Nabors Industries Reports 13.4% Revenue Growth in Q2 2025, Net Loss Improves

Nabors Industries Ltd. reported its financial results for the second quarter of 2025, revealing operating revenues of $832.8 million, a 13.4% increase from $734.8 million in the same period last year. The company attributed this growth to the acquisition of Parker Drilling Company, which contributed significantly to revenue streams. However, Nabors recorded a net loss of $30.9 million, or $2.71 per diluted share, an improvement from a net loss of $32.3 million, or $4.29 per diluted share, in the prior year. For the first half of 2025, revenues reached $1.57 billion, up from $1.47 billion in the first half of 2024, while net income attributable to Nabors was $2.1 million, a substantial recovery from a net loss of $66.6 million in the previous year.

The financial performance reflects several strategic developments, including the completion of the Parker acquisition on March 11, 2025, which added significant assets and operational capabilities to Nabors. The acquisition was valued at approximately $180.6 million, consisting of cash and the issuance of 4.8 million shares. This merger is expected to enhance Nabors' market position and operational efficiency, particularly in the U.S. and international drilling markets. The company also reported a gain on bargain purchase of $116.5 million related to the acquisition, which positively impacted its financial results.

Operationally, Nabors reported a total of 284 actively marketed rigs for land-based drilling and 26 for offshore operations as of June 30, 2025. The U.S. Drilling segment saw a slight decline in revenues, down 2% to $255.4 million, while the International Drilling segment experienced an 8% increase to $385 million, driven by the integration of Parker's operations. The Drilling Solutions segment reported a significant revenue increase of 105% to $170.3 million, primarily due to the acquisition, while Rig Technologies saw a 26% decline in revenues to $36.5 million, reflecting reduced activity levels in the U.S. market.

The company’s balance sheet showed total assets of $5.04 billion as of June 30, 2025, up from $4.50 billion at the end of 2024. Current liabilities increased to $669.4 million, while long-term debt rose to $2.67 billion, reflecting ongoing investments and the financial implications of the Parker acquisition. Nabors maintained a strong liquidity position with cash and short-term investments totaling $387.3 million. The company also reported a working capital of $527.4 million, indicating a solid financial foundation to support future operations and growth initiatives.

Looking ahead, Nabors anticipates continued volatility in the oil and gas markets, influenced by geopolitical factors and fluctuating commodity prices. The company expects to leverage its expanded operational capabilities from the Parker acquisition to enhance its competitive position. Management remains cautious about the potential impacts of economic conditions on capital spending by oil and gas companies, which could affect demand for Nabors' services. The company is committed to maintaining compliance with its financial covenants and is optimistic about its ability to navigate the evolving market landscape.