National Energy Services Reunited (NESR) Q3 2025 earnings summary

Executive summary

• Secured the largest frac tender in Jafurah, a multi-year, multi-billion dollar contract, establishing a leading position in the Middle East unconventional sector.

• Achieved strong execution and cost control despite transitioning key contracts in Q3 2025, with continued growth in Kuwait and increased activity across most operating countries.

• Countercyclical investment strategy enabled rapid operational readiness and capitalized on market weakness, positioning for future growth.

• Participation in major industry events highlighted the region's focus on energy addition and AI-driven demand, aligning with company strengths.

• Net income rose to $17.7 million, up 16.7% sequentially but down 14.0% year-over-year, with diluted EPS at $0.18, up 15.6% sequentially.

Financial highlights

• Q3 2025 revenue was $295.3 million, down 9.8% sequentially and 12.2% year-over-year, mainly due to contract transitions in Saudi Arabia.

• Adjusted EBITDA for Q3 2025 was $64 million (21.7% margin), stable versus Q2 2025 despite lower revenue, reflecting strong cost discipline.

• Adjusted EPS for Q3 2025 was $0.16, with adjustments for charges and credits totaling $2.3 million.

• Gross debt as of September 30 was $332.9 million; net debt was $263.3 million; net debt-to-Adjusted EBITDA ratio at 0.93.

• Operating cash flow for the nine months ended September 30, 2025, was $125.7 million; free cash flow was $25.0 million, down from $103.0 million in the prior year period.

Outlook and guidance

• Full year 2025 revenue expected to be broadly in line with 2024, with Q4 2025 anticipated to be a record quarter.

• 2025 and 2026 EBITDA margins projected to remain at 21%-22%, with a goal to improve to 23%-25% over time.

• 2026 revenue run rate expected to reach approximately $2 billion, with high confidence due to signed contracts and operational ramp-up.

• CapEx for 2025 and 2026 guided at $140 million-$150 million annually, supporting contract execution and growth.

• Free cash flow for 2025 projected at $70 million-$80 million, with a positive trajectory expected in 2026.