NYSE$NBR

Nabors Industries Ltd · Q4 2024 earnings

Q4 2024 earnings · · After market close · Investor relations

Briefing

Nabors reported a net loss of $54 million on revenues of $730 million for the fourth quarter of 2024.

Nabors Industries Ltd. reported a net loss of $54 million for the fourth quarter of 2024, a slight improvement from the $56 million net loss in the previous quarter, despite a marginal decrease in operating revenues to $730 million. Adjusted EBITDA for the quarter was $221 million, consistent with the prior quarter. The company is looking forward to the acquisition of Parker Wellbore, which is expected to close in Q1 2025, and anticipates stable market activity in early 2025.

  • Nabors shareholders approved the merger with Parker Wellbore, which is expected to close in Q1 2025, pending international regulatory approvals.
  • The company secured awards for three rigs in Argentina and one in Colombia, enhancing asset utilization and supporting growth.
  • SANAD, the joint venture with Saudi Aramco, deployed its ninth newbuild rig, with two more expected in Q1 2025, contributing to the Kingdom's natural gas activity.
  • Rig Technologies saw a 51% increase in adjusted EBITDA, driven by higher capital equipment shipments in the Middle East.

Headline financials

Total Revenue

$730M

Previous: $726M+0.6%
EPS (adj)

-$6.67

Previous: -$1.56-327.6%
Lower 48 Avg Rigs

65.9

Previous: 70.3-6.3%
International Avg Rigs

84.8

Previous: 79.6+6.5%
Lower 48 Daily Rev

$33.4K

Previous: $35.8K-6.7%
International Daily Rev

$47.6K

Previous: $46.8K+1.8%
Lower 48 Daily Margin

$14.9K

Previous: $16.2K-8.0%
International Daily Margin

$16.7K

Previous: $16.7K+0.2%
Capital Expenditures

-$208M

Previous: $134M-255.1%
Net Income

-$53.7M

Previous: -$17M-215.7%
Operating Income

$64.2M

Previous: -$17M+477.6%
Gross Profit

$140M

Previous: $140M+0.2%
R&D Expense

$14.4M

Previous: $13.9M+3.6%

Revenue & EPS history

Nabors · Revenue · Quarterly

$730M

Q4 2024+0.6%vs Q4 2023
Beat estimate in 6 of 15 quarters(40%)
ActualEstimate

Revenue by segment

Nabors · $749M total across 4 segments · Q3 2023

  • International Drilling
    $302M
  • U.S. Drilling
    $287M
  • Drilling Solutions
    $91.2M
  • Rig Technologies
    $68.6M+37.1%

Forward guidance

Nabors expects stable market activity in early 2025, with continued expansion in international markets and significant contributions from the SANAD joint venture. The acquisition of Parker Wellbore is anticipated to provide incremental free cash flow.

Tailwinds

  • U.S. Drilling: Lower 48 average rig count of approximately 61 rigs.
  • U.S. Drilling: Lower 48 daily adjusted gross margin of approximately $14,800.
  • International: Average rig count of 85-86 rigs.
  • International: Daily adjusted gross margin of approximately $17,000.
  • Adjusted free cash flow for 2025 of approximately breakeven, with SANAD consuming approximately $150 million, while remaining operations should generate around $150 million.

Headwinds

  • U.S. Drilling: Alaska and Gulf of Mexico combined adjusted EBITDA approximately in line with the fourth quarter of 2024.
  • Drilling Solutions: Adjusted EBITDA of approximately $33 million.
  • Rig Technologies: Adjusted EBITDA of approximately $5 million.
  • Capital expenditures of $195-$205 million, with $80-$85 million for newbuilds in Saudi Arabia.
  • Full-year capital expenditures of approximately $710-$720 million, with $360 million for SANAD newbuilds.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2024

Historical avgQ4 2024

+1.3%

Avg return

Earnings day

+1.6%

Avg return

5 days after

+2.4%

Avg return

30 days after

56%

40 / 72 earnings

Positive

+26.4%

Q3 2022

Best reaction

-17.0%

Q2 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+11.4%+10.5%-1.7%
Q4 2025-9.9%+1.5%+8.1%
Q3 2025+10.2%+14.3%+5.7%
Q1 2025-7.0%-8.8%-10.6%
Q4 2024-7.1%-13.9%-18.6%
Q3 2024-5.9%+1.4%+1.2%
Q2 2024+9.3%+24.3%-8.0%
Q1 2024-5.5%-3.2%-9.5%
Q4 2023+4.9%+3.4%+10.8%
Q3 2023-7.2%-13.4%-18.7%
Q2 2023+2.0%+1.1%-8.8%
Q1 2023-3.5%-11.1%-14.5%
Q4 2022+10.3%+1.5%-20.1%
Q3 2022+26.4%+27.6%+17.9%
Q2 2022-17.0%-11.4%-4.9%
Q1 2022+1.4%-5.5%+7.5%
Q4 2021+3.7%+11.0%+42.2%
Q3 2021-8.7%-16.6%-28.3%
Q2 2021-1.0%-3.8%-17.6%
Q1 2021+6.6%+4.4%+12.9%
Q4 2020+18.1%+24.3%+8.0%
Q3 2020+11.6%+6.3%+89.2%
Q2 2020-1.2%-3.2%-11.9%
Q1 2020-5.3%+7.5%+230.8%
Q4 2019+1.3%-21.1%-79.7%
Q3 2019+10.5%+13.5%+20.5%
Q2 2019+23.6%+19.1%-19.5%
Q1 2019+2.5%+5.4%-35.0%
Q4 2018+5.8%+14.7%+12.1%
Q3 2018+1.8%+11.5%-28.1%
Q2 2018+4.6%+10.2%+3.3%
Q1 2018-0.7%-0.9%-1.8%
Q4 2017-6.5%-2.5%+1.0%
Q3 2017-0.3%-13.7%-9.3%
Q2 2017-0.8%-6.3%-12.1%
Q1 2017-10.4%-13.8%-25.7%
Q4 2016-2.1%-2.5%-19.6%
Q3 2016-5.9%-8.4%+11.5%
Q2 2016+5.3%+7.5%+15.0%
Q1 2016-13.7%
Q4 2015+19.9%
Q3 2015+0.6%
Q2 2015-2.8%
Q1 2015+1.1%
Q4 2014-1.6%
Q3 2014+1.8%
Q2 2014+2.2%
Q1 2014+1.8%
Q4 2013+16.9%
Q3 2013-4.2%
Q2 2013-1.0%
Q1 2013-2.0%
Q4 2012-5.7%
Q3 2012-3.7%
Q2 2012+7.8%
Q1 2012+0.6%
Q4 2011+0.2%
Q3 2011-4.1%
Q2 2011-5.1%
Q4 2010+1.0%
Q1 2009+1.0%
Q1 2011+1.0%
Q3 2010+1.3%
Q2 2010-3.6%
Q1 2010+2.8%
Q4 2007+1.5%
Q4 2009+1.5%
Q3 2009-6.1%
Q3 2008-6.1%
Q2 2009+7.9%
Q2 2008+7.9%
Q4 2008+7.9%

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