Nabors Industries Ltd. reported its financial results for the three months ended September 30, 2026. The company reported operating revenues of $872 million for the third quarter, a 7% increase compared to the second quarter of 2026. The company recorded a net loss attributable to shareholders of $11 million for the quarter.
Adjusted EBITDA for the third quarter was $246 million, representing an increase of nearly 11% from the previous quarter. The company also reported adjusted free cash flow of $75 million, a significant increase from $12.3 million in the second quarter. This improvement was attributed to higher profitability, lower capital spending, and improved working capital.
Key operational highlights included a record daily adjusted gross margin for International Drilling of $19,060, an increase of $1,526 sequentially. The company noted that this record margin was driven by strong field performance and high-margin rig deployments. Additionally, the SANAD land drilling joint venture successfully deployed its 17th newbuild rig in Saudi Arabia.
Looking ahead, Nabors provided guidance for the fourth quarter of 2026. The company expects full-year 2026 adjusted EBITDA to reach approximately $930 million, at the upper end of its prior guidance. It also revised its full-year consolidated adjusted free cash flow guidance to $100 to $110 million, up from previous estimates. The company expects consolidated capital expenditures for the full year to be $710 to $720 million.
In a separate transaction during the quarter, Nabors redeemed $100 million of its 9.125% notes using cash on hand, a move intended to reduce gross debt and lower cash interest expense.
