market Status
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