Nabors Industries Ltd 10-Q for FY2025 Q1

About this 10-Q

Headline figures

Nabors Industries Ltd (NBR)

10-Q 2025-05-09 For: 2025-03-31

Added on April 08, 2026

Nabors Industries Ltd filed this 10-Q on May 9, 2025, covering the quarter ended March 31, 2025 (FY2025 Q1).

Three Months Ended

March 31,

Potentially dilutive securities excluded as anti-dilutive

Quarter ended March 31, 2025, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $736.19M; up 0.3% from $733.7M a year earlier
Net income: $32.99M; compared with a net loss of $34.33M a year earlier
Diluted EPS: $2.18; compared with -$4.54 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 March 31, 2025 and December 31, 2024	3

	Condensed Consolidated Statements of Income (Loss) for the Three Months Ended March 31, 2025 and 2024	4

	Condensed Consolidated Statements of Comprehensive Income (Loss) for the Three Months Ended March 31, 2025 and 2024	5

	Condensed Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2025 and 2024	6

	Condensed Consolidated Statements of Changes in Equity for the Three Months Ended March 31, 2025 and 2024	7

	Notes to Condensed Consolidated Financial Statements	8

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	25

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	33

Item 4.	Controls and Procedures	33

PART II OTHER INFORMATION

Item 1.	Legal Proceedings	33

Item 1A.	Risk Factors	33

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	34

Item 3.	Defaults Upon Senior Securities	35

Item 4.	Mine Safety Disclosures	35

Item 5.	Other Information	35

Item 6.	Exhibits	36

Signatures		37


	March 31,		December 31,
	2025		2024

	(In thousands, except for
	share amounts)
ASSETS
Current assets:
Cash and cash equivalents	$	396,470	$	389,652
Short-term investments		7,639		7,647
Accounts receivable, net of allowance of $56,611 and $57,225, respectively		549,626		387,970
Inventory, net		117,049		129,979
Other current assets		128,034		84,289
Total current assets		1,198,818		999,537
Property, plant and equipment, net		3,074,789		2,830,957
Restricted cash held in trust		335,149		331,781
Deferred income taxes		277,464		216,296
Other long-term assets		163,464		125,730
Total assets (1)	$	5,049,684	$	4,504,301
LIABILITIES AND EQUITY
Current liabilities:
Trade accounts payable	$	375,440	$	321,030
Accrued liabilities		259,092		223,759
Income taxes payable		20,109		20,360
Current lease liabilities		13,004		6,768
Total current liabilities		667,645		571,917
Long-term debt		2,685,169		2,505,217
Other long-term liabilities		247,202		218,343
Deferred income taxes		4,291		2,486
Total liabilities (1)		3,604,307		3,297,963
Commitments and contingencies (Note 9)
Redeemable noncontrolling interest in subsidiary		795,643		785,091

Shareholders’ equity:
Common shares, par value $0.05 per share:
Authorized common shares 32,000; issued 15,695 and 10,661, respectively		785		533
Capital in excess of par value		3,734,480		3,552,756
Accumulated other comprehensive income (loss)		(10,530)		(10,414)
Retained earnings (accumulated deficit)		(2,066,324)		(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		342,660		134,996
Noncontrolling interest		307,074		286,251
Total equity		649,734		421,247
Total liabilities and equity	$	5,049,684	$	4,504,301


		Three Months Ended
		March 31,
		2025		2024

	(In thousands, except per share amounts)
Revenues and other income:
Operating revenues		$	736,186	$	733,704
Investment income (loss)			6,596		10,201
Total revenues and other income			742,782		743,905

Costs and other deductions:
Direct costs			447,300		437,077
General and administrative expenses			68,506		61,751
Research and engineering			14,035		13,863
Depreciation and amortization			154,638		157,685
Interest expense			54,326		50,379
Gain on bargain purchase			(112,999)		—
Other, net			44,790		16,108
Total costs and other deductions			670,596		736,863
Income (loss) before income taxes			72,186		7,042
Income tax expense (benefit):
Current			9,684		9,668
Deferred			5,323		6,376
Total income tax expense (benefit)			15,007		16,044
Net income (loss)			57,179		(9,002)
Less: Net (income) loss attributable to noncontrolling interest			(24,191)		(25,331)
Net income (loss) attributable to Nabors		$	32,988	$	(34,333)

Earnings (losses) per share:
Basic		$	2.35	$	(4.54)
Diluted		$	2.18	$	(4.54)

Weighted-average number of common shares outstanding:
Basic			10,460		9,176
Diluted			11,671		9,176


	Three Months Ended March 31,
	2025		2024

	(In thousands)
Cash flows from operating activities:
Net income (loss)	$	57,179	$	(9,002)
Adjustments to net income (loss):
Depreciation and amortization		154,638		157,685
Deferred income tax expense (benefit)		5,323		6,376
Impairments and other charges		26,456		—
Amortization of debt discount and deferred financing costs		2,136		2,266
Bargain purchase gain		(112,999)		—
Losses (gains) on debt buyback		—		2,576
Losses (gains) on sale of long-lived assets, net		(4,125)		4,600
Share-based compensation		4,133		4,155
Foreign currency transaction losses (gains), net		69		11,394
Mark-to-market (gain) loss on warrants		(4,212)		(5,679)
Other		1,127		543
Changes in operating assets and liabilities, net of effects from acquisitions:
Accounts receivable		(29,711)		(67,201)
Inventory		10,696		(2,046)
Other current assets		(6,432)		(2,548)
Other long-term assets		373		665
Trade accounts payable and accrued liabilities		(8,575)		8,625
Income taxes payable		(4,080)		3,810
Other long-term liabilities		(4,261)		(8,980)
Net cash provided by (used for) operating activities		87,735		107,239
Cash flows from investing activities:
Purchase of investments		(183)		(7,544)
Cash acquired in stock based business combination, net of cash paid		84,429		—
Capital expenditures		(164,952)		(104,627)
Proceeds from sales of assets		5,791		5,502
Other		(5)		40
Net cash (used for) provided by investing activities		(74,920)		(106,629)
Cash flows from financing activities:
Reduction in debt		(177,807)		(631,043)
Debt issuance costs		—		(1,343)
Proceeds from revolving credit facilities		263,000		75,000
Reduction in revolving credit facilities		(85,000)		(75,000)
Payments for employee taxes on net settlement of equity awards		(2,151)		(2,634)
Dividends to common and preferred shareholders		—		(87)
Net cash (used for) provided by financing activities		(1,958)		(635,107)
Effect of exchange rate changes on cash and cash equivalents		(420)		(5,910)
Net increase (decrease) in cash and cash equivalents and restricted cash		10,437		(640,407)
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	$	733,397	$	733,775

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		396,470		412,864
Restricted cash, end of period		336,927		320,911
Cash and cash equivalents and restricted cash, end of period	$	733,397	$	733,775


				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 December 31, 2023	10,556	$	527	$	3,538,896	$	(10,832)	$	(1,886,226)	$	(1,315,751)	$	215,396	$	542,010
Net income (loss)	—		—		—		—		(34,333)		—		25,331		(9,002)
Other comprehensive income (loss), net of tax	—		—		—		(93)		—		—		—		(93)
Share-based compensation	178		9		4,155		—		—		—		—		4,164
Noncontrolling interest contributions (distributions)	—		—		—		—		—		—		(4,242)		(4,242)
Accrued distribution on redeemable noncontrolling interest in subsidiary	—		—		—		—		(7,283)		—		—		(7,283)
Other	(32)		(1)		(2,642)		—		(88)		—		—		(2,731)
As of March 31, 2024	10,702	$	535	$	3,540,409	$	(10,925)	$	(1,927,930)	$	(1,315,751)	$	236,485	$	522,823

As of December 31, 2024	10,661	$	533	$	3,552,756	$	(10,414)	$	(2,092,128)	$	(1,315,751)	$	286,251	$	421,247
Net income (loss)	—		—		—		—		32,988		—		24,191		57,179
Share issuance related to Parker acquisition	4,800		239		179,741		—		—		—		—		179,980
Other comprehensive income (loss), net of tax	—		—		—		(116)		—		—		—		(116)
Noncontrolling interest contributions (distributions)	—		—		—		—		—		—		(3,368)		(3,368)
Share-based compensation	279		14		4,133		—		—		—		—		4,147
Accrued distribution on redeemable noncontrolling interest in subsidiary	—		—		—		—		(7,184)		—		—		(7,184)
Other	(45)		(1)		(2,150)		—		—		—		—		(2,151)
As of March 31, 2025	15,695	$	785	$	3,734,480	$	(10,530)	$	(2,066,324)	$	(1,315,751)	$	307,074	$	649,734


	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		265,000
Deferred income taxes		66,828
Other assets		38,910
Total assets acquired		630,057

Liabilities:
Trade accounts payable	$	43,774
Accrued liabilities		65,808
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		336,496
Net assets acquired		293,561
Gain on bargain purchase		112,999
Total consideration transferred	$	180,562



		March 31, 2025				December 31, 2024
		Carrying		Fair		Carrying		Fair
		Value		Value		Value		Value

	(In thousands)
7.375% senior priority guaranteed notes due May 2027		$	700,000	$	691,054	$	700,000	$	699,916
7.50% senior guaranteed notes due January 2028			389,609		358,756		389,609		362,823
1.75% senior exchangeable notes due June 2029			250,000		169,360		250,000		179,548
9.125% senior priority guaranteed notes due January 2030			650,000		651,794		650,000		661,401
8.875% senior guaranteed notes due August 2031			550,000		479,138		550,000		511,104
2024 Credit Agreement			178,000		178,000		—		—
		$	2,717,609	$	2,528,102	$	2,539,609	$	2,414,792
Less: deferred financing costs			32,440				34,392
		$	2,685,169			$	2,505,217


	Maximum Amount
	2025		2026	2027	Thereafter	Total

	(In thousands)
Financial standby letters of credit and other financial surety instruments	$	42,180	9,470	5,834	8,343	$	65,827



	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		—		—		(134)		(134)
Amounts reclassified from accumulated other comprehensive income (loss)		—		41		—		41
Net other comprehensive income (loss)		—		41		(134)		(93)
As of March 31, 2024	$	2	$	(3,565)	$	(7,362)	$	(10,925)


	Three Months Ended
	March 31, 2025

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

	(In thousands)
Operating revenues	$	230,746	$	381,718	$	93,179	$	44,165	$	749,808	$	(13,622)	$	736,186
Direct costs		(131,928)		(248,440)		(44,223)		(31,235)		(455,826)		8,526		(447,300)
Depreciation and amortization		(61,112)		(82,528)		(7,940)		(1,228)		(152,808)		(1,830)		(154,638)
Other segment expenses (2)		(6,107)		(17,792)		(8,103)		(7,367)		(39,369)		(43,172)		(82,541)
Total adjusted operating income (loss) (2)	$	31,599	$	32,958	$	32,913	$	4,335	$	101,805	$	(50,098)	$	51,707

Capital expenditures	$	32,400	$	108,128	$	7,172	$	283	$	147,983	$	2,528	$	150,511


	Three Months Ended
	March 31, 2024

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

	(In thousands)
Operating revenues	$	271,989	$	349,359	$	75,574	$	50,156	$	747,078	$	(13,374)	$	733,704
Direct costs		(145,426)		(230,938)		(36,508)		(34,259)		(447,131)		10,054		(437,077)
Depreciation and amortization		(69,874)		(80,022)		(4,894)		(2,592)		(157,382)		(303)		(157,685)
Other segment expenses (2)		(6,160)		(15,923)		(7,279)		(9,096)		(38,458)		(37,156)		(75,614)
Total adjusted operating income (loss) (2)	$	50,529	$	22,476	$	26,893	$	4,209	$	104,107	$	(40,779)	$	63,328

Capital expenditures	$	29,943	$	73,584	$	3,531	$	2,406	$	109,464	$	2,932	$	112,396


			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 March 31, 2025	$	599,427	$	29,174	$	9,616	$	28,871	$	12,859


	March 31,		December 31,
	2025		2024

	(In thousands)
Raw materials	$	110,045	$	124,711
Work-in-progress		4,470		2,768
Finished goods		2,534		2,500
	$	117,049	$	129,979


	March 31,		December 31,
	2025		2024

	(In thousands)
Total assets:
U.S. Drilling	$	1,091,647	$	1,049,650
International Drilling		2,466,943		2,348,590
Drilling Solutions		434,066		79,065
Rig Technologies		189,738		215,225
Total reportable segments		4,182,394		3,692,530
Other reconciling items (4)		867,290		811,771
Total	$	5,049,684	$	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		Program	Program (3)
January 1 - January 31	10	(1)	$	57.17	—	278,914
February 1 - February 28	19	(1)	$	49.09	—	278,914
March 1 - March 31	16	(2)	$	38.00	—	278,914



Exhibit No.		Description
2.1		Agreement and Plan of Merger, dated as of October 14, 2024, by and among Nabors Industries Ltd., Nabors SubA Corporation, Parker Drilling Company and Värde Partners, Inc., solely in its capacity as the representative of the stockholders of Parker Drilling Company (incorporated by reference to Exhibit 2.1 to the Current Report on Form 8-K filed by the Company on October 15, 2024). †
2.2		Third Amendment to Agreement and Plan of Merger, dated as of March 11, 2025, by and among Nabors Industries Ltd., Nabors SubA Corporation, Parker Drilling Company and Värde Partners, Inc., solely in its capacity as the representative of the stockholders of Parker Drilling Company (incorporated by reference to Exhibit 2.2 to the Current Report on Form 8-K filed by the Company on March 11, 2025).
10.1		Second Lien Term Loan Credit Agreement, dated March 26, 2019, by and among Parker Drilling Company, certain subsidiaries party thereto, UMB Bank, N.A., and the Lenders from time-to-time party thereto (incorporated by reference to Exhibit 10.6 to Nabors’ Registration Statement on Form S-4 (File No. 333-282909) filed with the SEC on October 31, 2024).
10.2		First Amendment to Second Lien Term Loan Credit Agreement, dated March 26, 2021, by and among Parker Drilling Company, certain subsidiaries party thereto, UMB Bank, N.A. and the Lenders party thereto (incorporated by reference to Exhibit 10.7 to Nabors’ Registration Statement on Form S-4 (File No. 333-282909) filed with the SEC on October 31, 2024).
10.3		Second Amendment and Limited Waiver to Second Lien Term Loan Credit Agreement, dated January 12, 2023, by and among Parker Drilling Company, certain subsidiaries party thereto, UMB Bank, N.A. and the Lenders party thereto (incorporated by reference to Exhibit 10.8 to Nabors’ Registration Statement on Form S-4 (File No. 333-282909) filed with the SEC on October 31, 2024).
10.4		Registration Rights Agreement, dated as of March 11, 2025 by and among Nabors Industries Ltd. and the stockholders party thereto (incorporated by reference to Exhibit 10.4 to Nabors’ Current Report on Form 8-K (File No. 001-32657), filed with the SEC on March 12, 2024). .
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:	May 9, 2025


Date: May 9, 2025		/s/ ANTHONY G. PETRELLO
		Anthony G. Petrello
		Chairman, President and Chief Executive Officer