Nabors Industries’ third quarter was marked by strong operational execution, as the company outperformed Wall Street’s revenue expectations and delivered solid adjusted EBITDA despite a larger-than-expected non-GAAP loss. The positive market reaction followed management’s emphasis on geographic diversification, particularly in Latin America and the U.S. Lower 48, as well as continued adoption of technology solutions. CEO Tony Petrello highlighted the redeployment of idle rigs into growth markets and noted, “Redeploying assets across geographies is central to our global strategy.” Challenges in the Middle East—such as Saudi rig suspensions—were partially offset by contract wins and margin improvements elsewhere.

Is now the time to buy NBR? Find out in our full research report (it’s free for active Edge members).

While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our top 5 analyst questions from Nabors Industries’s Q3 earnings call

• Joe Laetsch (Morgan Stanley) asked for details on the Saudi rig suspensions and outlook. CEO Tony Petrello explained the suspensions reflected faster drilling than completions at the Jafurah project, but said Nabors’ market share and long-term outlook remain strong.
• Derek Podhaizer (Piper Sandler) inquired about the financial impact and timing of suspended rigs in Saudi Arabia. CFO Miguel Rodriguez estimated a $5–$6 million cash flow impact in Q4 and said the suspensions are expected to be short-term, though exact timing is uncertain.
• Derek Podhaizer (Piper Sandler) also asked about further rig reactivations in the Lower 48 and required contract terms. Rodriguez replied that the next tranche of reactivations will require significant capital and at least three-year contract terms due to higher costs.
• Keith MacKey (RBC) questioned the sustainability of margin gains and 2027 outlook. Rodriguez said Nabors is entering 2027 with a $1 billion EBITDA run rate and expects growth in every country, with increased capital spending likely.
• Eddie Kim (Barclays) asked about geothermal rig deployments and growth trajectory. Petrello responded that scaling to double-digit geothermal rigs is more likely in 2028 or 2029, as market demand is still developing.

Catalysts in upcoming quarters

In the coming quarters, the StockStory team will monitor (1) the pace of rig reactivations and contract wins in international markets like Argentina and Venezuela, (2) pricing discipline and utilization rates in the U.S. Lower 48 as supply tightens, and (3) the adoption and monetization of advanced drilling technologies such as managed pressure drilling and automation tools. The company’s ability to manage Middle East disruptions and execute on its capital allocation strategy will also be key to tracking progress.

Nabors Industries currently trades at $88.75, up from $81.11 just before the earnings. At this price, is it a buy or sell? See for yourself in our full research report (it’s free).

The best stocks for high-quality investors

WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.

But our AI platform says the party isn’t over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating Stocks for Free HERE.

Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.