National Energy Services Reunited Corp (NESR) Q4 2025 Earnings Call Highlights: Record Revenue …

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Wed, February 18, 2026 at 4:00 AM GMT+9 4 min read

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**Revenue:** $398.3 million for Q4 2025, an all-time high, up 34.9% sequentially and 15.9% year over year.

**Adjusted EBITDA:** $84.4 million for Q4 2025, with a margin of 21.2%.

**Adjusted Diluted Earnings Per Share:** $0.32 for Q4 2025.

**Full Year 2025 Revenue:** $1.324 billion, up 1.7% year over year.

**Full Year 2025 Adjusted EBITDA:** $281.4 million, with margins of 21.3%.

**Free Cash Flow:** $120.8 million for full year 2025, representing approximately 43% conversion from adjusted EBITDA.

**Net Debt:** $185.3 million as of December 31, 2025.

**Net Debt to Adjusted EBITDA Ratio:** 0.66.

**Return on Capital Employed (ROCE):** 10.2% on a trailing 12-month basis.

**Interest Expense:** $7.5 million for Q4 2025.

**Income Tax Expense:** $7.2 million for Q4 2025.

**Capital Expenditures:** $150.9 million for full year 2025.

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Release Date: February 17, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

National Energy Services Reunited Corp (NASDAQ:NESR) reported a record high revenue of $398.3 million for the fourth quarter of 2025, marking a 34.9% sequential increase and a 15.9% year-over-year growth.

The company successfully initiated the largest unconventional frac program in sectoral history, demonstrating strong operational execution and cost management.

NESR's strategic focus on the Middle East and North Africa (MENA) region is yielding positive results, with significant growth in countries like Kuwait, Libya, and Saudi Arabia.

The company achieved a strong free cash flow of $120.8 million for the full year 2025, representing a 43% conversion from adjusted EBITDA, highlighting the scalability of its platform.

NESR is well-positioned for future growth, with plans to double the company's size over the next few years, supported by a robust pipeline of tenders and strategic investments in technology and decarbonization initiatives.

Negative Points

The company faced $24.1 million in total charges impacting adjusted EBITDA, including credit loss provisions in Oman and impairment charges related to legacy technology investments.

Margins remained stable but were pressured by competitively priced contract wins, with adjusted EBITDA margin at 21.2% for the fourth quarter.

Interest expense for the fourth quarter was $7.5 million, and income tax expense was $7.2 million, impacting overall profitability.

The company anticipates more muted seasonality in the first quarter of 2026, with margins expected to be weakest in the first quarter before improving sequentially.

NESR's growth strategy involves significant capital expenditures, with planned investments of approximately $165 million for 2026, which could increase if additional contract wins are secured.

 






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Q & A Highlights

Q: Can you provide an update on the ramp-up of the Jafura project and how it contributes to reaching a $2 billion annual revenue run rate? A: We started the Jafura project on time with the first fleet in November. We are coordinating closely with our customer to potentially add more fleets. By Q2, we expect to reach a steady state, with additional fleets possibly added in Q3 and Q4. The run rate for our stages per quarter should be clear by Q3. (Sherif Foda, CEO)

Q: How are you addressing supply chain concerns for the Jafura project? A: We planned early to ensure local sand and supplies are available, aligning with partners both locally and from the US. We have resolved logistics and supply chain issues, allowing us to meet Aramco’s demands promptly. Our cost control measures are in place to maintain profitability. (Sherif Foda, CEO)

Q: What are the key areas contributing to exceeding the $2 billion revenue target? A: We have tendered $2 to $3 billion across the region, with most tenders outside Saudi Arabia. We expect to win more than our fair share, which will help double the company’s size in a couple of years. (Sherif Foda, CEO)

Q: Can you discuss the investment strategy to support higher activity levels and potential acquisitions? A: We plan to maintain CapEx within $150 to $180 million over the next couple of years, potentially increasing to $200 million if we win more contracts. Our strategy includes partnerships with established companies and investing in startups for technology advancements. (Sherif Foda, CEO)

Q: What is the outlook for Kuwait, and how quickly can it ramp up for NESR? A: Kuwait’s upstream spending is already underway, with over 200 rigs active. We can double our business size in Kuwait, with contracts expected to be awarded throughout 2026. Our countercyclical approach allows us to mobilize quickly once contracts are secured. (Sherif Foda, CEO)

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

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