Nabors Industries Reports Q1 2026 Revenue Increase but Net Loss of $15.2 Million

Nabors Industries Ltd. reported its financial results for the first quarter of 2026, revealing operating revenues of $783.5 million, an increase of $47.4 million compared to $736.1 million in the same period of 2025. However, the company experienced a net loss attributable to Nabors of $15.2 million, or $(1.54) per diluted share, a significant decline from the net income of $33.0 million, or $2.18 per diluted share, reported in the prior year. The decrease in profitability was attributed to higher operational costs and a lack of gains from the previous year's acquisition of Parker Drilling, which had contributed a one-time bargain purchase gain of $113 million.

The financial performance was impacted by various operational changes, including a 5% increase in general and administrative expenses, totaling $71.8 million, primarily due to workforce costs and inflationary pressures following the Parker acquisition. Depreciation and amortization expenses also rose slightly to $156.2 million, reflecting the additional assets acquired. The company reported a decrease in interest expenses to $43.8 million, down 19% from the previous year, due to a reduction in the average outstanding debt balance.

In terms of operational metrics, Nabors reported an increase in average rigs working, with the U.S. Drilling segment seeing a rise to 75.3 rigs from 68.2 rigs year-over-year. The International Drilling segment also experienced growth, with average rigs working increasing to 92.6 from 85.0. The Drilling Solutions segment benefited from a full quarter of activity from the Parker acquisition, contributing to a 14% increase in revenues. However, the Rig Technologies segment faced a decline in revenues of 38%, attributed to reduced activity levels.

Looking ahead, Nabors Industries remains cautious about the market environment, noting that demand for its services is influenced by fluctuating oil and gas prices, geopolitical events, and capital spending decisions by oil and gas companies. The company maintains a strong liquidity position with cash and short-term investments totaling $500.9 million as of March 31, 2026, and no outstanding borrowings under its credit agreement. The management expressed confidence in navigating the current market conditions while continuing to focus on operational efficiency and strategic growth initiatives.