Why Is Nabors (NBR) Up 18.4% Since Last Earnings Report?

A month has gone by since the last earnings report for Nabors Industries (NBR). Shares have added about 18.4% in that time frame, outperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Nabors due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.

Nabors’ Q4 Earnings & Revenues Beat Estimates, Increase Y/Y

Nabors Industries reported a fourth-quarter 2025 adjusted profit of 17 cents per share, beating the Zacks Consensus Estimate of a loss of $2.93. Additionally, the metric is well above the prior-year quarter’s reported loss of $6.67 per share. This outperformance was mainly driven by higher adjusted operating income from its International Drilling and Drilling Solutions segments.

The oil and gas drilling company’s operating revenues of $797.5 million beat the Zacks Consensus Estimate of $797 million. The figure also increased from the year-ago quarter’s $729.8 million, driven by stronger revenue contributions from the International Drilling and Drilling Solutions segments.

On the other hand, adjusted EBITDA increased to $221.6 million from $220.5 million recorded a year ago. The metric was above our model estimate of $211 million.

Q4 Segmental Performances

U.S. Drilling generated operating revenues of $240.6 million, down from the year-ago quarter’s $241.6 million. However, the figure topped our model estimate of $225.4 million.

Operating profit totaled $28.6 million compared with $39 million in the year-ago quarter. The figure missed our estimated profit of $29.1 million.

International Drilling’s operating revenues of $423.8 million increased from $371.4 million a year ago and beat our estimate of $411.4 million.

Operating profit totaled $49.6 million compared with the prior-year quarter’s $29.5 million and beat our estimate of $38.2 million.

Revenues from the Drilling Solutions segment totaled $107.9 million, up 42% from $76 million recorded in the prior-year quarter. However, the top line missed our estimate of $138.5 million.

The unit’s operating income of $34 million increased from the year-ago quarter’s $28.9 million but missed our model estimate of $34.5 million.

Revenues from Rig Technologies totaled $37.7 million, down 32.8% from the prior-year quarter’s $56.2 million. The figure was in line with our model estimate.

The segment’s operating profit totaled $1.3 million compared with the prior-year quarter’s $8.4 million. Moreover, the figure missed our estimate of $2.8 million.

Financial Position

Nabors’ total costs and expenses increased to $780.7 million from $756.3 million in the year-ago quarter. However, the amount was lower than our prediction of $820 million.

As of Dec. 31, 2025, the company had $940.7 million in cash and short-term investments.

Long-term debt was about $2.1 billion, with a debt-to-capitalization of 78.2%. Capital expenditures totaled $114 million during the same time.

How Have Estimates Been Moving Since Then?

It turns out, estimates review have trended upward during the past month.

The consensus estimate has shifted 8.56% due to these changes.

VGM Scores

Currently, Nabors has a strong Growth Score of A, a score with the same score on the momentum front. Following the exact same course, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Nabors has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.

Performance of an Industry Player

Nabors belongs to the Zacks Oil and Gas - Drilling industry. Another stock from the same industry, Helmerich & Payne (HP), has gained 3% over the past month. More than a month has passed since the company reported results for the quarter ended December 2025.

Helmerich & Payne reported revenues of $1.02 billion in the last reported quarter, representing a year-over-year change of +50.2%. EPS of -$0.15 for the same period compares with $0.71 a year ago.

Helmerich & Payne is expected to post a loss of $0.05 per share for the current quarter, representing a year-over-year change of -350%. Over the last 30 days, the Zacks Consensus Estimate has changed -512.5%.

Helmerich & Payne has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.

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This article originally published on Zacks Investment Research (zacks.com).

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