Momentum Accelerates. Cash Flow Improves. Nabors 2Q 2026 Results
Nabors Industries (NYSE: NBR) reported 2Q 2026 operating revenues of $815 million, up about 4% vs 1Q, with a $22 million net loss and adjusted EBITDA of $222 million. The company raised its Lower 48 rig outlook to about 74 rigs exiting 3Q and revised full-year capex to $710-$730 million. Full-year adjusted EBITDA is guided at $920-$930 million and adjusted free cash flow at $20-$30 million.
How this was made
The 30-second read
Why it matters
The company’s 2Q 2026 operating update includes sequential margin and free-cash-flow improvement, plus a revised full-year capital spending range and updated 3Q 2026 operating metrics.
Market read
Traders can update models for Nabors using the specific guidance ranges for rig count, daily gross margin, capex, adjusted EBITDA, and adjusted free cash flow.
What to watch
SANAD milestone timing delays reduced capex versus forecast, but working-capital consumption outside SANAD offset gains; future FCF could swing with working-capital dynamics and construction schedules.
Background
Nabors is a drilling and drilling-technology provider with international drilling via the SANAD land drilling joint venture and U.S. Lower 48 operations.
Ticker impact
Nabors reported 2Q 2026 results and raised/updated full-year outlook, including Lower 48 rig-count exit guidance and capex reduction.
Likely positive bias if the market had been discounting weaker cash flow or slower Lower 48 growth; watch for sensitivity to free-cash-flow consumption at SANAD.
The release provides multiple forward-looking datapoints (exit rig count ~74, capex $710-$730m, adjusted EBITDA $920-$930m, adjusted FCF $20-$30m) plus sequential FCF improvement, which are actionable for positioning into subsequent quarters.
Market effects
Signals improving activity and margins in land drilling (Lower 48) and continued international deployments, which can support sentiment across drilling equipment and services.
Saudi Arabia SANAD newbuild cadence and Gulf operations are highlighted, potentially affecting regional energy-services demand expectations.
International drilling momentum and technology adoption (PACE-X Ultra, RigCLOUD, managed pressure drilling) reinforce global capex and service demand trends.
Counterpoint
Free cash flow remains modest and includes expected SANAD consumption, so equity upside may be limited if investors focus on debt reduction pace rather than EBITDA.
Key entities
- public_companyNabors Industries Ltd.
Reported 2Q 2026 results and provided updated full-year and 3Q 2026 guidance, including rig-count, margins, capex, EBITDA, and adjusted free cash flow.
- joint_ventureSANAD land drilling joint venture
Deployed newbuild rigs in Saudi Arabia and is driving both capex and expected free-cash-flow consumption in the outlook.
- productPACE-X Ultra rigs
Lower 48 rigs with upgraded drilling capabilities and automation, cited as part of the margin and activity improvement.
