Revenue growth remains inconsistent at 6.4% in 2026Q1, while operating margins have compressed significantly to 6.2% due to the company's inability to scale fixed costs effectively.
| 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 |
|---|
| Sales/Revenue | 3.23B | 3.18B | 2.93B | 3.01B | 2.65B | 2.02B | 2.13B | 3.04B | 3.06B | 2.56B | 2.23B | 3.86B | 6.8B | 6.15B | 6.99B | 6.06B | 4.22B | 3.5B | 5.3B | 4.94B | 4.94B | 3.55B | 2.45B | 1.92B | 1.52B | 2.12B | 1.33B | 642.3M | 968.2M | 1.03B | 719.7M |
| Revenue Growth % | 10.21% | 8.69% | -2.52% | 13.27% | 31.53% | -5.46% | -29.88% | -0.47% | 19.24% | 15.1% | -42.35% | -43.21% | 10.6% | -11.98% | 15.33% | 43.76% | 20.33% | -33.94% | 7.35% | -0.04% | 39.19% | 45.05% | 27.32% | 26.59% | -28.39% | 59.83% | 106.62% | -33.66% | -5.94% | 43.02% | 25.65% |
| Cost of Goods Sold | 2.44B | 2.56B | 2.38B | 1.79B | 1.67B | 1.29B | 1.34B | 2.81B | 1.98B | 1.72B | 1.34B | 2.37B | 4.51B | 3.98B | 4.37B | 3.78B | 2.42B | 2.01B | 3.11B | 2.76B | 2.57B | 2B | 1.57B | 1.28B | 973.91M | 1.3B | 888.32M | 418.7M | 623.8M | 737.8M | 539.7M |
| COGS % of Revenue | - | 80.5% | 81.08% | 59.56% | 62.78% | 63.81% | 62.6% | 92.18% | 64.66% | 67% | 60.34% | 61.37% | 66.21% | 64.72% | 62.48% | 62.31% | 57.49% | 57.44% | 58.64% | 55.95% | 51.99% | 56.25% | 64.24% | 66.41% | 64.11% | 61.14% | 66.94% | 65.19% | 64.43% | 71.68% | 74.99% |
| Gross Profit | 795.79M | 621.08M | 554.31M | 1.22B | 987.76M | 730.23M | 798.03M | 237.96M | 1.08B | 846.22M | 883.54M | 1.49B | 2.3B | 2.17B | 2.48B | 2.28B | 1.79B | 1.49B | 2.19B | 2.18B | 2.37B | 1.55B | 875.5M | 645.89M | 545.1M | 824.22M | 438.8M | 223.6M | 344.4M | 291.5M | 180M |
| Gross Margin % | 24.62% | 19.5% | 18.92% | 40.44% | 37.22% | 36.19% | 37.4% | 7.82% | 35.34% | 33% | 39.66% | 38.63% | 33.79% | 35.28% | 35.42% | 37.69% | 42.51% | 42.56% | 41.36% | 44.05% | 48.01% | 43.75% | 35.76% | 33.59% | 35.89% | 38.86% | 33.06% | 34.81% | 35.57% | 28.32% | 25.01% |
| Gross Profit Growth % | - | 12.05% | -54.4% | 23.07% | 35.27% | -8.5% | 235.36% | -77.98% | 27.7% | -4.22% | -40.82% | -35.06% | 5.94% | -12.35% | 8.39% | 27.48% | 20.18% | -32.02% | 0.8% | -8.29% | 52.72% | 77.47% | 35.55% | 18.49% | -33.86% | 87.83% | 96.24% | -35.08% | 18.15% | 61.94% | 29.78% |
| Operating Expenses | 360.38M | 357.65M | 306.38M | 300.44M | 278.37M | 249.13M | 240.01M | 309.09M | 336.02M | 302.25M | 261.22M | 365.58M | 549.73M | 1.94B | 2.01B | 1.41B | 1.18B | 1.12B | 1.14B | 976.19M | 830.56M | 588.5M | 495.79M | 400.53M | 337.26M | 325.39M | 258.92M | 165.1M | 161.9M | 136.8M | 103M |
| OpEx % of Revenue | - | 11.23% | 10.46% | 9.99% | 10.49% | 12.35% | 11.25% | 10.16% | 10.99% | 11.79% | 11.73% | 9.46% | 8.08% | 31.49% | 28.76% | 23.33% | 27.89% | 32.03% | 21.46% | 19.76% | 16.8% | 16.57% | 20.25% | 20.83% | 22.2% | 15.34% | 19.51% | 25.7% | 16.72% | 13.29% | 14.31% |
| Selling, General & Admin | 307.84M | 304.59M | 249.32M | 244.15M | 228.43M | 213.56M | 203.51M | 258.73M | 265.82M | 251.18M | 227.64M | 324.33M | 549.73M | 525.33M | 532.57M | 489.89M | 346.66M | 429.66M | 479.98M | 436.28M | 420.85M | 249.97M | 195.39M | 165.4M | 141.9M | 135.5M | 106.5M | 65.3M | 77M | 70.4M | 56.9M |
| SG&A % of Revenue | - | 9.56% | 8.51% | 8.12% | 8.61% | 10.59% | 9.54% | 8.5% | 8.69% | 9.8% | 10.22% | 8.39% | 8.08% | 8.54% | 7.62% | 8.08% | 8.22% | 12.26% | 9.05% | 8.83% | 8.51% | 7.04% | 7.98% | 8.6% | 9.34% | 6.39% | 8.03% | 10.17% | 7.95% | 6.84% | 7.91% |
| Research & Development | 52.53M | 53.06M | 57.06M | 56.3M | 49.94M | 35.57M | 36.5M | 50.36M | 70.19M | 51.07M | 33.58M | 41.25M | 49.7M | 45.44M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | 1.67% | 1.95% | 1.87% | 1.88% | 1.76% | 1.71% | 1.65% | 2.3% | 1.99% | 1.51% | 1.07% | 0.73% | 0.74% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 924.09M | 829.26M | 692.46M | 658.04M | 539.91M | 409.71M | 338.53M | 300.4M | 235.13M | 195.37M | 189.9M | 152.41M | 99.8M | 84.9M | 66.4M | 46.1M |
| Operating Income | 435.41M | 263.43M | 247.93M | 915.16M | 709.39M | 481.1M | 558.02M | -71.13M | 744.63M | 543.96M | 622.32M | 1.13B | 1.75B | 558.18M | 908.07M | 927.05M | 616.02M | 368.96M | 1.22B | 1.27B | 1.52B | 967.66M | 375.09M | 240.46M | 204.13M | 485.5M | 118.27M | 49.6M | 149.4M | 110.6M | 60.6M |
| Operating Margin % | 13.47% | 8.27% | 8.46% | 30.44% | 26.73% | 23.85% | 26.15% | -2.34% | 24.35% | 21.21% | 27.93% | 29.17% | 25.71% | 9.07% | 12.99% | 15.3% | 14.61% | 10.53% | 22.96% | 25.73% | 30.75% | 27.25% | 15.32% | 12.51% | 13.44% | 22.89% | 8.91% | 7.72% | 15.43% | 10.75% | 8.42% |
| Operating Income Growth % | - | 6.25% | -72.91% | 29.01% | 47.45% | -13.78% | 884.52% | -109.55% | 36.89% | -12.59% | -44.8% | -35.55% | 213.41% | -38.53% | -2.05% | 50.49% | 66.96% | -69.7% | -4.23% | -16.34% | 57.06% | 157.98% | 55.99% | 17.79% | -57.95% | 310.49% | 138.46% | -66.8% | 35.08% | 82.51% | 19.06% |
| EBITDA | 1.09B | 912.67M | 881.34M | 1.56B | 1.37B | 1.17B | 1.44B | 804.96M | 1.61B | 1.39B | 1.5B | 2.1B | 2.9B | 1.68B | 1.97B | 1.85B | 1.38B | 1.04B | 1.89B | 1.83B | 1.94B | 1.34B | 701.79M | 506.72M | 430.34M | 707.05M | 270.69M | 149.4M | 234.3M | 177M | 106.7M |
| EBITDA Margin % | 33.61% | 28.66% | 30.08% | 51.91% | 51.79% | 58.21% | 67.3% | 26.45% | 52.76% | 54.18% | 67.18% | 54.36% | 42.59% | 27.31% | 28.13% | 30.55% | 32.74% | 29.61% | 35.56% | 36.98% | 39.26% | 37.66% | 28.67% | 26.35% | 28.33% | 33.33% | 20.4% | 23.26% | 24.2% | 17.2% | 14.83% |
| EBITDA Growth % | -19.08% | 3.56% | -43.52% | 13.53% | 17.03% | -18.23% | 78.43% | -50.1% | 16.1% | -7.16% | -28.76% | -27.5% | 72.46% | -14.55% | 6.23% | 34.11% | 33.05% | -44.99% | 3.23% | -5.86% | 45.12% | 90.55% | 38.5% | 17.75% | -39.14% | 161.21% | 81.18% | -36.24% | 32.37% | 65.89% | 30.28% |
| D&A (Non-Cash Add-back) | 650.78M | 649.23M | 633.41M | 645.29M | 665.07M | 693.38M | 878.24M | 876.09M | 868.51M | 845.44M | 874.3M | 973.32M | 1.15B | 1.12B | 1.06B | 924.09M | 764.25M | 668.41M | 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 |
| EBIT | 687.73M | 752.89M | 179.82M | 269.86M | 44.32M | -211.86M | -317.29M | -384.61M | -108.19M | -298.98M | -249.31M | 156.96M | 604.3M | 558.18M | 908.07M | 771.88M | 566.28M | 103.97M | 882.53M | 1.2B | 1.5B | 947.96M | 379.72M | 246.52M | 207.84M | 618.33M | 265.11M | 54.7M | 182.8M | 156.5M | 77M |
| Net Interest Income | -180.87M | -187.72M | -171.77M | -139.38M | -162.42M | -169.95M | -201.57M | -195.89M | -222.17M | -220.66M | -184.15M | -181.93M | -177.95M | -223.42M | 191.77M | -256.63M | -272.71M | -266.04M | -196.72M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 23.93M | 27.65M | 39.1M | 45.9M | 15.47M | 1.53M | 4.71M | 8.42M | 4.96M | 2.23M | 1.22M | 0 | 0 | 0 | 191.77M | 0 | 332K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 204.8M | 215.37M | 210.86M | 185.28M | 177.9M | 171.48M | 206.27M | 204.31M | 227.12M | 222.89M | 185.36M | 181.93M | 177.95M | 223.42M | 0 | 256.63M | 273.04M | 264.95M | 416.02M | 101.09M | 48.91M | 93.71M | 39.25M | 65.83M | 63.36M | 0 | 0 | 4M | 0 | 0 | 0 |
| Other Income/Expense | 51.07M | 274.1M | -278.97M | -786.03M | -955.07M | -969.19M | -1.26B | -517.79M | -1.26B | -1.12B | -1.82B | -1.55B | -2.36B | -455.02M | -634.11M | -183.2M | -529.02M | -149.23M | -372.84M | -64.6M | -70.7M | -186K | -43.88M | -71.89M | -67.07M | -60.72M | -35.37M | -9.1M | 50.6M | 71.8M | 21M |
| Pretax Income | 486.49M | 537.53M | -31.04M | 129.12M | -245.68M | -488.09M | -705.57M | -588.92M | -518.79M | -580.08M | -1.2B | -427.54M | -604.62M | 106.16M | 274.68M | 487.77M | 82.05M | -235.12M | 801.62M | 1.14B | 1.47B | 873.95M | 335.84M | 174.62M | 140.77M | 542.28M | 226.71M | 45.6M | 200M | 182.4M | 81.6M |
| Pretax Margin % | 15.05% | 16.88% | -1.06% | 4.3% | -9.26% | -24.19% | -33.06% | -19.35% | -16.97% | -22.62% | -53.78% | -11.06% | -8.89% | 1.73% | 3.93% | 8.05% | 1.95% | -6.71% | 15.11% | 22.98% | 29.76% | 24.61% | 13.72% | 9.08% | 9.27% | 25.57% | 17.08% | 7.1% | 20.66% | 17.72% | 11.34% |
| Income Tax | 164.97M | 163.09M | 56.95M | 79.22M | 61.54M | 55.62M | 57.29M | 91.58M | 79.27M | -82.97M | -186.83M | -98.04M | 62.67M | -55.18M | 32.63M | 142.6M | -24.81M | -149.23M | 250.45M | 239.66M | 450.18M | 225.25M | 33.38M | -17.61M | 19.29M | 194.49M | 91.23M | 17.9M | 75M | 67.6M | 11.1M |
| Effective Tax Rate % | 33.91% | 30.34% | -183.46% | 61.35% | -25.05% | -11.4% | -8.12% | -15.55% | -15.28% | 14.3% | 15.59% | 22.93% | -10.36% | -51.98% | 11.88% | 29.24% | -30.24% | 63.47% | 31.24% | 21.11% | 30.61% | 25.77% | 9.94% | -10.08% | 13.7% | 35.87% | 40.24% | 39.25% | 37.5% | 37.06% | 13.6% |
| Net Income | 207.97M | 248.34M | -176.08M | -11.78M | -350.26M | -569.27M | -805.64M | -723.88M | -640.95M | -546.81M | -1.03B | -372.68M | -670.66M | 149.88M | 232.35M | 243.68M | 94.69M | -85.55M | 551.17M | 930.69M | 1.02B | 648.7M | 302.46M | 192.23M | 121.49M | 357.45M | 137.36M | 27.7M | 125M | 114.8M | 70.5M |
| Net Margin % | 6.43% | 7.8% | -6.01% | -0.39% | -13.2% | -28.22% | -37.75% | -23.79% | -20.96% | -21.32% | -46.22% | -9.64% | -9.86% | 2.44% | 3.32% | 4.02% | 2.25% | -2.44% | 10.39% | 18.84% | 20.65% | 18.27% | 12.35% | 10% | 8% | 16.85% | 10.35% | 4.31% | 12.91% | 11.15% | 9.8% |
| Net Income Growth % | 291.21% | 241.03% | -1394.26% | 96.64% | 38.47% | 29.34% | -11.3% | -12.94% | -17.22% | 46.9% | -176.31% | 44.43% | -547.45% | -35.49% | -4.65% | 157.33% | 210.69% | -115.52% | -40.78% | -8.82% | 57.35% | 114.48% | 57.34% | 58.23% | -66.01% | 160.24% | 395.87% | -77.84% | 8.88% | 62.84% | 37.96% |
| Net Income (Continuing) | 321.52M | 374.43M | -87.99M | 49.9M | -307.22M | -543.71M | -762.85M | -680.5M | -598.06M | -497.11M | -1.01B | -329.5M | -667.28M | 161.34M | 242.06M | 350.17M | 256.62M | -85.89M | 479.66M | 895.67M | 993.01M | 638.15M | 302.46M | 192.23M | 121.49M | 357.45M | 137.36M | 27.7M | 125M | 114.8M | 70.5M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 20K | 7K | -12K | -14.66M | -56.73M | 0 | -50.62M | 0 | 0 | 0 | -2.84M | 0 | 0 | 0 | 35.02M | 27.73M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 872.59M | 846.92M | 1.07B | 954.47M | 846.44M | 803.57M | 548.26M | 492.75M | 454.34M | 230.96M | 7.77M | 11.16M | 10.17M | 12.09M | 12.19M | 13.4M | 14.7M | 14.32M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 14.63 | 17.16 | -22.37 | -5.49 | -40.52 | -76.58 | -118.69 | -96.77 | -95.84 | -97.42 | -186.23 | -65.85 | -115.01 | 23.50 | 28.00 | 41.50 | 16.50 | -15.10 | 82.50 | 162.50 | 170.00 | 100.00 | 48.00 | 31.00 | 20.25 | 56.00 | 22.50 | 5.06 | 29.00 | 27.00 | 18.75 |
| EPS Growth % | 178.58% | 176.71% | -307.47% | 86.45% | 47.09% | 35.48% | -22.65% | -0.97% | 1.62% | 47.69% | -182.81% | 42.74% | -589.4% | -16.07% | -32.53% | 151.52% | 209.27% | -118.3% | -49.23% | -4.41% | 70% | 108.33% | 54.84% | 53.09% | -63.84% | 148.89% | 344.66% | -82.55% | 7.41% | 44% | 31.58% |
| EPS (Basic) | - | 18.75 | -22.37 | -5.49 | -40.52 | -76.58 | -118.69 | -96.77 | -95.84 | -97.63 | -186.44 | -65.96 | -115.19 | 23.50 | 28.50 | 42.50 | 16.50 | -15.10 | 84.50 | 167.00 | 176.00 | 104.00 | 51.00 | 33.00 | 21.25 | 63.43 | 23.34 | 5.06 | 30.82 | 30.00 | 19.00 |
| Diluted Shares Outstanding | 14.21M | 14.42M | 9.2M | 9.16M | 8.9M | 7.61M | 7.06M | 7.03M | 6.69M | 5.61M | 5.53M | 5.66M | 5.81M | 5.93M | 5.85M | 5.85M | 5.8M | 5.67M | 5.76M | 5.73M | 6M | 6.49M | 6.56M | 6.28M | 6M | 6.75M | 6.1M | 4.82M | 4.5M | 4.25M | 3.76M |
| Basic Shares Outstanding | 14.21M | 13.19M | 9.2M | 9.16M | 8.9M | 7.61M | 7.06M | 7.03M | 6.69M | 5.6M | 5.52M | 5.65M | 5.81M | 5.88M | 5.8M | 5.74M | 5.7M | 5.67M | 5.63M | 5.58M | 5.8M | 6.24M | 5.96M | 5.86M | 5.75M | 5.82M | 5.75M | 4.21M | 4.04M | 3.83M | 3.71M |
| Dividend Payout Ratio | - | 2.44% | - | - | - | - | - | - | - | - | - | - | - | 31.47% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
High debt and margin volatility
According to quarterly financial disclosures, Nabors experienced a revenue growth rate of 6.4% in 2026Q1, following a period of inconsistent performance where year-over-year growth fluctuated significantly, suggesting that the company's top-line trajectory remains highly sensitive to the broader energy sector's capital expenditure cycles and rig demand.
The revenue trend appears to be stabilizing after a period of contraction in 2024, yet the lack of consistent sequential growth suggests that Nabors remains tethered to volatile E&P spending patterns. Investors should monitor whether the recent uptick in revenue can be sustained through the Drilling Solutions segment or if it remains vulnerable to potential softness in U.S. natural gas rig demand.
As reported in recent income statements, gross margins have experienced significant compression, falling from over 40% in 2024 to 17.1% in 2026Q1, which indicates that the company's high-fixed-cost structure is struggling to maintain profitability during periods of lower utilization or shifting contract pricing environments.
The sharp decline in gross margin suggests that the company's operating leverage is working against it when rig utilization drops. This volatility warrants further investigation into whether the current margin profile reflects a permanent shift in the cost structure or temporary inefficiencies related to fleet reactivation and maintenance.
Based on the provided income statement data, operating income has failed to scale proportionally with revenue, with operating margins dropping to 6.2% in 2026Q1, highlighting a lack of operational efficiency as the company navigates a challenging environment for its core drilling services and technology offerings.
The inability to protect operating margins during revenue fluctuations suggests that SG&A and other overhead costs remain sticky, limiting the company's ability to convert gross profit into bottom-line earnings. This trend may indicate that the anticipated benefits of the Drilling Solutions software integration have yet to fully offset the cyclical nature of the drilling business.
As indicated by the financial filings, net income has been characterized by extreme volatility, including a significant $258 million gain in 2025Q3 followed by a $21.8 million loss in 2026Q1, suggesting that non-operating items and accounting adjustments are heavily influencing the reported bottom-line results.
The wide swings in net income, coupled with inconsistent EPS figures, suggest that investors should look past headline earnings to evaluate the underlying operational performance. The presence of recurring losses in several quarters warrants further investigation into the sustainability of the company's current capital structure and the impact of non-operating charges on shareholder value.
Based on reported figures, the persistent gap between revenue generation and net profitability raises concerns regarding the long-term viability of the current business model, particularly as the company faces potential margin compression and the ongoing challenge of managing its significant debt obligations in a cyclical industry.
Short-sellers may focus on the discrepancy between the company's technological narrative and its actual financial performance, specifically the inability to maintain stable margins. The reliance on high-spec rig utilization in a potentially cooling market suggests that the company's growth story may be more fragile than the current valuation implies.
Quick answers to the most common questions about buying NBR stock.
For fiscal year 2025, Nabors Industries Ltd. (NBR) reported total revenue of $3.18B. This represents a 342.5% increase compared to $719.7M in 1996.
Nabors Industries Ltd. (NBR) is profitable, generating $248.3M in net income for the fiscal year ending 2025 with a net profit margin of 7.8%.
Nabors Industries Ltd. (NBR) reported an operating income of $263.4M, resulting in an operating profit margin of 8.3%. This margin reflects the operational efficiency of the business before interest and taxes.
Nabors Industries Ltd. (NBR) generated $621.1M in gross profit for the year, representing a gross profit margin of 19.5%. This demonstrates the company's core pricing power and production efficiency.