Segment Information

12 Months Ended

Dec. 31, 2025

Segment Information

Segment Information

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.