Nabors Industries Ltd. (NBR) AI Stock Analysis
NBR AI stock analysis summary
AI ResearchNabors Industries Ltd. (NBR) provides land-based and offshore drilling services and equipment to the energy industry. The company generated $3.21B in trailing twelve-month revenue with a 7.7% net profit margin, though quarterly revenue declined 2.2% year-over-year as of June 30, 2026. Balance sheet leverage remains elevated, with total debt of $2.13B against $509.8M in cash and short-term investments.
- Market cap
- $1.19B
- Revenue (TTM)
- $3.21B
- P/E
- 6.0x fwd 56.2x
- 1Y return
- 93.9% S&P 500 16.8%
- Avg. target
- $107.38 37.3% vs last close
Bull case
- Trailing twelve-month earnings generated EPS of $13.12, supporting a low trailing P/E multiple of 6.0x.
- The 1-year stock return of 93.9% outperformed the S&P 500 return of 16.8% by a wide margin.
- Analysts forecast next fiscal year revenue to grow 9.5% to $3.67B with EPS rebounding to $4.00.
Bear case
- Total debt reached $2.13B as of June 30, 2026, driving a high debt-to-equity ratio of 3.91.
- Free cash flow dropped to -$22.7M in FY2025 due to elevated capital expenditures of $715.9M.
- Analysts project current fiscal year EPS to fall to -$4.17, an estimated decline of 124.0%.
What Nabors Industries does
Nabors Industries Ltd. specializes in comprehensive drilling and drilling-related services for land-based and offshore oil and natural gas wells. The company operates through five segments: U.S. Drilling, Canada Drilling, International Drilling, Drilling Solutions, and Rig Technologies. Its portfolio includes tubular running, wellbore placement, directional drilling, measurement-while-drilling, and logging-while-drilling systems, alongside proprietary software such as REVit, ROCKit, SmartNAV, SmartSLIDE, and RigCLOUD. Nabors also manufactures and services equipment including top drives, catwalks, wrenches, drawworks, downhole tools, and robotic systems. As of December 31, 2021, the company marketed approximately 301 land rigs globally and operated 29 offshore platform rigs.
Growth and profitability
Revenue increased from $2.02B in FY2021 to $3.18B in FY2025, reflecting a 5-year revenue CAGR of 8.3%. After reporting net losses of -$569.3M in FY2021, -$350.3M in FY2022, -$11.8M in FY2023, and -$176.1M in FY2024, Nabors turned profitable in FY2025 with net income of $248.3M and a net margin of 7.8%. Operating margin declined from 23.8% in FY2021 and 30.4% in FY2023 to 8.3% in FY2025. In the trailing twelve months ended June 30, 2026, revenue stood at $3.21B with an operating margin of 7.5%, while quarterly revenue declined 2.2% year-over-year.
Balance sheet and cash flow
As of June 30, 2026, Nabors held $509.8M in cash and short-term investments against total debt of $2.13B, resulting in net debt of $1.62B. The company had a current ratio of 1.89 and a debt-to-equity ratio of 3.91 on shareholders' equity of $544.1M. Operating cash flow reached $693.3M in FY2025, but free cash flow was -$22.7M following capital expenditures of $715.9M. In FY2025, the company deployed $342.4M toward share buybacks and paid $6.1M in dividends.
Valuation and performance
Nabors trades at a trailing P/E of 6.0x and an EV-to-EBITDA of 2.2x, below the median of its US-listed Energy peers of 15.0x and 8.0x, respectively. Its price-to-sales ratio stands at 0.4x compared to the peer median of 1.8x. However, its forward P/E of 56.2x is higher than the peer median of 12.7x. Over the past year, the stock returned 93.9%, outperforming the S&P 500 (SPY) return of 16.8%, though its 5-year return of -35.2% trails SPY's 83.0% gain.
What analysts expect
Wall Street coverage consists of 2 Buy, 5 Hold, and 1 Sell ratings. The mean price target of $107.38 represents a 37.3% upside compared to the last close of $78.20. For the fiscal year ending December 31, 2026, analysts estimate an EPS of -$4.17 on revenue of $3.35B. For the following fiscal year, 3 analysts project EPS of $4.00 and revenue of $3.67B. Nabors beat EPS estimates in 2 of the last 4 quarters, with next earnings scheduled for October 27, 2026.
Key risks and what to watch
- Net debt of $1.62B and debt-to-equity of 3.91 leave the company exposed to leverage risks if drilling demand weakens.
- Operating margin of 7.5% over the trailing twelve months remains well below the US-listed Energy peer median of 28.5%.
- Quarterly revenue fell 2.2% year-over-year in the period ended June 30, 2026, signaling potential near-term slowdowns.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this NBR AI stock analysis
This page is an AI-written research summary of Nabors Industries Ltd. (NBR). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: NBR income statement, NBR balance sheet, NBR key metrics, NBR analyst forecast, NBR chart. See the NBR stock overview for the latest quote and news.
NBR AI stock analysis FAQ
What was Nabors Industries' revenue and profit in the latest fiscal year?
In FY2025, Nabors generated revenue of $3.18B, up 8.7% year-over-year. It achieved net income of $248.3M, yielding a net margin of 7.8%.
How much debt does Nabors carry?
As of June 30, 2026, Nabors held $2.13B in total debt and $509.8M in cash and short-term investments, resulting in net debt of $1.62B and a debt-to-equity ratio of 3.91.
What are analysts forecasting for Nabors?
Analysts expect current fiscal year EPS of -$4.17 on $3.35B in revenue, followed by a recovery to $4.00 EPS and $3.67B in revenue next fiscal year. The mean price target is $107.38.
Does Nabors pay a dividend?
Nabors paid $6.1M in dividends in FY2025, alongside $342.4M in share buybacks.