Nabors(US:NBR)2025-10-28 20:33Financial Performance - Nabors reported third quarter 2025 operating revenues of $818 million, a decrease from $833 million in the second quarter[2] - Net income attributable to shareholders was $274 million, compared to a net loss of $31 million in the previous quarter, resulting in earnings per diluted share of $16.85[2] - Adjusted EBITDA for the third quarter was $236 million, down from $248 million in the previous quarter[2] - Operating revenues for Q3 2025 reached $818,190, an increase of 11.8% compared to $731,805 in Q3 2024[30] - Net income attributable to Nabors for Q3 2025 was $274,198, a significant recovery from a net loss of $55,825 in Q3 2024[30] - Adjusted EBITDA for the nine months ended September 30, 2025, was $691,112, up from $660,790 for the same period in 2024, reflecting a growth of 4.5%[30] - For the three months ended September 30, 2025, the net income was $302,466, compared to a net loss of $33,087 for the same period in 2024[44] - The total adjusted EBITDA for the three months ended September 30, 2025, was $236,308, compared to $221,720 for the same period in 2024, reflecting an increase of approximately 6.5%[45] - The total adjusted operating income (loss) for the nine months ended September 30, 2025, was $201,066, compared to $183,730 for the same period in 2024, indicating a year-over-year improvement[45] Debt and Cash Flow - The sale of Quail Tools generated $625 million, with $375 million received in cash at closing, significantly reducing gross debt by approximately $330 million[4] - Adjusted free cash flow for the third quarter was $6 million, down from $41 million in the prior quarter, impacted by lower collections in Mexico[13] - Nabors expects fourth quarter 2025 adjusted free cash flow to be approximately $10 million[21] - The company reported a net debt of $1,919,905 as of September 30, 2025, down from $2,285,465 as of June 30, 2025[52] - Free cash flow for the three months ended September 30, 2025, was $5,613, compared to $9,961 in the previous quarter[54] - Adjusted free cash flow for the three months ended September 30, 2025, was $5,613, significantly lower than $40,596 in the previous quarter[54] Segment Performance - International Drilling adjusted EBITDA increased to $127.6 million, up from $117.7 million in the second quarter, driven by a higher average rig count[9] - U.S. Drilling segment adjusted EBITDA decreased to $94.2 million from $101.8 million, attributed to lower rig count and daily margin in the Lower 48[10] - U.S. Drilling segment revenues for Q3 2025 were $249,836, a slight decrease from $254,773 in Q3 2024[34] - International Drilling segment revenues increased to $407,235 in Q3 2025, up from $368,594 in Q3 2024, representing a growth of 10.4%[34] - Adjusted operating income for the U.S. Drilling segment was $31,429, while the International Drilling segment reported $45,476 for the same period[45] - The adjusted operating income (loss) for the Rig Technologies segment was $49,982 for the three months ended September 30, 2025, highlighting its contribution to overall performance[45] Operational Metrics - The company anticipates a Lower 48 average rig count of 57-59 rigs and a daily adjusted gross margin of approximately $13,000 for the fourth quarter[17] - Average rigs working in U.S. Drilling decreased to 69.2 in Q3 2025 from 74.0 in Q3 2024[34] - Daily Rig Revenue for U.S. Drilling was $39,219 in Q3 2025, compared to $37,441 in Q3 2024, indicating a growth of 4.7%[34] - The adjusted gross margin for U.S. Drilling for the three months ended September 30, 2025, was $100,680, a decrease from $115,071 in the previous quarter[46] - The adjusted gross margin for International Drilling for the three months ended September 30, 2025, was $147,231, an increase from $133,192 in the previous quarter[46] Integration and Synergies - The integration of Parker Wellbore businesses is progressing, with adjusted EBITDA contribution increasing by over 70% sequentially, aiming for $40 million in synergies by 2025[4]