NESR Sequential Revenue Reverses After Record Second Quarter

The Tip Desk · November 12, 2026 · 3 min read

Third-quarter revenue was $504.7 million, up 70.9% from a year earlier, as net income reached $34.3 million and the company declared a $0.10 dividend.

National Energy Services Reunited Corp. (NESR), an integrated energy-services provider in the Middle East and North Africa, reported third-quarter revenue of $504.7 million, a 70.9% increase from a year earlier.

That year-over-year pace was faster than the 59.1% rise recorded in the second quarter. Sequentially, however, revenue fell 3.1% from the record $520.8 million in the June quarter, reversing the 28.7% sequential increase of that period. Chief Financial Officer Stefan Angeli said sequential performance moderated from those record second-quarter levels.

Net income was $34.3 million, up 93.5% from $17.7 million a year earlier. Diluted earnings were $0.33 a share. Adjusted EBITDA, a non-GAAP measure, was $95.9 million. Adjusted net income was $39.6 million, which excluded $5.3 million of charges, including a $2.9 million impairment on an equity-method investment and $1.1 million of current expected credit-loss provisions.

The company said the sequential decline in net income was primarily attributable to fluctuations in revenue from hydraulic fracturing, well testing, and wireline logging. Gross profit was $69.0 million and operating income was $52.5 million.

Chairman and Chief Executive Officer Sherif Foda said the company maintained a 100% operational presence across all operating units amid ongoing regional conflict. He also highlighted an agreement to deliver the region’s first direct lithium extraction project, which the company described as a milestone for NESR Environmental & Decarbonization Applications.

Free cash flow, a non-GAAP measure, was negative $45.9 million, compared with negative $34.1 million a year earlier. The company said the year-over-year decline was primarily due to increased working-capital requirements and modestly higher capital expenditures, partially offset by higher net income and noncash adjustments. In the second quarter, free cash flow had been $99.9 million.

Cash and cash equivalents were $106.8 million as of September 30, 2026, down from $124.8 million at year-end 2025. Total debt was $267.3 million, of which $123.4 million was classified as short-term, compared with $310.1 million, including $118.8 million short-term, at December 31, 2025. Net debt, a non-GAAP measure, was $160.5 million, down from $185.3 million at year-end 2025, which the company said was primarily attributable to debt repayments partly offset by lower cash.

For the nine months ended September 30, 2026, revenue was $1.43 billion, net income was $102.2 million, and diluted earnings were $0.99 a share. Operating cash flow for the nine months was $201.5 million, and capital expenditures were $152.8 million. Angeli said the company generated over $200 million of operating cash flow in the first nine months, invested more than $150 million in capital expenditures, and reduced net debt by approximately $25 million.

The company said it entered a comprehensive refinancing with a consortium of regional and international lenders, refinancing existing secured facilities and establishing a multi-year maturity profile with term, revolving, and working-capital facilities. On November 6, 2026, the board declared a cash dividend of $0.10 a share, payable December 10, 2026, to shareholders of record as of December 3, 2026.