National Energy Services Reunited Corp. — Second Quarter 2026 Earnings Summary

Financial Performance

• Revenue for the quarter ended June 30, 2026, was $520.8 million, a 59.1% increase year-over-year and 28.7% sequentially.
• Net income was $44.0 million, representing a 189.6% increase year-over-year and an 84.7% increase sequentially.
• Diluted EPS was $0.43, up 168.8% year-over-year and 85.8% sequentially.
• Adjusted EBITDA was $106.2 million, an increase of 50.5% year-over-year and 38.5% sequentially.
• Operating cash flow was $174.0 million, growing 466.6% year-over-year and 76.7% sequentially.
• Free cash flow was $99.9 million, an increase of $31.2 million year-over-year and $105.2 million sequentially.
• Adjusted Net Income was $45.5 million, up 125.9% year-over-year and 70.1% sequentially.
• Adjusted Diluted EPS was $0.44, up 109.5% year-over-year and 68.3% sequentially.
• Gross profit for the quarter was $81.3 million compared to $43.9 million in the prior year period.
• Operating income was $64.8 million compared to $27.1 million in the prior year period.

Guidance and Future Outlook

• Management expressed confidence in the path to realizing their vision, citing recent contract wins and expanding technology offerings.
• The company highlighted its ability to consistently translate growth into expanding profitability, strong cash generation, and long-term shareholder value.
• No specific numerical forward guidance for future periods was provided in the release.

Business Segments and Product Lines

• Strong flow-through from incremental revenue was driven by higher activity levels in hydraulic fracturing, well testing, and wireline logging service lines.
• The company is executing at record activity levels on recently awarded contracts across the Middle East and North Africa (MENA) region.
• NESR provides Production Services (Hydraulic Fracturing, Cementing, Coiled Tubing, Filtration, Completions, Stimulation, Pumping, Nitrogen Services) and Drilling and Evaluation Services (Drilling Downhole Tools, Directional Drilling, Fishing Tools, Testing Services, Wireline, Slickline, Drilling Fluids, Rig Services).

Market and Competitive Landscape

• NESR is a leading integrated energy services provider in the MENA region with over 7,000 employees in 16 countries.
• The company maintained its presence in all operating units with no interruption to customer activities despite continued regional conflict.
• Management described the company as the "trusted partner of choice" for customers, leveraging operational excellence, technology leadership, and local capabilities.

Risks and Challenges

• The company operates in a region with continued conflict, though it reported no operational interruptions.
• Risks include changing commodity prices, market volatility, and customer capital spending levels.
• Specific risks include political, market, financial, and regulatory risks related to geographic concentration, including uncertainty from the conflict between the United States, Israel, and Iran.
• Potential risks involve maintenance, upgrades, and refurbishment of assets requiring significant capital expenditures.
• Forward-looking statements are subject to risks regarding the accuracy of projections and potential differences between expected and actual results.

Management Commentary and Tone

• CFO Stefan Angeli described the quarter as "exceptional," noting record revenue, record Adjusted EBITDA, and the strongest quarterly earnings to date.
• Angeli highlighted "significant operating leverage," "pronounced margin expansion," and "robust cash generation."
• Chairman and CEO Sherif Foda attributed performance to the "strength of NESR's differentiated platform" and "continued confidence our customers place in us."
• Management emphasized effective working capital management, including controlling payment timing on accounts payable and accrued expenses.

Other Key Points

• Cash and cash equivalents increased to $175.0 million as of June 30, 2026, from $124.8 million as of December 31, 2025.
• Total debt decreased to $274.6 million as of June 30, 2026, from $310.1 million as of December 31, 2025.
• Net Debt (non-GAAP) decreased to $99.6 million as of June 30, 2026, from $185.3 million as of December 31, 2025, driven by strong accounts receivable collections and cash generation.
• Adjusted Net Income included $1.5 million of "Total Charges and Credits," primarily attributable to $1.0 million of current expected credit loss provisions.
• For the six months ended June 30, 2026, the company generated over $200 million of operating cash flow and nearly $95 million of free cash flow.
• Capital expenditures for the six-month period ended June 30, 2026, were $110.1 million.
• The company reported $0.1 million in costs associated with the restatement of 2018-2020 financial statements, including SEC inquiry and remediation, in the quarter ended June 30, 2026.
• A conference call was scheduled for August 10, 2026, at 8:00 AM ET to discuss results.