Nabors Posts $75 Million in Adjusted Free Cash Flow in Third Quarter
Key Facts
W. P. Carey reported an 8.6% increase in third-quarter 2026 revenue to $468.3 million, while Nabors posted consolidated adjusted free cash flow of $75 million, up $62 million from the previous quarter. The results point to different operating trajectories: growth in rents and investments at the real estate company, and improved margins and cash flow at the drilling services company. Revenue alone does not establish that analyst estimates were exceeded, as neither company’s data included those estimates. The available data also do not establish that Nabors shares rose because of the results. EL7 data showed WPC shares closed at $63.51 on October 27, 2026, while NBR closed at $81.32 on the same day.
W. P. Carey revenue, including reimbursable costs, was $468.3 million in the third quarter, compared with $431.3 million in the same period of 2025. The company said same-store contractual rent growth was 2.6% year over year. Investments completed since the start of the year reached $1.6 billion in the first nine months of 2026. These indicators combine higher rental income from existing properties with an expansion of the investment portfolio. However, the company did not provide analyst estimates in its disclosure that would support describing revenue as having exceeded expectations.
W. P. Carey raised the lower end of its full-year guidance for funds from operations available for distribution, or AFFO, per diluted share, setting a range of $5.23 to $5.29 for fiscal 2026, up from $5.19 to $5.27. The company said the revision primarily reflects a more favorable outlook for potential rent losses and lower expected tax expense. This is partly offset by one-time rent concessions, most of which are expected in the fourth quarter. Chief Executive Jason Fox said investment activity during the first nine months was approaching record levels. He added that higher interest rates had increased uncertainty in the deal market, but expressed confidence that full-year investments would remain within the guidance range.
Nabors, meanwhile, reported a net loss attributable to shareholders of $11.165 million in the third quarter of 2026, while adjusted EBITDA was $245.543 million, up from $221.660 million in the second quarter. The company said the quarterly improvement was driven by a record adjusted international drilling daily margin, an increase in the active fleet in the Lower 48, and growth in Drilling Solutions activity. Lower capital spending and improved working capital also helped support cash flow. Consolidated adjusted free cash flow was $75 million, up $62 million from the previous quarter. The results show improvement in operating and liquidity metrics, although the bottom line remained in loss territory.
Nabors raised its full-year 2026 adjusted free cash flow outlook to $100–110 million, including about $20 million in cash consumption at SANAD. It also forecast adjusted EBITDA of about $930 million for the fiscal year. For the fourth quarter, the company set a capital spending range of $250–260 million, including $140–150 million for SANAD rig construction projects in Saudi Arabia. It expects adjusted free cash flow of $60–70 million over the same period. Chief Executive Tony Petrello said the company expects further sequential growth in adjusted EBITDA in the fourth quarter, led by U.S. drilling activity, and is targeting an exit rate of nearly $1 billion heading into 2027.
W. P. Carey said higher interest rates had added uncertainty to the deal market, while it continued to expect full-year investments to remain within its guidance range. Nabors’ guidance, by contrast, highlights the scale of spending tied to SANAD projects in Saudi Arabia during the fourth quarter, alongside its cash flow and EBITDA outlook. Nabors is scheduled to hold its third-quarter results call on October 28, 2026, at 10:00 a.m. Central Time. The call will give the company an opportunity to provide details on its quarterly and annual results and guidance. The $78.12 price shown on the investor relations page was a quote displayed at the time of browsing, delayed by at least 15 minutes, and not a confirmed closing price for October 27.