The revenue beat and raised FCF guidance are positive, but the GAAP EPS miss and ongoing net loss temper the read. Monitor Q4 2026 guidance for further margin improvement and the impact of Saudi rig suspensions on International Drilling results.
Price Chart
Executive Summary
Nabors reported Q3 2026 operating revenues of $872M, above the $861.5M consensus, and a GAAP net loss of $11M (EPS -$1.24) versus the consensus EPS estimate of -$0.90. Adjusted EBITDA rose 11% sequentially to $246M, and adjusted free cash flow surged to $75M. The company raised full-year 2026 adjusted EBITDA guidance to ~$930M (upper end of prior range) and materially increased adjusted free cash flow guidance to $100-110M.
Key Financial Metrics
Key Facts
- Q3 2026 operating revenues of $872.2M, up 7% sequentially from $814.8M and above the $861.5M consensus.
- GAAP net loss attributable to Nabors of $11.2M, or -$1.24 per diluted share, versus consensus EPS of -$0.90.
- Adjusted EBITDA of $245.5M, up 10.8% sequentially from $221.7M.
- Adjusted free cash flow of $74.5M, up from $12.3M in Q2 2026.
- International Drilling daily adjusted gross margin reached a record $19,060, up 8.7% sequentially.
- Full-year 2026 adjusted EBITDA guidance raised to approximately $930M (upper end of prior guidance).
- Full-year 2026 adjusted free cash flow guidance raised to $100-110M from prior guidance.
- Redeemed $100M of 9.125% notes during the quarter, reducing gross debt.
- Lower 48 average rig count grew to 72.8 from 67.8 in Q2 2026.
- SANAD joint venture deployed 17th newbuild rig in Saudi Arabia; five rigs suspended.
Financial Impact
Revenue beat consensus by ~$10.7M (1.2%); EPS missed consensus by -$0.34 (-37.8%); adjusted EBITDA up ~$24M sequentially; adjusted FCF up ~$62M sequentially; full-year guidance raised for EBITDA and FCF.
Segment Breakdown
| Segment | Revenue | Growth |
|---|---|---|
| U.S. Drilling | $274.9M | +10.0% |
| International Drilling | $458.5M | +12.6% |
| Drilling Solutions | $116.1M | -18.2% |
| Rig Technologies | $41.7M | +17.3% |
Risk Factors
- GAAP EPS of -$1.24 missed consensus of -$0.90 by a wide margin.
- Five SANAD rigs suspended in Saudi Arabia, which may pressure International Drilling revenue in Q4.
- Net loss attributable to Nabors continues, with cumulative nine-month net loss of $48.7M.
- High debt load of $2.02B long-term debt versus $1.4B market cap.
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-prn-302921142 |
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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