A major contract win and improving profitability may explain why one fund has made NESR its largest holding.Florida-based GeoSphere Capital Management reported in its Form 13F filed on November 14 that it increased its position in National Energy Services Reunited Corp. by 481,228 shares during the third quarter, resulting in a $9.2 million increase in position value.What HappenedAccording to a Securities and Exchange Commission (SEC) filing dated November 14, GeoSphere Capital Management increased its stak ...

WASHINGTON, D.C. / ACCESS Newswire / December 1, 2025 / National Energy Services Reunited Corp. ("NESR" or the "Company") (Nasdaq:NESR) an international, industry-leading provider of integrated energy services in the Middle East and North Africa ("MENA") region, announced the celebratory signing of its recently-announced unconventional frac contract, as part of the Saudi-US Investment Forum 2025 and His Royal Highness' delegation visit to President Trump, in Washington D.C. ...

Financial Data and Key Metrics Changes - Overall third quarter revenue was $295.3 million, down 9.8% sequentially and 12.2% year-over-year [17] - Adjusted EBITDA for Q3 2025 was $64 million, representing a margin of 21.7%, consistent with Q2 2025 levels despite lower revenues [18] - Adjusted EPS for Q3 2025 was $0.16, including adjustments totaling $2.3 million [19] - Gross debt totaled $332.9 million, and net debt was $263.3 million, with a net debt-to-adjusted EBITDA ratio of 0.93 [20] Business Line Data and Key Metrics Changes - Revenue decline was primarily due to the transition between major contracts in Saudi Arabia, partially offset by growth in Kuwait, Qatar, and Iraq [17] - Year-over-year revenue decline was attributed to contract transitions and timing of product sales, with steady growth in Kuwait, Oman, Egypt, Algeria, Iraq, and Libya [18] Market Data and Key Metrics Changes - Positive activity inflection noted in Kuwait and Saudi Arabia, with increased activities across most operational countries [5] - The company is positioned to capitalize on geopolitical relationships and energy demand growth in the Gulf region [8] Company Strategy and Development Direction - The company has secured a multi-billion dollar contract for the Jafurah project, which is a cornerstone achievement for future growth [4] - NESR's countercyclical investment strategy allows it to capitalize on global market weaknesses, positioning the company for operational readiness [5][12] - The focus is on energy addition in all forms, including oil, renewables, and natural gas, aligning with regional AI ambitions [7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving a $2 billion revenue run rate by the end of 2026, supported by awarded contracts [72] - The outlook for NESR remains favorable, driven by consistent execution on major contracts and strategic investments [25] - Management emphasized the importance of maintaining operational discipline and financial health amid market volatility [24] Other Important Information - The company is in the process of refinancing its debt facility, expected to enhance financial flexibility [24] - NESR is focused on delivering profitable revenue growth, enhancing execution efficiency, and maintaining disciplined debt reduction [25] Q&A Session Summary Question: Can you respond to comments about pricing competitiveness for the Jafurah contract? - Management highlighted their deep understanding of the local ecosystem and cost control measures that allow them to maintain margins [31][32] Question: What is the roadmap for development at Jafurah? - Management indicated readiness to ramp up operations with multiple crews and a target of delivering over 1,000 stages per month [35][36] Question: What is the incremental EBITDA expected from the Jafurah project? - Management confirmed that the incremental EBITDA for 2026 is approximately $100 million, based on a $2 billion run rate [38] Question: Can you provide updates on NEDA projects and water initiatives? - Management stated that several pilot projects are underway, with results expected to be shared in future calls [67][68] Question: What is the confidence level in achieving the $2 billion exit run rate for 2026? - Management expressed a 99% confidence level in achieving the $2 billion run rate, supported by signed contracts and ongoing work [72][73]

Financial Data and Key Metrics Changes - Overall third quarter revenue was $295.3 million, down 9.8% sequentially and 12.2% year-over-year, primarily due to the transition between major contracts in Saudi Arabia [17][18] - Adjusted EBITDA for Q3 2025 was $64 million, representing a margin of 21.7%, consistent with Q2 2025 levels despite lower revenues [18] - Adjusted EPS for Q3 2025 was $0.16, including adjustments for certain charges and credits [19] - Gross debt totaled $332.9 million, and net debt was $263.3 million, with a net debt-to-Adjusted EBITDA ratio of 0.93 [20] Business Line Data and Key Metrics Changes - Revenue decline was partially offset by solid growth in Kuwait, Qatar, and Iraq, with steady growth also noted in Oman, Egypt, Algeria, and Libya [17][18] - The company is positioned as the largest frac company in the Middle East, with the Jafurah tender representing the largest single-service contract in sector history [9][11] Market Data and Key Metrics Changes - The company is experiencing positive activity inflection beyond Jafurah, with growth in Kuwait and the return of additional rigs in Saudi Arabia [5][27] - The geopolitical relationship between the U.S. and Gulf states is strong, positively impacting energy markets and foreign investment [8] Company Strategy and Development Direction - The company is focused on a countercyclical investment strategy, allowing it to capitalize on global weaknesses and position itself for growth [11][12] - NESR aims to maintain operational readiness and efficiency while investing during downturns, contrasting with traditional industry practices [12][14] - The company plans to exit 2025 with a revenue run rate of approximately $2 billion, supported by expanding contract bases and sustained execution momentum [22][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving a $2 billion exit run rate for 2026, with a high level of visibility on contract awards and execution [72][73] - The outlook for NESR remains favorable, supported by consistent execution on major contract wins and strategic investments [25][26] Other Important Information - The company is in the process of refinancing its debt facility, expected to enhance financial flexibility [24] - NESR is committed to maintaining disciplined debt reduction and improving working capital efficiency [25] Q&A Session Summary Question: Can you respond to comments about pricing competitiveness for the Jafurah contract? - Management highlighted their deep understanding of the local ecosystem and cost control measures that allowed them to maintain margins while being competitive [31][32] Question: What is the roadmap for development at Jafurah? - Management indicated readiness to ramp up operations with multiple crews and equipment already in place, targeting significant increases in stages delivered [34][35] Question: What is the expected incremental EBITDA from Jafurah? - Management confirmed that the incremental EBITDA for 2026 is approximately $100 million, based on the projected revenue run rate [37][38] Question: Can you provide updates on NEDA projects and water initiatives? - Management stated that several pilot projects are underway, with results expected to be shared in future calls [66][68] Question: What is the confidence level in achieving the $2 billion exit run rate for 2026? - Management expressed a 99% confidence level in achieving the target, with contracts already awarded and work commenced [72][73]

Financial Data and Key Metrics Changes - Overall third quarter revenue was $295.3 million, down 9.8% sequentially and 12.2% year-over-year [16] - Adjusted EBITDA for Q3 2025 was $64 million, representing a margin of 21.7%, consistent with Q2 2025 levels despite lower revenues [17] - Adjusted EPS for Q3 2025 was $0.16, including adjustments totaling $2.3 million [18] - Gross debt totaled $332.9 million, and net debt was $263.3 million, with a net debt-to-adjusted EBITDA ratio of 0.93 [19] Business Line Data and Key Metrics Changes - Revenue decline was primarily due to the transition between major contracts in Saudi Arabia, partially offset by growth in Kuwait, Qatar, and Iraq [16][17] - Growth was noted in Kuwait, Oman, Egypt, Algeria, Iraq, and Libya, indicating a diversified performance across regions [17] Market Data and Key Metrics Changes - The company is experiencing a positive activity inflection in Kuwait and Saudi Arabia, with increased activities across most operational countries [5][6] - The Gulf Cooperation Council (GCC) is positioned as a leader in the AI revolution, which is expected to drive energy demand [6][7] Company Strategy and Development Direction - The company has secured a multi-billion dollar contract for the Jafurah project, which is a cornerstone achievement and part of a broader growth strategy [4][10] - NESR's countercyclical investment strategy allows it to capitalize on global market weaknesses, positioning the company for growth while others are cutting back [12][13] - The company aims to maintain operational readiness and efficiency while investing during downturns, which is expected to yield long-term benefits [14][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving a $2 billion revenue run rate by the end of 2026, supported by awarded contracts and operational execution [20][72] - The outlook for 2026 and beyond remains positive, with expectations of continued growth driven by strategic investments and market opportunities [24][73] Other Important Information - The company is in the process of refinancing its debt facility, expected to enhance financial flexibility [23] - NESR is focused on maintaining disciplined debt reduction and improving working capital efficiency [24] Q&A Session Summary Question: Can you explain how NESR was able to price competitively for the Jafurah contract while maintaining margins? - Management highlighted their deep understanding of the local ecosystem and cost control measures that allowed them to maintain profitability [30][31] Question: What is the roadmap for development at Jafurah and expected activity levels? - Management indicated plans to ramp up to 1,500 stages per month by 2026, with flexibility to adjust based on client needs [34][35] Question: What is the expected incremental EBITDA from the Jafurah project? - Management confirmed an approximate incremental EBITDA of $100 million for 2026, based on current margins [38] Question: Can you provide updates on NEDA projects and water initiatives? - Management stated that several pilot projects are underway, with results expected to be shared in future calls [66][68] Question: What is the confidence level in achieving the $2 billion exit run rate for 2026? - Management expressed a 99% confidence level in achieving the $2 billion run rate, supported by signed contracts and ongoing work [72]

Core Insights - National Energy Services Reunited (NESR) reported quarterly earnings of $0.16 per share, exceeding the Zacks Consensus Estimate of $0.15 per share, but down from $0.31 per share a year ago, representing an earnings surprise of +6.67% [1] - The company achieved revenues of $295.32 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 1.40%, although this is a decline from year-ago revenues of $336.2 million [2] - NESR shares have increased approximately 45.4% year-to-date, significantly outperforming the S&P 500's gain of 16.5% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.25 on revenues of $359.72 million, and for the current fiscal year, it is $0.73 on revenues of $1.28 billion [7] - The estimate revisions trend for NESR was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6] Industry Context - The Oil and Gas - Mechanical and Equipment industry, to which NESR belongs, is currently ranked in the top 10% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

Core Insights - National Energy Services Reunited Corp. (NESR) reported a revenue of $295.3 million for the quarter ended September 30, 2025, reflecting a sequential decline of 9.8% and a year-over-year decline of 12.2% [1] - The net income for the same quarter was $17.7 million, which is an increase of 16.7% compared to the previous quarter but a decrease of 14.0% year-over-year [1] - Adjusted EBITDA for the quarter was $64.0 million, down 9.4% sequentially and 20.1% year-over-year [1] - Diluted Earnings per Share (EPS) increased to $0.18, up 15.6% from the previous quarter, but down 18.2% compared to the same quarter last year [1] Financial Performance - Revenue for the three months ended September 30, 2025: $295,315 thousand, down from $327,368 thousand in June 2025 and $336,205 thousand in September 2024 [1] - Net income for the quarter: $17,737 thousand, compared to $15,201 thousand in June 2025 and $20,618 thousand in September 2024 [1] - Adjusted net income (non-GAAP) was $15,434 thousand, a decrease of 23.3% sequentially and 46.6% year-over-year [1] - Adjusted EBITDA (non-GAAP) for the quarter was $63,957 thousand, down from $70,559 thousand in June 2025 and $80,035 thousand in September 2024 [1] - Diluted EPS for the quarter was $0.18, compared to $0.16 in June 2025 and $0.22 in September 2024 [1] - Adjusted Diluted EPS (non-GAAP) was $0.16, down 22.2% sequentially and 48.4% year-over-year [1] Cash Flow - Operating cash flow for the nine months ended September 30, 2025, was $125.7 million [1] - Free cash flow (non-GAAP) for the same period was $25.0 million [1]

Summary of National Energy Services Reunited (NESR) Conference Call Company Overview - **Company**: National Energy Services Reunited (NASDAQ: NESR) - **Founded**: 2017 as a SPAC - **Current Revenue Run Rate**: Approximately $1.3 billion, with a clear path to exceed $2 billion [2][5][160] Industry Insights - **Focus**: Oilfield Services (OFS) in the Middle East and North Africa (MENA) - **Market Position**: NESR is the largest national OFS company in the MENA region, following the big three international companies [5][11] Key Market Dynamics - **Middle East Oil Production**: National oil companies (NOCs) in the region are focused on long-term planning, with a shift towards gas and renewable energy [10][11] - **Growth Projections**: The Middle East is expected to see a year-on-year growth of 7-10% [20][24] - **Kuwait's Capacity**: Kuwait aims for a steady increase to 4 million barrels by 2035-2040, having recently surpassed 200 rigs [13][15] - **UAE's Aspirations**: The UAE is targeting 5 million barrels by 2027 and aims to stop gas imports by 2030 [15][16] Strategic Initiatives - **Local Value Addition**: NESR is positioned as a national champion, benefiting from local perception and compliance with in-country value programs [27][31] - **Investment in R&D**: NESR has established a research and development facility and is investing in local innovation ecosystems, such as the Ahmadi Innovation Valley in Kuwait [34][41] Technology and Service Delivery - **Technology Development**: NESR is focusing on proprietary technology in advanced drilling and decarbonization, with plans to commercialize new tools in the near future [52][53] - **Service Quality**: NESR aims to maintain high service quality, scoring top metrics in various service segments [58][60] Financial Outlook - **Revenue Growth**: NESR anticipates a growth rate of 30-40% year-on-year, significantly outpacing the overall market growth of 5% [102][104] - **Margin Maintenance**: The company aims to maintain profit margins in the range of 20-25% despite competitive pricing pressures [130][136] - **CapEx Plans**: NESR plans to modestly increase capital expenditures to around $120-150 million, leveraging favorable market conditions to acquire equipment at lower costs [151][154] Future Growth Opportunities - **Expansion Plans**: NESR is exploring opportunities in North Africa and Asia, with a focus on maintaining a strong presence in Libya, Algeria, and Egypt [161][162] - **Cash Flow Management**: The company expects to generate significant free cash flow, allowing for flexibility in growth investments or potential dividends in the future [181][186] Conclusion - **Investment Recommendation**: The CEO suggests that NESR remains undervalued and encourages investors to consider purchasing shares [190]

Core Insights - National Energy Services Reunited Corp. (NESR) is set to release its financial results for Q3 2025 on November 13, 2025 [1] - A conference call will be held at 8:00 AM ET on the same day to discuss the financial results [1] Company Overview - NESR is an international provider of integrated energy services [1] - The company operates primarily in the Middle East and North Africa (MENA) region [1]

Group 1: Company Overview - National Energy Services Reunited (NESR) shares increased by 14.3% to close at $14.1, with a notable trading volume compared to typical sessions, and a total gain of 20.3% over the past four weeks [1][2] - NESR is one of the largest oilfield service providers in the Middle East and North Africa (MENA) region, benefiting from increased demand for oilfield services due to rising oil and gas demand [2] Group 2: Market Dynamics - The company is experiencing growth in drilling activity in the MENA region, particularly in Algeria, Libya, the UAE, Oman, and Kuwait, while also expanding into Latin America, specifically Guyana and Brazil [2] - NESR is focusing on securing a robust backlog and building a solid project pipeline to ensure sustained demand for its services and maintain profitability amid rising global oil and gas demand [2] Group 3: Financial Performance Expectations - NESR is expected to report quarterly earnings of $0.15 per share, reflecting a year-over-year decline of 51.6%, with revenues projected at $291.25 million, down 13.4% from the previous year [3] - The consensus EPS estimate for NESR has been revised 25% lower over the last 30 days, indicating a negative trend in earnings estimate revisions, which typically does not lead to price appreciation [4] Group 4: Industry Comparison - NESR is part of the Zacks Oil and Gas - Mechanical and Equipment industry, where USA Compression Partners (USAC) has a Zacks Rank of 2 (Buy) and is expected to report an EPS of $0.22, reflecting a 69.2% increase year-over-year [5][6]