Nabors Posts $74.5 Million in Free Cash Flow as W. P. Carey Delivers Revenue Growth
Key Facts
W. P. Carey reported third-quarter 2026 revenue of $468.3 million, up 8.6% from the same period last year, while Nabors Industries posted adjusted free cash flow of $74.5 million. The results showed growth in the real estate company’s income and improvement in the drilling company’s operating and liquidity metrics. W. P. Carey’s revenue came. The available results data for Nabors does not include a documented comparison with market estimates. At Nabors, adjusted free cash flow rose from $12.3 million in the second quarter, alongside higher profitability, lower capital spending and improved working capital.
W. P. Carey said revenue growth came mainly from net investment activity, and contractual same-property rental revenue rose 2.6% year over year on a constant-currency basis. Investments completed since the start of the year totaled $1.6 billion, including $181.9 million in the third quarter. These figures combine higher income from the existing portfolio with its expansion through new investments. The net-lease portfolio comprises 1,755 properties totaling 189 million square feet, leased to 383 tenants, with occupancy at 98.6%.
W. P. Carey raised its 2026 annual guidance range for adjusted funds available for distribution per diluted share to $5.23–$5.29, from $5.19–$5.27 previously. The company said the revision mainly reflects a more favorable outlook for potential rent losses and a lower expected tax expense. This is partly offset by one-time rent concessions, most of which are expected in the fourth quarter. It also said investment activity in the first nine months approached record levels, while uncertainty in the deal market continued amid higher interest rates.
Nabors reported operating revenue of $872.2 million in the third quarter, up 7% from $814.8 million in the second quarter. Adjusted EBITDA rose to $245.5 million from $221.7 million in the prior quarter, and exceeded the $236.3 million recorded in the third quarter of 2025. The company reported a net loss attributable to shareholders of $11 million. Adjusted daily gross margin for international drilling was $19,060, up $1,526, or 8.7%, from the prior quarter. At the same time, adjusted free cash flow rose to $74.5 million from $12.3 million.
Nabors’ activity in Saudi Arabia was carried out through SANAD, its onshore drilling joint venture, which deployed its seventeenth new rig during the quarter. One additional rig is scheduled for deployment in 2026 and two in the first quarter of 2027, bringing the total fleet of new rigs to 20. The company, however, expected SANAD’s rig count to decline in the fourth quarter after five rigs were suspended, while anticipating a further improvement in international drilling margins despite the drop. During the third quarter, Nabors redeemed $100 million in cash of its 9.125% notes and said the transaction reduces cash interest expense. This came alongside improved cash flow, which the company attributed to higher profitability, lower capital spending and improved working capital.
Nabors forecast adjusted free cash flow of between $60 million and $70 million in the fourth quarter, with capital spending of between $250 million and $260 million, including $140–$150 million for SANAD’s new rig projects in Saudi Arabia. For 2026, it expects adjusted EBITDA of about $930 million and adjusted free cash flow of between $100 million and $110 million, including cash consumption of about $20 million at SANAD. Management said it expects further sequential growth in adjusted EBITDA in the fourth quarter, led by U.S. drilling operations. The company was scheduled to hold its earnings call on October 28, 2026, at 10:00 a.m. Central Time. This guidance puts investment in Saudi rigs and capital spending at the center of the cash flow outlook for the coming months.