Nabors Industries Reports Strong Q4 Results, Outlines 2026 Guidance

Drilling contractor sees improved U.S. performance and higher Drilling Solutions segment, but faces some international headwinds.

Published on Feb. 15, 2026

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Nabors Industries (NYSE:NBR) reported fourth-quarter 2025 adjusted EBITDA of $222 million, topping management's prior expectations, as stronger U.S. drilling performance and higher results from Nabors Drilling Solutions helped offset the absence of Quail Tools following its divestiture. Executives also emphasized a year of balance sheet actions, including debt reduction and refinancing, and offered guidance for 2026 that aims to keep reported EBITDA roughly in line with 2025 despite portfolio changes.

Why it matters

Nabors is a major global drilling contractor, so its quarterly results and outlook provide insights into the health of the oil and gas industry. The company's ability to maintain profitability amid portfolio changes and international headwinds highlights its operational flexibility and diversified business model.

The details

Nabors reported better-than-expected fourth-quarter results, driven by stronger U.S. drilling performance and higher earnings from its Drilling Solutions segment, which offset the absence of Quail Tools following its divestiture. International results were modestly below expectations due to activity disruptions in Colombia, more maintenance days than anticipated in Saudi Arabia, and startup inefficiencies. In the U.S., the company saw improved Lower 48 performance, with higher average daily margins, as well as solid results in Alaska and offshore. Nabors Drilling Solutions also saw sequential growth in revenue and EBITDA, excluding Quail. The company reduced net debt by $554 million in 2025 through various transactions and expects to reduce annualized cash interest expense by about $45 million.

  • Nabors reported fourth-quarter 2025 results on February 15, 2026.
  • The company expects to restart a fourth offshore platform rig in Mexico early in 2026.
  • Two of Nabors' three suspended rigs in Saudi Arabia are expected to resume operations - one in late Q1 2026 and another in late Q2 2026.

The players

Nabors Industries

A global oil and gas drilling contractor that provides land and offshore drilling rigs, drilling equipment and related services to energy companies around the world.

Tony Petrello

Chairman and CEO of Nabors Industries.

William Rodriguez

Chief Financial Officer of Nabors Industries.

Coterra

An oil and gas company that has been working with Nabors' PACE-X Ultra rig in South Texas since mid-September 2025.

Pemex

Mexico's state-owned oil and gas company, which has improved its payments to Nabors for services rendered.

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What they’re saying

“We must not let individuals continue to damage private property in San Francisco.”

— Robert Jenkins, San Francisco resident (San Francisco Chronicle)

“Fifty years is such an accomplishment in San Francisco, especially with the way the city has changed over the years.”

— Gordon Edgar, grocery employee (Instagram)

What’s next

Nabors expects to reduce gross debt by at least $100 million during 2026 and is also evaluating alternatives for three smaller rigs in Saudi Arabia that were not renewed.

The takeaway

Nabors' ability to maintain profitability and reduce debt despite international headwinds and portfolio changes highlights the company's operational flexibility and diversified business model, which positions it well to navigate the evolving oil and gas industry.