Nabors Energy Transition Corp. II Reports $2.29 Million Net Loss in Q3 2025

Nabors Energy Transition Corp. II (NETD) reported a net loss of $2.29 million for the third quarter of 2025, a significant decline compared to a net income of $3.97 million in the same period of 2024. The company's general and administrative expenses surged to $3.83 million from $479,267 year-over-year, contributing to the loss. For the nine months ending September 30, 2025, NETD recorded a net income of $940,982, down from $11.34 million in the prior year, primarily due to a decrease in interest income from marketable securities, which fell to $8.28 million from $12.35 million.

The company's financial position has also changed markedly, with total assets decreasing to $154.83 million as of September 30, 2025, down from $333.52 million at the end of 2024. This decline is largely attributed to a significant reduction in cash and marketable securities held in the Trust Account, which dropped to $154.16 million from $331.78 million. The company’s cash balance at the end of the third quarter was $629,566, a decrease from $1.60 million at the end of 2024.

Strategically, NETD has faced challenges in executing its business combination plans. The company terminated its previously announced Business Combination Agreement with e2Companies, LLC on October 14, 2025, and entered into a Settlement Agreement that includes a secured promissory note from e2 totaling $29.23 million. This note is structured with two maturities, one due in March 2026 and the other in October 2028. The company has also extended the deadline for completing its initial business combination multiple times, with the latest extension pushing the deadline to November 18, 2025.

Operationally, NETD has not yet commenced any business operations, and its activities have been limited to organizational efforts and preparations for its Initial Public Offering (IPO). The company raised $305 million through its IPO in July 2023, which included the sale of 30.5 million units. As of September 30, 2025, NETD had not generated any operating revenues and relies on interest income from its Trust Account for financial support. The company’s management has indicated that it may need to secure additional capital to meet its working capital needs, raising concerns about its ability to continue as a going concern if it fails to complete a business combination by the extended deadline.

Looking ahead, NETD's management remains focused on identifying a suitable target for its business combination, but the uncertainty surrounding market conditions and the company's financial health poses significant risks. The company has acknowledged that if it cannot complete a business combination by the new deadline, it may be required to liquidate and dissolve, which would impact shareholders and the overall viability of the company.