National Energy Services Reunited (NESR) Q3 2026 earnings summary

Executive summary

• Q3 revenue rose 70.9% YoY to $504.7M; operating income was $52.5M and net income was $34.3M, while Adjusted EBITDA increased 49.9% to $95.9M.

• Nine-month revenue reached $1,430.1M vs. $925.8M, net income was $102.2M vs. $43.3M, and operating cash flow exceeded $200M.

Financial highlights

• Q3 revenue fell 3.1% QoQ; adjusted net income was $39.6M, up 156.8% YoY, and adjusted diluted EPS was $0.38.

• Q3 diluted EPS was $0.33 vs. $0.18; gross profit was $69.0M vs. $35.4M YoY.

• Nine-month operating cash flow was $201.5M vs. $125.7M; nine-month free cash flow was $48.7M, while Q3 free cash flow was negative $45.9M.

Outlook and guidance

• FY26 revenue goal is ~$2B, with adjusted EBITDA margin of ~20%; FY26 CapEx guidance is $220M–$225M.

• FY26 guidance includes ~$28M net interest expense, ~22.5% tax rate, ~8% net income margin, and free cash flow conversion of 30%–35% of Adjusted EBITDA.

• Q4 free cash flow is expected to improve on collections and working capital; FY26 conversion is expected toward 35% of Adjusted EBITDA.

• 2027 revenue is expected to grow on projects and outperformance, with margins holding or improving slightly; the 3B3 target is $3B annual revenue by exit 2028.

• Regional activity is expected to remain flat under current conditions; North Africa was viewed as capable of 20%–30% YoY growth in 2027.