National Energy Services Reunited revenue rises 71% as margins narrow
Quarterly profit reached US$34.3 million, while revenue and adjusted EBITDA fell from June and NESR declared a US$0.10 dividend.
Ines Halvorsen
For the quarter ended Sept. 30, revenue reached US$504.7 million at National Energy Services Reunited Corp. NASDAQNESR, the company reported on Monday. The Nov. 9 results put net income at US$34.3 million, up 93.5 per cent from a year earlier.
Revenue increased 70.9 per cent from the third quarter of 2025, but fell 3.1 per cent from the preceding quarter. Adjusted earnings before interest, taxes, depreciation and amortization reached US$95.9 million for the September quarter, down 9.7 per cent sequentially.
NESR supplies production, drilling and evaluation services in the Middle East and North Africa. Its services include hydraulic fracturing, cementing, directional drilling, testing and wireline work. Alongside its Nov. 9 results, it declared a quarterly cash dividend of US$0.10 a share, payable Dec. 10.
NESR shares NASDAQNESR closed at US$19.96 on Nasdaq at 4:00 p.m. EST on Nov. 6, before Monday's results were released.
The September quarter's adjusted EBITDA margin was approximately 19.0 per cent, calculated from the revenue and adjusted EBITDA figures in the release. That compares with 21.7 per cent a year earlier and 20.4 per cent in the June quarter.
Net income also fell sequentially, by 22.0 per cent from the June quarter. NESR attributed the changes between periods primarily to revenue fluctuations driven by activity in hydraulic fracturing, well testing and wireline logging.
For the September quarter, adjusted net income was US$39.6 million after excluding US$5.3 million of charges and credits. Those adjustments included a US$2.9 million investment impairment and US$1.1 million of expected credit loss provisions. Adjusted diluted earnings were US$0.38 a share, compared with reported diluted earnings of US$0.33. Adjusted earnings fell from US$0.44 in the June quarter but exceeded US$0.16 a year earlier.
Regional peer Halliburton Company NYSEHAL reported on Oct. 20 that third-quarter Middle East/Asia revenue rose 8 per cent sequentially to US$1.4 billion. Halliburton attributed that increase primarily to higher activity across multiple service lines in Saudi Arabia and Kuwait.
Capital Spending Supports Contract Growth
NESR chief financial officer Stefan Angeli said in the Nov. 9 release that operating cash flow exceeded US$200 million during the first nine months of 2026. Capital expenditure exceeded US$150 million over the same period to support the growing contract portfolio, while net debt declined by approximately US$25 million.
Those nine-month cash figures cover a longer period than the September quarter's earnings. They do not establish a quarterly cash conversion rate, and adjusted EBITDA excludes costs captured in reported net income.
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Angeli also described a refinancing that replaces existing secured credit facilities.
"The new facilities refinance our existing secured credit facilities, establish a multi-year maturity profile, and provide a combination of term financing, revolving credit and working capital facilities to support our expanding operations," Angeli said in the release.
NESR's next scheduled update is its Nov. 9 earnings call at 8:00 a.m. EST, when management is due to discuss the results.
