Nabors Industries Ltd. (NBR): Business Model Canvas [Dec-2025 Updated]

You're looking to crack the code on how Nabors Industries Ltd. actually makes its money in the tough, high-stakes world of energy services. Honestly, it's not just about renting out steel; their model hinges on deploying a global fleet of high-specification PACE® SmartRigs® and layering proprietary tech like RigCLOUD® on top to win complex contracts, especially with giants like Saudi Aramco through the SANAD joint venture. We see this play out in the numbers, where their Drilling Solutions segment pulled in $141.9 million in Q3 2025, showing the tech is a real revenue stream, even as they manage significant capital needs, like that $220-$230 million CapEx in Q2 2025. Dive into the nine blocks below; it clearly maps out how Nabors Industries Ltd. is positioning itself to capture value from the next generation of drilling performance.

Nabors Industries Ltd. (NBR) - Canvas Business Model: Key Partnerships

You're looking at the core relationships Nabors Industries Ltd. maintains to execute its strategy, especially in high-spec drilling and energy transition. These aren't just vendor agreements; they are strategic alignments driving capital deployment and technology adoption.

SANAD Joint Venture with Saudi Aramco

The 50/50 joint venture, SANAD, with Saudi Aramco remains a cornerstone of Nabors Industries Ltd.'s international growth, centered around a 10-year program to purchase and operate fifty (50) locally-sourced, newly constructed rigs.

Activity is ramping up significantly in 2025. As of the first quarter of 2025, SANAD began operating its tenth newbuild rig, with the eleventh following early in the second quarter. By the second quarter's end, a total of twelve units were deployed, with two more scheduled to start operations over the balance of 2025, targeting fourteen operational newbuilds by year-end 2025. Saudi Aramco awarded the fourth tranche of five rigs, with the first of these scheduled to commence operating in 2026, extending utilization through 2027 for that batch.

Financially, the working newbuild fleet is projected to approximately double its contribution to SANAD's adjusted EBITDA in 2025 compared to 2024. For context on capital management supporting this, the full year 2024 saw $271 million directed to SANAD newbuild construction. Furthermore, two previously suspended rigs are now scheduled to return to service in March 2026 and June 2026, with contract extensions matching the suspension duration.

Strategic Alliance with Corva AI

The expanded strategic alliance with Corva AI integrates their leading AI-driven analytics directly into Nabors Industries Ltd.'s RigCLOUD® platform, creating 'RigCLOUD® Powered by Corva.' This is about unifying edge and cloud solutions for better drilling intelligence.

Corva brings a robust suite of tools, featuring more than 100 Apps and Dashboards that automate and optimize drilling processes. Their machine learning technology, Predictive Drilling, has already provided data visualizations across 27,000 wells, covering a staggering 596 million feet. This partnership is designed to enhance real-time data processing and predictive insights for operators and contractors.

Suppliers of High-Spec Drilling Equipment and Components

Nabors Industries Ltd. relies on its internal manufacturing arm, Canrig (part of the Rig Technologies segment), and external suppliers for the high-specification equipment demanded by customers.

The specifications of Nabors Industries Ltd.'s high-end rigs, like the PACE®-M800, illustrate the component quality required from partners and internal manufacturing:

Energy Transition Partners

Nabors Industries Ltd. pursues its 'Energy Without Compromise' vision through investments like the one made via its affiliate, Nabors Energy Transition Corp. (NETC), which combined with Vast Solar in 2023; Vast trades as "VSTE" on NASDAQ.

Vast Solar is developing projects totaling a potential combined capacity of 230 MW. A key milestone is the 30-MW grid-connected facility in Port Augusta, Australia, which is expected to become operational in 2025.

Beyond solar, Nabors Industries Ltd. has partnered with four leading edge geothermal venture companies to advance those technologies. The company has also invested in energy storage, including Natron Energy for sodium-ion battery solutions and UCAP Power for Ultracapacitor Solutions.

To fund strategic moves, Nabors completed the sale of its Quail Tools subsidiary in August 2025 for a total consideration of $600 million (comprising $375 million cash and a $250 million seller note). Quail Tools was projected to generate adjusted EBITDA of $150 million in 2025.

Nabors Industries Ltd. (NBR) - Canvas Business Model: Key Activities

You're looking at the core engine room of Nabors Industries Ltd., the things they must do well to make the whole model work. For Nabors Industries Ltd., these key activities are capital-intensive and technology-driven, reflecting their position in the oilfield services space as of late 2025.

Operating one of the world's largest land-based drilling rig fleets.

Managing the physical assets-the rigs-is central. Nabors Industries Ltd. must keep these assets busy and efficient across different geographies. The operational footprint in the third quarter of 2025 shows a clear split between the U.S. and international markets.

Here's a look at the rig deployment and margin performance for Q3 2025:

The international segment, bolstered by newbuilds, is showing stronger daily margins than the Lower 48, where margins are under pressure. Nabors Industries Ltd. reported total operating revenues of $818 million for the third quarter of 2025.

Developing and deploying advanced drilling automation and software.

This activity focuses on the digital side, which is increasingly important for efficiency and margin capture. The Drilling Solutions segment is where this activity is housed. The segment's Adjusted EBITDA for the third quarter of 2025 was $60.7 million, down from $76.5 million in the second quarter. Still, the retained Parker Wellbore businesses are showing growth, with their Adjusted EBITDA contribution increasing by more than 70% sequentially in Q3 2025.

The company is investing in deploying its technology, evidenced by the successful deployment of the PACE-X Ultra™ rig for a South Texas operator.

Manufacturing and servicing Rig Technologies equipment.

This involves the physical creation and maintenance of equipment, often for internal use or third-party sales. This segment's performance can be lumpy based on capital equipment deliveries. Rig Technologies reported an Adjusted EBITDA of $3.8 million for the third quarter of 2025, a sequential decrease from $5.2 million in the prior quarter, attributed to a slowdown in aftermarket revenue.

Managing large, multiyear international drilling contracts.

Securing long-term work provides revenue stability, especially for the high-spec international fleet. The SANAD joint venture with Saudi Aramco is a prime example of this activity. As of Q3 2025, the JV has deployed a total of 13 newbuild rigs, with Saudi Aramco awarding a fourth tranche of five newbuild rigs. These international contracts are expected to contribute materially to earnings during the second half of 2025 and beyond.

Integrating acquired businesses, like the retained Parker Wellbore operations.

The successful integration of Parker Wellbore, which closed in March 2025, is a critical ongoing activity. Nabors Industries Ltd. is on track to realize the projected cost synergies of $40 million by the end of 2025. Furthermore, the retained Parker businesses are expected to generate an Adjusted EBITDA contribution of $70 million in 2026. The company projects total capital expenditures for the full year 2025 to be between $700 million and $710 million, which includes investments supporting these growth areas.

The company collected $375 million in cash at the closing of the Quail Tools sale in Q3 2025, which was part of the overall integration and balance sheet management strategy.

Nabors Industries Ltd. (NBR) - Canvas Business Model: Key Resources

You're looking at the core assets that Nabors Industries Ltd. (NBR) relies on to execute its drilling and technology strategy as of late 2025. These aren't just line items; they are the physical and intellectual foundations of their operations.

The most tangible assets are clearly the physical fleet. Nabors Industries Ltd. fields a global fleet of high-specification PACE® series SmartRigs®. Specifically, the company has approximately 100 pad-optimal PACE® series Nabors SmartRig® drilling systems, which are engineered for efficiency and feature high horsepower and significant drill pipe racking capacity. This fleet is considered one of the world's youngest and most advanced in land drilling.

Intellectual property is just as critical. Nabors Industries Ltd. protects its competitive edge with a proprietary technology suite. This includes their digital ecosystem like RigCLOUD®, SmartNAV™, and SmartSLIDE™, which help automate and optimize drilling workflows.

Geographically, the company's reach is extensive. Nabors Industries Ltd. maintains a global infrastructure across approximately 20 countries. This footprint supports their land-based and offshore platform rig operations in key international markets.

The human capital supporting this hardware and software is significant. As of 2024, Nabors Industries Ltd. employed approximately 12,400 people worldwide, focused on complex drilling, engineering, and automation.

Finally, liquidity provides the necessary operational flexibility. As of the third quarter of 2025, Nabors Industries Ltd. reported cash and equivalents of $428.1 million. This financial strength is set against a backdrop of other key balance sheet figures from that same period.

Here's a quick look at some of the key financial and operational metrics underpinning these resources as of Q3 2025:

The SANAD joint venture, a 50/50 partnership with Saudi Aramco, also represents a significant resource, continuing its 50-rig newbuild program; they deployed twelve newbuild rigs by Q2 2025, with two more expected to start operations by the end of 2025. Also, Saudi Aramco awarded the fourth tranche of five new rigs to SANAD.

Nabors Industries Ltd. (NBR) - Canvas Business Model: Value Propositions

You're looking at the core value Nabors Industries Ltd. delivers to its clients as of late 2025. It's all about superior execution on the most demanding wells, backed by technology that drives efficiency and reduces environmental impact.

Advanced drilling automation for superior wellbore placement.

Nabors Industries Ltd. offers a technology suite that moves beyond basic drilling. This includes systems like SmartNAV®, which uses real-time downhole data from Measurement While Drilling (MWD) tools to ensure accurate steering for extended-reach laterals. The integration of proprietary drilling-bit steering systems and rig instrumentation software, part of Nabors Drilling Solutions (NDS), enhances performance and reliability. For instance, NDS adjusted EBITDA was reported at $60.7 million in the third quarter of 2025, showing the financial value derived from these specialized services.

• NDS Adjusted EBITDA (Q3 2025): $60.7 million.
• Legacy NDS gross margin remained strong at 53% in Q1 2025.
• The company is focused on integrating AI, machine learning, and real-time data analytics into rig designs.

High-specification rigs enabling complex wells, like 4-mile laterals.

The PACE® series SmartRigs® are engineered for the complexity of modern horizontal drilling. These rigs are not just big; they have the specific capacity to handle the longer, heavier tubulars required. For example, in the Bakken formation, a PACE®-X rig drilled an operator's first four-mile lateral and followed it up with two more four-mile lateral wells in Q2 2025. Furthermore, a PACE®-X rig drilled the Haynesville Shale's longest lateral at 20,000 feet, with a total well depth of 32,000 feet. Nearby, a PACE®-M rig drilled a record Eagle Ford well with a lateral extending 22,500 feet.

Here's a quick look at the hardware that makes these feats possible:

Integrated Drilling Solutions (NDS) for enhanced performance and reliability.

The value here is the seamless combination of hardware and software to reduce non-productive time (NPT) and ensure the well is drilled precisely where intended. The integration of Parker operations, which closed in March 2025, materially expanded this segment. Nabors Industries Ltd. is on track to realize $40 million of cost synergies from the Parker acquisition in 2025. The Drilling Solutions segment reported $93.2 million in revenue in Q1 2025, a 22.6% sequential increase.

Technologies focused on energy efficiency and emissions reduction.

Nabors Industries Ltd. is actively deploying technologies to lower the carbon intensity of operations for itself and its customers. This includes solutions for rig electrification using high-line power, engine management controls, and real-time emissions monitoring. For context on the scale of emissions they are addressing, the company reported 2024 Scope 1 emissions of approximately 1,058,000,000 kg CO2e and Scope 2 emissions of 58,000,000 kg CO2e. The company previously reported reducing its U.S. Scope 1 and Scope 2 GHG emissions intensity by ~10% and 5%, respectively, against its 2021 targets.

Reliable, long-term contract drilling services in key global basins.

Reliability is demonstrated through long-term commitments, especially in international markets. The SANAD joint venture in Saudi Arabia is a prime example, with Saudi Aramco awarding the fourth tranche of newbuilds, consisting of five rigs, as part of its larger 50-rig newbuild program. At the end of Q3 2025, the International Drilling average rig count was 89, with a projection to average approximately 91 rigs in Q4 2025. In contrast, the U.S. Lower 48 rig count averaged 61 in Q1 2025, with guidance for Q4 2025 set at 57-59 rigs. Lower 48 daily margins averaged $14,276 in Q1 2025.

Finance: draft 13-week cash view by Friday.

Nabors Industries Ltd. (NBR) - Canvas Business Model: Customer Relationships

Deep integration with key national oil companies is cemented through strategic joint ventures. Nabors Industries Ltd.'s 50/50 joint venture with Saudi Aramco, SANAD, is the largest land drilling contractor in Saudi Arabia. Saudi Aramco accounted for approximately 31% of Nabors Industries Ltd.'s consolidated operating revenues for the year ended December 31, 2024. The SANAD program involves progressively adding 50 rigs over approximately 10 years. By Q3 2025, SANAD had deployed 13 newbuild rigs, with four more scheduled for 2026. Furthermore, two rigs that had been temporarily suspended by SANAD received notices to resume operations in March 2026 and June 2026, with contract terms extended for the suspension duration.

Long-term, multiyear drilling contracts are secured through dedicated account management, especially in high-growth international areas. Nabors Industries Ltd. secured awards for three rigs in Argentina, two of which are on five-year contracts. High-specification rigs deployed in the Middle East, including those from SANAD, are working under multiyear contracts expected to contribute materially to the International Drilling segment earnings during the second half of 2025 and beyond. The International Drilling segment's daily adjusted gross margin improved to $17,931 in Q3 2025.

Direct sales and technical support drive the adoption of Drilling Solutions technology. Following the acquisition of Parker Wellbore, Nabors Drilling Solutions (NDS) comprised over 25% of adjusted EBITDA from operating segments as of Q2 2025. NDS reported adjusted EBITDA of $76.5 million in Q2 2025, a significant sequential increase from $40.9 million in Q1 2025, with a gross margin of 53% in Q2 2025. Nabors Industries Ltd. is actively expanding the installed base of its digital solutions, including the SmartROS rig operating system, through collaborations like the one with SLB to scale automation adoption.

A high-touch, consultative approach supports custom rig upgrades and technology deployment. Nabors Industries Ltd.'s high-specification PACE® series SmartRigs® are cited for setting milestones in extending lateral wellbore lengths. The Rig Technologies segment, which includes Canrig, secured a comprehensive rig upgrade package for a U.S. drilling contractor.

You're looking at how Nabors Industries Ltd. locks in long-term value, and the SANAD relationship is the clearest example of that deep integration. The fact that Saudi Aramco represented 31% of 2024 revenue shows just how central this customer is. The ongoing deployment schedule for the 50-rig program through 2027 provides clear revenue visibility.

The technology side, Drilling Solutions, is showing strong financial traction, with its Q2 2025 adjusted EBITDA at $76.5 million, more than 87% higher than Q1 2025's $40.9 million. This growth helps offset the softness in other areas, like the Lower-48 rig count, which was projected to be 61 in Q1 2025.

• Deep integration via joint ventures, like SANAD, with key national oil companies.
• Dedicated account management for long-term, multiyear drilling contracts, including five-year terms in Argentina.
• Direct sales and technical support for Drilling Solutions technology, which contributed $76.5 million in adjusted EBITDA in Q2 2025.
• High-touch, consultative approach for custom rig upgrades, evidenced by securing a comprehensive rig upgrade package for a U.S. drilling contractor via Canrig.

Nabors Industries Ltd. (NBR) - Canvas Business Model: Channels

You're looking at how Nabors Industries Ltd. gets its services and technology into the hands of its customers. It's a mix of direct engagement for the big drilling contracts and digital delivery for the software side. Here's the breakdown of the key pathways as of late 2025.

Direct sales and contracting teams for U.S. and International Drilling.

The core of the business relies on these teams securing and managing rig contracts. International Drilling remains a key revenue driver, with its operations supported by the SANAD joint venture in Saudi Arabia. You see the direct impact of these contracting efforts in the rig counts and daily margins reported quarterly. For instance, the International Drilling segment reported an Adjusted EBITDA of $127.6 million in the third quarter of 2025. The U.S. Drilling segment's Adjusted EBITDA for the second quarter of 2025 was $101.8 million.

The SANAD joint venture is a massive channel for international deployment, having deployed a total of twelve newbuild rigs by the second quarter of 2025, with Saudi Aramco awarding a fourth tranche of five more rigs.

The direct sales channel for the U.S. Lower 48 market saw an average rig count of 61 in the first quarter of 2025, with a daily adjusted gross margin of $14,276 for that period.

RigCLOUD® digital platform for delivering software and real-time data.

Nabors Industries Ltd. uses the RigCLOUD® platform as a direct digital channel. In the first quarter of 2025, the company expanded its strategic alliance with Corva AI to integrate Corva's AI-driven analytics directly into the RigCLOUD® platform. This combination enhances real-time data processing and predictive insights delivered to the customer.

Global service and distribution network for Rig Technologies equipment.

This channel moves equipment and aftermarket services. The Rig Technologies segment saw its Adjusted EBITDA at $5.6 million in the first quarter of 2025. The second quarter Adjusted EBITDA was $5.2 million, with a sequential decline attributed to lower capital equipment deliveries, particularly in the Middle East. Management expected the third quarter Adjusted EBITDA for this segment to be up approximately $2 - $3 million from the second quarter level.

Direct sales force for Drilling Solutions and tubular running services.

The Drilling Solutions (NDS) segment, significantly bolstered by the Parker Wellbore acquisition in March 2025, uses a direct sales approach for its performance tools and tubular running services. The NDS Adjusted EBITDA was $40.9 million in the first quarter of 2025. Following the full quarter impact of Parker, the second quarter NDS Adjusted EBITDA rose to $76.5 million. This segment accounted for over 25% of adjusted EBITDA from operating segments in the second quarter of 2025. The sale of Quail Tools, a key part of this channel, was completed in August 2025.

Finance: Finance needs to track the Q3 2025 NDS EBITDA against the Q2 figure of $76.5 million by next week.

Nabors Industries Ltd. (NBR) - Canvas Business Model: Customer Segments

You're looking at the core client base for Nabors Industries Ltd. as of late 2025, which is heavily segmented by geography and the type of service required. It's a mix of massive state-owned entities and sophisticated private operators.

National Oil Companies (NOCs) form a critical pillar, with the relationship through the SANAD joint venture being a major driver. Saudi Aramco is the anchor here. For the year ended December 31, 2024, this single customer accounted for approximately 31% of Nabors Industries Ltd.'s consolidated operating revenues. The SANAD joint venture, which is 50/50 with Saudi Aramco, is in a multi-year build-out phase. Through Q3 2025, the number of newbuild deployments totaled 13, with one more rig scheduled to commence operating in the fourth quarter of 2025. Nabors projected that the full-year 2025 capital expenditures would include approximately $360 million dedicated to SANAD newbuild construction.

The customer base also includes Major International Oil Companies (IOCs) and large independent producers across the globe. The International Drilling segment, which houses the Saudi Aramco revenue, is key, as the company noted that the key revenue for Nabors Industries Ltd. is generated from International Drilling as of late 2025. The International Drilling average rig count was projected to be between 85-86 rigs in Q2 2025, including two rigs from the Parker acquisition. Daily adjusted gross margin in this segment improved to approximately $17,900 in Q2 2025.

For the U.S. Lower 48 operators, the focus is definitely on high-spec AC rigs, which command better dayrates. The Lower 48 average rig count was 61 in Q1 2025, dipping to 57 - 59 rigs in Q2 2025. Daily adjusted gross margin in the Lower 48 held around the $14,276 mark in Q1 2025. The U.S. Drilling segment reported adjusted EBITDA of $94.2 million for Q3 2025. Nabors Industries Ltd. was the third largest U.S. contractor by active rigs as of late 2024.

A growing segment targets customers seeking advanced drilling automation and performance software, which falls under the Drilling Solutions (NDS) segment. The addition of Parker Wellbore significantly boosted this area; NDS adjusted EBITDA reached $76.5 million in Q2 2025. The company expanded its strategic alliance with Corva AI to integrate AI-driven analytics into the RigCLOUD® platform. Post-acquisition, the Drilling Solutions business was forecast to contribute approximately 25% of consolidated adjusted EBITDA in Q2 2025.

Here's a quick look at the segment contribution context for the first half of 2025:

The overall trailing 12-month revenue for Nabors Industries Ltd. as of September 30, 2025, stood at $3.12B.

• NOC revenue concentration: Saudi Aramco was 31% of revenue in 2024.
• SANAD deployment pace: 13 rigs operating by Q3 2025.
• Lower 48 utilization: Rig count ranged from 57 to 66 active rigs across Q4 2024 to Q2 2025.
• Automation/Software growth: NDS EBITDA grew from $33.8 million in Q4 2024 to $76.5 million in Q2 2025.

If onboarding takes 14+ days, churn risk rises.

Nabors Industries Ltd. (NBR) - Canvas Business Model: Cost Structure

You're looking at the major drains on Nabors Industries Ltd.'s cash flow, the costs that define their operational reality as of late 2025. It's a capital-intensive business, plain and simple.

• - High capital expenditure for newbuilds; Q2 2025 CapEx was $220-$230 million.
• - Significant operational costs for rig maintenance, labor, and fuel.
• - Substantial interest expense on long-term debt, which was $2.348 billion in Q3 2025.
• - Costs related to technology development and R&D for automation.
• - Integration and synergy realization costs from acquisitions like Parker Wellbore.

The investment required just to keep the fleet modern and growing is massive. While the user-provided figure of $220-$230 million aligns with Q1 2025 Capital Expenditures, the actual Q2 2025 CapEx came in at $200-$210 million. Management has guided the full-year 2025 CapEx to a range of $700 million to $710 million. A huge chunk of this is dedicated to the Saudi Aramco joint venture, with approximately $300 million earmarked for SANAD newbuilds for the full year 2025.

Day-to-day operations carry significant weight, too. For the third quarter ending September 2025, Nabors Industries Ltd. reported total Operating Expenses of $579.78 million. To manage these costs, the company focuses heavily on maximizing daily rates, though market pressures are evident. For instance, the Q3 2025 guidance for the U.S. Lower 48 daily adjusted gross margin settled around $13,300, while the International segment was expected to achieve margins near $17,900 per day.

The debt load necessitates substantial interest payments, which the company is actively working to reduce. The total debt figure at September 2025 was reported around $2.35 billion, which management is tackling via asset sales. The sale of Quail Tools alone is expected to reduce annual interest expense by approximately $45 million.

Technology and acquisition integration are also key cost centers. Research & Development Expense for the quarter ending September 2025 was $13 million, building on the 2024 annual R&D spend of $57 million. On the integration front, the Parker Wellbore acquisition was valued at $274 million, and the company is targeting total cost synergies of $40 million for the full year 2025 from the deal. The integration progress is visible, with the remaining Parker Wellbore businesses showing a 70% sequential increase in adjusted EBITDA contribution in Q3 2025.

Finance: draft 13-week cash view by Friday.

Nabors Industries Ltd. (NBR) - Canvas Business Model: Revenue Streams

You're looking at how Nabors Industries Ltd. (NBR) actually brings in the cash flow as of late 2025. It's a mix of high-margin contract work, technology licensing, and asset management, so let's break down the hard numbers from the latest filings.

The core of the revenue engine remains the drilling contracts, split geographically. International Drilling is showing strong profitability, evidenced by an operating revenue stream that delivered a daily adjusted gross margin of $17,931 in Q3 2025. That's a solid number, driven by operational improvements, especially in places like Saudi Arabia.

Closer to home, the U.S. Drilling contracts are still a major component, though margins can be more volatile. For context on the domestic side, the Lower 48 daily margin averaged $14,276 in Q1 2025, showing the economics of that specific region earlier in the year.

The push into technology is clearly visible in the Drilling Solutions (NDS) segment. This part of the business, which includes performance software and services, generated revenue of $141.9 million in Q3 2025. This shows the value of keeping the technology portfolio after the major asset sale.

The Rig Technologies segment contributes through equipment sales and aftermarket support for the rigs they build or service. While direct revenue is less frequently highlighted, the segment's adjusted EBITDA for Q3 2025 was $3.8 million, reflecting activity in capital equipment deliveries and aftermarket services.

Finally, you can't ignore the impact of portfolio actions, which provide significant, albeit non-recurring, cash boosts. The sale of Quail Tools in Q3 2025 is a prime example, which the company reported as a one-time gain of $415.6 million. The total consideration for that sale was $625 million, which was immediately put to work reducing debt.

Here's a quick look at how the key operating segments stacked up in terms of profitability during the third quarter of 2025, which gives you a better picture of the underlying business health post-divestiture:

The revenue streams are clearly diversifying, but the dayrates and contract mix in International Drilling are currently providing the best margin performance. The NDS segment is showing growth when you normalize for the Quail Tools sale, with its EBITDA margin reaching 37.5% without that contribution. You need to watch the Lower 48 rig count and pricing, as that segment saw a sequential decline in EBITDA to $94.2 million in Q3 2025.

The company's revenue generation is heavily reliant on these four operational pillars, plus the strategic timing of asset monetization. It's defintely a more focused entity now.

Finance: draft 13-week cash view by Friday.