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National Energy Services Reunited
(NASDAQ:NESR)
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Rating:72Outperform
Price Target:
$40.00
▲(44.82% Upside)
Action:Reiterated
Date:08/18/26
The score is driven primarily by improved fundamentals (profitability turnaround, healthier leverage, positive free cash flow) and a very strong earnings call with constructive guidance and shareholder-return initiatives. This is tempered by a stretched technical setup (overbought signals) and a relatively expensive valuation (high P/E with no current dividend yield data).
Positive Factors
Strong Revenue Growth
Rapid growth across major MENA markets and the Jafurah ramp-up demonstrates strong demand for NESR’s services. Higher activity and a broad tender funnel can support sustained scale, utilization and revenue expansion over the medium term.
Negative Factors
Regional Geopolitical and Operating Exposure
NESR’s concentration in MENA exposes operations to geopolitical disruption, logistics constraints and uneven country activity. These factors can delay projects, raise delivery costs and impair utilization even when underlying customer demand remains healthy.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Revenue Growth
Rapid growth across major MENA markets and the Jafurah ramp-up demonstrates strong demand for NESR’s services. Higher activity and a broad tender funnel can support sustained scale, utilization and revenue expansion over the medium term.
Read all positive factors
National Energy Services Reunited (NESR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.61B
Dividend YieldN/A
Average Volume (3M)2.41M
Price to Earnings (P/E)37.4
Beta (1Y)0.90
Revenue Growth23.55%
EPS Growth21.73%
CountryUS
Employees7,352
SectorEnergy
Sector Strength52
IndustryOil & Gas Equipment & Services
Share Statistics
EPS (TTM)0.94
Shares Outstanding100,851,750
10 Day Avg. Volume1,765,039
30 Day Avg. Volume2,412,410
Financial Highlights & Ratios
PEG Ratio-0.86
Price to Book (P/B)1.59
Price to Sales (P/S)1.16
P/FCF Ratio12.76
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$42.29Price Target Upside53.10% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering7
EPS Forecast (FY)1.81
Revenue Forecast (FY)$2.02B
National Energy Services Reunited Business Overview & Revenue Model
Company Description
National Energy Services Reunited Corp. (NESR), established in 2017 with its headquarters in Houston, Texas, offers an extensive range of oilfield services to energy companies operating across the Middle East, North Africa, and Asia Pacific region...
How the Company Makes Money
NESR primarily makes money by contracting with oil and gas producers (including national and international oil companies) to deliver oilfield services across the well lifecycle in exchange for service fees. Key revenue streams typically include: (...
National Energy Services Reunited Earnings Call Summary
Earnings Call Date:Aug 10, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 04, 2026
Earnings Call Sentiment Positive
The earnings call conveys a strongly positive operational and financial performance: record revenue, EBITDA, net income and EPS, robust cash generation, low leverage and the early achievement of a $2 billion revenue run rate. Management presented a clear growth plan (3B3), concrete technology and R&D initiatives (Ahmadi Innovation Valley, ROYA, NEDA), and a disciplined capital allocation framework including a forthcoming dividend and share repurchase program. Near-term challenges include incremental freight/logistics costs (~$4 million, ~80 bps), region-specific disruptions (notably Iraq), timing effects in working capital (~$40 million) and some delays in tender awards and commercialization timing for frontier technologies. These lowlights are manageable relative to the magnitude of the quarter's positive results and pronounced momentum.Positive Updates
Record Quarterly Revenue
Revenue of $520.8 million in Q2 2026, up 28.7% sequentially and 59.1% year-over-year, driven primarily by the Jafurah ramp-up (4 hydraulic fracturing fleets active) and strong performance in Saudi Arabia, Oman and Egypt.
Negative Updates
Incremental Freight and Logistics Costs
Freight and logistics headwinds from regional geopolitical disruptions increased costs by approximately $4 million in the quarter, reducing margins by roughly 80 basis points; management noted these remain the primary near-term cost risk.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Quarterly Revenue
Revenue of $520.8 million in Q2 2026, up 28.7% sequentially and 59.1% year-over-year, driven primarily by the Jafurah ramp-up (4 hydraulic fracturing fleets active) and strong performance in Saudi Arabia, Oman and Egypt.
Read all positive updates
Company Guidance
Management guided that Q3 should deliver continued strong year‑over‑year revenue growth and sequential margin improvement, with net interest expense of about $6.8M, an effective tax rate of ~24%, and freight/logistics costs not expected to exceed the roughly $4M (~80 bps) incremental level seen in Q2 unless the regional situation worsens; Q3 operating cash flow, free cash flow and capex are expected to be consistent with the company’s long‑term objective of generating free cash flow roughly equal to ~35% of adjusted EBITDA. For full‑year 2026 they now view $2.0B of revenue as a minimum, expect adjusted EBITDA margins broadly in line with 2025, plan capex of ~$210–215M, forecast net interest expense of $26–27M, an effective tax rate of ~24%, net income margins of ~9.0–9.5% and free cash flow conversion of ~35–40% of adjusted EBITDA; they also target net leverage at or below 1.0x (net debt/adjusted EBITDA) with a path to net‑zero debt in ~2 years, and will initiate a $0.10/share quarterly dividend starting Q4‑26 ($0.40 annually) while maintaining a $50M 12‑month share repurchase program.National Energy Services Reunited Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
74
Positive
Cash Flow
70
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Mar 2024 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.62B | 1.32B | 1.30B | 1.15B | 909.52M | 876.73M |
| Gross Profit | 202.43M | 145.96M | 208.67M | 129.88M | 46.61M | -15.26M |
| EBITDA | 286.02M | 234.64M | 278.16M | 217.90M | 120.17M | 76.72M |
| Net Income | 93.38M | 51.13M | 76.31M | 12.58M | -36.42M | -64.57M |
Balance Sheet | ||||||
| Total Assets | 2.10B | 1.85B | 1.77B | 1.80B | 1.83B | 1.83B |
| Cash, Cash Equivalents and Short-Term Investments | 174.99M | 124.80M | 107.96M | 67.82M | 78.85M | 205.77M |
| Total Debt | 299.06M | 349.97M | 409.13M | 484.75M | 566.41M | 595.84M |
| Total Liabilities | 1.06B | 883.60M | 865.45M | 976.25M | 1.03B | 1.01B |
| Stockholders Equity | 1.04B | 967.92M | 908.23M | 821.49M | 802.35M | 821.03M |
Cash Flow | ||||||
| Free Cash Flow | 156.33M | 120.79M | 124.22M | 108.77M | -29.84M | 20.67M |
| Operating Cash Flow | 350.03M | 264.24M | 229.33M | 176.96M | 92.58M | 127.74M |
| Investing Cash Flow | -199.37M | -152.24M | -111.13M | -83.46M | -146.71M | -164.54M |
| Financing Cash Flow | -98.12M | -87.26M | -78.06M | -104.53M | -72.80M | 167.54M |
National Energy Services Reunited Technical Analysis
Positive
27.62
Price Trends
28.04
Positive
26.07
Positive
21.96
Positive
Market Momentum
2.31
Negative
69.58
Neutral
91.01
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NESR, the sentiment is Positive. The current price of 27.62 is below the 20-day moving average (MA) of 30.02, below the 50-day MA of 28.04, and above the 200-day MA of 21.96, indicating a bullish trend. The MACD of 2.31 indicates Negative momentum. The RSI at 69.58 is Neutral, neither overbought nor oversold. The STOCH value of 91.01 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NESR.
National Energy Services Reunited Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $3.61B | 37.44 | 9.43% | ― | 23.55% | 21.73% | |
68 Neutral | $1.55B | 39.04 | 2.52% | ― | 1.97% | -51.44% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
59 Neutral | $1.25B | 158.87 | 1.95% | ― | 5.70% | -95.02% | |
56 Neutral | $552.56M | -4.89 | -17.80% | ― | -2.80% | -1752.76% | |
55 Neutral | $1.46B | 63.42 | 2.07% | 2.93% | 25.36% | -59.73% | |
46 Neutral | $74.64M | -1.87 | -24.22% | ― | -20.50% | -191.37% |
* Energy Sector Average
NESR
National Energy Services Reunited
35.29
28.00
384.09%
HLX
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10.38
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81.47%
OIS
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8.97
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77.98%
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5.95
-11.09
-65.08%
RES
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6.32
2.06
48.25%
TTI
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7.98
3.92
96.55%
National Energy Services Reunited Corporate Events
Business Operations and StrategyFinancial Disclosures
National Energy Services Reunited Reports Record Q2 Profitability
Positive
Aug 10, 2026
National Energy Services Reunited reported on August 10, 2026, that second-quarter 2026 revenue rose to $520.8 million, up 59.1% year-over-year and 28.7% sequentially, with net income nearly tripling to $44.0 million and diluted EPS climbing to $0...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.