National Energy Services Reunited (NESR)
NASDAQ:NESR
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National Energy Services Reunited
(NASDAQ:NESR)
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Rating:77Outperform
Price Target:
$30.00
▲(23.51% Upside)
Action:Upgraded
Date:05/14/26
NESR scores well on improving fundamentals (profitability turnaround, positive cash generation, and materially reduced leverage) and strong technical momentum (price above key moving averages with positive MACD). The score is tempered by valuation (P/E ~22.7 with no current dividend yield provided) and execution risks flagged on the call, including temporary cost/logistics and working-capital headwinds.
Positive Factors
Strong balance sheet / Low leverage
NESR's materially reduced leverage and stronger equity base lower refinancing and solvency risk for a cyclical services company. This durability supports larger contract bidding, countercyclical capex, and the announced capital returns without materially stressing liquidity over the medium term.
Negative Factors
Margin compression
Profitability has improved versus prior loss years but has notably compressed from 2024 highs. Persistent margin pressure would limit free cash flow growth and returns on capital, constraining the firm's ability to sustainably expand shareholder distributions and fund larger organic growth without price or efficiency gains.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong balance sheet / Low leverage
NESR's materially reduced leverage and stronger equity base lower refinancing and solvency risk for a cyclical services company. This durability supports larger contract bidding, countercyclical capex, and the announced capital returns without materially stressing liquidity over the medium term.
Read all positive factors
National Energy Services Reunited (NESR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.60B
Dividend YieldN/A
Average Volume (3M)1.92M
Price to Earnings (P/E)22.7
Beta (1Y)0.92
Revenue Growth8.99%
EPS Growth-19.14%
CountryUS
Employees6,554
SectorEnergy
Sector Strength52
IndustryOil & Gas Equipment & Services
Share Statistics
EPS (TTM)0.66
Shares Outstanding100,847,250
10 Day Avg. Volume2,222,745
30 Day Avg. Volume1,915,799
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 Cap1.08
Enterprise Value/Revenue1.98
Enterprise Value/Gross Profit17.57
Enterprise Value/Ebitda11.14
Forecast
1Y Price Target
$32.20Price Target Upside32.56% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)1.61
Revenue Forecast (FY)$1.84B
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:May 11, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 05, 2026
Earnings Call Sentiment Positive
The call conveyed strong operational execution, sizable year-over-year revenue and earnings growth, a healthy balance sheet (net leverage 0.66x) and a clear capital return plan — all backed by a robust regional tender pipeline and Jafurah momentum. Near-term headwinds include geopolitical disruptions in March, ~$4M of incremental freight costs, FX losses (~$3.6M), seasonal working capital pressure (negative Q1 free cash flow of $5.3M) and higher input costs (e.g., diesel). Management views many of these as temporary and expects sequential margin and cash flow improvement; on balance, the positives (record revenue, material earnings improvement, strong execution, capital-return initiatives and low leverage) outweigh the transitory lowlights.Positive Updates
Record Quarterly Revenue
Revenue of $404.6M (all-time high), up 1.6% sequentially and 33.5% year-over-year, driven by Jafurah ramp-up and increased activity across Kuwait, Algeria, Libya and Egypt.
Negative Updates
Geopolitical Disruption and Activity Impacts
Regional disruptions in March affected activity in Egypt, Oman and Iraq; some regional markets experienced force majeure (e.g., LNG hub impacts) and suspended rigs in certain areas.
Read all updates
Q1-2026 Updates
Positive
Negative
Record Quarterly Revenue
Revenue of $404.6M (all-time high), up 1.6% sequentially and 33.5% year-over-year, driven by Jafurah ramp-up and increased activity across Kuwait, Algeria, Libya and Egypt.
Read all positive updates
Company Guidance
Management guided to continued robust year‑over‑year growth and sequential margin improvement in Q2 (driven by the Jafurah ramp), with Q2 interest expense around $6.5M, an ETR of 22.5%, and Q2 operating and free cash flow expected to rebound similar to Q2 ’25; full‑year 2026 CapEx is targeted at ~$180M, free‑cash‑flow conversion of ~35–40% of adjusted EBITDA, and maintained full‑year margins of roughly 21–21.5% on a clear path to a $2.0B revenue target. Quarterly/Q1 context and balance‑sheet targets include Q1 revenue $404.6M (+1.6% sequential, +33.5% YoY), adjusted EBITDA $76.7M (~19% margin), adjusted diluted EPS $0.26, net income $23.8M, operating cash flow $30.7M, free cash flow -$5.3M, Q1 CapEx $36M, incremental Q1 freight/logistics headwinds of ~$4M; gross debt $287.4M, net debt $194.4M (net debt/adjusted EBITDA 0.66x), target net leverage ≤1.0x, and ROCE ≈10.9%. In addition, management announced capital returns: a quarterly dividend beginning Q4 ’26 of $0.10/share ($0.40 annually) and a $50M share repurchase program over the next 12 months.National Energy Services Reunited Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
78
Positive
Cash Flow
70
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Mar 2024 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.43B | 1.32B | 1.30B | 1.15B | 909.52M | 876.73M |
| Gross Profit | 160.33M | 145.96M | 208.67M | 129.88M | 46.61M | -15.26M |
| EBITDA | 252.89M | 240.05M | 278.16M | 217.90M | 120.17M | 76.72M |
| Net Income | 64.57M | 51.13M | 76.31M | 12.58M | -36.42M | -64.57M |
Balance Sheet | ||||||
| Total Assets | 1.92B | 1.85B | 1.77B | 1.80B | 1.83B | 1.83B |
| Cash, Cash Equivalents and Short-Term Investments | 92.96M | 124.80M | 107.96M | 67.82M | 78.85M | 205.77M |
| Total Debt | 312.06M | 349.97M | 409.13M | 484.75M | 566.41M | 595.84M |
| Total Liabilities | 928.72M | 883.60M | 865.45M | 976.25M | 1.03B | 1.01B |
| Stockholders Equity | 995.21M | 967.92M | 908.23M | 821.49M | 802.35M | 821.03M |
Cash Flow | ||||||
| Free Cash Flow | 125.16M | 120.79M | 124.22M | 108.77M | -29.84M | 20.67M |
| Operating Cash Flow | 274.50M | 264.24M | 229.33M | 176.96M | 92.58M | 127.74M |
| Investing Cash Flow | -157.20M | -152.24M | -111.13M | -83.46M | -146.71M | -164.54M |
| Financing Cash Flow | -94.31M | -87.26M | -78.06M | -104.53M | -72.80M | 167.54M |
National Energy Services Reunited Technical Analysis
Positive
24.29
Price Trends
23.46
Positive
22.00
Positive
16.77
Positive
Market Momentum
0.70
Positive
55.70
Neutral
63.79
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 24.29 is below the 20-day moving average (MA) of 25.17, above the 50-day MA of 23.46, and above the 200-day MA of 16.77, indicating a bullish trend. The MACD of 0.70 indicates Positive momentum. The RSI at 55.70 is Neutral, neither overbought nor oversold. The STOCH value of 63.79 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 |
|---|---|---|---|---|---|---|---|
77 Outperform | $2.60B | 22.71 | 6.70% | ― | 8.99% | -19.14% | |
68 Neutral | $1.48B | -27.14 | 0.91% | ― | -2.91% | -82.51% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
62 Neutral | $1.41B | 34.44 | 2.51% | ― | 4.09% | -93.54% | |
58 Neutral | $1.56B | 458.19 | 1.91% | 2.94% | 27.62% | -73.36% | |
54 Neutral | $532.71M | 151.76 | -17.52% | ― | -4.50% | -2286.91% | |
45 Neutral | $104.78M | ― | -24.22% | ― | -13.43% | -78.10% |
* Energy Sector Average
NESR
National Energy Services Reunited
25.76
19.39
304.40%
HLX
Helix Energy
10.08
3.94
64.17%
OIS
Oil States International
8.85
4.49
102.98%
GEOS
Geospace Technologies
8.10
2.22
37.76%
RES
RPC
7.06
2.67
60.82%
TTI
Tetra Technologies
10.41
7.67
279.93%
National Energy Services Reunited Corporate Events
Business Operations and StrategyFinancial Disclosures
National Energy Services Reunited Posts Strong Q1 2026 Results
Positive
May 11, 2026
On May 11, 2026, National Energy Services Reunited reported first quarter 2026 results showing revenue of $404.6 million, up 33.5% year-over-year, and net income of $23.8 million, more than doubling from both the prior quarter and the year-ago per...
Executive/Board ChangesShareholder Meetings
National Energy Services Reunited Shareholders Back Board, Pay Plan
Positive
May 7, 2026
At its 2026 Annual General Meeting of Shareholders held on May 7, 2026, National Energy Services Reunited Corp. reported that investors elected all five director nominees with strong majorities, including Sherif Foda and Antonio J. Campo Mejia. Sh...
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.