National Energy Services Reunited (NESR) Q3 2024 earnings summary

Executive summary

• Achieved record revenue, EBITDA, EPS, and cash flow in Q3 2024, continuing robust growth from prior periods.

• Revenue reached $336.2 million for Q3 2024, up 12% year-over-year and 3.5% sequentially.

• Net income for Q3 2024 was $20.6 million, a 40% increase year-over-year and 9.2% sequentially.

• Relisted on NASDAQ after two years, following extensive internal control and process improvements.

• Strong operational execution and technology initiatives, including successful projects in Saudi Arabia and Kuwait.

Financial highlights

• Q3 2024 revenue reached $336.2 million, up 3.5% sequentially and 12% year-over-year.

• Year-to-date revenue at $958 million, up 14.3% year-over-year.

• Adjusted EBITDA for Q3 2024 was $80 million (23.8% margin), with year-to-date adjusted EBITDA at $222.9 million, up 21.9% year-over-year.

• Q3 2024 EPS (excluding charges/credits) was $0.31; diluted EPS was $0.22, up 37.5% year-over-year.

• Q3 2024 cash flow from operations was $70.8 million; free cash flow was $43.4 million.

Outlook and guidance

• Expect Q4 2024 year-over-year growth to match the first three quarters.

• Anticipate continued growth in MENA through 2025, with NESR targeting revenue growth at double the market rate (market expected at 5-6%).

• CapEx for 2024 expected at $120 million, with similar levels projected for 2025 to support technology deployment.

• Management remains focused on profitable revenue growth, execution efficiency, technology expansion, and debt reduction.

• MENA region market conditions remain favorable despite macro volatility.