Nabors Industries: 2Q26 Post Mortem and Model Update: Hitting Its Stride

Research evidence excerpt

Nabors Industries: 2Q26 Post Mortem and Model Update: Hitting Its Stride

J P M O R G A N North America Equity Research

30 July 2026

Nabors Industries Underweight

NBR, NBR US

2Q26 Post Mortem and Model Update: Hitting Its Stride Price (29 Jul 26):$79.26

▲Price Target (Dec-26):$80.00

Prior (Dec-26):$79.00

JPM View: Anytime a driller strings together sequential EBITDA growth across

all four segments while simultaneously cutting its capex program, it generally Oil & Gas Exploration & Production

signals a business at an inflection point, and NBR’s 2Q26 print largely fits that Arun Jayaram AC

mold reflected in +4.8% share price increase (vs. -1.6% OSX index). NBR reported (1-212) 622-8541

2Q26 revenues of $815mm (+4% sequentially) and adjusted EBITDA of $222mm arun.jayaram@jpmchase.com

(+8% sequentially), exceeding implied guidance across every segment, led by Jason Kim

International Drilling EBITDA of $131mm on daily margin up +$654 to $17,534. (1-212) 622-1408

jason.b.kim@jpmchase.com

Encouragingly, consolidated adjusted free cash flow inflected positive to $12mm,

Sowmya Vemulapalli

a ~$60mm sequential improvement off the 1Q26 outflow, on higher profitability

(1-212) 270-4660

and lower cash interest. Looking ahead, management guided to a $1bn annualized sowmya.vemulapalli@jpmchase.com

EBITDA run-rate in 2H26 underpinned by contracted rig additions, raised full- J.P. Morgan Securities LLC

year EBITDA guidance to $920-930mm, and trimmed capex to $710-730mm as

SANAD newbuild spend slips into early 2027. The positive outlook is supported

by visibility in both the international backlog (SANAD, Kuwait, Argentina) and Key Changes (FYE Dec)

the L-48 (45% of NBR L-48 rigs had at least six months of remaining duration, Prev Cur Δ

Adj. EPS - 26E ($) (3.18) (3.94) -24.0%