National Energy Services Reunited (NESR)
NASDAQ:NESR
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National Energy Services Reunited
(NASDAQ:NESR)
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Rating:74Outperform
Price Target:
$27.00
▲(16.33% Upside)
Action:ReiteratedDate:04/09/26
The score is driven mainly by improved financial health (profitability recovery, lower leverage, and strong free cash flow) and a constructive earnings outlook for 2026. Technicals also support the view with a clear uptrend. The key offset is valuation, with a higher P/E and no dividend yield, alongside the need to see margin and cash-conversion consistency.
Positive Factors
Balance Sheet Strength
Material deleveraging and a low net-debt/adjusted-EBITDA ratio materially reduce financial risk and interest burden. This gives management durable flexibility to fund capex, pursue tenders, and withstand cyclicality while targeting ≤1.0x leverage to support strategic growth.
Negative Factors
Margin Compression
Year‑over‑year margin erosion signals pressure from mix, pricing, or cost items; lower sustainable margins would reduce cash available for reinvestment and returns. Without durable margin recovery, earnings leverage from higher revenue could be limited.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance Sheet Strength
Material deleveraging and a low net-debt/adjusted-EBITDA ratio materially reduce financial risk and interest burden. This gives management durable flexibility to fund capex, pursue tenders, and withstand cyclicality while targeting ≤1.0x leverage to support strategic growth.
Read all positive factors
National Energy Services Reunited (NESR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.32B
Dividend YieldN/A
Average Volume (3M)2.36M
Price to Earnings (P/E)30.1
Beta (1Y)0.90
Revenue Growth0.31%
EPS Growth33.08%
CountryUS
Employees6,554
SectorEnergy
Sector Strength52
IndustryOil & Gas Equipment & Services
Share Statistics
EPS (TTM)0.32
Shares Outstanding100,797,005
10 Day Avg. Volume1,816,196
30 Day Avg. Volume2,364,152
Financial Highlights & Ratios
PEG Ratio-0.86
Price to Book (P/B)1.59
Price to Sales (P/S)1.16
P/FCF Ratio12.76
Enterprise Value/Market Cap1.11
Enterprise Value/Revenue1.94
Enterprise Value/Gross Profit15.57
Enterprise Value/Ebitda12.36
Forecast
1Y Price Target
$31.33Price Target Upside34.98% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)1.55
Revenue Forecast (FY)$1.81B
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...
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 wel...
National Energy Services Reunited Earnings Call Summary
Earnings Call Date:Feb 17, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 13, 2026
Earnings Call Sentiment Positive
The call presented strong operational and financial progress: record Q4 revenue, robust cash flow conversion, low leverage, successful on‑time mobilization of the strategically important Jafurah frac program, and a sizable regional tender pipeline that supports a higher revenue run-rate and a multi-year growth thesis. Headwinds discussed were largely one-time charges, some country-specific mobilization issues (notably Oman and a vendor bankruptcy provision in Saudi), margin compression in 2025 due to mix, and near-term seasonality (Q1) that will pressure margins before expected sequential improvement. Overall, the positives (record results, cash generation, balance sheet strength, large multi-year market opportunities and Jafurah scale) outweigh the transitory negatives, underpinning a constructive outlook.Positive Updates
Record Fourth Quarter Revenue
Q4 2025 revenue of $398.3 million — an all-time high — up 34.9% sequentially and 15.9% year-over-year, driven by Jafurah mobilization and strong North Africa activity.
Negative Updates
Full-Year Margin Compression
Full year 2025 adjusted EBITDA margins declined by ~250 basis points YoY to 21.3%, attributed to country and segment mix and certain contract transitions (notably in Saudi Arabia).
Read all updates
Q4-2025 Updates
Positive
Negative
Record Fourth Quarter Revenue
Q4 2025 revenue of $398.3 million — an all-time high — up 34.9% sequentially and 15.9% year-over-year, driven by Jafurah mobilization and strong North Africa activity.
Read all positive updates
Company Guidance
Management guided that 2026 should be its strongest growth year yet, aiming to exit 2026 at an annualized revenue run‑rate of approximately $2.0 billion; full‑year 2026 EBITDA margins are expected to be broadly consistent with 2025 (~21.3%) with Q1 as the seasonal low and margins improving sequentially through the year (Q1 seasonality to be more muted than prior years). They forecast Q1 interest expense of about $7.5 million and full‑year interest expense of roughly $22 million, an effective tax rate near 22.5%, capital expenditures of ≈$165 million (vs $150.9 million in 2025) with CapEx as a percent of revenue down year‑over‑year, and strong operating cash flow driving free cash‑flow conversion of ~35–40% of adjusted EBITDA in 2026 (versus ~43% in 2025); the company reiterated a leverage target of ≤1.0x net‑debt/adjusted‑EBITDA (net debt $185.3M, gross debt $310M at 12/31/25) and noted trailing ROCE of 10.2%.National Energy Services Reunited Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
78
Positive
Cash Flow
70
Positive
| 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
Positive
23.21
Price Trends
22.00
Positive
18.95
Positive
14.02
Positive
Market Momentum
0.39
Negative
55.51
Neutral
71.25
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 23.21 is above the 20-day moving average (MA) of 21.64, above the 50-day MA of 22.00, and above the 200-day MA of 14.02, indicating a bullish trend. The MACD of 0.39 indicates Negative momentum. The RSI at 55.51 is Neutral, neither overbought nor oversold. The STOCH value of 71.25 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
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $2.32B | 30.15 | 5.41% | ― | 0.31% | 33.08% | |
67 Neutral | $1.41B | 30.17 | 1.97% | ― | -1.95% | 530.91% | |
66 Neutral | $1.47B | 37.20 | 2.93% | 2.94% | 4.20% | -59.96% | |
66 Neutral | $1.14B | -19.01 | 1.05% | ― | 0.17% | 7307.20% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
60 Neutral | $695.38M | -3.63 | -16.46% | ― | -11.02% | ― | |
52 Neutral | $115.09M | -5.56 | -21.91% | ― | -18.29% | -43.05% |
* Energy Sector Average
NESR
National Energy Services Reunited
23.21
17.32
294.06%
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266.38%
National Energy Services Reunited Corporate Events
Business Operations and StrategyFinancial Disclosures
National Energy Services Reunited Reports Strong Q4 2025 Results
Positive
Feb 17, 2026
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 m...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.