NABORS INDUSTRIES LTD Segments Disclosure
Note 17 Segment Information
Our business consists of four reportable segments: U.S. Drilling, International Drilling, Drilling Solutions and Rig Technologies. Our reportable segments include operating segments that have been aggregated based on the nature of the products and services provided. Results of Parker’s operations have been included within U.S. Drilling, International
Drilling and Drilling Solutions segments. Prior to its sale, Quail Tools’ operations were included within the Drilling Solutions segment. The accounting policies of the segments are the same as those described in Note 2—Summary of Significant Accounting Policies. Inter-segment sales are recorded at cost or cost plus a profit margin. Management’s determination of our reporting segments was made on the basis of our strategic priorities within each segment and the differences in the products and services we provide. The reportable segments results are reviewed regularly by the chief operating decision maker (“CODM”), who is our Chairman and Chief Executive Officer, in deciding how to allocate resources and assess performance. Our CODM evaluates the segments’ operating performance based on adjusted operating income (loss), defined as net income (loss) before income taxes, interest expense, earnings (losses) from unconsolidated affiliates, investment income (loss), gain on disposition of Quail Tools, gain on bargain purchase and other, net.
The following tables sets forth financial information with respect to our reportable operating segments:
Year Ended | |||||||||||||||||||||
December 31, 2025 | |||||||||||||||||||||
U.S. Drilling | International Drilling | Drilling Solutions | Rig Technologies | Total Reportable Segments | Other items (1) | Total | |||||||||||||||
(In thousands) | |||||||||||||||||||||
Operating revenues | $ | 976,644 | $ | 1,597,765 | $ | 513,283 | $ | 154,036 | $ | 3,241,728 | $ | (57,035) | $ | 3,184,693 | |||||||
Direct costs |
| (569,204) | (1,028,942) | (250,049) | (107,220) | (1,955,415) | 41,039 | (1,914,376) | |||||||||||||
Depreciation and amortization |
| (250,534) | (327,834) | (52,040) | (11,179) | (641,587) | (7,647) | (649,234) | |||||||||||||
Other segment expenses (2) |
| (25,534) | (76,866) | (43,912) | (27,363) |
| (173,675) | (183,975) |
| (357,650) | |||||||||||
Total adjusted operating income (loss) (3) | $ | 131,372 | $ | 164,123 | $ | 167,282 | $ | 8,274 | $ | 471,051 | |||||||||||
Capital expenditures | $ | 139,180 | $ | 488,677 | $ | 62,490 | $ | 1,724 | $ | 692,071 | $ | 2,850 | $ | 694,921 | |||||||
Year Ended | |||||||||||||||||||||
December 31, 2024 | |||||||||||||||||||||
U.S. Drilling | International Drilling | Drilling Solutions | Rig Technologies | Total Reportable Segments | Other items (1) | Total | |||||||||||||||
(In thousands) | |||||||||||||||||||||
Operating revenues | $ | 1,028,122 | $ | 1,446,092 | $ | 314,071 | $ | 201,677 | $ | 2,989,962 | $ | (59,836) | $ | 2,930,126 | |||||||
Direct costs |
| (554,527) |
| (941,118) |
| (151,387) |
| (138,936) | (1,785,968) |
| 43,557 | (1,742,411) | |||||||||
Depreciation and amortization |
| (272,559) |
| (328,924) |
| (19,988) |
| (9,200) | (630,671) |
| (2,737) | (633,408) | |||||||||
Other segment expenses (2) |
| (24,755) | (68,192) | (30,309) | (33,298) |
| (156,554) | (149,826) |
| (306,380) | |||||||||||
Total adjusted operating income (loss) (3) | $ | 176,281 | $ | 107,858 | $ | 112,387 | $ | 20,243 | $ | 416,769 | |||||||||||
Capital expenditures | $ | 110,822 | $ | 459,175 | $ | 17,787 | $ | 5,767 | $ | 593,551 | $ | 16,176 | $ | 609,727 | |||||||
Year Ended | |||||||||||||||||||||
December 31, 2023 | |||||||||||||||||||||
U.S. Drilling | International Drilling | Drilling Solutions | Rig Technologies | Total Reportable Segments | Other items (1) | Total | |||||||||||||||
(In thousands) | |||||||||||||||||||||
Operating revenues | $ | 1,207,629 | $ | 1,345,249 | $ | 301,757 | $ | 242,768 | $ | 3,097,403 | $ | (91,422) | $ | 3,005,981 | |||||||
Direct costs |
| (647,251) |
| (892,182) |
| (145,139) |
| (181,644) | (1,866,216) |
| 75,836 | (1,790,380) | |||||||||
Depreciation and amortization |
| (271,310) |
| (347,786) |
| (18,634) |
| (7,865) | (645,595) |
| 301 | (645,294) | |||||||||
Other segment expenses (2) |
| (26,715) | (64,413) | (27,027) | (33,730) |
| (151,885) | (148,559) |
| (300,444) | |||||||||||
Total adjusted operating income (loss) (3) | $ | 262,353 | $ | 40,868 | $ | 110,957 | $ | 19,529 | $ | 433,707 | |||||||||||
Capital expenditures | $ | 136,311 | $ | 357,609 | $ | 25,721 | $ | 21,229 | $ | 540,870 | $ | 12,038 | $ | 552,908 | |||||||
Year Ended December 31, |
| ||||||||||
2025 | | 2024 | | 2023 |
| ||||||
|
| (In thousands) |
| ||||||||
Reconciliation of segment adjusted operating income (loss) to net income (loss): | |||||||||||
Net income (loss) | $ | 374,433 | $ | (87,987) | $ | 49,904 | |||||
Income tax expense (benefit) | 163,095 | 56,947 | 79,220 | ||||||||
Income (loss) before income taxes | $ | 537,528 | $ | (31,040) | $ | 129,124 | |||||
Investment (income) loss | (27,648) | (38,713) | (43,820) | ||||||||
Interest expense | 215,366 | 210,864 | 185,285 | ||||||||
Gain on disposition of Quail Tools | (413,962) | — | — | ||||||||
Gain on bargain purchase | (113,653) | — | — | ||||||||
Other, net | 65,802 | 106,816 | (726) | ||||||||
Other reconciling items (1) | 207,618 | 168,842 | 163,844 | ||||||||
Total segment adjusted operating income (loss) (3) | $ | 471,051 | $ | 416,769 | $ | 433,707 | |||||
December 31, | ||||||
| 2025 | | 2024 | |||
(In thousands) | ||||||
Total assets: | ||||||
U.S. Drilling | $ | 967,478 | $ | 1,049,650 | ||
International Drilling |
| 2,434,728 |
| 2,348,590 | ||
Drilling Solutions |
| 213,184 |
| 79,065 | ||
Rig Technologies |
| 153,838 |
| 215,225 | ||
Total reportable segments | 3,769,228 | 3,692,530 | ||||
Other reconciling items (4) |
| 1,020,429 |
| 811,771 | ||
Total | $ | 4,789,657 | $ | 4,504,301 | ||
| (1) | Represents the elimination of inter-segment transactions related to our Rig Technologies operating segment and unallocated corporate expenses, assets and capital expenditures. |
| (2) | Other segment expenses represent general and administrative expenses and research and engineering expenses. |
| (3) | Management evaluates the performance of our operating segments using adjusted operating income (loss), which is a segment performance measure, because it believes that this financial measure reflects our ongoing profitability and performance. In addition, securities analysts and investors use this measure as one of the metrics on which they analyze our performance. A reconciliation to income (loss) is provided in the above table. |
| (4) | Represents corporate-related assets. |
The following table sets forth financial information with respect to Nabors’ operations by geographic area based on the location of service provided:
Year Ended December 31, |
| |||||||||
| 2025 | | 2024 | | 2023 |
| ||||
(In thousands) |
| |||||||||
Operating revenues | ||||||||||
U.S. | $ | 1,309,598 | $ | 1,283,785 | $ | 1,477,774 | ||||
Outside the U.S. |
| 1,875,095 |
| 1,646,341 |
| 1,528,207 | ||||
$ | 3,184,693 | $ | 2,930,126 | $ | 3,005,981 | |||||
Property, plant and equipment, net: | ||||||||||
U.S. | $ | 1,041,793 | $ | 1,165,677 | $ | 1,304,686 | ||||
Outside the U.S. |
| 1,878,226 |
| 1,665,280 |
| 1,594,042 | ||||
$ | 2,920,019 | $ | 2,830,957 | $ | 2,898,728 | |||||
During the years ended December 31, 2025, 2024 and 2023, $1.0 billion, $927.7 million and $821.1 million of our consolidated operating revenue was from Saudi Arabia. No other individual country outside of the U.S. was material to our consolidated operating revenue during any of the three periods presented.
One customer accounted for approximately 30%, 31% and 26% of our consolidated operating revenues during the years ended December 31, 2025, 2024 and 2023, respectively, and is included primarily in our International Drilling reportable segment.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 13, 2026 | Showing above |
| 2024 | Feb 13, 2025 | |
| 2023 | Feb 12, 2024 | |
| 2022 | Feb 9, 2023 | |
| 2021 | Feb 18, 2022 | |
| 2020 | Feb 24, 2021 | |
| 2019 | Feb 25, 2020 | |
| 2018 | Feb 28, 2019 | |
| 2017 | Mar 1, 2018 | |
| 2016 | Feb 28, 2017 | |
| 2015 | Feb 26, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.