National Energy Services Reunited (NESR) Q4 2025 earnings summary

Executive summary

• Achieved record Q4 2025 revenue of $398.3 million, up 34.9% sequentially and 15.9% year-over-year, driven by the launch of the largest unconventional frack program and strong cost management.

• Adjusted net income for Q4 2025 was $31.9 million, more than doubling sequentially, while reported net income was $7.8 million, impacted by non-cash impairments and provisions.

• Growth was broad-based across the MENA region, with Kuwait set to become the second-largest country by revenue and significant upside in Libya and North Africa.

• Strategic focus on technology, decarbonization, and critical minerals, with new initiatives like the Ahmadi Innovation Valley and pilots in lithium extraction.

• Multi-year growth outlook supported by robust contract wins, a strong tender pipeline, and expanding operational scale.

Financial highlights

• Q4 2025 revenue reached $398.3 million, up 34.9% sequentially and 15.9% year-over-year, driven by Jafurah contract mobilization and North Africa activity.

• Adjusted EBITDA for Q4 was $84.4 million (21.2% margin), up 32% sequentially and stable despite higher revenues from competitively priced contracts.

• Full year 2025 revenue was $1.324 billion, up 1.7% year-over-year; adjusted EBITDA was $281.4 million (21.3% margin).

• Q4 adjusted diluted EPS was $0.32, up 105% sequentially; full year adjusted diluted EPS was $0.81.

• Operating cash flow for 2025 was $264.2 million, up 15.2% year-over-year; free cash flow was $120.8 million (43% conversion from adjusted EBITDA).

Outlook and guidance

• 2026 expected to be the best growth year ever, with annualized revenue run rate targeted at $2 billion by year-end.

• EBITDA margins for 2026 projected to remain consistent with 2025, with sequential improvement through the year.

• Q1 2026 to see muted seasonality; margins expected to start lower and rise throughout the year.

• 2026 CapEx expected at $165 million; free cash flow conversion projected at 35%-40% of adjusted EBITDA.

• Formal capital allocation and shareholder return framework update planned for next earnings call.