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

Financial Performance:

• Revenue for the quarter ended September 30, 2026, was $504.7 million, a 70.9% increase year-over-year (vs. $295.3 million in Q3 2025) and a 3.1% decrease sequentially (vs. $520.8 million in Q2 2026).
• Net income for the quarter was $34.3 million, representing a 93.5% year-over-year increase (vs. $17.7 million in Q3 2025) and a 22.0% sequential decrease (vs. $44.0 million in Q2 2026).
• Diluted EPS was $0.33, an 83.3% increase year-over-year (vs. $0.18) and a 22.6% decrease sequentially (vs. $0.43).
• Adjusted EBITDA was $95.9 million, a 49.9% increase year-over-year (vs. $64.0 million) and a 9.7% decrease sequentially (vs. $106.2 million).
• Adjusted Net Income was $39.6 million, a 156.8% increase year-over-year (vs. $15.4 million).
• Adjusted Diluted EPS was $0.38, a 137.5% increase year-over-year (vs. $0.16).
• Cash and cash equivalents were $106.8 million as of September 30, 2026.
• Free cash flow for the quarter was negative $45.9 million, compared to negative $34.1 million in the prior-year quarter.
• Total debt was $267.3 million as of September 30, 2026, down from $310.1 million as of December 31, 2025.
• Net Debt was $160.5 million as of September 30, 2026, down from $185.3 million as of December 31, 2025.
• For the nine months ended September 30, 2026, the company generated over $200 million in operating cash flow.

Guidance and Future Outlook:

• Management expressed confidence in the company's financial strength, continued cash flow generation, and long-term growth prospects following a comprehensive refinancing arrangement.
• The company highlighted the potential to unlock new growth opportunities through the expansion of NESR Environmental & Decarbonization Applications (NEDA).
• Management noted continued momentum despite an increasingly challenging operating environment and ongoing regional conflict.

Business Segments and Product Lines:

• Revenue growth was primarily driven by activity levels in the hydraulic fracturing, well testing, and wireline logging service lines.
• The company announced an agreement to deliver the region's first direct lithium extraction project, marking a milestone for the NEDA segment.
• The company maintained a 100% operational presence across all operating units during the quarter.
• Capital expenditures for the nine-month period totaled over $150 million to support the growing contract portfolio.

Market and Competitive Landscape:

• NESR operates as a leading integrated energy services provider in the Middle East and North Africa, serving customers across 16 countries.
• The company operates in a challenging environment characterized by ongoing regional conflict, yet maintained operational resilience alongside customers and communities.
• The new refinancing arrangement reflects the continued confidence of banking partners in NESR's financial performance and market position.

Risks and Challenges:

• The company faces risks related to changing commodity prices, market volatility, and customer capital spending levels.
• Operational risks include public health crises, catastrophic events, and operating hazards inherent to the industry.
• Significant risks include political, market, financial, and regulatory uncertainties, particularly regarding the geographic concentration of operations in the Middle East.
• Specific risks include instability resulting from the conflict between the United States, Israel, and Iran, as well as other regional hostilities.
• The company faces risks related to the maintenance, upgrades, and refurbishment of assets, which may require significant capital expenditures.

Management Commentary and Tone:

• CFO Stefan Angeli described the quarter as "strong," noting that revenue grew year-over-year to $504.7 million while Adjusted EBITDA increased 50% and net income nearly doubled.
• Angeli acknowledged that sequential performance moderated from record levels in the second quarter but remained encouraged by underlying fundamentals.
• CEO Sherif Foda identified "resilience" as the defining theme of the quarter, praising the dedication of field teams and the operational presence maintained during regional conflict.
• Management highlighted the successful comprehensive refinancing arrangement as a milestone in strengthening the financial foundation.

Other Key Points:

• The Board of Directors declared a quarterly cash dividend of $0.10 per share, payable on December 10, 2026, to shareholders of record as of December 3, 2026.
• The company entered into a comprehensive refinancing arrangement with a consortium of leading regional and international financial institutions to refinance existing secured credit facilities.
• The new facilities establish a multi-year maturity profile and provide term financing, revolving credit, and working capital facilities.
• Adjusted Net Income excluded $5.3 million of charges, including a $2.9 million impairment related to an equity security investment and $1.1 million in current expected credit loss provisions.
• The company reduced net debt by approximately $25 million during the first nine months of 2026.
• Accounts receivable increased to $262.7 million as of September 30, 2026, from $178.0 million as of December 31, 2025.
• Unbilled revenue increased to $221.3 million as of September 30, 2026, from $121.2 million as of December 31, 2025.
• Service inventories increased to $148.2 million as of September 30, 2026, from $94.8 million as of December 31, 2025.