Nabors' Q4 Earnings & Revenues Beat Estimates, Increase Y/Y

Core Insights - Nabors Industries Ltd. (NBR) reported a fourth-quarter 2025 adjusted profit of 17 cents per share, significantly surpassing the Zacks Consensus Estimate of a loss of $2.93 and improving from a loss of $6.67 per share in the prior-year quarter [1][8] - The company's operating revenues reached $797.5 million, exceeding the Zacks Consensus Estimate of $797 million and up from $729.8 million in the year-ago quarter, driven by stronger contributions from the International Drilling and Drilling Solutions segments [2] Financial Performance - Adjusted EBITDA for the quarter increased to $221.6 million from $220.5 million a year ago, surpassing the model estimate of $211 million [2] - U.S. Drilling generated operating revenues of $240.6 million, slightly down from $241.6 million in the prior-year quarter but above the estimated $225.4 million [3] - International Drilling's operating revenues rose to $423.8 million from $371.4 million a year ago, beating the estimate of $411.4 million [3] - The Drilling Solutions segment reported revenues of $107.9 million, a 42% increase from $76 million in the prior-year quarter, although it missed the estimate of $138.5 million [4] Cost and Debt Management - Total costs and expenses increased to $780.7 million from $756.3 million in the year-ago quarter, but were lower than the predicted $820 million [6] - Long-term debt stood at approximately $2.1 billion, with a debt-to-capitalization ratio of 78.2% [7] Future Guidance - For Q1 2026, NBR anticipates a U.S. Drilling average rig count of 64 to 65 rigs and a daily adjusted gross margin of about $13,200 [9] - The company expects the average rig count for its International operations to be around 91-92 rigs, with a daily adjusted gross margin of approximately $17,500-$17,600 [10] - Capital expenditures for Q1 2026 are projected to be between $170 million and $180 million, with $85 million allocated for new builds in Saudi Arabia [11] - For the full year of 2026, NBR expects U.S. Drilling operations to have an average rig count of 61 to 64 rigs and adjusted free cash flow to be around $80-$90 million, excluding SANAD [14]