Earnings release
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Exhibit 99.1 NEWS RELEASE Record International Drilling Margin. $75 Million in Adjusted Free Cash Flow. Nabors Reports Third Quarter 2026 Results. HAMILTON, Bermuda, October 27, 2026 /PRNewswire/ Nabors Industries Ltd. (“Nabors” or the “Company”) (NYSE: NBR) today reported third quarter 2026 operating revenues of $872 million, up 7% sequentially. Net loss attributable to Nabors’ shareholders was $11 million. Adjusted EBITDA was $246 million, up nearly 11% from the second quarter. Record International Drilling daily adjusted gross margin, a larger Lower 48 working fleet, and growth in Drilling Solutions drove the sequential improvement. Higher profitability, lower capital spending and improved working capital contributed to $75 million in adjusted free cash flow. Selected Financial Information (In millions, except rig activity) Three Months Ended September 30 June 30, September 30 2026 2026 2025 Operating revenues $ 872.2 $ 814.8 $ 818.2 Adjusted EBITDA $ 245.5 $ 221.7 $ 236.3 Adjusted operating income $ 85.8 $ 61.1 $ 76.0 Adjusted free cash flow $ 74.5 $ 12.3 $ 5.6 Average rigs working: Lower 48 72.8 67.8 59.2 International Drilling 94.9 93.4 89.2 Average total rigs working 177.1 171.2 158.4 The quarter ended September 30, 2025 includes revenue of $34 million, EBITDA of $20 million, and operating income of $14 million from Quail Tools, which was sold in August 2025. 3Q 2026 Highlights o International Drilling daily adjusted gross margin reached a record $19,060, up $1,526, or 8.7%, sequentially. Strong field performance across multiple countries and high-margin rig deployments drove the increase. 1
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NEWS RELEASE o The SANAD land drilling joint venture successfully deployed its 17th newbuild rig in Saudi Arabia. One additional newbuild is scheduled for deployment in 2026 and two in the first quarter of 2027, bringing the total newbuild fleet to 20. o Nabors signed a multiyear contract to deploy one rig in Venezuela in early 2027. The deployment will mark Nabors’ return to drilling operations in the country. o Nabors rigs helped two Lower 48 operators achieve new drilling records. A PACE®-B rig in North Dakota achieved an impressive drilling performance of more than 27,600 feet in 148 hours, with an average rate of penetration of nearly 187 feet per hour. A PACE®-X rig in South Texas achieved a record performance by drilling an 18,500-foot well in under six days, averaging more than 3,200 feet per day. The operator recorded its fastest drilling performance in the basin to date. o Canrig secured commitments for four additional RZR™ rig floor automation modules, which will bring the total deployed to six. Strong client interest supports the outlook for additional awards. Anthony G. Petrello, Nabors Chairman, CEO and President, commented, “We delivered higher earnings and $75 million in adjusted free cash flow. Each of our four reporting segments met or exceeded its targets. “International Drilling achieved a record daily adjusted gross margin. Strong field performance and new rig deployments with attractive economics drove the increase. We expect further margin improvement in the fourth quarter, despite a lower SANAD rig count following the suspension of five rigs. “Our Lower 48 rig count grew as expected, and daily adjusted gross margin again exceeded guidance. We remain constructive on this market. Advanced drilling technology and reliable field delivery position us to continue increasing both rig count and daily margin. “Drilling Solutions’ business delivered double-digit sequential adjusted EBITDA growth. Greater adoption of our Performance Software and Downhole Services on Nabors rigs in the Lower 48 drove the gains. International growth in Surface and Tubular services also contributed to the segment’s improvement.” Segment Results International Drilling adjusted EBITDA increased to $146 million from $131 million in the second quarter. Daily adjusted gross margin rose by more than $1,500 to $19,060, reflecting strong field performance and contributions from the recently deployed rig in Argentina and the SANAD newbuild. U.S. Drilling adjusted EBITDA increased to $99 million from $94 million in the second quarter. A 7% increase in the average Lower 48 working fleet and higher daily adjusted gross margin drove the improvement. 2
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NEWS RELEASE Drilling Solutions adjusted EBITDA increased to $44 million from $40 million in the second quarter, driven primarily by growth on Nabors rigs in the Lower 48 and growth in international markets. Rig Technologies adjusted EBITDA increased to $5 million from $3 million in the second quarter. Both aftermarket revenue and capital equipment sales increased sequentially. Adjusted Free Cash Flow Consolidated adjusted free cash flow was $75 million, up $62 million sequentially. Higher profitability, lower capital spending at SANAD and across the rest of Nabors, together with lower working capital drove the improvement, partially offset by higher cash interest payments. Miguel Rodriguez, Nabors CFO, stated, “Third quarter adjusted free cash flow exceeded our expectations. SANAD newbuild spending was below forecast as certain construction milestones shifted to later periods. Outside SANAD, controlled capital spending and improved working capital supported the cash generation. “We anticipate delivering full-year 2026 adjusted EBITDA of approximately $930 million, reaching the upper end of our prior guidance. This outlook reflects the strength of the business, including the impact of rig suspensions in Saudi Arabia. We now expect full-year consolidated adjusted free cash flow of $100 to $110 million, including approximately $20 million of cash consumption at SANAD. This revised guidance is materially higher than our previous guidance. “We now expect full-year consolidated capital spending of $710 to $720 million, including $295 to $305 million for SANAD’s newbuild program. “During the quarter, we redeemed $100 million of our 9.125% notes with cash on hand, continuing to deliver on our commitment to reduce gross debt. The redemption lowers cash interest expense, further strengthening our balance sheet.” Outlook Nabors expects the following metrics for the fourth quarter of 2026: U.S. Drilling o Lower 48 average rig count of 75 rigs o Lower 48 daily adjusted gross margin of $14,500 to $14,700 o Alaska and Gulf of America combined adjusted EBITDA of approximately $12 million International o Average rig count of 92 to 93 rigs o Daily adjusted gross margin of approximately $19,500 3
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NEWS RELEASE Drilling Solutions o Adjusted EBITDA of approximately $46 million Rig Technologies o Adjusted EBITDA of approximately $8 million Capital Expenditures o Capital expenditures of $250 to $260 million, including $140 to $150 million for SANAD newbuilds in Saudi Arabia Adjusted Free Cash Flow o Adjusted free cash flow of $60 to $70 million, including approximately $20 million of cash consumption at SANAD Mr. Petrello concluded, “Our third quarter results demonstrate the earnings power of our diversified portfolio. We expect further sequential adjusted EBITDA growth in the fourth quarter, led by U.S. Drilling. We remain on track to achieve an annualized adjusted EBITDA run rate of approximately $1 billion heading into 2027.” 4
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NEWS RELEASE About Nabors Industries Nabors Industries (NYSE: NBR) is a leading provider of advanced technology for the energy industry. With operations in approximately 20 countries, Nabors has established a global network of people, technology and equipment to deploy solutions that deliver safe, efficient and responsible energy production. By leveraging its core competencies, particularly in drilling, engineering, automation, data science and manufacturing, Nabors aims to innovate the future of energy and enable the transition to a lower-carbon world. Learn more about Nabors and its energy technology leadership: www.nabors.com. Forward-looking Statements The information included in this press release includes forward-looking statements within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934. Such forward-looking statements are subject to a number of risks and uncertainties, as disclosed by Nabors from time to time in its filings with the Securities and Exchange Commission. As a result of these factors, Nabors’ actual results may differ materially from those indicated or implied by such forward-looking statements. The forward-looking statements contained in this press release reflect management's estimates and beliefs as of the date of this press release. Nabors does not undertake to update these forward-looking statements. Non-GAAP Disclaimer This press release presents certain “non-GAAP” financial measures. The components of these non-GAAP measures are computed by using amounts that are determined in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Adjusted operating income (loss) represents income (loss) before income taxes, interest expense, investment income (loss), gain on bargain purchase, and other, net. Adjusted EBITDA is computed similarly, but also excludes depreciation and amortization expenses. Adjusted gross margin represents adjusted operating income (loss) plus general and administrative costs, research and engineering costs and depreciation and amortization. In addition, adjusted EBITDA and adjusted operating income (loss) exclude certain cash expenses that the Company is obligated to make. Net debt is calculated as total debt minus the sum of cash, cash equivalents and short-term investments. Adjusted free cash flow represents net cash provided by operating activities less cash used for capital expenditures, net of proceeds from sales of assets, and before cash paid for acquisition-related costs. Management believes that adjusted free cash flow is an important liquidity measure for the Company and that it is useful to investors and management as a measure of the Company’s ability to generate cash flow, after reinvesting in the Company for future growth, that could be available for paying down debt or other financing cash flows, such as dividends to shareholders. Adjusted free cash flow does not represent the residual cash flow available for discretionary expenditures. Adjusted free cash flow is a non-GAAP financial measure that should be considered in addition to, not as a substitute for or superior to, cash flow from operations reported in accordance with GAAP. 5
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NEWS RELEASE Each of these non-GAAP measures has limitations and therefore should not be used in isolation or as a substitute for the amounts reported in accordance with GAAP. However, management evaluates the performance of its operating segments and the consolidated Company based on several criteria, including Adjusted EBITDA, adjusted operating income (loss), net debt, and adjusted free cash flow, because it believes that these financial measures accurately reflect the Company’s ongoing profitability, performance and liquidity. Securities analysts and investors also use these measures as some of the metrics on which they analyze the Company’s performance. Other companies in this industry may compute these measures differently. Reconciliations of consolidated adjusted EBITDA and adjusted operating income (loss) to income (loss) before income taxes, net debt to total debt, and adjusted free cash flow to net cash provided by operations, which are their nearest comparable GAAP financial measures, are included in the tables at the end of this press release. We do not provide a forward-looking reconciliation of our outlook for Segment Adjusted EBITDA, Segment Gross Margin or Adjusted Free Cash Flow, as the amount and significance of items required to develop meaningful comparable GAAP financial measures cannot be estimated at this time without unreasonable efforts. These special items could be meaningful. Investor Contacts: William C. Conroy, CFA, Vice President of Corporate Development & Investor Relations, via email william.conroy@nabors.com, or Kara K. Peak, Director of Corporate Development & Investor Relations, via email kara.peak@nabors.com. To request investor materials, contact Nabors' corporate headquarters in Hamilton, Bermuda via email mark.andrews@nabors.com 6
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NABORS INDUSTRIES LTD. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) (Unaudited) Three Months Ended Nine Months Ended September 30, June 30, September 30, (In thousands, except per share amounts) 2026 2025 2026 2026 2025 Revenues and other income: Operating revenues $ 872,194 $ 818,190 $ 814,795 $ 2,470,537 $ 2,387,164 Investment income (loss) 4,143 7,323 2,131 9,161 20,048 Total revenues and other income 876,337 825,513 816,926 2,479,698 2,407,212 Costs and other deductions: Direct costs 536,577 491,828 507,551 1,537,597 1,428,009 General and administrative expenses 76,733 77,076 71,375 219,868 228,308 Research and engineering 13,341 12,978 14,209 41,056 39,735 Depreciation and amortization 159,744 160,347 160,549 476,479 490,046 Interest expense 42,087 54,334 42,678 128,526 164,741 Gain on disposition of Quail Tools - (415,557) - - (415,557) Gain on bargain purchase - - - - (116,499) Other, net 11,428 24,470 5,682 3,717 75,334 Total costs and other deductions 839,910 405,476 802,044 2,407,243 1,894,117 Income (loss) before income taxes 36,427 420,037 14,882 72,455 513,095 Income tax expense (benefit) 20,443 117,571 16,405 53,732 155,655 Net income (loss) 15,984 302,466 (1,523) 18,723 357,440 Less: Net (income) loss attributable to noncontrolling interest (27,149) (28,268) (20,807) (67,384) (81,164) Net income (loss) attributable to Nabors $ (11,165) $ 274,198 $ (22,330) $ (48,661) $ 276,276 Earnings (losses) per share: Basic $ (1.24) $ 18.25 $ (2.04) $ (4.81) $ 18.99 Diluted $ (1.24) $ 16.85 $ (2.04) $ (4.81) $ 17.54 Weighted-average number of common shares outstanding: Basic 14,503 14,098 14,273 14,330 12,880 Diluted 14,503 15,321 14,273 14,330 14,092 Adjusted EBITDA $ 245,543 $ 236,308 $ 221,660 $ 672,016 $ 691,112 Adjusted operating income (loss) $ 85,799 $ 75,961 $ 61,111 $ 195,537 $ 201,066 7
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NABORS INDUSTRIES LTD. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) September 30, June 30, December 31, (In thousands) 2026 2026 2025 ASSETS Current assets: Cash and short-term investments $ 475,145 $ 509,833 $ 940,738 Accounts receivable, net 511,663 443,417 391,705 Other current assets 218,306 243,929 219,130 Total current assets 1,205,114 1,197,179 1,551,573 Property, plant and equipment, net 2,884,274 2,908,061 2,920,019 Other long-term assets 353,929 314,705 318,065 Total assets $ 4,443,317 $ 4,419,945 $ 4,789,657 LIABILITIES AND EQUITY Current liabilities: Current debt $ - $ - $ 377,492 Trade accounts payable 370,483 365,472 300,467 Other current liabilities 309,510 268,167 315,042 Total current liabilities 679,993 633,639 993,001 Long-term debt 2,022,758 2,120,276 2,117,187 Other long-term liabilities 245,298 224,152 241,826 Total liabilities 2,948,049 2,978,067 3,352,014 Redeemable noncontrolling interest in subsidiary 502,718 495,886 482,446 Equity: Shareholders' equity 565,912 544,128 590,727 Noncontrolling interest 426,638 401,864 364,470 Total equity 992,550 945,992 955,197 Total liabilities and equity $ 4,443,317 $ 4,419,945 $ 4,789,657 8
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NABORS INDUSTRIES LTD. AND SUBSIDIARIES SEGMENT REPORTING (Unaudited) The following tables set forth certain information with respect to our reportable segments and rig activity: Three Months Ended Nine Months Ended September 30, June 30, September 30, (In thousands, except rig activity) 2026 2025 2026 2026 2025 Operating revenues: U.S. Drilling $ 274,925 $ 249,836 $ 252,459 $ 768,528 $ 736,020 International Drilling 458,544 407,235 432,497 1,310,537 1,173,923 Drilling Solutions 116,065 141,942 110,640 332,927 405,404 Rig Technologies (1) 41,747 35,597 37,485 106,454 116,289 Other reconciling items (2) (19,087) (16,420) (18,286) (47,909) (44,472) Total operating revenues $ 872,194 $ 818,190 $ 814,795 $ 2,470,537 $ 2,387,164 Adjusted EBITDA: (3) U.S. Drilling $ 99,391 $ 94,161 $ 94,081 $ 281,537 $ 288,693 International Drilling 145,718 127,551 130,533 397,532 360,695 Drilling Solutions 43,913 60,666 40,013 122,588 178,020 Rig Technologies (1) 4,987 3,770 3,180 8,672 14,507 Other reconciling items (4) (48,466) (49,840) (46,147) (138,313) (150,803) Total adjusted EBITDA $ 245,543 $ 236,308 $ 221,660 $ 672,016 $ 691,112 Adjusted operating income (loss): (5) U.S. Drilling $ 33,385 $ 31,429 $ 30,961 $ 88,970 $ 102,816 International Drilling 64,275 45,476 45,860 150,892 114,485 Drilling Solutions 36,150 49,982 32,125 100,147 133,260 Rig Technologies (1) 3,037 877 1,497 2,646 6,933 Other reconciling items (4) (51,048) (51,803) (49,332) (147,118) (156,428) Total adjusted operating income (loss) $ 85,799 $ 75,961 $ 61,111 $ 195,537 $ 201,066 Rig activity: Average Rigs Working: (7) Lower 48 72.8 59.2 67.8 68.7 60.7 Other US 9.4 10.0 10.0 9.8 9.2 U.S. Drilling 82.2 69.2 77.8 78.5 69.9 International Drilling 94.9 89.2 93.4 93.6 86.7 Total average rigs working 177.1 158.4 171.2 172.1 156.6 Daily Rig Revenue: (6),(8) Lower 48 $ 34,764 $ 34,017 $ 33,555 $ 33,704 $ 34,002 Other US 48,612 70,035 50,073 51,141 68,302 U.S. Drilling (10) 36,343 39,219 35,680 35,880 38,527 International Drilling 52,524 49,596 50,860 51,262 49,583 Daily Adjusted Gross Margin: (6),(9) Lower 48 $ 14,016 $ 13,151 $ 13,784 $ 13,677 $ 13,778 Other US 14,203 31,527 17,318 17,067 31,408 U.S. Drilling (10) 14,037 15,805 14,238 14,100 16,104 International Drilling 19,060 17,931 17,534 17,842 17,635 9
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(1) Includes our oilfield equipment manufacturing activities. (2) Represents the elimination of inter-segment transactions related to our Rig Technologies operating segment. (3) Adjusted EBITDA represents net income (loss) before income tax expense (benefit), investment income (loss), interest expense, gain on disposition of Quail Tools, gain on bargain purchase, other, net and depreciation and amortization. Adjusted EBITDA is a non- GAAP financial measure and should not be used in isolation or as a substitute for the amounts reported in accordance with GAAP. In addition, adjusted EBITDA excludes certain cash expenses that the Company is obligated to make. However, management evaluates the performance of its operating segments and the consolidated Company based on several criteria, including adjusted EBITDA and adjusted operating income (loss), because it believes that these financial measures accurately reflect the Company’s ongoing profitability and performance. Securities analysts and investors use this measure as one of the metrics on which they analyze the Company’s performance. Other companies in this industry may compute these measures differently. A reconciliation of this non- GAAP measure to net income (loss), which is the most closely comparable GAAP measure, is provided in the table set forth immediately following the heading "Reconciliation of Non-GAAP Financial Measures to Net Income (Loss)". (4) Represents the elimination of inter-segment transactions and unallocated corporate expenses. (5) Adjusted operating income (loss) represents net income (loss) before income tax expense (benefit), investment income (loss), interest expense, gain on disposition of Quail Tools, gain on bargain purchase and other, net. Adjusted operating income (loss) is a non-GAAP financial measure and should not be used in isolation or as a substitute for the amounts reported in accordance with GAAP. In addition, adjusted operating income (loss) excludes certain cash expenses that the Company is obligated to make. However, management evaluates the performance of its operating segments and the consolidated Company based on several criteria, including adjusted EBITDA and adjusted operating income (loss), because it believes that these financial measures accurately reflect the Company’s ongoing profitability and performance. Securities analysts and investors use this measure as one of the metrics on which they analyze the Company’s performance. Other companies in this industry may compute these measures differently. A reconciliation of this non-GAAP measure to net income (loss), which is the most closely comparable GAAP measure, is provided in the table set forth immediately following the heading "Reconciliation of Non-GAAP Financial Measures to Net Income (Loss)". (6) Rig revenue days represents the number of days the Company's rigs are contracted and performing under a contract during the period. These would typically include days in which operating, standby and move revenue is earned. (7) Average rigs working represents a measure of the average number of rigs operating during a given period. For example, one rig operating 45 days during a quarter represents approximately 0.5 average rigs working for the quarter. On an annual period, one rig operating 182.5 days represents approximately 0.5 average rigs working for the year. Average rigs working can also be calculated as rig revenue days during the period divided by the number of calendar days in the period. (8) Daily rig revenue represents operating revenue, divided by the total number of revenue days during the quarter. (9) Daily adjusted gross margin represents operating revenue less direct costs, divided by the total number of rig revenue days during the quarter. (10)The U.S. Drilling segment includes the Lower 48, Alaska, and Gulf of Mexico operating areas. 10
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NABORS INDUSTRIES LTD. AND SUBSIDIARIES Reconciliation of Earnings per Share (Unaudited) Three Months Ended Nine Months Ended September 30, June 30, September 30, (in thousands, except per share amounts) 2026 2025 2026 2026 2025 BASIC EPS: Net income (loss) (numerator): Income (loss), net of tax $ 15,984 $ 302,466 $ (1,523) $ 18,723 $ 357,440 Less: net (income) loss attributable to noncontrolling interest (27,149) (28,268) (20,807) (67,384) (81,164) Less: deemed dividends to SPAC public shareholders — (750) — — (750) Less: distributed and undistributed earnings allocated to unvested shareholders — (8,828) — — (9,106) Less: accrued distribution on redeemable noncontrolling interest in subsidiary (6,832) (7,344) (6,757) (20,272) (21,792) Numerator for basic earnings per share: Adjusted income (loss), net of tax - basic $ (17,997) $ 257,276 $ (29,087) $ (68,933) $ 244,628 Weighted-average number of shares outstanding - basic 14,503 14,098 14,273 14,330 12,880 Earnings (losses) per share: Total Basic $ (1.24) $ 18.25 $ (2.04) $ (4.81) $ 18.99 DILUTED EPS: Adjusted income (loss), net of tax - basic $ (17,997) $ 257,276 $ (29,087) $ (68,933) $ 244,628 Add: after tax interest expense of convertible notes — 848 — — 2,544 Add: effect of reallocating undistributed earnings of unvested shareholders — 28 — — 24 Adjusted income (loss), net of tax - diluted $ (17,997) $ 258,152 $ (29,087) $ (68,933) $ 247,196 Weighted-average number of shares outstanding - basic 14,503 14,098 14,273 14,330 12,880 Add: if converted dilutive effect of convertible notes — 1,176 — — 1,176 Add: dilutive effect of potential common shares — 47 — — 36 Weighted-average number of shares outstanding - diluted 14,503 15,321 14,273 14,330 14,092 Earnings (losses) per share: Total Diluted $ (1.24) $ 16.85 $ (2.04) $ (4.81) $ 17.54 11
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NABORS INDUSTRIES LTD. AND SUBSIDIARIES NON-GAAP FINANCIAL MEASURES RECONCILIATION OF ADJUSTED EBITDA BY SEGMENT TO ADJUSTED OPERATING INCOME (LOSS) BY SEGMENT (Unaudited) (In thousands) Three Months Ended September 30, 2026 U.S. Drilling International Drilling Drilling Solutions Rig Technologies Other reconciling items Total Adjusted operating income (loss) $ 33,385 $ 64,275 $ 36,150 $ 3,037 $ (51,048) $ 85,799 Depreciation and amortization 66,006 81,443 7,763 1,950 2,582 159,744 Adjusted EBITDA $ 99,391 $ 145,718 $ 43,913 $ 4,987 $ (48,466) $ 245,543 Three Months Ended September 30, 2025 U.S. Drilling International Drilling Drilling Solutions Rig Technologies Other reconciling items Total Adjusted operating income (loss) $ 31,429 $ 45,476 $ 49,982 $ 877 $ (51,803) $ 75,961 Depreciation and amortization 62,732 82,075 10,684 2,893 1,963 160,347 Adjusted EBITDA $ 94,161 $ 127,551 $ 60,666 $ 3,770 $ (49,840) $ 236,308 Three Months Ended June 30, 2026 U.S. Drilling International Drilling Drilling Solutions Rig Technologies Other reconciling items Total Adjusted operating income (loss) $ 30,961 $ 45,860 $ 32,125 $ 1,497 $ (49,332) $ 61,111 Depreciation and amortization 63,120 84,673 7,888 1,683 3,185 160,549 Adjusted EBITDA $ 94,081 $ 130,533 $ 40,013 $ 3,180 $ (46,147) $ 221,660 Nine Months Ended September 30, 2026 U.S. Drilling International Drilling Drilling Solutions Rig Technologies Other reconciling items Total Adjusted operating income (loss) $ 88,970 $ 150,892 $ 100,147 $ 2,646 $ (147,118) $ 195,537 Depreciation and amortization 192,567 246,640 22,441 6,026 8,805 476,479 Adjusted EBITDA $ 281,537 $ 397,532 $ 122,588 $ 8,672 $ (138,313) $ 672,016 Nine Months Ended September 30, 2025 U.S. Drilling International Drilling Drilling Solutions Rig Technologies Other reconciling items Total Adjusted operating income (loss) $ 102,816 $ 114,485 $ 133,260 $ 6,933 $ (156,428) $ 201,066 Depreciation and amortization 185,877 246,210 44,760 7,574 5,625 490,046 Adjusted EBITDA $ 288,693 $ 360,695 $ 178,020 $ 14,507 $ (150,803) $ 691,112 12
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NABORS INDUSTRIES LTD. AND SUBSIDIARIES NON-GAAP FINANCIAL MEASURES RECONCILIATION OF ADJUSTED GROSS MARGIN BY SEGMENT TO ADJUSTED OPERATING INCOME (LOSS) BY SEGMENT (Unaudited) Three Months Ended Nine Months Ended September 30, June 30, September 30, (In thousands) 2026 2025 2026 2026 2025 Lower 48 - U.S. Drilling Adjusted operating income (loss) $ 31,434 $ 13,689 $ 24,722 $ 73,561 $ 54,199 Plus: General and administrative costs 5,018 4,745 4,974 15,316 14,043 Plus: Research and engineering 1,253 1,121 1,198 3,594 2,832 GAAP Gross Margin 37,705 19,555 30,894 92,471 71,074 Plus: Depreciation and amortization 56,230 52,120 54,093 163,918 157,425 Adjusted gross margin $ 93,935 $ 71,675 $ 84,987 $ 256,389 $ 228,499 Other - U.S. Drilling Adjusted operating income (loss) $ 1,951 $ 17,740 $ 6,239 $ 15,409 $ 48,617 Plus: General and administrative costs 411 568 407 1,276 1,869 Plus: Research and engineering 115 85 86 281 211 GAAP Gross Margin 2,477 18,393 6,732 16,966 50,697 Plus: Depreciation and amortization 9,776 10,612 9,027 28,649 28,452 Adjusted gross margin $ 12,253 $ 29,005 $ 15,759 $ 45,615 $ 79,149 U.S. Drilling Adjusted operating income (loss) $ 33,385 $ 31,429 $ 30,961 $ 88,970 $ 102,816 Plus: General and administrative costs 5,429 5,313 5,381 16,592 15,912 Plus: Research and engineering 1,368 1,206 1,284 3,875 3,043 GAAP Gross Margin 40,182 37,948 37,626 109,437 121,771 Plus: Depreciation and amortization 66,006 62,732 63,120 192,567 185,877 Adjusted gross margin $ 106,188 $ 100,680 $ 100,746 $ 302,004 $ 307,648 International Drilling Adjusted operating income (loss) $ 64,275 $ 45,476 $ 45,860 $ 150,892 $ 114,485 Plus: General and administrative costs 18,855 18,015 16,748 53,212 52,260 Plus: Research and engineering 1,824 1,665 1,826 5,399 4,578 GAAP Gross Margin 84,954 65,156 64,434 209,503 171,323 Plus: Depreciation and amortization 81,443 82,075 84,673 246,640 246,210 Adjusted gross margin $ 166,397 $ 147,231 $ 149,107 $ 456,143 $ 417,533 Adjusted gross margin by segment represents adjusted operating income (loss) plus general and administrative costs, research and engineering costs and depreciation and amortization. 13
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NABORS INDUSTRIES LTD. AND SUBSIDIARIES RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO NET INCOME (LOSS) (Unaudited) Three Months Ended Nine Months Ended September 30, June 30, September 30, (In thousands) 2026 2025 2026 2026 2025 Net income (loss) $ 15,984 $ 302,466 $ (1,523) $ 18,723 $ 357,440 Income tax expense (benefit) 20,443 117,571 16,405 53,732 155,655 Income (loss) before income taxes 36,427 420,037 14,882 72,455 513,095 Investment (income) loss (4,143) (7,323) (2,131) (9,161) (20,048) Interest expense 42,087 54,334 42,678 128,526 164,741 Gain on disposition of Quail Tools - (415,557) - - (415,557) Gain on bargain purchase - - - - (116,499) Other, net 11,428 24,470 5,682 3,717 75,334 Adjusted operating income (loss) (1) 85,799 75,961 61,111 195,537 201,066 Depreciation and amortization 159,744 160,347 160,549 476,479 490,046 Adjusted EBITDA (2) $ 245,543 $ 236,308 $ 221,660 $ 672,016 $ 691,112 (1) Adjusted operating income (loss) represents net income (loss) before income tax expense (benefit), investment income (loss), interest expense, gain on disposition of Quail Tools, gain on bargain purchase and other, net. Adjusted operating income (loss) is a non-GAAP financial measure and should not be used in isolation or as a substitute for the amounts reported in accordance with GAAP. In addition, adjusted operating income (loss) excludes certain cash expenses that the Company is obligated to make. However, management evaluates the performance of its operating segments and the consolidated Company based on several criteria, including adjusted EBITDA and adjusted operating income (loss), because it believes that these financial measures accurately reflect the Company’s ongoing profitability and performance. Securities analysts and investors use this measure as one of the metrics on which they analyze the Company’s performance. Other companies in this industry may compute these measures differently. (2) Adjusted EBITDA represents net income (loss) before income tax expense (benefit), investment income (loss), interest expense, gain on disposition of Quail Tools, gain on bargain purchase, other, net and depreciation and amortization. Adjusted EBITDA is a non-GAAP financial measure and should not be used in isolation or as a substitute for the amounts reported in accordance with GAAP. In addition, adjusted EBITDA excludes certain cash expenses that the Company is obligated to make. However, management evaluates the performance of its operating segments and the consolidated Company based on several criteria, including adjusted EBITDA and adjusted operating income (loss), because it believes that these financial measures accurately reflect the Company’s ongoing profitability and performance. Securities analysts and investors use this measure as one of the metrics on which they analyze the Company’s performance. Other companies in this industry may compute these measures differently. 14
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NABORS INDUSTRIES LTD. AND SUBSIDIARIES RECONCILIATION OF NET DEBT TO TOTAL DEBT (Unaudited) September 30, June 30, December 31, (In thousands) 2026 2026 2025 Current debt $ - $ - $ 377,492 Long-term debt 2,022,758 2,120,276 2,117,187 Total Debt 2,022,758 2,120,276 2,494,679 Less: Cash and short-term investments 475,145 509,833 940,738 Net Debt $ 1,547,613 $ 1,610,443 $ 1,553,941 15
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NABORS INDUSTRIES LTD. AND SUBSIDIARIES RECONCILIATION OF ADJUSTED FREE CASH FLOW TO NET CASH PROVIDED BY OPERATING ACTIVITIES (Unaudited) Three Months Ended Nine Months Ended September 30, June 30, September 30, (In thousands) 2026 2025 2026 2026 2025 Net cash provided by operating activities $ 238,893 $ 207,880 $ 135,242 $ 487,474 $ 447,425 Add: Capital expenditures, net of proceeds from sales of assets (164,370) (202,267) (122,900) (448,828) (503,277) Free cash flow $ 74,523 $ 5,613 $ 12,342 $ 38,646 $ (55,852) Cash paid for acquisition related costs (1) - - - - 40,816 Adjusted free cash flow $ 74,523 $ 5,613 $ 12,342 $ 38,646 $ (15,036) (1) Cash paid related to the Parker Drilling acquisition Adjusted free cash flow represents net cash provided by operating activities less cash used for capital expenditures, net of proceeds from sales of assets, and before cash paid for acquisition related costs. Management believes that adjusted free cash flow is an important liquidity measure for the company and that it is useful to investors and management as a measure of the company’s ability to generate cash flow, after reinvesting in the company for future growth, that could be available for paying down debt or other financing cash flows, such as dividends to shareholders. Adjusted free cash flow does not represent the residual cash flow available for discretionary expenditures. Adjusted free cash flow is a non-GAAP financial measure that should be considered in addition to, not as a substitute for or superior to, cash flow from operations reported in accordance with GAAP. 16
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NABORS INDUSTRIES LTD. AND SUBSIDIARIES NON-GAAP FINANCIAL MEASURES RECONCILIATION OF QUAIL TOOLS FINANCIAL MEASURES (Unaudited) Three months ended September 30, (In thousands) 2025 Drilling Solutions operating revenues $ 141,942 Less: remaining Drilling Solutions business (107,744) Quail Tools operating revenues $ 34,198 Drilling Solutions adjusted operating income (loss) $ 49,982 Less: remaining Drilling Solutions business (35,720) Quail Tools adjusted operating income (loss) $ 14,262 Quail Tools depreciation and amortization 6,043 Quail Tools adjusted EBITDA $ 20,305 17