Nabors Industries Ltd 10-Q for FY2025 Q2

Nabors Industries Ltd (NBR)

10-Q 2025-08-01 For: 2025-06-30

Added on April 08, 2026

About this 10-Q

Nabors Industries Ltd filed this 10-Q on August 1, 2025, covering the quarter ended June 30, 2025 (FY2025 Q2).

Headline figures

Quarter ended June 30, 2025, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $832.79M; up 13.3% from $734.8M a year earlier
Net loss: $30.91M; compared with a net loss of $32.26M a year earlier
Diluted EPS: -$2.71; compared with -$4.29 a year earlier

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Bermuda		98-0363970
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)



Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common shares, $.05 par value per share	NBR	NYSE


Large Accelerated Filer ☒		Accelerated Filer ☐

Non-accelerated Filer ☐		Smaller reporting company ☐
	Emerging growth company ☐


PART I FINANCIAL INFORMATION

Item 1.	Financial Statements

	Condensed Consolidated Balance Sheets as of June 30, 2025 and December 31, 2024	3

	Condensed Consolidated Statements of Income (Loss) for the Three and Six Months Ended June 30, 2025 and 2024	4

	Condensed Consolidated Statements of Comprehensive Income (Loss) for the Three and Six Months Ended June 30, 2025 and 2024	5

	Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2025 and 2024	6

	Condensed Consolidated Statements of Changes in Equity for the Three and Six Months Ended June 30, 2025 and 2024	7

	Notes to Condensed Consolidated Financial Statements	9

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	27

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	37

Item 4.	Controls and Procedures	37

PART II OTHER INFORMATION

Item 1.	Legal Proceedings	38

Item 1A.	Risk Factors	38

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	39

Item 3.	Defaults Upon Senior Securities	39

Item 4.	Mine Safety Disclosures	39

Item 5.	Other Information	39

Item 6.	Exhibits	40

Signatures		40


	June 30,		December 31,
	2025		2024

	(In thousands, except for
	share amounts)
ASSETS
Current assets:
Cash and cash equivalents	$	387,321	$	389,652
Short-term investments		34		7,647
Accounts receivable, net of allowance of $57,578 and $57,225, respectively		537,071		387,970
Inventory, net		107,479		129,979
Other current assets		164,986		84,289
Total current assets		1,196,891		999,537
Property, plant and equipment, net		3,063,033		2,830,957
Restricted cash held in trust		338,584		331,781
Deferred income taxes		272,639		216,296
Other long-term assets		167,516		125,730
Total assets (1)	$	5,038,663	$	4,504,301
LIABILITIES AND EQUITY
Current liabilities:
Trade accounts payable	$	364,846	$	321,030
Accrued liabilities		274,211		223,759
Income taxes payable		16,590		20,360
Current lease liabilities		13,798		6,768
Total current liabilities		669,445		571,917
Long-term debt		2,672,820		2,505,217
Other long-term liabilities		244,469		218,343
Deferred income taxes		5,259		2,486
Total liabilities (1)		3,591,993		3,297,963
Commitments and contingencies (Note 9)
Redeemable noncontrolling interest in subsidiary		806,342		785,091

Shareholders’ equity:
Common shares, par value $0.05 per share:
Authorized common shares 32,000; issued 15,733 and 10,661, respectively		787		533
Capital in excess of par value		3,738,989		3,552,756
Accumulated other comprehensive income (loss)		(10,668)		(10,414)
Retained earnings (accumulated deficit)		(2,105,373)		(2,092,128)
Less: treasury shares, at cost, 1,161 and 1,161 common shares, respectively		(1,315,751)		(1,315,751)
Total shareholders’ equity		307,984		134,996
Noncontrolling interest		332,344		286,251
Total equity		640,328		421,247
Total liabilities and equity	$	5,038,663	$	4,504,301


		Three Months Ended				Six Months Ended
		June 30,				June 30,
		2025		2024		2025		2024

	(In thousands, except per share amounts)
Revenues and other income:
Operating revenues		$	832,788	$	734,798	$	1,568,974	$	1,468,502
Investment income (loss)			6,129		8,181		12,725		18,382
Total revenues and other income			838,917		742,979		1,581,699		1,486,884

Costs and other deductions:
Direct costs			488,881		440,225		936,181		877,302
General and administrative expenses			82,726		62,154		151,232		123,905
Research and engineering			12,722		14,362		26,757		28,225
Depreciation and amortization			175,061		160,141		329,699		317,826
Interest expense			56,081		51,493		110,407		101,872
Gain on bargain purchase			(3,500)		—		(116,499)		—
Other, net			6,074		12,079		50,864		28,187
Total costs and other deductions			818,045		740,454		1,488,641		1,477,317
Income (loss) before income taxes			20,872		2,525		93,058		9,567
Income tax expense (benefit):
Current			16,155		10,691		25,839		20,359
Deferred			6,922		4,863		12,245		11,239
Total income tax expense (benefit)			23,077		15,554		38,084		31,598
Net income (loss)			(2,205)		(13,029)		54,974		(22,031)
Less: Net (income) loss attributable to noncontrolling interest			(28,705)		(19,226)		(52,896)		(44,557)
Net income (loss) attributable to Nabors		$	(30,910)	$	(32,255)	$	2,078	$	(66,588)

Earnings (losses) per share:
Basic		$	(2.71)	$	(4.29)	$	(1.01)	$	(8.83)
Diluted		$	(2.71)	$	(4.29)	$	(1.01)	$	(8.83)

Weighted-average number of common shares outstanding:
Basic			14,083		9,207		12,271		9,191
Diluted			14,083		9,207		12,271		9,191


	Six Months Ended June 30,
	2025		2024

	(In thousands)
Cash flows from operating activities:
Net income (loss)	$	54,974	$	(22,031)
Adjustments to net income (loss):
Depreciation and amortization		329,699		317,826
Deferred income tax expense (benefit)		12,245		11,239
Impairments and other charges		31,102		—
Amortization of debt discount and deferred financing costs		4,388		4,527
Bargain purchase gain		(116,499)		—
Losses (gains) on debt buyback		(1,914)		2,576
Losses (gains) on sale of long-lived assets, net		(15,831)		11,111
Share-based compensation		8,642		7,732
Foreign currency transaction losses (gains), net		2,087		17,894
Mark-to-market (gain) loss on warrants		(7,399)		(9,594)
Other		2,232		2,990
Changes in operating assets and liabilities, net of effects from acquisitions:
Accounts receivable		(15,981)		(20,044)
Inventory		20,357		(1,574)
Other current assets		(34,887)		(8,023)
Other long-term assets		(843)		57
Trade accounts payable and accrued liabilities		(23,682)		887
Income taxes payable		(6,792)		(12,893)
Other long-term liabilities		(2,353)		(13,782)
Net cash provided by (used for) operating activities		239,545		288,898
Cash flows from investing activities:
Purchase of investments		(1,782)		(7,625)
Cash acquired in stock based business combination, net of cash paid		84,429		—
Capital expenditures		(343,865)		(231,995)
Proceeds from sales of assets		42,855		7,860
Other		7,500		4,662
Net cash (used for) provided by investing activities		(210,863)		(227,098)
Cash flows from financing activities:
Reduction in debt		(190,270)		(631,043)
Debt issuance costs		—		(1,343)
Proceeds from revolving credit facilities		318,000		130,000
Reduction in revolving credit facilities		(140,000)		(130,000)
Payment of dividend to former Parker shareholders		(6,052)		—
Payments for employee taxes on net settlement of equity awards		(2,151)		(2,634)
Dividends to common and preferred shareholders		—		(87)
Distributions to noncontrolling interest		(875)		(950)
Other		—		(282)
Net cash (used for) provided by financing activities		(21,348)		(636,339)
Effect of exchange rate changes on cash and cash equivalents		(2,203)		(9,197)
Net increase (decrease) in cash and cash equivalents and restricted cash		5,131		(583,736)
Cash and cash equivalents and restricted cash, beginning of period		722,960		1,374,182
Cash and cash equivalents and restricted cash, end of period	$	728,091	$	790,446

RECONCILIATION OF CASH AND CASH EQUIVALENTS AND RESTRICTED CASH
Cash and cash equivalents, beginning of period		389,652		1,057,487
Restricted cash, beginning of period		333,308		316,695
Cash and cash equivalents and restricted cash, beginning of period	$	722,960	$	1,374,182

Cash and cash equivalents, end of period		387,321		465,953
Restricted cash, end of period		340,770		324,493
Cash and cash equivalents and restricted cash, end of period	$	728,091	$	790,446


				Capital		Accumulated		Retained
	Common Shares			in Excess		Other		Earnings				Non-
		Par		of Par		Comprehensive		(Accumulated		Treasury		controlling		Total
(In thousands)	Shares	Value		Value		Income (Loss)		Loss)		Shares		Interest		Equity
As of March 31, 2024	10,702	$	535	$	3,540,409	$	(10,925)	$	(1,927,930)	$	(1,315,751)	$	236,485	$	522,823
Net income (loss)	—		—		—		—		(32,255)		—		19,226		(13,029)
Other comprehensive income (loss), net of tax	—		—		—		(7)		—		—		—		(7)
Share-based compensation	9		—		3,577		—		—		—		—		3,577
Noncontrolling interest contributions (distributions)	—		—		—		—		—		—		(4,482)		(4,482)
Accrued distribution on redeemable noncontrolling interest in subsidiary	—		—		—		—		(7,283)		—		—		(7,283)
Other	—		—		—		—		1		—		—		1
As of June 30, 2024	10,711	$	535	$	3,543,986	$	(10,932)	$	(1,967,467)	$	(1,315,751)	$	251,229	$	501,600

As of March 31, 2025	15,695	$	785	$	3,734,480	$	(10,530)	$	(2,066,324)	$	(1,315,751)	$	307,074	$	649,734
Net income (loss)	—		—		—		—		(30,910)		—		28,705		(2,205)
Other comprehensive income (loss), net of tax	—		—		—		(138)		—		—		—		(138)
Share-based compensation	38		2		4,509		—		—		—		—		4,511
Noncontrolling interest contributions (distributions)	—		—		—		—		—		—		(3,435)		(3,435)
Accrued distribution on redeemable noncontrolling interest in subsidiary	—		—		—		—		(7,264)		—		—		(7,264)
Other	—		—		—		—		(875)		—		—		(875)
As of June 30, 2025	15,733	$	787	$	3,738,989	$	(10,668)	$	(2,105,373)	$	(1,315,751)	$	332,344	$	640,328


	Fair Value
(In thousands)	at Acquisition
Assets:
Cash and cash equivalents	$	84,995
Accounts receivable		132,084
Inventory		4,576
Other current assets		37,664
Property, plant and equipment		264,500
Deferred income taxes		66,828
Other assets		43,910
Total assets acquired		634,557

Liabilities:
Trade accounts payable	$	43,774
Accrued liabilities		66,808
Income taxes payable		4,027
Other short-term liabilities		6,462
Long-term debt		177,755
Deferred income taxes		2,594
Other liabilities		36,076
Total liabilities assumed		337,496
Net assets acquired		297,061
Gain on bargain purchase		116,499
Total consideration transferred	$	180,562



		June 30, 2025				December 31, 2024
		Carrying		Fair		Carrying		Fair
		Value		Value		Value		Value

	(In thousands)
7.375% senior priority guaranteed notes due May 2027		$	696,050	$	689,222	$	700,000	$	699,916
7.50% senior guaranteed notes due January 2028			379,146		338,149		389,609		362,823
1.75% senior exchangeable notes due June 2029			250,000		144,395		250,000		179,548
9.125% senior priority guaranteed notes due January 2030			650,000		622,915		650,000		661,401
8.875% senior guaranteed notes due August 2031			550,000		410,311		550,000		511,104
2024 Credit Agreement			178,000		178,000		—		—
		$	2,703,196	$	2,382,992	$	2,539,609	$	2,414,792
Less: deferred financing costs			30,376				34,392
		$	2,672,820			$	2,505,217


	Maximum Amount
	2025		2026	2027	Thereafter	Total

	(In thousands)
Financial standby letters of credit and other financial surety instruments	$	27,042	23,846	5,834	8,322	$	65,044



	Gains		Defined
	(losses) on		benefit		Foreign
	cash flow		pension plan		currency
	hedges		items		items		Total

	(In thousands (1) )
As of January 1, 2024	$	2	$	(3,606)	$	(7,228)	$	(10,832)
Other comprehensive income (loss) before reclassifications		—		—		(181)		(181)
Amounts reclassified from accumulated other comprehensive income (loss)		—		81		—		81
Net other comprehensive income (loss)		—		81		(181)		(100)
As of June 30, 2024	$	2	$	(3,525)	$	(7,409)	$	(10,932)


	Three Months Ended
	June 30, 2025

		U.S. Drilling		International Drilling		Drilling Solutions		Rig Technologies		Total Reportable Segments		Other items (1)		Total

	(In thousands)
Operating revenues	$	255,438	$	384,970	$	170,283	$	36,527	$	847,218	$	(14,430)	$	832,788
Direct costs		(147,288)		(247,946)		(80,482)		(24,794)		(500,510)		11,629		(488,881)
Depreciation and amortization		(62,033)		(81,607)		(26,136)		(3,453)		(173,229)		(1,832)		(175,061)
Other segment expenses (2)		(6,329)		(19,366)		(13,300)		(6,559)		(45,554)		(49,894)		(95,448)
Total adjusted operating income (loss)	$	39,788	$	36,051	$	50,365	$	1,721	$	127,925	$	(54,527)	$	73,398

Capital expenditures	$	35,499	$	127,383	$	34,414	$	468	$	197,764	$	772	$	198,536


	Three Months Ended
	June 30, 2024

		U.S. Drilling		International Drilling		Drilling Solutions		Rig Technologies		Total Reportable Segments		Other items (1)		Total

	(In thousands)
Operating revenues	$	259,723	$	356,733	$	82,961	$	49,546	$	748,963	$	(14,165)	$	734,798
Direct costs		(140,054)		(233,523)		(42,784)		(33,948)		(450,309)		10,084		(440,225)
Depreciation and amortization		(68,935)		(82,699)		(5,149)		(2,470)		(159,253)		(888)		(160,141)
Other segment expenses (2)		(5,649)		(16,839)		(7,709)		(8,268)		(38,465)		(38,051)		(76,516)
Total adjusted operating income (loss)	$	45,085	$	23,672	$	27,319	$	4,860	$	100,936	$	(43,020)	$	57,916

Capital expenditures	$	31,876	$	95,675	$	3,885	$	1,166	$	132,602	$	5,648	$	138,250


			Contract		Contract		Contract		Contract
	Contract		Assets		Assets		Liabilities		Liabilities
	Receivables		(Current)		(Long-term)		(Current)		(Long-term)

	(In thousands)
As of December 31, 2024	$	433,562	$	17,510	$	9,742	$	24,002	$	13,424
As of June 30, 2025	$	591,942	$	20,907	$	8,231	$	50,022	$	10,879


	June 30,		December 31,
	2025		2024

	(In thousands)
Raw materials	$	99,797	$	124,711
Work-in-progress		7,215		2,768
Finished goods		467		2,500
	$	107,479	$	129,979


	June 30,		December 31,
	2025		2024

	(In thousands)
Total assets:
U.S. Drilling	$	1,070,216	$	1,049,650
International Drilling		2,471,483		2,348,590
Drilling Solutions		444,153		79,065
Rig Technologies		180,229		215,225
Total reportable segments		4,166,081		3,692,530
Other reconciling items (4)		872,582		811,771
Total	$	5,038,663	$	4,504,301


					Approximated
				Total Number	Dollar Value of
				of Shares	Shares that May
	Total	Average		Purchased as	Yet Be
	Number of	Price		Part of Publicly	Purchased
Period	Shares	Paid per		Announced	Under the
(In thousands, except per share amounts)	Repurchased	Share (1)		Program	Program (2)
April 1 - April 30	—	$	30.91	—	278,914
May 1 - May 31	—	$	26.30	—	278,914
June 1 - June 30	—	$	30.12	—	278,914



Exhibit No.		Description
31.1		Rule 13a-14(a)/15d-14(a) Certification of Anthony G. Petrello, Chairman, President and Chief Executive Officer*
31.2		Rule 13a-14(a)/15d-14(a) Certification of William Restrepo, Chief Financial Officer*
32.1		Certifications required by Rule 13a-14(b) or Rule 15d-14(b) and Section 1350 of Chapter 63 of Title 18 of the United States Code (18 U.S.C. 1350), executed by Anthony G. Petrello, Chairman, President and Chief Executive Officer and William Restrepo, Chief Financial Officer.*
101.INS		Inline XBRL Instance Document*
101.SCH		Inline XBRL Schema Document*
101.CAL		Inline XBRL Calculation Linkbase Document*
101.LAB		Inline XBRL Label Linkbase Document*
101.PRE		Inline XBRL Presentation Linkbase Document*
101.DEF		Inline XBRL Definition Linkbase Document*
104		Cover Page Interactive Data File (the cover page XBRL tags are embedded in the Inline XBRL document)


	NABORS INDUSTRIES LTD.

	By:	/s/ ANTHONY G. PETRELLO
		Anthony G. Petrello
		Chairman, President and
		Chief Executive Officer
		(Principal Executive Officer)

	By:	/s/ WILLIAM RESTREPO
		William Restrepo
		Chief Financial Officer (Principal Financial Officer and Accounting Officer)

	Date:	August 1, 2025


Date: August 1, 2025		/s/ ANTHONY G. PETRELLO
		Anthony G. Petrello
		Chairman, President and Chief Executive Officer