National Energy Services Reunited (NESR) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue reached $327.4 million, up 8% sequentially and 0.71% year-over-year, with strong cash generation and robust contract awards building a solid backlog through 2030 and beyond.

• Adjusted EBITDA for Q2 2025 was $70.6 million, margin 21.6%, up 13% sequentially, driven by operational execution and cost controls.

• Net income for Q2 2025 was $15.2 million, a 46.3% sequential increase but down 19.5% year-over-year.

• Positioned as a top player in MENA, leveraging local talent, technology innovation, and sector-leading investment.

• Maintained nearly $300 million in free cash flow over the past 10 quarters.

Financial highlights

• Q2 2025 revenue: $327.4 million, up 8% sequentially and 0.71% year-over-year.

• Adjusted EBITDA: $70.6 million, margin 21.6%, up 95 bps sequentially.

• Adjusted EPS: $0.21, up 50% from Q1 2025; diluted EPS: $0.16.

• Q2 2025 free cash flow: $68.7 million; H1 2025 free cash flow: $59.1 million.

• Net debt as of June 30: $223 million, an all-time low, with net debt to adjusted EBITDA at 0.74x.

Outlook and guidance

• Q3 2025 revenue and EBITDA expected to be consistent with Q2; Q4 2025 projected to be higher, driving full-year 2025 revenue above 2024 by up to $40 million.

• Margins for Q3 in line with Q2; Q4 margins expected to rise to 23-24%, with full-year margin guidance at 22%.

• Anticipates record revenue run rate exiting 2025, with continued growth into 2026 and significant MENA activity uptick, especially in Saudi, Kuwait, Iraq, UAE, and North Africa.

• Management expects steady growth, supported by a diversified country and technology mix and countercyclical investment strategy.