Abstract
Nabors Industries will release its quarterly results on July 28, 2026 Post-Mkt; our preview compiles the most recent company guidance and Street expectations to frame likely revenue, margins, net profit and adjusted EPS dynamics, as well as the narrative around its core and emerging businesses.
Market Forecast
Consensus for the current quarter points to revenue of 814.96 million US dollars, an estimated year-over-year decline of 4.25%, with forecast EBIT at 54.17 million and adjusted EPS at -1.33; the implied setup suggests softer topline and margin pressure versus last year. Company and market models imply a mixed margin picture this quarter, with gross margin likely tracking near the recent run-rate and net losses persisting year over year, while adjusted EPS is expected to improve versus last year despite the revenue decline.
The core businesses are expected to remain led by International Drilling and U.S. Drilling, with International Drilling carrying the biggest revenue share and a stable backlog underpinning utilization into the quarter. The most promising segment remains Drilling Solutions, expected to benefit from higher software and automation uptake and deeper integration across rigs, supporting resilience despite volatile rig counts.
Last Quarter Review
In the last reported quarter, Nabors Industries delivered revenue of 786.44 million US dollars, a gross profit margin of 37.02%, a GAAP net loss attributable to shareholders of 15.17 million US dollars with a net profit margin of -1.94%, and adjusted EPS of -1.54 year over year down 170.64%. EBIT reached 48.63 million, up versus internal estimates, reflecting cost control and operating leverage in select fleets.
By segment, International Drilling contributed 419.50 million US dollars, U.S. Drilling 241.14 million, Drilling Solutions 106.22 million, Rig Technologies 27.22 million, and Other -10.54 million; International Drilling remained the anchor on stable dayrates, while Drilling Solutions showcased better attachment rates and high-margin software content.
Current Quarter Outlook (with major analytical insights)
Main business trajectory: International and U.S. Drilling
International Drilling continues to represent the majority of revenue and appears poised to provide the most stability into July 2026, supported by multi-year contracts and steady utilization in key geographies. While dayrate progression has moderated, the longer-duration backlog mitigates near-term volatility in activity and pricing. In contrast, U.S. Drilling remains more sensitive to spot rig demand and short-cycle E&P budgets; recent softness in onshore activity and selective reactivations are likely to cap sequential growth, which helps explain the consolidated revenue forecast contraction year over year. The interplay between contract rollovers internationally and domestic rig churn will be a central determinant of quarterly margin hold, with management’s recent cost discipline anchoring overhead and field operating costs to preserve gross margin near the recent run-rate. The EBIT forecast of 54.17 million suggests modest operating leverage despite a lower topline, implying continued focus on fleet efficiency and mix.
Most promising business: Drilling Solutions and automation
Drilling Solutions stands out for its software, analytics, and automation offerings integrated across Nabors’s rig fleet and third-party rigs, which typically carry higher margins and lower capital intensity. The segment’s revenue base, at 106.22 million US dollars last quarter, highlights the scaling opportunity through increased product attachment per rig and deeper customer penetration in automation modules. Given the guidance cadence and the market forecast showing a smaller year-over-year decline in EPS versus revenue, we expect Solutions to offset some cyclicality in drilling activity by expanding software subscriptions and bundling high-value services, supporting consolidated gross margins. Incremental deployments of automated drilling systems can drive operational KPIs for customers—reducing nonproductive time and improving rate of penetration—which in turn supports recurring revenues and stickier contracts. This profile is consistent with an EBIT mix shift toward higher-quality earnings relative to pure dayrate exposure.
Stock-price swing factors this quarter
The stock is likely to respond most to updates on U.S. rig count trends, dayrate durability on international contract rollovers, and the pace of Solutions adoption. Any commentary that points to stabilization or improvement in U.S. activity, especially in high-spec rigs, may expand expectations for the second half even if the current quarter reflects a modest year-over-year decline in revenue. Conversely, indications of slower-than-expected international renewals or pricing pressure could weigh on the margin narrative, particularly if gross margin were to drift below the recent 37% run-rate. Finally, since adjusted EPS is anticipated at -1.33 with an implied year-over-year improvement despite lower revenue, investors will focus on the durability of cost savings and the mix shift toward Solutions; evidence of sustained operating efficiency could help derisk the full-year trajectory even without a near-term demand rebound.
Analyst Opinions
Across the available commentary, the dominant tone is cautious, emphasizing a mixed near-term setup driven by softer U.S. onshore activity and a gradual normalization of international dayrates, balanced by ongoing execution in Drilling Solutions. Analysts note that revenue is expected to contract by approximately 4.25% year over year this quarter, with EBIT forecast near 54.17 million and adjusted EPS around -1.33, framing a thesis of margin resilience but limited growth catalysts until domestic activity firms. Several institutions highlight the importance of backlog quality internationally and the visibility around contract rollovers; they maintain neutral-to-hold stances while watching for acceleration signals in Solutions and any uptick in U.S. rig demand. On balance, the prevailing view is that shares may trade range-bound into the print, with risk skewed to guidance tone rather than headline revenue, as investors parse evidence of cost control sustainability and product mix improvements in software-driven services.Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
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