| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 79 | 6.3x | 17.8x | Top tier | |
Growth | 45 | 6.1% | 7.1% | Around median | |
Quality | 54 | 10.1% | 4.5% | Around median | |
Safety | 46 | 1.6x | 2.6x | Around median | |
Capital Return | 95 | — | 2.12% | Top tier | |
Momentum | 80 | 132.3% | 2.9% | Top tier | |
Sentiment | 33 | 2 | 3 | Bottom tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Nabors Industries Ltd. operates in land drilling services and drilling technologies, combining rig operations in international markets and the United States with NDS technology solutions and Rig Technologies equipment. International Drilling generated revenue of $432 million in Q2 FY2026, compared with $252 million for U.S. Drilling, $111 million for NDS Solutions, and $37 million for Rig Technologies, before intersegment eliminations. The company relies on a “rig as a platform” strategy to increase revenue from each rig through software, automation, and performance services, alongside core drilling contracts.
Consolidated revenue reached $814.8 million in Q2 FY2026, a sequential increase of $31 million, or 4%, while the company recorded a net loss of $22.3 million and a loss per share of $2.04. In contrast, adjusted EBITDA reached $222 million, and its margin rose to 27.2% after expanding by 107 basis points, exceeding management expectations across all four segments. The divergence between the net loss and strong operating profitability highlights the importance of capital expenditure, financing costs, and non-operating items when assessing earnings quality.
International Drilling led operating profitability in Q2 FY2026 with adjusted EBITDA of $131 million and a margin of 30.2%, while U.S. Drilling generated $94 million and a margin of 37.3%. NDS generated adjusted EBITDA of $40 million and a margin of 36.2%, converting approximately 90% of it into free cash flow, while Rig Technologies’ adjusted EBITDA improved to $3.2 million. For FY2025, Nabors recorded revenue of $3.2 billion, net income of $286.6 million, and earnings per share of $17.39.
Automated analysis for informational purposes only — not investment advice.
The analyst consensus rates NBR as “Neutral,” with an average price target of $104.5 and a wide range between $85 and $130, reflecting a meaningful divergence in assessments of the impact of SANAD and Lower 48 growth versus capital expenditure and quarterly losses. The average target is below the 52-week range high of $112.9, while the highest target exceeds that high and the lowest target falls within the $34.7–112.9 range; therefore, the consensus does not provide a uniform bullish signal despite management raising its FY2026 operating earnings guidance.
Figures in the text are as of 2026-09-02; the live price is shown at the top of the page.
Nabors’ revenue reached approximately $814.8 million, a sequential increase of $31 million, or 4%. Adjusted EBITDA reached $222 million, with a margin of 27.2% and an expansion of 107 basis points. Performance was driven by growth across all four segments, particularly International Drilling and the Lower 48, but the company simultaneously recorded a net loss of $22.3 million and a loss per share of $2.04.
SANAD operated approximately 55 rigs in Saudi Arabia with a 28% market share, according to the July 29, 2026 call. The fleet included 16 rigs from the 50-rig construction program, with 34 rigs remaining to be delivered and the seventeenth rig expected to begin operations in Q3 FY2026. Approximately three-quarters of the SANAD fleet also operates in gas, compared with approximately two-thirds of the rigs operating in the Saudi market, linking its growth to Saudi Aramco’s priority of expanding gas production.
The company added five rig startups during Q2 FY2026, and the average working count rose to 67.8 rigs, with an exit rate of 71 rigs. Activity reached 73 rigs at the time of the July 29, 2026 call, while management targeted an average of approximately 73 rigs and an exit rate of 74 rigs in Q3 FY2026. Average daily revenue rose to $33.6 thousand, but management expected the adjusted daily margin to remain near $13.8 thousand in Q3 due to limited near-term renewal opportunities.
NDS generated revenue of $111 million, adjusted EBITDA of $40 million, and a margin of 36.2% in Q2 FY2026. Its revenue rose by 11% on Nabors rigs in the Lower 48 and by 12% on third-party rigs, despite only a 1% increase in the average third-party rig count. NDS also converted approximately 90% of its adjusted EBITDA into free cash flow, and management expected its adjusted EBITDA to grow by 5% sequentially to approximately $42 million in Q3 FY2026.
Capital expenditure reached $158 million in Q2 FY2026, including $46 million for the SANAD program, while consolidated adjusted free cash flow reached $12 million. The accelerated construction pace raised expected Q3 FY2026 spending to $245–255 million, including approximately $130 million for new SANAD rigs. For FY2026, the company expected spending of between $710 and $730 million and adjusted free cash flow of between $20 and $30 million, with a stated commitment to reduce total debt by at least $100 million.
The average analyst price target was $104.5, with a high target of $130 and a low target of $85. The consensus rates the stock as “Neutral,” indicating that analysts do not hold a uniformly bullish view despite management expecting adjusted EBITDA of between $920 and $930 million in FY2026. The average target is below the 52-week range high of $112.9, while the wide range of targets reflects differing assessments of SANAD and technology growth versus capital expenditure and quarterly losses.
