National Energy Services Reunited (NESR) AI Stock Analysis

• Market Cap: $2.09B
• Dividend Yield: N/A
• Average Volume (3M): 2.18M
• Price to Earnings (P/E): 30.1
• Beta (1Y): 0.93
• Revenue Growth: 0.31%
• EPS Growth: 33.08%
• Country: US
• Employees: 6,554
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): 0.32
• Shares Outstanding: 100,787,170
• 10 Day Avg. Volume: 2,859,366
• 30 Day Avg. Volume: 2,179,162
• PEG Ratio: -0.86
• Price to Book (P/B): 1.59
• Price to Sales (P/S): 1.16
• P/FCF Ratio: 12.76
• Enterprise Value/Market Cap: 1.11
• Enterprise Value/Revenue: 1.75
• Enterprise Value/Gross Profit: 14.07
• Enterprise Value/Ebitda: 11.17
• 1Y Price Target: $29.00
• Price Target Upside: 39.69% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): 1.58
• Revenue Forecast (FY): $1.80B

• Rating: 77 Outperform
• Price Target: $23.50 ▲(13.20% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is driven primarily by improving financial strength (lower leverage, positive and improving free cash flow) and strong technical uptrend signals. Earnings call guidance supports continued growth into 2026 with solid cash generation, while a higher P/E and recent margin/cash-conversion softness temper the overall rating.

Positive Factors

Strengthened balance sheet

Material deleveraging and equity growth have reduced financial risk and increased flexibility. Lower leverage (debt-to-equity ~0.29) and management's net-debt target support capacity for disciplined M&A, fleet investment, or tender-backed mobilizations without stressing liquidity over the medium term.

Robust cash generation

Sustained operating cash flow and positive free cash flow signal durable cash-generation capacity to fund capital expenditure, deleveraging and working-capital needs. Management guidance targeting 35–40% free-cash conversion of adjusted EBITDA in 2026 reinforces an enduring focus on cash conversion and capital discipline.

Strategic scale via Jafurah mobilization

On-time mobilization of the sector's largest unconventional frac program gives NESR scale advantages, deeper client ties and long-term revenue visibility. Achieving steady-state operations and incremental fleet additions can lower unit costs, improve margins over time, and strengthen competitive positioning across MENA.

Negative Factors

Margin compression

Sustaining profitability is challenged by mix shifts, country-specific pricing and contract transitions that compressed margins. If pricing or contract mix pressures persist, margin recovery targets may be harder to achieve, limiting durable improvements in return on capital absent sustained operational efficiencies.

Cash-conversion volatility

Working-capital swings and episodic negative FCF historically undermine earnings quality. Inconsistent cash conversion raises the risk that reported profits won’t reliably translate to distributable cash, complicating reinvestment planning and making leverage targets and capital returns more sensitive to operational timing.

Regional execution & timing risk

Concentration in MENA exposes NESR to country-specific mobilization, receivable and vendor risks that have produced one-time charges. Combined with multi-winner tender dynamics and stretched award timing, execution and cash-collection uncertainty can delay revenue realization and compress near-to-medium-term margins.

National Energy Services Reunited Business Overview & Revenue Model

Company Description

National Energy Services Reunited Corp. provides oilfield services to oil and gas companies in the Middle East, North Africa, and the Asia Pacific regions. It operates through two segments, Production Services; and Drilling and Evaluation Services. The Production Services segment offers hydraulic fracturing services; coiled tubing services, including nitrogen lifting, fishing, milling, clean-out, scale removal, and other well applications; stimulation and pumping services; primary and remedial cementing services; nitrogen services; filtration services, as well as frac tanks and pumping units; and pipeline services, such as water filling and hydro testing, nitrogen purging, and de-gassing and pressure testing, as well as cutting/welding and cooling down piping/vessels systems. It also provides production assurance chemicals; laboratory services; artificial lift services; and surface and subsurface safety systems, high-pressure packer systems, flow controls, service tools, expandable liner technology, vacuum insulated tubing technology, and engineering capabilities with manufacturing capacity and testing facilities, as well as sources, treats, and disposes water for oil and gas, municipal, and industrial use. The Drilling and Evaluation Services segment offers drilling and workover rigs; rig services; fishing and remedial solutions; directional and turbines drilling services; drilling fluid systems and related technologies; wireline logging services; slickline services for removal of scale, wax and sand build-up, setting plugs, changing out gas lift valves, and fishing and other well applications; and well testing services to measure solids, gas, and oil and water produced from a well, as well as rents drilling tools. It also provides oilfield solutions for thru-tubing intervention; tubular running services; and a range of wellhead products, flow control equipment, and frac equipment. The company was incorporated in 2017 and is headquartered in Houston, Texas.

How the Company Makes Money

NESR makes money by selling oilfield services and related products to oil and gas exploration and production companies under service contracts. Its revenue model is primarily project- and contract-based, with fees earned for executing specific well and field activities (e.g., drilling-related services, well construction and completion work, and production/stimulation operations), as well as charges for associated equipment usage and consumables where applicable. Key revenue streams therefore consist of (1) service fees tied to wellsite execution (often priced per job, per day, per stage, per run, or per unit of work depending on the service line), and (2) product/consumable sales and equipment-related charges bundled into, or billed alongside, those service engagements. Earnings are influenced by customer capital spending and activity levels (rig count, well count, and completion intensity), contract scope and duration, pricing/margins by service line, and utilization of personnel and equipment. Information on any significant partnerships that directly drive NESR’s earnings: null.

National Energy Services Reunited Financial Statement Overview

Summary

Financials show a multi-year turnaround with sustained profitability, improving leverage (debt-to-equity down to ~0.29 TTM), and solid operating cash flow/free cash flow. The main offsets are margin compression in TTM versus 2024 and weaker cash conversion versus earnings, which reduces earnings-quality confidence.

Income Statement

NESR shows a clear profitability recovery versus 2021–2022 losses, with positive earnings sustained through 2023–TTM (Trailing-Twelve-Months). Revenue has grown meaningfully since 2022, though growth slowed to ~4.3% in TTM. The main soft spot is margin compression: TTM gross margin (~12.4%) and operating profitability (EBIT margin ~5.3%) are notably below 2024 levels, and TTM net margin (~4.9%) also eased, suggesting either pricing, mix, or cost pressure.

Balance Sheet

Leverage has improved steadily: debt-to-equity fell from ~0.73 (2021) to ~0.29 in TTM (Trailing-Twelve-Months), and total debt is down materially versus 2022–2023. Equity has grown and the business is generating positive returns for shareholders again (TTM return on equity ~6.9%), though still moderate and below 2024. Overall, the balance sheet looks healthier with reduced financial risk, but profitability levels need to stay consistent to keep strengthening returns.

Cash Flow

Cash generation is a strength: TTM (Trailing-Twelve-Months) operating cash flow is solid (~$264M) and free cash flow is strongly positive (~$121M), with a sharp TTM improvement versus the prior year. However, cash conversion versus reported earnings looks weaker in TTM (free cash flow is only ~27% of net income, down from ~54% in 2024), pointing to working-capital swings or higher cash needs. The company has also shown volatility historically (negative free cash flow in 2022), so consistency remains the key watch item.

Breakdown	Dec 2025	Dec 2024	Mar 2024	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.32B	1.30B	1.15B	909.52M	876.73M
Gross Profit	145.96M	208.67M	129.88M	46.61M	-15.26M
EBITDA	240.05M	278.16M	217.90M	120.17M	76.72M
Net Income	51.13M	76.31M	12.58M	-36.42M	-64.57M
Balance Sheet
Total Assets	1.85B	1.77B	1.80B	1.83B	1.83B
Cash, Cash Equivalents and Short-Term Investments	124.80M	107.96M	67.82M	78.85M	205.77M
Total Debt	349.97M	409.13M	484.75M	566.41M	595.84M
Total Liabilities	883.60M	865.45M	976.25M	1.03B	1.01B
Stockholders Equity	967.92M	908.23M	821.49M	802.35M	821.03M
Cash Flow
Free Cash Flow	120.79M	124.22M	108.77M	-29.84M	20.67M
Operating Cash Flow	264.24M	229.33M	176.96M	92.58M	127.74M
Investing Cash Flow	-152.24M	-111.13M	-83.46M	-146.71M	-164.54M
Financing Cash Flow	-87.26M	-78.06M	-104.53M	-72.80M	167.54M

National Energy Services Reunited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 20.76
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NESR, the sentiment is Positive. The current price of 20.76 is below the 20-day moving average (MA) of 22.86, below the 50-day MA of 20.82, and above the 200-day MA of 12.67, indicating a neutral trend. The MACD of -0.35 indicates Positive momentum. The RSI at 45.49 is Neutral, neither overbought nor oversold. The STOCH value of 34.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NESR.

National Energy Services Reunited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NESR	77 Outperform	$2.09B	30.15	5.41%	―	0.31%	33.08%
HLX	67 Neutral	$1.40B	30.17	1.97%	―	-1.95%	530.91%
OIS	66 Neutral	$738.13M	-3.63	-16.46%	―	-11.02%	―
TTI	66 Neutral	$1.09B	-19.01	1.05%	―	0.17%	7307.20%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
RES	61 Neutral	$1.52B	-94.30	4.31%	2.94%	4.20%	-59.96%
GEOS	47 Neutral	$166.51M	-5.56	-21.91%	―	-18.29%	-43.05%

National Energy Services Reunited Corporate Events

National Energy Services Reunited Reports Strong Q4 2025 Results

On February 17, 2026, National Energy Services Reunited reported fourth-quarter 2025 revenue of $398.3 million, up 34.9% sequentially and 15.9% year-over-year, with adjusted EBITDA rising 32% sequentially to $84.4 million and adjusted net income more than doubling to $31.9 million. Despite net income dropping to $7.8 million on impairments, credit loss provisions, and restructuring costs tied mainly to Oman and a vendor bankruptcy in Saudi Arabia, the company generated $264.2 million in operating cash flow and $120.8 million in free cash flow for 2025, cut net debt to $185.3 million, and highlighted record revenues, major contract wins including Saudi Arabia’s Jafurah unconventional development, and a strengthened balance sheet as it enters 2026 with multi-year growth momentum across the MENA region.

Management said 2025 marked a year of disciplined execution, strong cash generation, and significant debt reduction, with adjusted EBITDA margins of 21.2% holding broadly flat even as activity accelerated on recently awarded contracts. Executives pointed to countercyclical investments, growing regional awards beyond Saudi Arabia, and a robust backlog as positioning NESR for a “different gear and scale” in 2026, reinforcing its partnership with Aramco and its competitive standing in MENA energy services while signaling a focus on maintaining margins, improving working capital, and enhancing returns on capital for shareholders.

The most recent analyst rating on (NESR) stock is a Buy with a $25.00 price target. To see the full list of analyst forecasts on National Energy Services Reunited stock, see the NESR Stock Forecast page.