Nabors Industries (NBR) Stock Forecast & Price Target

Nabors Industries is viewed positively because its core drilling franchise is showing resilient operating momentum, with adj. EBITDA of $205MM beating expectations and free cash flow of -$48MM better than forecast on lower cash interest and capex. Its U.S. Lower-48 business is gaining share, with the rig count outlook raised from about 63 to 69 rigs and pricing expected to move from the low-$30k/day range toward the mid-$30k/day range, supporting stronger margins and utilization. International Drilling remains the key growth engine, with the year-end 2026 target of 101 rigs unchanged, while continued emissions and efficiency improvements also help support long-term competitiveness in a carbon-constrained industry.

Nabors Industries is viewed negatively because its near-term earnings trajectory has weakened, with 2Q26 EBITDA estimate cut 3% to $215MM and International Drilling margins lowered to $17,480/day amid lingering Middle East logistical disruptions that are expected to hurt results by $6-8MM. Although the U.S. land business remains technologically solid and the international JV supports utilization, the stock’s risk/reward is pressured by a leveraged balance sheet with about $2.0Bn in maturities over the next seven years and limited free-cash-flow generation. Additional downside comes from reduced industry activity, excess drilling capacity, customer discipline, foreign regulatory risk, and the possibility that lower utilization will erode pricing and fixed-cost absorption.