Free cash flow generation is highly erratic, swinging to a negative $51.6 million in 2026Q1, as the firm continues to prioritize high capital reinvestment despite fluctuating operational cash flows.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Sep'97 | Sep'96 |
|---|
| Cash from Operations | 718.87M | 693.27M | 581.43M | 637.86M | 501.09M | 428.78M | 349.76M | 684.56M | 325.77M | 62.76M | 531.9M | 856.56M | 1.78B | 1.42B | 1.56B | 1.46B | 1.11B | 1.62B | 1.45B | 1.37B | 1.49B | 1.03B | 563.2M | 395.83M | 372.44M | 694.9M | 220.95M | 128.3M | 281.7M | 165M | 84.1M |
| Operating CF Margin % | - | 21.77% | 19.84% | 21.22% | 18.88% | 21.25% | 16.39% | 22.49% | 10.65% | 2.45% | 23.88% | 22.17% | 26.19% | 23.05% | 22.36% | 24.03% | 26.26% | 46.15% | 27.26% | 27.73% | 30.07% | 28.99% | 23% | 20.59% | 24.52% | 32.76% | 16.65% | 19.98% | 29.1% | 16.03% | 11.69% |
| Operating CF Growth % | 122.58% | 19.23% | -8.85% | 27.3% | 16.86% | 22.59% | -48.91% | 110.13% | 419.11% | -88.2% | -37.9% | -51.93% | 25.64% | -9.25% | 7.29% | 31.57% | -31.54% | 11.82% | 5.53% | -7.81% | 44.37% | 82.8% | 42.28% | 6.28% | -46.4% | 214.51% | 72.21% | -54.46% | 70.73% | 96.19% | 13.96% |
| Net Income | 207.97M | 248.34M | -87.99M | 49.9M | -307.22M | -543.69M | -762.85M | -680.51M | -612.73M | -540.63M | -1.03B | -372.29M | -669.24M | 139.98M | 164.03M | 243.68M | 94.69M | -85.55M | 551.17M | 930.69M | 1.02B | 648.7M | 302.46M | 192.23M | 121.49M | 357.45M | 135.47M | 27.7M | 125M | 114.8M | 70.5M |
| Depreciation & Amortization | 650.78M | 649.23M | 633.41M | 645.29M | 665.07M | 693.38M | 853.7M | 876.1M | 868.51M | 845.44M | 874.3M | 970.44M | 1.15B | 1.1B | 1.06B | 927.46M | 767.18M | 669.26M | 668.24M | 555.4M | 420.79M | 369.58M | 326.71M | 266.26M | 226.21M | 221.55M | 152.41M | 99.8M | 84.9M | 66.4M | 46.1M |
| Stock-Based Compensation | 23.61M | 23.38M | 16.5M | 15.84M | 15.83M | 19.36M | 24.64M | 24.66M | 26.4M | 31.9M | 32M | 47.31M | 37.19M | 53.26M | 18.31M | 21.24M | 13.75M | 106.72M | 45.4M | 30.18M | 79.89M | 4.82M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 96.88M | 97.14M | 21.68M | 15.88M | 7.33M | -10.71M | 64.72M | 35.89M | 71.58M | 9.1M | -206.67M | -203.15M | -240.19M | -103.28M | -145.15M | -34.74M | 55.96M | -218.76M | 61.62M | -24.73M | 218.32M | 194.74M | 12.51M | -26.1M | 9.1M | 110.77M | 71.64M | 20.4M | 34.7M | 56.1M | 2.6M |
| Other Non-Cash Items | -427.32M | -397.36M | 99.04M | -78.13M | 114.84M | 82.3M | 177.96M | 291.75M | 188.18M | 101.87M | 769.82M | 428.81M | 1.02B | 225.6M | 530.81M | 335.5M | 377.77M | 673.43M | 398.2M | 9.2M | -42.73M | -28.76M | -24.94M | -20.35M | -5.53M | -39.44M | -33.25M | 100K | -100K | -44.7M | 200K |
| Working Capital Changes | 53.4M | 72.53M | -101.22M | -10.93M | 5.23M | 188.13M | -8.4M | 136.66M | -216.16M | -384.91M | 92.07M | -14.57M | 487.82M | 2.92M | -61.06M | -36.66M | -202.38M | 471.86M | -278.63M | -130.54M | -210.74M | -159.57M | -53.54M | -12.38M | 21.18M | 44.57M | -105.33M | -9.6M | 67.1M | -27.6M | -22.8M |
| Change in Receivables | 88.03M | 80.56M | -42.44M | -27.13M | -54.5M | 71.81M | 67.5M | 276.69M | -66.49M | -165.35M | 250.4M | 529.15M | -126.88M | -44.56M | 200.54M | -459.45M | -249.72M | 450.53M | -157.7M | 93.49M | -279.69M | -271.97M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | 27.36M | 33.44M | 16.1M | -19.43M | 928K | 32.04M | 6.19M | -18.7M | -13.98M | -17.44M | 40.65M | 23.85M | -65.4M | 39.41M | 14.45M | -114.9M | -15.2M | 52.99M | -26.77M | -28.67M | -48.63M | -21.7M | -4.91M | -5.7M | 1.71M | -791K | 7.73M | 10M | -4.7M | -3.4M | -4.1M |
| Change in Payables | -67.24M | -51.31M | -25.15M | -32.39M | 61.64M | 12.14M | -142.83M | -142.86M | -76.56M | 79.2M | -180.2M | -566.04M | 267.91M | 113.55M | -223.2M | 517.62M | 70.46M | -146.47M | 38.13M | 4.5M | 145.05M | 121.85M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | 2.5M | 97.09M | -555.46M | -570.42M | -368.71M | -117.22M | -165.46M | -355.86M | -367.09M | -502M | -382.12M | -227.45M | -1.72B | -815.47M | -1.18B | -1.86B | -1.67B | -1.16B | -1.44B | -1.46B | -1.77B | -958.24M | -549.08M | -408.33M | -629.51M | -1.12B | -577.53M | -87.3M | -276.3M | -326.1M | -160.4M |
| Capital Expenditures | -715.95M | -715.95M | -567.92M | -540.85M | -373.44M | -234.04M | -195.52M | -427.74M | -458.94M | -574.47M | -395.45M | -867.11M | -1.82B | -1.18B | -1.52B | -2.04B | -930.28M | -1.09B | -1.49B | -2.01B | -1.93B | -907.32M | -544.43M | -353.41M | -316.76M | -701.16M | -300.64M | -82.1M | -304.7M | -267.9M | -146.4M |
| CapEx % of Revenue | 22.15% | 22.48% | 19.38% | 17.99% | 14.07% | 11.6% | 9.16% | 14.05% | 15.01% | 22.4% | 17.75% | 22.44% | 26.77% | 19.15% | 21.73% | 33.7% | 22.07% | 31.21% | 28.1% | 40.77% | 38.99% | 25.55% | 22.24% | 18.38% | 20.85% | 33.06% | 22.65% | 12.78% | 31.47% | 26.03% | 20.34% |
| Acquisitions | 622.86M | 84.43M | 0 | 0 | 0 | 0 | 0 | -2.93M | -20.86M | 9.04M | -22.28M | 569.42M | -74.15M | -110.3M | 158.2M | -167.72M | -774.57M | -125.08M | -287K | 185.94M | -82.41M | -46.2M | 6.88M | 0 | -135.65M | -66.35M | 0 | 12M | 0 | 52.2M | 15.7M |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 106.28M | 732.95M | 20.18M | 8.71M | 25.85M | 120.11M | 27.4M | 60.29M | 109.1M | 57.08M | 34.9M | 69.29M | 154.88M | 308.52M | 149.8M | 323.54M | 31.07M | 31.38M | 69.84M | 162.06M | 53.4M | -8.54M | -103.94M | 10.48M | 26.15M | 15.07M | 5.54M | 1.6M | 46.9M | -109.3M | -30.9M |
| Cash from Financing | -948.03M | -566.79M | -662.05M | 592.59M | -661.53M | 488.42M | -148M | -331.57M | 155.63M | 512.18M | -138.22M | -849.94M | 69.85M | -729.59M | -254.13M | 163.25M | 280.25M | 19.37M | -89.24M | -78.9M | 418.27M | 102.63M | -221.19M | 171.48M | 470.36M | 432.41M | 473.31M | 22.9M | 5.7M | 68.6M | 160.1M |
| Debt Issued (Net) | -582.01M | -214.21M | -647.02M | 601.53M | -642.6M | 300.54M | -76.54M | -270.92M | -457.9M | 416.34M | -81.84M | -676.63M | 431.19M | -690M | -244.65M | 159.67M | 292.14M | 9.6M | 142.92M | 0 | 1.4B | 10.39M | -302.41M | 154.74M | 460.57M | 686.73M | 365.51M | 18.3M | 7.4M | 9.9M | 148.2M |
| Equity Issued (Net) | 0 | 0 | 0 | 0 | 0 | 0 | -1.73M | 0 | 579.33M | 150.18M | -720K | -98.3M | -290.65M | 5.38M | -3.63M | 11.61M | 6.27M | 9.73M | -237.53M | -40.83M | -956M | 94.98M | 71.25M | 26.34M | 10.36M | -239.74M | 112.98M | 5.7M | -700K | 58.8M | 11M |
| Dividends Paid | -6.05M | -6.05M | -87K | -194K | -65K | -7.38M | -22.54M | -49.58M | -87.1M | -68.5M | -50.92M | -69.36M | -59.15M | -47.17M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | -1.73M | 0 | 0 | -18.07M | -1.69M | -99.6M | -250.04M | 0 | -3.63M | -2.63M | -1.94M | -1.51M | -294.16M | -102.45M | -1.4B | -99.48M | 0 | 0 | -2.49M | -247.96M | 0 | 0 | -700K | 0 | 0 |
| Other Financing | -359.96M | -346.52M | -14.94M | -8.74M | -18.87M | 195.26M | -47.19M | -11.07M | 121.29M | 14.16M | -4.73M | -5.64M | -11.55M | 2.2M | -5.86M | -8.03M | -18.15M | 37K | 5.37M | -38.07M | -24.54M | -2.74M | 9.97M | -9.6M | -4.23M | -12.19M | -5.18M | -1.1M | -1M | -100K | 900K |
| Net Change in Cash | -230.97M | 219.88M | -651.22M | 637.04M | -536.37M | 798.23M | 33.24M | -9.04M | 109.05M | 72.9M | 9.56M | -246.62M | 111.23M | -135.01M | 126.35M | -243.13M | -286.11M | 485.73M | -89.22M | -169.24M | 135.55M | 180.29M | -195.03M | 165.69M | 215.61M | 1.13M | 116.73M | 63.9M | 11.1M | -92.5M | 83.8M |
| Free Cash Flow | 2.92M | -22.68M | 13.51M | 97.01M | 127.64M | 194.74M | 154.24M | 256.82M | -133.16M | -511.71M | 136.45M | -10.55M | -39.4M | 240.02M | 44.08M | -586.13M | 176.71M | 523.54M | -44.16M | -644.27M | -441.15M | 122.18M | 18.77M | 42.42M | 55.68M | -6.25M | -79.69M | 46.2M | -23M | -102.9M | -62.3M |
| FCF Margin % | 0.09% | -0.71% | 0.46% | 3.23% | 4.81% | 9.65% | 7.23% | 8.44% | -4.36% | -19.96% | 6.12% | -0.27% | -0.58% | 3.9% | 0.63% | -9.67% | 4.19% | 14.94% | -0.83% | -13.04% | -8.93% | 3.44% | 0.77% | 2.21% | 3.67% | -0.29% | -6% | 7.19% | -2.38% | -10% | -8.66% |
| FCF Growth % | 104.4% | -267.85% | -86.07% | -24% | -34.45% | 26.26% | -39.94% | 292.86% | 73.98% | -475.02% | 1393.36% | 73.23% | -116.42% | 444.54% | 107.52% | -431.7% | -66.25% | 1285.68% | 93.15% | -46.04% | -461.05% | 550.99% | -55.76% | -23.81% | 990.77% | 92.16% | -272.48% | 300.87% | 77.65% | -65.17% | -75.49% |
| FCF per Share | 0.21 | -1.57 | 1.47 | 10.59 | 14.35 | 25.61 | 21.85 | 36.52 | -19.91 | -91.16 | 24.68 | -1.86 | -6.78 | 40.46 | 7.54 | -100.20 | 30.47 | 92.39 | -7.66 | -112.40 | -73.57 | 18.83 | 2.86 | 6.76 | 9.28 | -0.93 | -13.07 | 9.59 | -5.11 | -24.20 | -16.57 |
| FCF Conversion (FCF/Net Income) | 0.01x | 2.79x | -3.30x | -54.13x | -1.43x | -0.75x | -0.43x | -0.95x | -0.51x | -0.11x | -0.52x | -2.30x | -2.66x | 9.46x | 6.73x | 5.98x | 11.69x | -18.90x | 2.62x | 1.47x | 1.46x | 1.59x | 1.86x | 2.06x | 3.07x | 1.94x | 1.61x | 4.63x | 2.25x | 1.44x | 1.19x |
| Interest Paid | 209.17M | 0 | 198.56M | 186.92M | 189.75M | 161.93M | 0 | 0 | 202.8M | 191.99M | 184.44M | 168.98M | 164.93M | 239.64M | 250.04M | 208.21M | 180.73M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 73.8M | 49.49M | 29.19M | 11.22M | 0 | 0 | 11.38M | 20.58M | 34.48M | 66.91M | 166.66M | 100.75M | 85.04M | 53.76M | 58.57M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
High debt and capex
As reported in recent financial filings, the persistent divergence between net income and operating cash flow, exemplified by the -5.19 OCF/NI ratio in 2026Q1, suggests that reported earnings are frequently decoupled from the actual cash-generating capacity of the company's core drilling operations.
The extreme volatility in the OCF/NI ratio indicates that non-cash charges and accounting adjustments are significantly distorting the bottom line. Investors should monitor whether this disconnect stems from recurring operational inefficiencies or non-recurring items that mask the true cash-generating potential of the business.
Based on quarterly data, Nabors' free cash flow trajectory remains highly inconsistent, with FCF margins swinging from a positive 10.5% in 2025Q4 to a negative 6.6% in 2026Q1, reflecting the company's struggle to maintain positive cash generation amidst cyclical industry pressures.
The inability to sustain positive free cash flow suggests that the company's capital-intensive business model is highly sensitive to fluctuations in rig utilization and dayrates. This inconsistency warrants further investigation into whether the current level of capital expenditure is truly discretionary or essential for maintaining competitive parity.
According to recent SEC filings, Nabors maintains a high capital intensity, with CapEx/Revenue ratios consistently exceeding 20% in recent quarters, indicating that a significant portion of cash flow is being reinvested to maintain the high-specification rig fleet and support technological integration.
The elevated capital expenditure levels appear to be a structural necessity rather than a choice, given the competitive requirement to keep the fleet at the 'super-spec' level. This heavy reinvestment burden limits the company's ability to deleverage, leaving it vulnerable to downturns in the energy cycle.
As indicated by the quarterly cash flow statements, working capital changes have been highly erratic, with a significant $61.1 million cash outflow in 2026Q1, suggesting that the company faces ongoing challenges in optimizing its cash conversion cycle and managing receivables effectively.
The volatility in working capital suggests that the company may be experiencing delays in collections or inventory build-ups that are not yet fully explained by operational growth. This instability in cash flow timing may exacerbate liquidity pressures during periods of lower rig activity.
Quick answers to the most common questions about buying NBR stock.
Nabors Industries Ltd. (NBR) generated $693.3M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Nabors Industries Ltd. (NBR) reported negative free cash flow of $22.7M in 2025, indicating capital requirements exceeded cash from operations.
Nabors Industries Ltd. (NBR) spent $715.9M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Nabors Industries Ltd. (NBR) returned $6.1M to shareholders via cash dividends. This shows the company's commitment to returning capital to its equity investors.