Nabors Industries delivered a first quarter that was met with a positive market reaction, as revenue and adjusted earnings both surpassed Wall Street expectations. Management attributed the outperformance to expanding activity in international markets and the continued recovery of its U.S. rig fleet. CEO Tony Petrello highlighted operational momentum in the Lower 48, noting, “This performance reflects our high-spec rigs, advanced technology, experienced crews, and strong field performance.” Additionally, the company maintained steady operations across the Middle East despite geopolitical disruptions, helping stabilize results.
Is now the time to buy NBR? Find out in our full research report (it’s free for active Edge members).
Nabors Industries (NBR) Q1 CY2026 Highlights:
- Revenue: $783.5 million vs analyst estimates of $770.7 million (6.4% year-on-year growth, 1.7% beat)
- Adjusted EPS: -$1.54 vs analyst estimates of -$2.03 (24.1% beat)
- Adjusted EBITDA: $204.8 million vs analyst estimates of $200.6 million (26.1% margin, 2.1% beat)
- Operating Margin: 6.2%, in line with the same quarter last year
- Market Capitalization: $1.53 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Nabors Industries’s Q1 Earnings Call
-
Daniel Kutz (Morgan Stanley) asked about the costs and pricing required to reactivate additional U.S. rigs beyond current projections. CEO Tony Petrello explained that the next tranche of 11–12 rigs is feasible, but additional reactivations would depend on higher pricing to offset rising costs.
-
Daniel Kutz (Morgan Stanley) also inquired about capital allocation priorities and net leverage targets. CFO Miguel Rodriguez reiterated a long-term net leverage goal of around one times EBITDA and confirmed that shareholder returns would be considered only after further debt reduction.
-
Derek Podhaizer (Piper Sandler) questioned whether the rig count in the U.S. Lower 48 could rise above guidance if market conditions improve. Petrello responded that while there is upside potential, the company remains cautious due to the market’s volatility.
-
Derek Podhaizer (Piper Sandler) sought clarity on the ability to accelerate the Saudi newbuild program or add rigs outside of the current plan. Petrello indicated that immediate incremental demand would likely be met with existing assets rather than accelerating newbuilds, which have longer lead times.
-
Scott Gruber (Citigroup) asked about the drivers behind expected U.S. dayrate inflation and whether it is market-driven or related to upgrades. Petrello stated it is a combination of market tightness and higher demand for technologically advanced rigs, especially as operators pursue more challenging well programs.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will be monitoring (1) the pace of rig deployments and pricing trends in the U.S. Lower 48, (2) the execution and timing of additional newbuild rig deliveries and contract wins in Saudi Arabia, and (3) the company’s ability to maintain operational continuity in the Middle East despite ongoing logistical disruptions. Progress on debt reduction and free cash flow generation will also be central to tracking Nabors’ execution against its strategic objectives.
Nabors Industries currently trades at $100.93, up from $93.62 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it’s free).
High-Quality Stocks for All Market Conditions
ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren't just high-quality businesses. Something is happening with them right now. Elite fundamentals meeting near-term momentum - both boxes checked at the same time.
Find out which stocks our AI platform is flagging this week. See this week's Strong Momentum stocks - FREE. Get Our Strong Momentum Stocks for Free HERE.
Stocks that have made our list include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
