National Energy Services Reunited (NASDAQ:NESR) Announces Quarterly Earnings Results, Beats Expectations By $0.09 EPS

National Energy Services Reunited (NASDAQ:NESR) posted its earnings results on Monday. The company reported $0.44 EPS for the quarter, topping the consensus estimate of $0.35 by $0.09, FiscalAI reports. National Energy Services Reunited had a return on equity of 12.28% and a net margin of 5.77%.The firm had revenue of $520.75 million for the quarter, compared to analyst estimates of $448.54 million. The firm’s revenue for the quarter was up 59.1% on a year-over-year basis.

Here are the key takeaways from National Energy Services Reunited’s conference call:

• Record second-quarter results: Revenue rose 59.1% year over year to $520.8 million, while adjusted EBITDA reached $106.2 million, or a 20.4% margin. Adjusted diluted EPS increased to a record $0.44, supported by the Jafurah ramp-up and stronger activity in Saudi Arabia, Oman, and Egypt.
• Management now views $2 billion of 2026 revenue as a minimum objective, after reaching its prior annualized exit-rate target two quarters early. It expects full-year adjusted EBITDA margins broadly in line with 2025, free-cash-flow conversion of approximately 35%-40%, and capital expenditures of $210 million-$215 million.
• Cash generation and leverage remained strong, with second-quarter operating cash flow of $174 million, free cash flow of $99.9 million, and net debt of $99.6 million, or 0.3x adjusted EBITDA. NESR also plans to begin a quarterly dividend of $0.10 per share in the fourth quarter and maintain its $50 million share-repurchase authorization.
• Regional geopolitical disruptions created approximately $4 million of incremental freight and logistics costs in the quarter, while Iraq continued to weigh on activity. Management expects these costs to remain elevated in the third quarter and noted that tender awards may be delayed by roughly a quarter if conditions persist.
• NESR highlighted substantial longer-term growth opportunities through its 3B3 strategy, including larger Middle East tenders, expansion into new anchor countries such as Syria, Kuwait’s Ahmadi Innovation Valley technology agreement, and commercialization of its Roya drilling and Nedaa decarbonization and mineral-recovery technologies.

National Energy Services Reunited Trading Up 0.6%

Shares of National Energy Services Reunited stock opened at $36.01 on Wednesday. The company has a current ratio of 1.04, a quick ratio of 0.90 and a debt-to-equity ratio of 0.18. National Energy Services Reunited has a twelve month low of $6.68 and a twelve month high of $36.77. The firm has a market capitalization of $3.63 billion, a PE ratio of 39.14, a P/E/G ratio of 0.41 and a beta of 0.33. The firm’s 50-day moving average price is $27.24 and its 200 day moving average price is $24.45.

Analysts Set New Price Targets

NESR has been the subject of several recent research reports. Wall Street Zen raised shares of National Energy Services Reunited from a “buy” rating to a “strong-buy” rating in a report on Saturday, May 16th. Zacks Research upgraded shares of National Energy Services Reunited from a “hold” rating to a “strong-buy” rating in a research report on Monday, June 29th. Weiss Ratings cut National Energy Services Reunited from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Wednesday, July 29th. Citigroup reaffirmed a “buy” rating on shares of National Energy Services Reunited in a report on Monday. Finally, Piper Sandler raised their price objective on National Energy Services Reunited from $33.00 to $35.00 and gave the company an “overweight” rating in a report on Tuesday, July 14th. One investment analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating and one has given a Hold rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Buy” and a consensus target price of $33.57.

Insider Activity at National Energy Services Reunited

In other news, Director Yousif Mohammed Ali Al-Nowais sold 1,919,594 shares of the firm’s stock in a transaction that occurred on Thursday, June 25th. The stock was sold at an average price of $26.80, for a total value of $51,445,119.20. Following the transaction, the director owned 229,198 shares in the company, valued at $6,142,506.40. This trade represents a 89.33% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Insiders sold a total of 4,905,572 shares of company stock worth $129,727,626 over the last ninety days. 9.70% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Citadel Advisors LLC acquired a new position in shares of National Energy Services Reunited during the 3rd quarter worth approximately $22,722,000. Boston Partners lifted its position in National Energy Services Reunited by 155.6% during the fourth quarter. Boston Partners now owns 1,953,328 shares of the company’s stock worth $30,594,000 after buying an additional 1,189,035 shares in the last quarter. Millennium Management LLC lifted its position in National Energy Services Reunited by 1,482.3% during the fourth quarter. Millennium Management LLC now owns 1,237,585 shares of the company’s stock worth $19,381,000 after buying an additional 1,159,372 shares in the last quarter. Geode Capital Management LLC boosted its stake in National Energy Services Reunited by 2,227.2% during the second quarter. Geode Capital Management LLC now owns 815,209 shares of the company’s stock worth $4,908,000 after buying an additional 780,180 shares during the last quarter. Finally, Alyeska Investment Group L.P. purchased a new stake in National Energy Services Reunited in the 4th quarter valued at $12,208,000. Hedge funds and other institutional investors own 15.55% of the company’s stock.

About National Energy Services Reunited

National Energy Services Reunited Corp (NASDAQ: NESR) is a publicly traded oilfield services company formed in 2021 through a business combination that brought together complementary drilling and production service providers. The company’s mission is to deliver integrated solutions across the upstream oil and gas value chain, combining regional expertise with global operational standards.

NESR’s service portfolio spans drilling, completion and production, offering products and capabilities such as cementing, coiled tubing, hydraulic fracturing, well stimulation, pumping services and intervention solutions.