National Energy Services Reunited Corp.

NESR reported second-quarter 2026 revenue of a record $520.8 million, up 28.7% sequentially and 59.1% year over year. Adjusted EBITDA was a record $106.2 million, implying a 20.4% margin, and adjusted net income was a record $45.5 million, up 70.1% sequentially and 125.9% year over year; adjusted diluted EPS was a record $0.44. Operating cash flow increased to $174 million, free cash flow was $99.9 million, capital expenditures were $74.1 million, gross debt was $274.6 million, net debt was $99.6 million, and net debt/adjusted EBITDA was 0.3x. For Q3, management expects continued strong year-over-year revenue growth, sequential margin improvement, net interest expense of about $6.8 million, and an effective tax rate of about 24%. For full-year 2026, NESR raised revenue to a minimum objective of $2 billion, expects adjusted EBITDA margins broadly in line with 2025, capex of about $210 million to $215 million, net interest expense of about $26 million to $27 million, net income margins of 9% to 9.5%, and free cash flow conversion of about 35% to 40% of adjusted EBITDA.

Sherif Foda framed the quarter as proof that NESR’s regional strategy is working even amid geopolitical disruption. He said the company’s local workforce, supply-chain resilience and countercyclical investment approach allowed it to maintain uninterrupted service and capture opportunities while others were disrupted. He repeatedly emphasized that NESR has exceeded its original $2 billion revenue run-rate target and believes the newer 3B3 goal could be achieved faster than the stated three-year horizon.

Stefan Angeli highlighted record Q2 revenue of $520.8 million, adjusted EBITDA of $106.2 million, adjusted net income of $45.5 million and adjusted diluted EPS of $0.44. He said margins were supported by Jafurah ramp-up and seasonal improvement, partly offset by about $4 million of incremental freight and logistics costs from geopolitical disruptions and $1.5 million of net charges and credits, including a $1 million expected credit loss provision. On cash flow, he noted operating cash flow of $174 million, free cash flow of $99.9 million, capex of $74.1 million, gross debt of $274.6 million and net debt of $99.6 million, with leverage at 0.3x; he also outlined the capital plan to start a quarterly dividend in Q4 2026 at $0.10 per share, keep a $50 million buyback authorization, and target net leverage at or below 1x.

Analysts focused on what is driving the revenue step-up, how much Jafurah can still contribute, and whether the 3B3 target could come sooner than expected. Management said the fourth Jafurah fleet was active in Q2 and the fifth fleet had been shipped, with broader growth also coming from Oman, Egypt and North Africa. Questions on Kuwait centered on the new Ahmadi Innovation Valley / Master Technology Agreement framework; management said it can generate revenue before the research center is complete and could lead to multi-year technology contracts. On the broader Middle East outlook, management said post-conflict readiness is keeping rigs warm-stacked rather than cold-stacked, and on tender timing they said some awards may slip from Q2/Q3 into Q3/Q4, but they still expect to win a meaningful share of large multi-award contracts.