Nabors Industries 2025 Q2 Earnings Revenue Grows 12.9% Amidst Net Loss

Nabors Industries (NBR) reported its fiscal 2025 Q2 earnings on Jul 29th, 2025. The total revenue of Nabors Industries increased by 12.9% to $838.92 million in 2025 Q2, up from $742.78 million in 2024 Q2. Nabors' Q2 results revealed a swing to a net loss of $2.71 per share from a prior year profit of $2.35 per share, marking a 215.3% negative change. The company faced a net loss of $2.21 million, a stark contrast to the $57.18 million net income achieved in the previous year. The downturn in earnings was partly attributed to challenging market conditions. Nevertheless, Nabors maintained a positive outlook on stabilizing performance in the upcoming quarters, driven by strategic initiatives and ongoing growth in international operations.

Revenue
The total revenue of Nabors Industries rose by 12.9%, reaching $838.92 million in Q2 2025, compared to the same period in the previous year. Operating revenues contributed $832.79 million, while investment income accounted for $6.13 million, culminating in total revenues and other income of $838.92 million.

Earnings/Net Income
Nabors Industries reported a net loss of $2.71 per share for Q2 2025, a significant decline from the $2.35 per share profit in the same quarter of 2024. The net income shifted from a gain of $57.18 million to a loss of $2.21 million, representing a 103.9% deterioration. The negative EPS highlights financial challenges this quarter.

Price Action
The stock price of Nabors Industries dropped 5.37% during the latest trading day, climbed 3.69% during the most recent full trading week, and surged 18.74% month-to-date.

Post-Earnings Price Action Review
Investors adopting a strategy of purchasing Nabors Industries shares following a quarterly revenue increase faced significant underperformance. Holding the stock for 30 days post-announcement resulted in an 80.10% loss, starkly underperforming the benchmark return of 50.19%. This resulted in an excess return of -130.28%. The compounded annual growth rate (CAGR) was -41.91%, reflecting a substantial decline in value over the three-year period. Such performance suggests that, despite revenue growth, the broader market conditions or company-specific challenges heavily impacted the stock's value. Investors need to be cautious and consider the broader financial landscape and company-specific factors when deciding on similar investment strategies in the future.

CEO Commentary
Anthony G. Petrello, Nabors Chairman, CEO, and President, remarked on the second quarter results, highlighting the strength of Nabors' portfolio and successful integration of Parker Wellbore, which contributed materially to financial outcomes. He noted that adjusted EBITDA grew sequentially across all U.S. drilling business lines, despite a flat Lower-48 rig market. Petrello expressed optimism about growth in the International Drilling segment due to new high-spec rig deployments and the significance of the SANAD newbuild program. He acknowledged challenges in mitigating the effects of the current industry rig count and dayrates while maintaining a positive outlook on stabilizing performance in the third quarter.

Guidance
Nabors anticipates that recent high-spec rig deployments in the Middle East will drive growth in the International Drilling segment, with the SANAD program enhancing future value creation. The company expects adjusted EBITDA to stabilize in the U.S. drilling segment, despite challenges from the Lower-48 rig market. Petrello indicated that the Alaska fleet is well-positioned for growth, and with Parker’s contributions, Nabors Drilling Solutions is expected to represent over 25% of adjusted EBITDA moving forward.

Additional News
Nabors Industries recently made significant changes to its leadership team. The company appointed David Tudor as a Director, expanding its Board to eight members. Tudor brings extensive energy industry experience and will serve on both the Audit and Risk Oversight Committees. Additionally, Nabors announced the retirement of its CFO, William Restrepo, effective September 30, 2025. Restrepo will continue as a Strategic Advisor to the CEO. Miguel Rodriguez, current Senior VP of Operations Finance, will transition into the CFO role. These changes reflect Nabors' strategic restructuring efforts and aim to strengthen its leadership team to drive future growth.