National Energy Services Reunited (NASDAQ:NESR) Posts Quarterly Earnings Results, Beats Expectations By $0.02 EPS

National Energy Services Reunited (NASDAQ:NESR) announced its quarterly earnings results on Monday. The company reported $0.38 EPS for the quarter, beating the consensus estimate of $0.36 by $0.02, FiscalAI reports. The business had revenue of $504.73 million during the quarter, compared to analysts’ expectations of $495.93 million. National Energy Services Reunited had a return on equity of 14.35% and a net margin of 6.02%.

Here are the key takeaways from National Energy Services Reunited’s conference call:

• NESR reported third-quarter revenue of $504.7 million, up 70.9% year over year, driven largely by its Jafurah contract and stronger activity in several markets. Adjusted EBITDA was $95.9 million, or a 19% margin, despite regional disruption and higher logistics costs.
• The company set a 2026 revenue goal of approximately $2 billion, plus or minus, and maintained its expectation for roughly 20% full-year Adjusted EBITDA margins. Management expects 2027 growth even if regional conditions remain broadly unchanged, though its outlook depends on geopolitical developments and customer activity.
• Third-quarter free cash flow was negative $45.9 million, reflecting increased inventory, capital spending, and slower customer collections; net debt rose to $160.5 million. Management said many delayed receivables were collected early in the fourth quarter and expects a year-end cash flow improvement, but that recovery remains forward-looking.
• NESR completed refinancing that provides about $747 million in financing facilities, extends maturities, and adds capacity. Its board also approved the company’s first dividend of $0.10 per share, with future quarterly dividends subject to board approval.
• Management reaffirmed its 3B3 strategy, targeting $3 billion in annual revenue by 2028, and cited potential contract wins, Middle East investment, and a new $200 million lithium project as growth drivers. The lithium project requires first production by the end of 2027; management’s longer-term opportunity estimates and regional recovery expectations are not guaranteed.

National Energy Services Reunited Stock Performance

Shares of National Energy Services Reunited stock traded up $0.81 during trading on Wednesday, reaching $21.18. The company’s stock had a trading volume of 527,110 shares, compared to its average volume of 2,156,493. The company has a debt-to-equity ratio of 0.15, a quick ratio of 0.86 and a current ratio of 1.02. The business’s fifty day moving average price is $25.97 and its 200-day moving average price is $25.55. The firm has a market cap of $2.14 billion, a price-to-earnings ratio of 19.80, a price-to-earnings-growth ratio of 0.23 and a beta of 0.57. National Energy Services Reunited has a one year low of $12.77 and a one year high of $36.94.

National Energy Services Reunited Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Thursday, December 10th. Shareholders of record on Thursday, December 3rd will be issued a dividend of $0.10 per share. This represents a $0.40 dividend on an annualized basis and a yield of 1.9%. The ex-dividend date is Thursday, December 3rd. National Energy Services Reunited’s dividend payout ratio is 9.35%.

Wall Street Analyst Weigh In

NESR has been the topic of several analyst reports. BMO Capital Markets began coverage on shares of National Energy Services Reunited in a research note on Thursday, October 1st. They set an “outperform” rating and a $39.00 price target on the stock. Citigroup reaffirmed a “buy” rating on shares of National Energy Services Reunited in a research note on Monday, August 10th. Capital One Financial assumed coverage on shares of National Energy Services Reunited in a report on Wednesday, September 30th. They issued an “overweight” rating and a $44.00 price objective for the company. Weiss Ratings raised shares of National Energy Services Reunited from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Monday, November 2nd. Finally, UBS Group cut their target price on National Energy Services Reunited from $46.00 to $40.00 and set a “buy” rating on the stock in a report on Tuesday. Nine investment analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company. According to MarketBeat.com, National Energy Services Reunited presently has an average rating of “Moderate Buy” and an average target price of $39.12.

Insider Transactions at National Energy Services Reunited

In related news, CEO Sherif Foda sold 100,000 shares of the company’s stock in a transaction on Monday, August 31st. The shares were sold at an average price of $35.00, for a total transaction of $3,500,000.00. Following the completion of the transaction, the chief executive officer directly owned 3,084,643 shares in the company, valued at $107,962,505. This represents a 3.14% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CFO Stefan Angeli sold 13,570 shares of the stock in a transaction on Tuesday, August 18th. The shares were sold at an average price of $35.12, for a total transaction of $476,578.40. Following the completion of the sale, the chief financial officer directly owned 549,763 shares of the company’s stock, valued at approximately $19,307,676.56. This trade represents a 2.41% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders have sold 176,894 shares of company stock worth $6,221,414. Insiders own 9.70% of the company’s stock.

National Energy Services Reunited Company Profile

National Energy Services Reunited Corp. (NESR) provides oilfield services to exploration and production companies. Its offerings support drilling, well construction and the production and maintenance of oil and gas wells. The company’s services include drilling and evaluation work, such as directional drilling and wireline services, as well as production services including well intervention, stimulation and artificial lift. Its work is designed to help customers develop and operate energy resources throughout the life of a well.