National Energy Services Reunited (NASDAQ:NESR – Get Free Report) released its quarterly earnings results on Monday. The company reported $0.38 EPS for the quarter, topping the consensus estimate of $0.36 by $0.02, FiscalAI reports. The business had revenue of $504.73 million for the quarter, compared to analysts’ expectations of $495.93 million. National Energy Services Reunited had a return on equity of 12.07% and a net margin of 5.77%.
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 $0.13 on Tuesday, hitting $19.68. 93,993 shares of the company’s stock were exchanged, compared to its average volume of 2,153,081. National Energy Services Reunited has a 1 year low of $12.77 and a 1 year high of $36.94. The stock has a market capitalization of $1.98 billion, a PE ratio of 21.23, a PEG ratio of 0.25 and a beta of 0.57. The company has a 50-day simple moving average of $26.26 and a 200-day simple moving average of $25.55. The company has a debt-to-equity ratio of 0.15, a quick ratio of 0.86 and a current ratio of 1.02.
National Energy Services Reunited Announces Dividend
The firm also recently declared a quarterly dividend, which will be paid on Thursday, December 10th. Stockholders of record on Thursday, December 3rd will be given a dividend of $0.10 per share. The ex-dividend date of this dividend is Thursday, December 3rd. This represents a $0.40 annualized dividend and a dividend yield of 2.0%.
Insider Activity at National Energy Services Reunited
In related news, CFO Stefan Angeli sold 13,570 shares of the stock in a transaction dated Tuesday, August 18th. The shares were sold at an average price of $35.12, for a total value of $476,578.40. Following the completion of the transaction, the chief financial officer 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 position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Sherif Foda sold 100,000 shares of the stock in a transaction on Monday, August 31st. The stock was sold at an average price of $35.00, for a total value of $3,500,000.00. Following the completion of the sale, the chief executive officer owned 3,084,643 shares in the company, valued at approximately $107,962,505. The trade was a 3.14% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders sold 176,894 shares of company stock valued at $6,221,414. Insiders own 9.70% of the company’s stock.
Key Stories Impacting National Energy Services Reunited
Here are the key news stories impacting National Energy Services Reunited this week:
- Positive Sentiment: Third-quarter revenue was $504.7 million, about 70% higher year over year and above the $495.9 million consensus estimate. Adjusted EPS of $0.38 also beat the $0.36 estimate and rose from $0.16 a year earlier. Q3 earnings and revenue estimates
- Positive Sentiment: NESR declared a quarterly cash dividend of $0.10 per share—its first—payable December 10 to shareholders of record December 3. That equates to $0.40 annualized, or an indicated yield of about 2%. Dividend announcement
- Positive Sentiment: Management is targeting approximately $2 billion in 2026 revenue, offering investors a growth outlook alongside the dividend announcement. 2026 revenue target and dividend
- Neutral Sentiment: The company is refinancing $747 million in facilities; the headline does not provide terms, so the effect on financing costs or risk is unclear. Refinancing and outlook announcement
Analyst Ratings Changes
Several research firms have weighed in on NESR. Wall Street Zen cut shares of National Energy Services Reunited from a “strong-buy” rating to a “buy” rating in a research report on Saturday, October 3rd. National Bank Financial set a $44.00 target price on shares of National Energy Services Reunited in a research note on Wednesday, September 30th. BMO Capital Markets initiated coverage on shares of National Energy Services Reunited in a report on Thursday, October 1st. They issued an “outperform” rating and a $39.00 price target for the company. Capital One Financial initiated coverage on shares of National Energy Services Reunited in a research note on Wednesday, September 30th. They issued an “overweight” rating and a $44.00 price target on the stock. Finally, UBS Group dropped their target price on National Energy Services Reunited from $47.00 to $46.00 and set a “buy” rating on the stock in a report on Tuesday, September 29th. Nine investment analysts have rated the stock with a Buy rating and one has given a Hold rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $39.88.
View Our Latest Research Report on National Energy Services Reunited
About National Energy Services Reunited
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.
Formed in 2017 through the combination of National Petroleum Services and Gulf Energy, NESR serves customers across the Middle East, North Africa and Asia.
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