Over the past year, Nabors Industries Ltd. NBR has significantly outperformed both its industry and the broader energy sector. The company's shares have surged 194.5%, substantially exceeding the 65.6% growth delivered by the Oil & Gas – Drilling sub-industry (ZSI134M) and the 29% increase recorded by the broader Oil-Energy sector (ZS12M). This remarkable outperformance reflects strong investor confidence in Nabors' strategic execution, improving operational performance and favorable positioning within the drilling market.
12-Month Price Performance Comparison
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Nabors Industries primarily makes money by providing land drilling rigs and related services to oil and natural gas exploration and production companies. The company generates revenues through long-term and short-term drilling contracts, with earnings driven by rig utilization, dayrates and contract duration. In addition to its core drilling business, Nabors derives revenues from its Drilling Solutions segment, which offers directional drilling, drilling automation, digital wellsite technologies and software that help customers improve operational efficiency.
The company also earns income from its Rig Technologies business, which manufactures and upgrades drilling equipment and continues to expand into energy transition opportunities, including geothermal drilling and carbon capture solutions, further diversifying its revenue streams.
Following its impressive rally, Nabors has captured investors' attention. The stock's strong performance has raised an important question: What is driving the momentum, and does it still have room to move higher? Let's examine the key growth catalysts and core fundamentals supporting the company's long-term investment case.
Why Is NBR Suddenly on Investors' Radar?
Market Share Gains: NBR continues to strengthen its competitive position by winning additional drilling contracts despite a relatively soft United States land drilling market. Management stated that the company added four rigs during the first quarter and eight rigs since November 2025, while broader industry activity remained muted. This performance reflects Nabors' ability to attract customers through premium rigs, advanced technology and reliable execution, supporting sustainable revenue growth and improving confidence in its long-term market position.
International Growth: NBR continues expanding its international business through new rig deployments in Saudi Arabia, Argentina and Mexico while actively pursuing additional opportunities across Latin America and Asia Pacific. Management emphasized that these projects are generally backed by long-term contracts with attractive returns, providing stronger earnings visibility than short-cycle drilling markets. This growing international presence reduces dependence on North American activity and supports a more diversified and resilient revenue base.