Nabors Announces First Quarter 2025 Results

Rhea-AI Summary

Nabors reported Q1 2025 operating revenues of $736 million and net income of $33 million ($2.18 per share), compared to Q4 2024's $730 million revenue and $54 million loss. The quarter included a $113 million gain from the Parker transaction and $28.6 million in charges from Russian operations wind-down.

Key developments include:

• Completion of Parker Wellbore acquisition, adding Quail Tools and international assets
• SANAD joint venture deployed its 10th newbuild rig, with more planned throughout 2025
• Expanded alliance with Corva AI for RigCLOUD platform enhancement
• Suspended operations in Russia due to expanded sanctions

The company's outlook for Q2 2025 projects 63-64 Lower 48 rigs, international rig count of 85-86, and capital expenditures of $220-230 million. Full-year 2025 adjusted free cash flow is expected at $80 million, with SANAD consuming $150 million while remaining operations generate around $230 million.

Positive

• Q1 2025 net income of $33M, compared to Q4 2024 net loss of $54M
• Completed Parker Wellbore acquisition, expected to be immediately accretive to 2025 free cash flow
• SANAD JV deployed 10th newbuild rig with 4 more planned for 2025
• International drilling daily margins improved by $700+ to $17,421
• Strategic alliance expansion with Corva AI enhancing RigCLOUD platform capabilities
• $40M in cost synergies expected from Parker acquisition
• Collected $20M from main customer in Mexico

Negative

• U.S. drilling segment EBITDA declined to $92.7M from $105.8M in Q4
• Lower 48 rig count dropped to 61 from 66 in previous quarter
• Q1 adjusted free cash flow negative at -$71M
• Suspended operations in Russia due to expanded sanctions
• Lower 48 daily margins decreased to $14,276 from $14,940
• New U.S. tariffs expected to impact annual free cash flow by $10-20M
• High capital expenditure forecast of $770-780M for full year 2025

Insights

Financial Analyst

Nabors reports mixed Q1 with acquisition-boosted earnings but operational challenges; strategic moves balanced against cash flow pressures.

Nabors posted $736 million in Q1 revenue with $33 million net income, appearing positive compared to Q4's $54 million loss. However, core performance shows concerning trends. The $113 million one-time gain from the Parker acquisition masked operational weakness, with adjusted EBITDA declining to $206 million from $221 million previously.

The -$71 million adjusted free cash flow consumption raises concerns despite management attributing this to seasonal payments and transaction costs. International operations improved with daily margins increasing to $17,421, but U.S. performance deteriorated as Lower 48 rig count fell from 66 to 61 with margins declining to $14,276.

The Parker acquisition enhances portfolio diversity and adds immediate cash flow, with management projecting $130 million incremental adjusted EBITDA for 2025 plus $40 million in synergies. Meanwhile, the $770-780 million projected capital expenditure includes substantial investment in SANAD newbuilds, pressuring near-term free cash flow.

Collection issues with a Mexican customer remain unresolved, with $20 million received and another $20 million expected in Q2. New U.S. tariffs will impact 2025 results by $10-20 million. The projected $80 million adjusted free cash flow for 2025 represents significant improvement from Q1 but remains modest relative to total capex.

Energy Industry Analyst

Nabors completes Parker acquisition and expands SANAD joint venture while navigating market divergence between international growth and U.S. weakness.

Nabors' Q1 results highlight the emerging bifurcation in global drilling markets. International operations showed resilience with daily margins increasing by $700+ to $17,421, while U.S. drilling faced headwinds with rig utilization pressure and higher operational expenses. The Lower 48 rig count averaged 61 rigs, down from 66 in Q4, with daily margins declining to $14,276.

The completed Parker Wellbore acquisition represents a strategic portfolio diversification, adding Quail Tools (the leading U.S. tubular rental business), dominant casing running operations in Saudi Arabia/UAE, and ten additional drilling rigs. This moves Nabors beyond pure drilling into higher-margin service segments, with Drilling Solutions expected to contribute approximately 25% of adjusted EBITDA in Q2.

The SANAD joint venture with Saudi Aramco continues its expansion trajectory, deploying the tenth newbuild rig in Q1 with two more starting in Q2. This 50-rig, 10-year program provides stable long-term growth that offsets cyclicality in more volatile markets. The expansion into Kuwait, Argentina, Mexico, and India further strengthens geographic diversification.

The Russia exit following expanded sanctions has minimal operational impact as performance there had become "increasingly marginal." Meanwhile, the expanded Corva AI alliance enhances Nabors' technological differentiation, combining edge computing with AI analytics to improve drilling performance – critical as operators demand greater efficiency in a competitive market environment.

HAMILTON, Bermuda, April 29, 2025 /PRNewswire/ -- Nabors Industries Ltd. ("Nabors" or the "Company") (NYSE: NBR) today reported first quarter 2025 operating revenues of $736 million, compared to operating revenues of $730 million in the fourth quarter of 2024. Net income attributable to Nabors shareholders for the quarter was $33 million, compared to a net loss of $54 million in the fourth quarter. This equates to earnings per diluted share of $2.18, compared to a loss per diluted share of $6.67 in the fourth quarter. The first quarter included a one-time, non-cash net gain on the Parker transaction of $113.0 million, or $9.68 per diluted share. This gain was partially offset by non-cash charges related to the wind-down of operations in Russia totaling $28.6 million, or $2.45 per diluted share, and by expenses related to the Parker acquisition. First-quarter adjusted EBITDA was $206 million, compared to $221 million in the previous quarter.

Highlights

• In March, Nabors completed the acquisition of Parker Wellbore, strengthening its portfolio with complementary businesses. This transaction adds Quail Tools, the leading tubular rental franchise in the U.S., along with the largest casing running contractor in Saudi Arabia and the United Arab Emirates, and a fleet of ten drilling rigs in several international markets and Alaska. This acquisition is expected to be immediately accretive to Nabors' 2025 free cash flow and to improve leverage metrics.
• In the first quarter, the SANAD joint venture deployed its tenth newbuild rig. The eleventh commenced in April, and the twelfth is expected to start later in the second quarter. Two additional rigs are planned for startup in the second half of 2025. As these rigs come online, they should make a material contribution to SANAD's adjusted EBITDA while supporting their customer's program to maintain production capacity and develop its natural gas resources.
• Nabors and Corva AI expanded their existing strategic alliance, extending their collaboration into Nabors' RigCLOUD^® platform. The resulting solution combines Nabors' edge and cloud computing platform with Corva's AI-driven analytics, enhancing real-time data processing, predictive insights, and performance, improving decision-making and maximizing efficiency.
• In the month of March, the Company suspended activity on its three rigs in Russia in response to the recently expanded sanctions. Nabors does not expect activity in this market to resume in the near term. Financial performance in this market had become increasingly marginal.

Anthony G. Petrello, Nabors Chairman, CEO and President, commented, "With the acquisition of Parker completed, we are already realizing the benefits we anticipated. Parker's operations contributed to our first quarter. We commenced our well-planned integration, and the early achievements are encouraging.

"Our first quarter results reflect improving performance in certain international markets, as well as challenges in the U.S. In the U.S. specifically, rig churn placed pressure on rig utilization and operating expenses. More recently, we are encouraged by our success adding rigs in the Lower 48 after our rig count troughed in February. However, in view of the current activity level we have responded with actions to improve efficiency and align our cost structure.

"Daily adjusted gross margin in the International Drilling business was $17,421, an improvement of more than $700 per day. This expansion was driven by higher margins in most of our international geographies. Our international drilling activity was essentially flat, as two rig startups in Saudi Arabia offset the impact of the suspension of our Russia operations and lower activity in Colombia. Looking ahead over the balance of 2025, we have a number of startups planned, in Saudi Arabia, Kuwait, Argentina, Mexico, and India. These offset the completion of some drilling programs in the Eastern Hemisphere.

"SANAD, our 50/50 joint venture with Saudi Aramco, began operating its tenth newbuild rig during the first quarter, and the eleventh early in the second quarter. Another three are scheduled to commence operations during the balance of 2025. SANAD, with its newbuild program totaling 50 rigs over 10 years, is growing rapidly and provides a source of significant value to Nabors and our shareholders."

Segment Results

International Drilling adjusted EBITDA totaled $115.5 million, compared to $112.0 million in the fourth quarter of 2024. Average rig count was essentially in line with activity expectations. Daily adjusted gross margin for the first quarter averaged $17,421, reflecting additional newbuild rigs in Saudi Arabia and improved operating performance in several geographies.

The U.S. Drilling segment reported first quarter adjusted EBITDA of $92.7 million, compared to $105.8 million in the fourth quarter. This decrease was driven by reduced rig count in the Lower 48 and somewhat higher operational expenses. Nabors' first quarter Lower 48 rig count averaged 61, versus 66 in the fourth quarter. Lower 48 daily margins averaged $14,276 in the first quarter, as compared to $14,940 in the previous quarter. Operating inefficiencies from elevated rig churn primarily led to this change.

Drilling Solutions, or NDS, adjusted EBITDA was $40.9 million. The addition of the Parker operations contributed $9.6 million in the first quarter. The decline in Nabors' Lower 48 rig count in the quarter impacted NDS results. This segment's gross margin remained strong, at 53%.

Rig Technologies adjusted EBITDA was $5.6 million. Lower capital equipment deliveries in the Middle East and decreased OEM aftermarket volumes contributed to a sequential decline in adjusted EBITDA.

Adjusted Free Cash Flow

In the first quarter, consolidated adjusted free cash flow was a use of $71 million. Nabors legacy business, excluding the impact from Parker, consumed $61 million in adjusted free cash flow. The first quarter normally includes higher payments, mainly annual bonuses, property taxes and interest expenses. In addition, the first quarter for the Nabors legacy business included approximately $14 million in severance and other costs mainly related to the Parker transaction. On a positive note, Nabors collected approximately $20 million from its main customer in Mexico. The Company had targeted another $20 million in collections that dropped out of the first quarter. Nabors is working on further material payments with its customer, which it expects to collect during the second quarter. Parker consumed $10 million in adjusted free cash flow, including capital expenditures of $6 million, $5 million in accrued interest on the Parker term loan, which was retired at the end of the first quarter, and a small amount of transaction-related expenses.

William Restrepo, Nabors CFO, stated, "The addition of Parker marks a significant milestone for Nabors, materially expanding our Drilling Solutions business and adding significant cash generation to our combined company. With a full quarter of Parker, we expect NDS results in the second quarter to account for approximately 25% of adjusted EBITDA from consolidated operations. The Parker business is forecast to add material free cash flow. In addition to $130 million in incremental adjusted EBITDA for 2025 post-closing, we are on track to realize $40 million of cost synergies. Parker capital expenditures post-closing are targeted at $60 million for 2025.

"Nabors adjusted free cash flow for the quarter was impacted by several factors as compared to our forecast. Capital expenses were $70 million below target mainly on delayed milestones for SANAD's newbuild rigs that shifted into the second quarter. Additionally, collections were $30 million below our expectations. Payments related to our Parker transaction were approximately $14 million.

"As a result of the ongoing uncertainty with the increased U.S. tariffs, we have quantified the potential impact of these changes on our future free cash flow. We estimate the total amount would land between $10 million and $20 million on a full-year basis. We also believe that some of this impact would be offset by commercial negotiations with our customers.

"We are targeting a substantial improvement in free cash flow generation over the remaining three quarters of the year, driven by continued progress in our international drilling profitability, some recovery in our Lower 48 rig count and Parker's incremental contribution including material synergy capture."

Outlook

Nabors expects the following metrics for the second quarter of 2025, which reflect a full quarter from Parker Wellbore operations:

U.S. Drilling               

• Lower 48 average rig count of 63 - 64 rigs
• Lower 48 daily adjusted gross margin of approximately $14,100
• Alaska and Gulf of Mexico combined adjusted EBITDA of approximately $26 million

International

• Average rig count of 85 - 86 rigs, including two rigs from Parker
• Daily adjusted gross margin of approximately $17,700

Drilling Solutions

• Adjusted EBITDA of approximately $75 million, including an approximate $43 million contribution from Parker

Rig Technologies

• Adjusted EBITDA approximately in line with the first quarter

Capital Expenditures

• Capital expenditures of $220 - $230 million, including $35 million for the Parker operations and $100 - $105 million for the newbuilds in Saudi Arabia
• Full-year capital expenditures of approximately $770 - $780 million, with $360 million for the SANAD newbuilds and $60 million for Parker

Adjusted Free Cash Flow

• Adjusted free cash flow for 2025 of approximately $80 million (excluding any impact from tariffs), with SANAD consuming approximately $150 million, while the remaining operations including Parker should generate around $230 million

Mr. Petrello concluded, "Our business and geographic diversity, and our industry-leading technology, will help us navigate this current environment. We expect the Parker business to make an immediate positive impact to our position.

"The investments we have made in our international business should generate meaningful returns, as we deploy a significant number of rigs over the next several quarters. In particular, SANAD is on track to operate 15 newbuild rigs by early 2026, with additional newbuilds already under discussion. The outlook for this program, and SANAD in total, is for considerable free cash generation, which should lead to material value creation for our shareholders."

About Nabors Industries

Nabors Industries (NYSE: NBR) is a leading provider of advanced technology for the energy industry. With presence in more than 20 countries, Nabors has established a global network of people, technology and equipment to deploy solutions that deliver safe, efficient and responsible energy production. By leveraging its core competencies, particularly in drilling, engineering, automation, data science and manufacturing, Nabors aims to innovate the future of energy and enable the transition to a lower-carbon world. Learn more about Nabors and its energy technology leadership: www.nabors.com.

Forward-looking Statements

The information included in this press release includes 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 a number of risks and uncertainties, as disclosed by Nabors from time to time in its filings with the Securities and Exchange Commission. As a result of these factors, Nabors' actual results may differ materially from those indicated or implied by such forward-looking statements. The forward-looking statements contained in this press release reflect management's estimates and beliefs as of the date of this press release. Nabors does not undertake to update these forward-looking statements. 

Non-GAAP Disclaimer

This press release presents certain "non-GAAP" financial measures. The components of these non-GAAP measures are computed by using amounts that are determined in accordance with accounting principles generally accepted in the United States of America ("GAAP"). Adjusted operating income (loss) represents income (loss) from continuing operations before income taxes, interest expense, investment income (loss), gain on bargain purchase, and other, net. Adjusted EBITDA is computed similarly, but also excludes depreciation and amortization expenses. In addition, adjusted EBITDA and adjusted operating income (loss) exclude certain cash expenses that the Company is obligated to make. Net debt is calculated as total debt minus the sum of cash, cash equivalents and short-term investments.

Adjusted free cash flow represents net cash provided by operating activities less cash used for capital expenditures, net of proceeds from sales of assets. Management believes that adjusted free cash flow is an important liquidity measure for the company and that it is useful to investors and management as a measure of the company's ability to generate cash flow, after reinvesting in the company for future growth, that could be available for paying down debt or other financing cash flows, such as dividends to shareholders. Management believes that this non-GAAP measure is useful information to investors when comparing our cash flows with the cash flows of other companies.

Each of these non-GAAP measures has limitations and therefore should not be used in isolation or as a substitute for the amounts reported in accordance with GAAP. However, management evaluates the performance of its operating segments and the consolidated Company based on several criteria, including Adjusted EBITDA, adjusted operating income (loss), net debt, and adjusted free cash flow, because it believes that these financial measures accurately reflect the Company's ongoing profitability, performance and liquidity. Securities analysts and investors also use these measures as some of the metrics on which they analyze the Company's performance. Other companies in this industry may compute these measures differently. Reconciliations of consolidated adjusted EBITDA and adjusted operating income (loss) to income (loss) from continuing operations before income taxes, net debt to total debt, and adjusted free cash flow to net cash provided by operations, which are their nearest comparable GAAP financial measures, are included in the tables at the end of this press release. We do not provide a forward-looking reconciliation of our outlook for Segment Adjusted EBITDA, Segment Gross Margin or Adjusted Free Cash Flow, as the amount and significance of items required to develop meaningful comparable GAAP financial measures cannot be estimated at this time without unreasonable efforts. These special items could be meaningful.

Investor Contacts:  William C. Conroy, CFA, Vice President of Corporate Development & Investor Relations, +1 281-775-2423 or via e-mail william.conroy@nabors.com, or Kara K. Peak, Director of Corporate Development & Investor Relations, +1 281-775-4954 or via email kara.peak@nabors.com. To request investor materials, contact Nabors' corporate headquarters in Hamilton, Bermuda at +441-292-1510 or via e-mail mark.andrews@nabors.com

 

	NABORS INDUSTRIES LTD. AND SUBSIDIARIES
	CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS)
	(Unaudited)
			Three Months Ended
			March 31,				December 31,
	(In thousands, except per share amounts)		2025		2024		2024
	Revenues and other income:
	Operating revenues		$            736,186		$            733,704		$            729,819
	Investment income (loss)		6,596		10,201		8,828
	Total revenues and other income		742,782		743,905		738,647
	Costs and other deductions:
	Direct costs		447,300		437,077		433,404
	General and administrative expenses		68,506		61,751		61,436
	Research and engineering		14,035		13,863		14,434
	Depreciation and amortization		154,638		157,685		156,348
	Interest expense		54,326		50,379		53,642
	Gain on bargain purchase		(112,999)		-		-
	Other, net		44,790		16,108		37,021
	Total costs and other deductions		670,596		736,863		756,285
	Income (loss) before income taxes		72,186		7,042		(17,638)
	Income tax expense (benefit)		15,007		16,044		15,231
	Net income (loss)		57,179		(9,002)		(32,869)
	Less: Net (income) loss attributable to noncontrolling interest		(24,191)		(25,331)		(20,802)
	Net income (loss) attributable to Nabors		$              32,988		$             (34,333)		$             (53,671)
	Earnings (losses) per share:
	Basic		$                  2.35		$                 (4.54)		$                 (6.67)
	Diluted		$                  2.18		$                 (4.54)		$                 (6.67)
	Weighted-average number of common shares outstanding:
	Basic		10,460		9,176		9,213
	Diluted		11,671		9,176		9,213
	Adjusted EBITDA		$            206,345		$            221,013		$            220,545
	Adjusted operating income (loss)		$              51,707		$              63,328		$              64,197

 

NABORS INDUSTRIES LTD. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
		March 31,		December 31,
(In thousands)		2025		2024
ASSETS
Current assets:
Cash and short-term investments		$             404,109		$             397,299
Accounts receivable, net		549,626		387,970
Other current assets		245,083		214,268
Total current assets		1,198,818		999,537
Property, plant and equipment, net		3,074,789		2,830,957
Other long-term assets		776,077		673,807
Total assets		$          5,049,684		$          4,504,301
LIABILITIES AND EQUITY
Current liabilities:
Trade accounts payable		$             375,440		$             321,030
Other current liabilities		292,205		250,887
Total current liabilities		667,645		571,917
Long-term debt		2,685,169		2,505,217
Other long-term liabilities		251,493		220,829
Total liabilities		3,604,307		3,297,963
Redeemable noncontrolling interest in subsidiary		795,643		785,091
Equity:
Shareholders' equity		342,660		134,996
Noncontrolling interest		307,074		286,251
Total equity		649,734		421,247
Total liabilities and equity		$          5,049,684		$          4,504,301

 

NABORS INDUSTRIES LTD. AND SUBSIDIARIES
SEGMENT REPORTING
(Unaudited)
The following tables set forth certain information with respect to our reportable segments and rig activity:
			Three Months Ended
			March 31,				December 31,
(In thousands, except rig activity)			2025		2024		2024
Operating revenues:
	U.S. Drilling		$            230,746		$            271,989		$            241,637
	International Drilling		381,718		349,359		371,406
	Drilling Solutions		93,179		75,574		75,992
	Rig Technologies (1)		44,165		50,156		56,166
	Other reconciling items (2)		(13,622)		(13,374)		(15,382)
	Total operating revenues		$            736,186		$            733,704		$            729,819
Adjusted EBITDA: (3)
	U.S. Drilling		$              92,711		$            120,403		$            105,757
	International Drilling		115,486		102,498		111,962
	Drilling Solutions		40,853		31,787		33,809
	Rig Technologies (1)		5,563		6,801		9,208
	Other reconciling items (4)		(48,268)		(40,476)		(40,191)
	Total adjusted EBITDA		$            206,345		$            221,013		$            220,545
Adjusted operating income (loss): (5)
	U.S. Drilling		$              31,599		$              50,529		$              38,973
	International Drilling		32,958		22,476		29,528
	Drilling Solutions		32,913		26,893		28,944
	Rig Technologies (1)		4,335		4,209		8,413
	Other reconciling items (4)		(50,098)		(40,779)		(41,661)
	Total adjusted operating income (loss)		$              51,707		$              63,328		$              64,197
Rig activity:
Average Rigs Working: (7)
	Lower 48		60.6		71.9		65.9
	Other US		7.6		6.8		6.8
	U.S. Drilling		68.2		78.7		72.7
	International Drilling		85.0		81.0		84.8
	Total average rigs working		153.2		159.7		157.5
Daily Rig Revenue: (6),(8)
	Lower 48		$              34,546		$              35,468		$              33,396
	Other US		61,361		64,402		62,624
	U.S. Drilling (10)		37,557		37,968		36,137
	International Drilling		49,895		47,384		47,620
Daily Adjusted Gross Margin: (6),(9)
	Lower 48		$              14,276		$              16,011		$              14,940
	Other US		30,374		35,184		34,707
	U.S. Drilling (10)		16,084		17,667		16,793
	International Drilling		17,421		16,061		16,687

(1)	Includes our oilfield equipment manufacturing activities.
(2)	Represents the elimination of inter-segment transactions related to our Rig Technologies operating segment.
(3)	Adjusted EBITDA represents net income (loss) before income tax expense (benefit), investment income (loss), interest expense, gain on bargain purchase, other, net and depreciation and amortization. Adjusted EBITDA is a non-GAAP financial measure and should not be used in isolation or as a substitute for the amounts reported in accordance with GAAP. In addition, adjusted EBITDA excludes certain cash expenses that the Company is obligated to make. However, management evaluates the performance of its operating segments and the consolidated Company based on several criteria, including adjusted EBITDA and adjusted operating income (loss), because it believes that these financial measures accurately reflect the Company's ongoing profitability and performance.  Securities analysts and investors use this measure as one of the metrics on which they analyze the Company's performance.  Other companies in this industry may compute these measures differently.  A reconciliation of this non-GAAP measure to net income (loss), which is the most closely comparable GAAP measure, is provided in the table set forth immediately following the heading "Reconciliation of Non-GAAP Financial Measures to Net Income (Loss)".
(4)	Represents the elimination of inter-segment transactions and unallocated corporate expenses.
(5)	Adjusted operating income (loss) represents net income (loss) before income tax expense (benefit), investment income (loss), interest expense, gain on bargain purchase and other, net. Adjusted operating income (loss) is a non-GAAP financial measure and should not be used in isolation or as a substitute for the amounts reported in accordance with GAAP. In addition, adjusted operating income (loss) excludes certain cash expenses that the Company is obligated to make. However, management evaluates the performance of its operating segments and the consolidated Company based on several criteria, including adjusted EBITDA and adjusted operating income (loss), because it believes that these financial measures accurately reflect the Company's ongoing profitability and performance.  Securities analysts and investors use this measure as one of the metrics on which they analyze the Company's performance.  Other companies in this industry may compute these measures differently.  A reconciliation of this non-GAAP measure to net income (loss), which is the most closely comparable GAAP measure, is provided in the table set forth immediately following the heading "Reconciliation of Non-GAAP Financial Measures to Net Income (Loss)".
(6)	Rig revenue days represents the number of days the Company's rigs are contracted and performing under a contract during the period.  These would typically include days in which operating, standby and move revenue is earned.
(7)	Average rigs working represents a measure of the average number of rigs operating during a given period.  For example, one rig operating 45 days during a quarter represents approximately 0.5 average rigs working for the quarter.  On an annual period, one rig operating 182.5 days represents approximately 0.5 average rigs working for the year.  Average rigs working can also be calculated as rig revenue days during the period divided by the number of calendar days in the period.
(8)	Daily rig revenue represents operating revenue, divided by the total number of revenue days during the quarter.
(9)	Daily adjusted gross margin represents operating revenue less direct costs, divided by the total number of rig revenue days during the quarter.
(10)	The U.S. Drilling segment includes the Lower 48, Alaska, and Gulf of Mexico operating areas.

 

NABORS INDUSTRIES LTD. AND SUBSIDIARIES
Reconciliation of Earnings per Share
(Unaudited)
	Three Months Ended
	March 31,						December 31,
(in thousands, except per share amounts)	2025			2024			2024
BASIC EPS:
Net income (loss) (numerator):
Income (loss), net of tax	$	57,179		$	(9,002)		$	(32,869)
Less: net (income) loss attributable to noncontrolling interest		(24,191)			(25,331)			(20,802)
Less: distributed and undistributed earnings allocated to unvested shareholders		(1,177)			—			—
Less: accrued distribution on redeemable noncontrolling interest in subsidiary		(7,184)			(7,283)			(7,794)
Numerator for basic earnings per share:
Adjusted income (loss), net of tax - basic	$	24,627		$	(41,616)		$	(61,465)
Weighted-average number of shares outstanding - basic		10,460			9,176			9,213
Earnings (losses) per share:
Total Basic	$	2.35		$	(4.54)		$	(6.67)
DILUTED EPS:
Adjusted income (loss), net of tax - basic	$	24,627		$	(41,616)		$	(61,465)
Add: after tax interest expense of convertible notes		848			—			—
Add: effect of reallocating undistributed earnings of unvested shareholders		3			—			—
Adjusted income (loss), net of tax - diluted	$	25,478		$	(41,616)		$	(61,465)
Weighted-average number of shares outstanding - basic		10,460			9,176			9,213
Add: if converted dilutive effect of convertible notes		1,176			—			—
Add: dilutive effect of potential common shares		35			—			—
Weighted-average number of shares outstanding - diluted		11,671			9,176			9,213
Earnings (losses) per share:
Total Diluted	$	2.18		$	(4.54)		$	(6.67)

 

NABORS INDUSTRIES LTD. AND SUBSIDIARIES
NON-GAAP FINANCIAL MEASURES
RECONCILIATION OF ADJUSTED EBITDA BY SEGMENT TO ADJUSTED OPERATING INCOME (LOSS) BY SEGMENT
(Unaudited)
(In thousands)
		Three Months Ended March 31, 2025
		U.S. Drilling		International Drilling		Drilling Solutions		Rig Technologies		Other reconciling items		Total
Adjusted operating income (loss)		$    31,599		$         32,958		$    32,913		$             4,335		$     (50,098)		$     51,707
Depreciation and amortization		61,112		82,528		7,940		1,228		1,830		154,638
Adjusted EBITDA		$    92,711		$       115,486		$    40,853		$             5,563		$     (48,268)		$   206,345
		Three Months Ended March 31, 2024
		U.S. Drilling		International Drilling		Drilling Solutions		Rig Technologies		Other reconciling items		Total
Adjusted operating income (loss)		$    50,529		$         22,476		$    26,893		$             4,209		$     (40,779)		$     63,328
Depreciation and amortization		69,874		80,022		4,894		2,592		303		157,685
Adjusted EBITDA		$  120,403		$       102,498		$    31,787		$             6,801		$     (40,476)		$   221,013
		Three Months Ended December 31, 2024
		U.S. Drilling		International Drilling		Drilling Solutions		Rig Technologies		Other reconciling items		Total
Adjusted operating income (loss)		$    38,973		$         29,528		$    28,944		$             8,413		$     (41,661)		$     64,197
Depreciation and amortization		66,784		82,434		4,865		795		1,470		156,348
Adjusted EBITDA		$  105,757		$       111,962		$    33,809		$             9,208		$     (40,191)		$   220,545

 

NABORS INDUSTRIES LTD. AND SUBSIDIARIES
NON-GAAP FINANCIAL MEASURES
RECONCILIATION OF ADJUSTED GROSS MARGIN BY SEGMENT TO ADJUSTED OPERATING INCOME (LOSS) BY SEGMENT
(Unaudited)
			Three Months Ended
			March 31,				December 31,
(In thousands)			2025		2024		2024
Lower 48 - U.S. Drilling
	Adjusted operating income (loss)		$              18,995		$              39,264		$              27,354
	Plus: General and administrative costs		4,817		4,823		5,156
	Plus: Research and engineering		823		964		1,002
	GAAP Gross Margin		24,635		45,051		33,512
	Plus: Depreciation and amortization		53,225		59,733		57,019
	Adjusted gross margin		$              77,860		$            104,784		$              90,531
Other - U.S. Drilling
	Adjusted operating income (loss)		$              12,604		$              11,265		$              11,619
	Plus: General and administrative costs		405		326		305
	Plus: Research and engineering		62		47		72
	GAAP Gross Margin		13,071		11,638		11,996
	Plus: Depreciation and amortization		7,887		10,141		9,765
	Adjusted gross margin		$              20,958		$              21,779		$              21,761
U.S. Drilling
	Adjusted operating income (loss)		$              31,599		$              50,529		$              38,973
	Plus: General and administrative costs		5,222		5,149		5,461
	Plus: Research and engineering		885		1,011		1,074
	GAAP Gross Margin		37,706		56,689		45,508
	Plus: Depreciation and amortization		61,112		69,874		66,784
	Adjusted gross margin		$              98,818		$            126,563		$            112,292
International Drilling
	Adjusted operating income (loss)		$              32,958		$              22,476		$              29,528
	Plus: General and administrative costs		16,378		14,415		16,758
	Plus: Research and engineering		1,414		1,508		1,431
	GAAP Gross Margin		50,750		38,399		47,717
	Plus: Depreciation and amortization		82,528		80,022		82,434
	Adjusted gross margin		$            133,278		$            118,421		$            130,151
	Adjusted gross margin by segment represents adjusted operating income (loss) plus general and administrative
	costs, research and engineering costs and depreciation and amortization.

 

NABORS INDUSTRIES LTD. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO NET INCOME (LOSS)
(Unaudited)
		Three Months Ended
		March 31,				December 31,
(In thousands)		2025		2024		2024
Net income (loss)		$              57,179		$               (9,002)		$             (32,869)
Income tax expense (benefit)		15,007		16,044		15,231
Income (loss) from continuing operations before income taxes		72,186		7,042		(17,638)
Investment (income) loss		(6,596)		(10,201)		(8,828)
Interest expense		54,326		50,379		53,642
Gain on bargain purchase		(112,999)		-		-
Other, net		44,790		16,108		37,021
Adjusted operating income (loss) (1)		51,707		63,328		64,197
Depreciation and amortization		154,638		157,685		156,348
Adjusted EBITDA (2)		$            206,345		$            221,013		$            220,545

(1) Adjusted operating income (loss) represents net income (loss) before income tax expense (benefit), investment income (loss), interest expense, gain on bargain purchase and other, net. Adjusted operating income (loss) is a non-GAAP financial measure and should not be used in isolation or as a substitute for the amounts reported in accordance with GAAP. In addition, adjusted operating income (loss) excludes certain cash expenses that the Company is obligated to make. However, management evaluates the performance of its operating segments and the consolidated Company based on several criteria, including adjusted EBITDA and adjusted operating income (loss), because it believes that these financial measures accurately reflect the Company's ongoing profitability and performance.  Securities analysts and investors use this measure as one of the metrics on which they analyze the Company's performance.  Other companies in this industry may compute these measures differently.
(2) Adjusted EBITDA represents net income (loss) before income tax expense (benefit), investment income (loss), interest expense, gain on bargain purchase, other, net and depreciation and amortization. Adjusted EBITDA is a non-GAAP financial measure and should not be used in isolation or as a substitute for the amounts reported in accordance with GAAP. In addition, adjusted EBITDA excludes certain cash expenses that the Company is obligated to make. However, management evaluates the performance of its operating segments and the consolidated Company based on several criteria, including adjusted EBITDA and adjusted operating income (loss), because it believes that these financial measures accurately reflect the Company's ongoing profitability and performance.  Securities analysts and investors use this measure as one of the metrics on which they analyze the Company's performance.  Other companies in this industry may compute these measures differently.

 

NABORS INDUSTRIES LTD. AND SUBSIDIARIES
RECONCILIATION OF NET DEBT TO TOTAL DEBT
(Unaudited)
		March 31,		December 31,
(In thousands)		2025		2024
Long-term debt		$          2,685,169		$          2,505,217
Less: Cash and short-term investments		404,109		397,299
Net Debt		$          2,281,060		$          2,107,918

 

NABORS INDUSTRIES LTD. AND SUBSIDIARIES
RECONCILIATION OF ADJUSTED FREE CASH FLOW TO
NET CASH PROVIDED BY OPERATING ACTIVITIES
(Unaudited)
		Three Months Ended
		March 31,				December 31,
(In thousands)		2025		2024		2024
Net cash provided by operating activities		$               87,735		$               107,239		$                    148,919
Add: Capital expenditures, net of proceeds from sales of assets		(159,161)		(99,125)		(202,215)
Adjusted free cash flow		$              (71,426)		$                   8,114		$                    (53,296)

Adjusted free cash flow represents net cash provided by operating activities less cash used for capital expenditures, net of proceeds from sales of assets.  Management believes that adjusted free cash flow is an important liquidity measure for the company and that it is useful to investors and management as a measure of the company's ability to generate cash flow, after reinvesting in the company for future growth, that could be available for paying down debt or other financing cash flows, such as dividends to shareholders.  Adjusted free cash flow does not represent the residual cash flow available for discretionary expenditures.  Adjusted free cash flow is a non-GAAP financial measure that should be considered in addition to, not as a substitute for or superior to, cash flow from operations reported in accordance with GAAP.

 

View original content:https://www.prnewswire.com/news-releases/nabors-announces-first-quarter-2025-results-302441797.html

SOURCE Nabors Industries Ltd.

FAQ

What is Nabors (NBR) Q1 2025 earnings per share?

Nabors reported earnings of $2.18 per diluted share in Q1 2025, compared to a loss of $6.67 per share in Q4 2024. This includes a one-time gain of $9.68 per share from the Parker transaction, partially offset by $2.45 per share in charges related to Russia operations.

How much free cash flow does Nabors (NBR) expect for 2025?

Nabors expects approximately $80 million in adjusted free cash flow for 2025 (excluding tariff impacts). SANAD will consume about $150 million, while remaining operations including Parker should generate around $230 million.

What impact will the Parker Wellbore acquisition have on Nabors (NBR)?

The Parker acquisition is expected to be immediately accretive to Nabors' 2025 free cash flow and improve leverage metrics. It adds Quail Tools, casing operations in Saudi Arabia and UAE, and ten drilling rigs. Parker is forecast to contribute $130 million in incremental adjusted EBITDA for 2025 post-closing, with $40 million in cost synergies.

What are Nabors (NBR) Q2 2025 rig count projections?

For Q2 2025, Nabors projects Lower 48 average rig count of 63-64 rigs and International average rig count of 85-86 rigs, including two rigs from Parker.

How did Nabors (NBR) Q1 2025 revenue compare to previous quarter?

Nabors reported Q1 2025 operating revenues of $736 million, a slight increase from $730 million in Q4 2024. The company's adjusted EBITDA was $206 million, down from $221 million in the previous quarter.