Nabors Industries (NBR) Stock Forecast & Price Target

Nabors Industries has demonstrated a positive outlook, primarily driven by an increase in day margins, which have risen by $846 per day year-over-year to $17,931, largely attributed to new SANAD builds and a potential increase in Saudi Arabian drilling activity. The company also stands to benefit from several catalysts, including higher commodity prices that could lead to increased exploration and production spending, enhanced pricing for its services, and improved utilization rates resulting in better cost absorption and margins. Furthermore, the recent $625 million sale of Quail Tools has strengthened Nabors’ financial position, potentially offering additional avenues to address future debt maturities totaling $2.5 billion between 2027 and 2031.

Nabors Industries has experienced a significant shortfall in free cash flow due to delayed collections in Mexico, which amounted to $12 million in Q3, falling $30 million short of expectations. Additionally, the removal of pro rata contributions has led to a downward revision in EBITDA estimates for Q3 2025 and for 2026/27, decreasing by 6%, 16%, and 15%, respectively. The company’s leveraged balance sheet presents a considerable risk, with $2.5 billion in debt maturities over the next seven years, further complicating its risk/reward profile.