National Energy Services Reunited beats Q2 expectations despite global market challenges

Published 20/08/2025, 22:02

HOUSTON - National Energy Services Reunited Corp. (NASDAQ:NESR) reported second-quarter adjusted earnings that exceeded analyst expectations, driven by sequential revenue growth and improved operational efficiency despite ongoing global market challenges.

NESR’s shares edged up 0.84% following the announcement as investors responded positively to the earnings and revenue beats.

The oilfield services provider posted adjusted earnings per share of $0.21 for the quarter ended June 30, 2025, surpassing the analyst estimate of $0.18. Revenue reached $327.4 million, exceeding the consensus estimate of $315.97 million and representing an 8.0% sequential increase from the first quarter. Year-over-year, revenue showed a modest 0.7% improvement.

"We are extremely proud of our team across the entire region for executing flawlessly in the field and delivering stellar performance for our customers," said Sherif Foda, Chairman and Chief Executive Officer. "Our momentum and contract winning streak fortify our leadership in the largest Production Services service lines and position us for accretive growth in Drilling & Evaluation across our key anchor countries."

The company reported net income of $15.2 million, or $0.16 per diluted share, representing a 46.3% sequential improvement. Adjusted EBITDA rose to $70.6 million, a 13.0% increase from the previous quarter, though down 10.3% YoY.

Stefan Angeli, Chief Financial Officer, noted that the company achieved these results "notwithstanding global headwinds including OPEC+ supply releases, fully supplied oil markets, ongoing tariff and trade negotiations, and geopolitical conflicts."

NESR also reported strong cash flow performance, with operating cash flow of $98.5 million for the second quarter, driving free cash flow of $68.7 million. The company’s net debt to trailing twelve-month adjusted EBITDA ratio declined to 0.74 as of June 30, 2025, an all-time low for the company.

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