National Energy Services Reunited Corp.

What they do

NESR provides upstream and midstream oilfield services across the MENA region, with operations in 16 countries including Saudi Arabia, Oman, Kuwait, UAE, Iraq, Algeria, Egypt, and Libya. The company operates through two segments: Production Services (hydraulic fracturing, coiled tubing, cementing, stimulation, and other completion/production services) and Drilling and Evaluation Services (rigs, directional drilling, wireline, well testing, and related services).

Revenue drivers

• Production Services — Largest segment, accounting for 62% of 2025 revenue and 63% of Q2 2026 revenue; includes hydraulic fracturing, coiled tubing, cementing, and stimulation services.
• Drilling and Evaluation Services — Accounts for 38% of 2025 and Q2 2026 revenue; includes rig operations, directional drilling, wireline, and well testing.
• MENA region operations — Generated approximately 99% of 2025 revenue ($1.316B of $1.324B), with customer activity concentrated in Saudi Arabia, Oman, Kuwait, UAE, and other MENA countries.
• Natural gas development — Growing customer focus on natural gas, including Saudi Arabia's Jafurah unconventional field, is driving demand for NESR services.

Recent performance

For Q2 2026, NESR reported record revenue of $520.8 million, up 59.1% year-over-year and 28.7% sequentially. Net income was $44.0 million, up 189.6% year-over-year and 84.7% sequentially, with diluted EPS of $0.43. Adjusted EBITDA was $106.2 million, up 50.5% year-over-year. Operating cash flow for the quarter was $174.0 million, up 466.6% year-over-year, and free cash flow was $99.9 million. For the first half of 2026, operating cash flow exceeded $200 million and free cash flow was nearly $95 million.

Strategy

NESR focuses on expanding its full portfolio of services in the MENA region, leveraging high local content to optimize costs and enhance free cash flow. Management emphasizes technology leadership and local capabilities, with recent contract wins and expanding technology offerings supporting growth. The company also invests in reservoir characterization through its minority stake in WDVGE, a premier reservoir characterization lab. NESR aims to translate growth into expanding profitability, strong cash generation, and long-term shareholder value.

Risks

• Commodity price volatility — Oil and natural gas price trends directly affect customer exploration and production spending, and any decline could reduce demand for NESR services.
• Geographic concentration — NESR generates nearly all revenue in MENA, exposing it to regional economic, political, and security risks, including the ongoing U.S.-Israel-Iran conflict.
• Customer capital spending dependence — The business relies on customer capital budgets; reductions in spending could materially adversely affect results.
• Equipment maintenance and capital requirements — The company's assets require capital for maintenance, upgrades, and refurbishment, and it may need significant capital expenditures for new equipment.

Outlook

Management remains confident in the path to realizing the company's vision, citing recent contract wins, expanding technology offerings, and record activity levels. Demand for services has remained resilient despite regional conflict, supported by continued customer investment in Saudi Arabia, including the Jafurah unconventional field, and sustained activity in other locations. However, the duration and trajectory of the conflict are uncertain, and escalation could affect commodity prices, customer spending, and results.