A global drilling contractor that operates land and offshore rigs and builds drilling technology, software, and equipment — including brands like ROCKit, SmartNAV, and Canrig — for oil and gas companies worldwide. The company traces its roots to 1952, when Clair Nabors took over a Canadian drilling firm and renamed it after himself. In 1963 it drilled the discovery well for ARCO in Alaska's Prudhoe Bay field, helping open one of North America's great oil finds.
International Drilling revenue rose 12% to $432.5M, but the Quail Tools sale drove a 2% overall revenue decline.
International Drilling extended its multi-year expansion, but the loss of Quail Tools pulled the top line lower. Revenue fell 2% to $814.8 million as a 12% increase in International Drilling was offset by a 35% drop in Drilling Solutions following the Quail Tools divestiture, while the net loss narrowed to $22.3 million from $30.9 million a year ago. The company is now a more internationally weighted business, but remains under pressure from elevated .
Key takeaways
International Drilling rose 12% to $432.5 million, driven by a 9% increase in average working rigs and improved pricing, continuing the 's multi-year expansion.
Drilling Solutions fell 35% to $110.7 million, entirely because the August 2025 sale of Quail Tools removed that business from the 's results.
U.S. Drilling dipped 1% to $252.5 million as a 7% rise in average working rigs was more than offset by lower day rates.
Section summaries
Management's Discussion and Analysis
Q2 2026 revenue fell 2% YoY to $814.8M, driven by the Quail Tools divestiture, while International Drilling grew 12% on higher rig count and pricing.
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Consolidated Q2 2026 operating decreased $18.0M (2%) to $814.8M, primarily due to the $59.6M (35%) decline in Drilling Solutions after the August 2025 sale of Quail Tools, LLC.
International Drilling rose $47.5M (12%) to $432.5M, driven by a 9% increase in average working rigs and improved pricing amid stronger market conditions.
Net loss attributable to Nabors narrowed to $22.3 million from $30.9 million a year ago, helped by a $13.4 million drop in and an $11.4 million reduction in general and administrative costs.
fell 11% to $135.2 million, and turned positive at $9.6 million after a negative $46.7 million a year ago, though first-half remained elevated at $290.6 million.
Cash and short-term investments fell to $509.8 million from $940.7 million at year-end 2025, primarily due to $379.1 million in repayments during the first half.
What changed
The prior quarter flagged whether U.S. Drilling could convert its 10% rig-count increase into higher adjusted . In Q2, the 's still fell 1% as lower day rates more than offset a 7% rise in average rigs working, showing the conversion has not yet materialized.
International Drilling's adjusted trajectory was flagged last quarter. The delivered a 12% increase on a 9% rise in average rigs working, sustaining the expansion.
was flagged as a concern at a $165 million quarterly run-rate. Q2 free cash flow turned positive at $9.6 million, but first-half capex of $290.6 million means the company is still spending heavily relative to .
Management disclosed that Middle East conflict has placed some offshore rigs on standby, a new operational not present in prior quarters, though land drilling in its markets has remained resilient.
What to watch
Whether U.S. Drilling can convert rising rig counts into growth, given that a 7% increase in average rigs working in Q2 was still offset by lower day rates, though management says leading-edge pricing has begun to increase.
International Drilling's and rig-count trajectory into Q3 2026, and whether the 9% increase in average rigs working is sustainable amid Middle East conflict that has placed some offshore rigs on standby.
generation against the elevated capital expenditure run-rate, with first-half 2026 at $290.6 million and cash reserves at $509.8 million after $379.1 million in debt repayments.
The impact of U.S. tariffs and trade policies on supply chain costs, a risk factor carried forward from the 2025 10-K, and whether the company can pass those costs to customers.
U.S. Drilling dipped $3.0M (1%) to $252.5M as a 7% rise in average working rigs was more than offset by lower .
Net loss attributable to Nabors narrowed to $22.3M from $30.9M, helped by a $13.4M (24%) drop in from lower average debt and an $11.4M (14%) reduction in G&A costs.
Cash and short-term investments fell to $509.8M from $940.7M at year-end 2025, largely due to $379.1M in repayments and $290.6M in during the first half of 2026.
Management notes that Middle East conflict has placed some offshore rigs on standby but land drilling in its markets has remained resilient, while U.S. leading-edge rig pricing has begun to increase.
Quantitative and Qualitative Disclosures About Market Risk
We may be exposed to market risks arising from the use of financial instruments in the ordinary course of business as discussed in our 2025 Annual Report. There were no material changes in our exposure to market risk during the six months ended June 30, 2026 from those disclos…
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We may be exposed to market risks arising from the use of financial instruments in the ordinary course of business as discussed in our 2025 Annual Report. There were no material changes in our exposure to market risk during the six months ended June 30, 2026 from those disclosed in our 2025 Annual Report.
In addition to the information set forth elsewhere in this report, the risk factors set forth in Part 1, Item 1A, of our 2025 Annual Report on Form 10-K should be carefully considered when evaluating us. These risks are not the only risks we face. Additional risks not presentl…
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In addition to the information set forth elsewhere in this report, the risk factors set forth in Part 1, Item 1A, of our 2025 Annual Report on Form 10-K should be carefully considered when evaluating us. These risks are not the only risks we face. Additional risks not presently known to us or that we currently deem immaterial may also impair our business. There have been no material changes to the risk factors set forth in Part 1, Item 1A, or our 2025 Annual Report on Form 10-K.