National Energy Services Reunited Corp. press release
National Energy Services Reunited Corp. Reports Fourth Quarter 2025 Financial Results
NASDAQ - Nasdaq Stock Market · Oil · Natural Gas · United States
National Energy Services Reunited Corp. Reports Fourth Quarter 2025 Financial Results
Revenue for the quarter ended December 31, 2025, is $398.3 million, up 34.9% sequentially and 15.9% year-over-year
Net income for the quarter ended December 31, 2025, is $7.8 million
Adjusted net income (a non-GAAP measure)** for the quarter ended December 31, 2025, is $31.9 million, up 106.6% sequentially
Adjusted EBITDA (a non-GAAP measure)** for the quarter ended December 31, 2025, is $84.4 million, improving 32.0% sequentially
Operating cash flow for the year ended December 31, 2025, is $264.2 million, up 15.2% year-over-year
Free cash flow (a non-GAAP measure)** for the year ended December 31, 2025, is $120.8 million
HOUSTON, TX / ACCESS Newswire / February 17, 2026 / National Energy Services Reunited Corp. ("NESR" or the "Company"), a leading integrated energy services provider in the Middle East and North Africa ("MENA"), today announced its financial results for the three-month period and year ended December 31, 2025. The Company delivered the following results for the periods presented:
Three Months Ended
Variance
(in thousands except per share amounts and percentages)
December 31,
2025
September 30,
2025
December 31,
2024
Sequential
Year-
over- year
Revenue
$
398,262
$
295,315
$
343,682
34.9
%
15.9
%
Net income
7,803
17,737
26,837
(56.0
)%
(70.9
)%
Adjusted net income (non-GAAP)**
31,879
15,434
28,140
106.6
%
13.3
%
Adjusted EBITDA (non-GAAP)**
84,414
63,957
87,219
32.0
%
(3.2
)%
Diluted EPS
0.08
0.18
0.28
(54.6
)%
(71.4
)%
Adjusted Diluted EPS (non-GAAP)**
0.32
0.16
0.30
105.0
%
6.7
%
**The Company presents its financial results in accordance with generally accepted accounting principles in the United States of America ("GAAP"). However, management believes that using additional non-GAAP measures will enhance the evaluation of the profitability of the Company and its ongoing operations. Please see Tables 1, 2, 3, and 4 below for reconciliations of GAAP to non-GAAP financial measures. The Consolidated Balance Sheets, Statements of Operations, and Statements of Cash Flows are derived from the financial statements that will be presented in our Annual Report on Form 10-K for the year ended December 31, 2025.
Stefan Angeli, Chief Financial Officer, commented, "Fourth quarter 2025 marked a strong finish to the year, highlighted by a sharp sequential acceleration in activity, disciplined cost execution, and continued balance sheet strengthening. Revenue reached $398.3 million, reflecting a 34.9% sequential increase, driven by improved utilization and the early stages of mobilization on recently awarded contracts. Adjusted EBITDA for the quarter increased 32% sequentially to $84.4 million. Adjusted EBITDA margins of 21.2% were substantially flat on a sequential quarter basis, underscoring the scalability of our operating model and the effectiveness of our cost controls.
Net income for the quarter was $7.8 million and was impacted by non-cash impairment charges on two small technology investments, additional current expected credit loss provisions, mobilization-related restructuring costs in Oman, and other write-offs and provisions, largely related to a vendor bankruptcy and resulting provision for a construction-in-process prepayment previously made in Saudi Arabia. Excluding these items, Adjusted Net Income was $31.9 million, more than doubling sequentially, with Adjusted Diluted EPS of $0.32. These results reflect strong underlying operating performance despite the impact of discrete items recorded during the quarter.
During 2025, we continued to prioritize cash generation and debt reduction, ending the year with Net Debt of $185.3 million, down nearly $90 million year-over-year, and a significantly strengthened liquidity position. As we enter 2026, our focus remains on executing our growing backlog efficiently, maintaining strong margins, improving working capital performance, and further enhancing returns on capital. We believe NESR is uniquely positioned to enter its next phase of growth with record revenues, strong operational momentum, and a clear focus on delivering durable, long-term value to shareholders."
Sherif Foda, Chairman and Chief Executive Officer, commented, "We are very pleased with our fourth quarter results, which cap another year of disciplined execution and strategic progress for NESR. The quarter follows the announcement of several significant contract awards, most notably our integrated unconventional completions scope in Saudi Arabia's Jafurah development, which further reinforces our long-standing partnership with Aramco and our role in enabling world-class unconventional operations in the Kingdom. Our countercyclical investments over the past couple of years have positioned the Company with unmatched readiness across infrastructure, equipment, digital capabilities, and people, to mobilize and execute at scale with confidence and efficiency. Importantly, we continue to see strong momentum beyond Saudi Arabia, with new awards across the broader MENA region supporting a multi-year growth trajectory. As we enter 2026, NESR is shifting to a totally different gear and scale, operating from a position of strength, with multiple opportunities spanning across different countries, and a highly committed team. We remain focused on delivering consistent value to our customers, shareholders, and partners, and I am extremely proud of what our people have accomplished."
Net Income and Adjusted Net Income Results
Net income for the quarter ended December 31, 2025, was $7.8 million, representing a decline from the prior quarter, primarily driven by non-cash impairment charges on two immaterial technology investments, higher current expected credit loss provisions mainly in Oman, mobilization-related restructuring costs in Oman, and other write-offs and provisions, largely related to a Saudi Arabia provision for construction-in-process prepayment following a vendor bankruptcy. These impacts were partially offset by strong fall-through from higher sequential revenues during the quarter. Adjusted net income for the quarter was $31.9 million and included $24.1 million of "Total Charges and Credits impacting Adjusted Net Income and Adjusted Diluted EPS," primarily attributable to the aforementioned impairment charges totaling $8.1 million, $4.7 million of mobilization-related restructuring costs incurred in Oman, $7.1 million of credit loss provisions mostly in Oman, and $3.7 million of other write-offs and provisions, largely related to the Saudi Arabia construction-in-process prepayment provision, described above. A detailed reconciliation of net income and diluted EPS to Adjusted Net Income and Adjusted Diluted EPS, including a complete list of adjusting items, is presented in Table 1 below under "Reconciliation of Net Income and Diluted EPS to Adjusted Net Income and Adjusted Diluted EPS."
The Company reported $0.08 of diluted EPS for the quarter ended December 31, 2025. Adjusted for the impact of Total Charges and Credits impacting Adjusted Net Income and Adjusted Diluted EPS, Adjusted Diluted EPS, a non-GAAP measure described in Table 1 below, for the quarter ended December 31, 2025, is $0.32, doubling from the $0.16 reported in the third quarter of 2025.
Adjusted EBITDA Results
The Company produced Adjusted EBITDA of $84.4 million during the quarter ended December 31, 2025, up 32.0% on a sequential quarter basis. Adjusted EBITDA includes adjustments for certain Total Charges and Credits impacting Adjusted EBITDA (those not related to interest, taxes, and/or depreciation and amortization). The Company posted the following results for the periods presented:
(in thousands)
Quarter ended
December 31,
2025
Quarter ended
September 30,
2025
Quarter ended
December 31,
2024
Revenue
$
398,262
$
295,315
$
343,682
Adjusted EBITDA
$
84,414
$
63,957
$
87,219
A detailed reconciliation of net income to Adjusted EBITDA, including a complete list of adjusting items, is presented in Table 2 below under "Reconciliation of Net Income to Adjusted EBITDA."
Balance Sheet
Cash and cash equivalents are $124.8 million as of December 31, 2025, compared to $108.0 million as of December 31, 2024.
Free cash flow, a non-GAAP measure, for the year ended December 31, 2025, was $120.8 million, compared to $124.2 million for the same period in 2024. The decrease was primarily attributable to higher growth capital expenditures in 2025 as compared to 2024, as offset in part by improved working capital management. A reconciliation of the applicable GAAP measures to free cash flow is presented in Table 3, titled "Reconciliation of Net cash provided by (used in) operating activities to Free Cash Flow."
Total debt as of December 31, 2025, was $310.1 million, of which $118.8 million was classified as short-term, compared to $382.8 million and $128.5 million, respectively, as of December 31, 2024. Net Debt, a non-GAAP measure defined as the sum of current installments of long-term debt, short-term borrowings, and long-term debt less cash and cash equivalents, totaled $185.3 million as of December 31, 2025, compared to $274.9 million at December 31, 2024. The decrease in Net Debt reflects scheduled long-term debt repayments made during 2025, more than offset by a larger magnitude of free cash flow generation. A reconciliation of the applicable GAAP measures to Net Debt is presented in Table 4, titled "Reconciliation to Net Debt."
About National Energy Services Reunited Corp.
Founded in 2017, NESR is one of the largest national oilfield services providers in the MENA and Asia Pacific regions. With over 7,000 employees, representing more than 60 nationalities in 16 countries, the Company helps its customers unlock the full potential of their reservoirs by providing Production Services such as Hydraulic Fracturing, Cementing, Coiled Tubing, Filtration, Completions, Stimulation, Pumping and Nitrogen Services. The Company also helps its customers to access their reservoirs in a smarter and faster manner by providing Drilling and Evaluation Services such as Drilling Downhole Tools, Directional Drilling, Fishing Tools, Testing Services, Wireline, Slickline, Drilling Fluids and Rig Services.
Conference Call
A conference call is scheduled for 8:00 AM ET on February 17, 2026, to discuss the financial results. Investors, analysts and members of the media are invited to participate by dialing in to the U.S. toll-free line at 1-877-407-0890 or the international line at 1-201-389-0918, approximately 10 minutes prior to the start of the call.
A live, listen-only earnings webcast will also be broadcast simultaneously under the "Investors" section of the Company's website at www.nesr.com. Following the end of the conference call, a replay will be available after the event under the "Investors" section of the Company's website.
Forward-Looking Statements
This communication contains forward-looking statements (as such term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended). Any and all statements contained in this communication that are not statements of historical fact, may be deemed forward-looking statements. Terms such as "may," "might," "would," "should," "could," "project," "estimate," "predict," "potential," "strategy," "anticipate," "attempt," "develop," "plan," "help," "believe," "continue," "intend," "expect," "future," and terms of similar import (including the negative of any of these terms) may identify forward-looking statements. However, not all forward-looking statements may contain one or more of these identifying terms. Forward-looking statements in this communication may include, without limitation, the plans and objectives of management for future operations, projections of income or loss, earnings or loss per share, capital expenditures, dividends, capital structure or other financial items, the Company's future financial performance, expansion plans and opportunities, completion and integration of acquisitions, and the assumptions underlying or relating to any such statement.
The forward-looking statements are not meant to predict or guarantee actual results, performance, events or circumstances and may not be realized because they are based upon the Company's current projections, plans, objectives, beliefs, expectations, estimates and assumptions and are subject to a number of risks and uncertainties and other influences, many of which the Company has no control over. Actual results and the timing of certain events and circumstances may differ materially from those described by the forward-looking statements as a result of these risks and uncertainties. Factors that may influence or contribute to the accuracy of the forward-looking statements or cause actual results to differ materially from expected or desired results may include, without limitation: catastrophic events, the level of capital spending by our customers, political, market, financial and regulatory risks, including those related to the geographic concentration of our operations and customers, our operations, including maintenance, upgrades and refurbishment of our assets, may require significant capital expenditures, which may or may not be available to us, operating hazards inherent in our industry and the ability to secure sufficient indemnities and insurance, our ability to successfully integrate acquisitions, competition, including for capital and technological advances, and other risks and uncertainties set forth in the Company's most recent Annual Report on Form 20-F filed with the SEC.
You are cautioned not to place undue reliance on forward-looking statements because of the risks and uncertainties related to them and to the risk factors. The Company disclaims any obligation to update the forward-looking statements contained in this communication to reflect any new information or future events or circumstances or otherwise, except as required by law. You should read this communication in conjunction with other documents which the Company may file or furnish from time to time with the SEC.
The preliminary financial results for the Company as of and for the three- and twelve-month periods ended December 31, 2025, included in this press release, represent the most current information available to management. The Company's actual results when disclosed in its subsequent Annual Report on Form 10-K may differ from these preliminary results as a result of the completion of the Company's financial statement closing procedures, final adjustments, completion of the independent registered public accounting firm's audit procedures, and other developments that may arise between now and the disclosure of the final results.
NATIONAL ENERGY SERVICES REUNITED CORP. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED BALANCE SHEETS
(In US$ thousands, except share data)
December 31,
2025
December 31,
2024
Assets
Current assets
Cash and cash equivalents
$
124,797
$
107,956
Accounts receivable, net
178,020
137,265
Unbilled revenue
121,186
111,734
Service inventories
94,834
96,772
Prepaid assets
13,237
10,146
Retention withholdings
33,125
31,072
Other receivables
54,511
38,476
Other current assets
10,664
7,095
Total current assets
630,374
540,516
Non-current assets
Property, plant and equipment, net
465,454
438,146
Intangible assets, net
47,086
65,696
Goodwill
645,095
645,095
Operating lease right-of-use assets
20,300
26,042
Other assets
43,210
58,183
Total assets
$
1,851,519
$
1,773,678
Liabilities and equity
Liabilities
Accounts payable and accrued expenses
421,064
305,308
Current installments of long-term debt
64,500
68,735
Short-term borrowings
54,250
59,720
Income taxes payable
25,092
7,728
Other taxes payable
12,351
27,482
Operating lease liabilities
2,948
5,449
Other current liabilities
24,715
29,090
Total current liabilities
604,920
503,512
Long-term debt
191,378
254,387
Deferred tax liabilities
1,691
5,632
Employee benefit liabilities
36,321
31,806
Non-current operating lease liabilities
18,447
20,843
Other liabilities
30,846
49,266
Total liabilities
883,603
865,446
Equity
Preferred shares, no par value; unlimited shares authorized; none issued and outstanding at December 31, 2025, and 2024, respectively
-
-
Common stock and additional paid in capital, no par value; unlimited shares authorized; 100,787,173 and 96,045,856 shares issued and outstanding at December 31, 2025, and 2024, respectively
902,845
894,293
Retained income
65,002
13,870
Accumulated other comprehensive income
69
69
Total equity
967,916
908,232
Total liabilities and equity
$
1,851,519
$
1,773,678
NATIONAL ENERGY SERVICES REUNITED CORP. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(In US$ thousands, except share data and per share amounts)
For the three-month
period ended
For the year ended
Description
December 31,
2025
December 31,
2024
December 31,
2025
December 31,
2024
Revenues
$
398,262
$
343,682
$
1,324,047
$
1,301,704
Cost of services
(350,231
)
(284,501
)
(1,159,317
)
(1,093,031
)
Gross profit
48,031
59,181
164,730
208,673
Selling, general and administrative expenses (excluding Amortization)
(12,655
)
(10,905
)
(47,636
)
(52,195
)
Amortization
(4,694
)
(4,694
)
(18,774
)
(18,774
)
Operating income
30,682
43,582
98,320
137,704
Interest expense, net
(7,539
)
(9,905
)
(32,513
)
(39,881
)
Other expense, net
(8,167
)
(3,524
)
(5,409
)
(2,325
)
Income before income tax
14,976
30,153
60,398
95,498
Income tax expense
(7,173
)
(3,316
)
(9,266
)
(19,188
)
Net income
$
7,803
$
26,837
$
51,132
$
76,310
Weighted average shares outstanding:
Basic
100,782,309
95,955,545
98,444,582
95,472,527
Diluted
102,209,983
96,378,194
99,105,484
95,735,924
Earnings per share:
Basic
$
0.08
$
0.28
$
0.52
$
0.80
Diluted
$
0.08
$
0.28
$
0.52
$
0.80
NATIONAL ENERGY SERVICES REUNITED CORP. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In US$ thousands)
Year ended
December 31,
2025
December 31,
2024
December 31,
2023
Cash flows from operating activities:
Net income / (loss)
$
51,132
$
76,310
$
12,580
Adjustments to reconcile net income / (loss) to net cash provided by operating activities:
Depreciation and amortization
141,729
142,784
142,230
Share-based compensation expense
8,321
6,032
6,763
Loss (Gain) on disposal of assets
(3,568
)
467
487
Non-cash interest (income) expense
1,024
(1,171
)
1,549
Deferred tax expense / (benefit)
(5,198
)
(2,719
)
(3,753
)
Allowance for (reversal of) doubtful receivables and unbilled revenue
8,727
8,844
410
Charges on obsolete service inventories
1,513
2,294
137
Impairments and other charges
9,568
5,324
7,917
Other operating activities, net
2,744
327
933
Changes in operating assets and liabilities:
(Increase) decrease in accounts receivable
(49,482
)
25,159
(22,971
)
(Increase) decrease in unbilled revenue
(9,452
)
(15,737
)
14,189
(Increase) decrease in retention withholdings
(2,053
)
17,347
(14,151
)
(Increase) decrease in inventories
425
(633
)
11,951
(Increase) decrease in prepaid expenses
(3,091
)
(909
)
(8,901
)
(Increase) decrease in other current assets
(1,653
)
4,967
2,817
(Increase) decrease in other long-term assets and liabilities
(1,579
)
(6,959
)
16,259
Increase (decrease) in accounts payable and accrued expenses
116,160
(38,517
)
(3,365
)
Increase (decrease) in other current liabilities
(1,025
)
6,119
11,878
Net cash provided by operating activities
264,242
229,329
176,959
Cash flows from investing activities:
Capital expenditures
(143,454
)
(105,105
)
(68,190
)
IPM investments
-
-
(16,031
)
Proceeds from disposal of assets
4,905
3,058
1,758
Other investing activities
(13,689
)
(9,087
)
(1,000
)
Net cash used in investing activities
(152,238
)
(111,134
)
(83,463
)
Cash flows from financing activities:
Proceeds from long-term debt
-
4,063
11,300
Repayments of long-term debt
(68,735
)
(85,806
)
(54,763
)
Proceeds from short-term borrowings
98,578
83,434
94,506
Repayments of short-term borrowings
(104,197
)
(72,614
)
(137,402
)
Payments on capital leases
(3,905
)
(3,193
)
(2,403
)
Payments on seller-provided financing for capital expenditures
(7,408
)
(3,781
)
(15,569
)
Other financing activities, net
(1,597
)
(163
)
(197
)
Net cash provided by (used in) financing activities
(87,264
)
(78,060
)
(104,528
)
Effect of exchange rate changes on cash
-
-
-
Net increase (decrease) in cash
24,740
40,135
(11,032
)
Cash and cash equivalents, beginning of period
107,956
67,821
78,853
Cash, cash equivalents, and restricted cash, end of period
$
132,696
$
107,956
$
67,821
NATIONAL ENERGY SERVICES REUNITED CORP. AND SUBSIDIARIES