Nabors Industries Ltd. (NBR) Stock Analysis

Nabors Industries’ primary competitive edge lies in its global scale, technology portfolio, and capital-light service mix. The company operates in over 15 countries, with 285 land rigs and 26 offshore rigs as of year-end 2024, giving it a broader international footprint than most pure-play U.S. drillers and enabling access to higher-margin, less cyclical markets. This reach is a key differentiator versus U.S.-centric peers such as Helmerich & Payne or Patterson-UTI.

Nabors’ Drilling Solutions (NDS) segment is a notable strength. NDS contributed over 15% of adjusted EBITDA in 2023 and, following the Parker Wellbore acquisition, is projected to reach 30% of total EBITDA on a pro forma basis. NDS’s offerings—automation, performance software, and wellbore services—are deployable on both Nabors and third-party rigs, supporting customer stickiness and higher returns on capital. For context, NDS’s EBITDA less capex is expected to nearly double post-acquisition, from $119 million to $221 million.

Technological leadership is reinforced by proprietary automation modules and digital platforms, which have enabled Nabors to introduce the industry’s first fully automated land rig and retrofit automation to legacy fleets. This positions Nabors ahead of most drilling contractors, though it still trails diversified oilfield service majors like SLB and Halliburton in breadth.

Risks include customer concentration—Saudi Aramco accounted for 31% of 2024 revenue—and exposure to volatile commodity cycles. However, Nabors’ capital-light, technology-driven model and global diversification provide a degree of resilience relative to smaller, less diversified peers.