National Energy Services Reunited Corp. Reports Second Quarter 2026 Financial Results

Rhea-AI Summary

National Energy Services Reunited (NESR) reported strong Q2 2026 results, with revenue of $520.8 million, up 59.1% year-over-year and 28.7% sequentially. Net income reached $44.0 million, an increase of 189.6% year-over-year, and diluted EPS was $0.43, up 168.8% year-over-year. Adjusted net income was $45.5 million and Adjusted EBITDA rose to $106.2 million, up 50.5% year-over-year.

Operating cash flow for the quarter was $174.0 million, while free cash flow reached $99.9 million. As of June 30, 2026, cash and cash equivalents were $175.0 million, total debt was $274.6 million, and Net Debt (non-GAAP) declined to $99.6 million from $185.3 million at December 31, 2025. Six‑month 2026 revenue was $925.3 million with net income of $67.8 million.

Positive

• Q2 2026 revenue $520.8M, up 59.1% YoY and 28.7% sequentially
• Q2 2026 net income $44.0M, up 189.6% YoY and 84.7% sequentially
• Q2 2026 diluted EPS $0.43, up 168.8% YoY and 85.8% sequentially
• Q2 2026 Adjusted EBITDA $106.2M, up 50.5% YoY and 38.5% sequentially
• Q2 2026 operating cash flow $174.0M; free cash flow $99.9M vs $68.7M in Q2 2025
• Net Debt reduced to $99.6M at June 30, 2026, from $185.3M at December 31, 2025

Negative

• None.

News Explained

Beyond the reported results, NESR listed 100,851,754 ordinary shares issued and outstanding at June 30, 2026, versus 100,787,173 at December 31, 2025; if the increase reflects new issuance, the larger share base can reduce an existing holder’s percentage ownership.

Market reaction after 2Q26 earnings report: NESR +10.27%

+10.27% $32.00

15m delay

+10.27% Vs previous close

$32.00 Last Price

$29.43 $32.75 Day Range

$3.23B Market Cap

3.96K Volume

Following this news, NESR has gained 10.27%, reflecting a significant positive market reaction. The stock is currently trading at $32.00.

Data tracked by StockTitan Argus (15 min delayed). Upgrade to Gold for real-time data.

Market Context

Recent insider activity was Net Selling, adding a platform-level comparison to this earnings release...

Analysis

Recent insider activity was Net Selling, adding a platform-level comparison to this earnings release. The active S-3ASR registers resale shares without company proceeds; regional conflict remains a disclosed risk alongside reported cash generation and lower net debt.

Key Figures

Revenue: $520.8 million Net Income: $44.0 million Diluted EPS: $0.43 +5 more

8 metrics

Revenue $520.8 million Q2 2026; up 59.1% year over year

Net Income $44.0 million Q2 2026; up 189.6% year over year

Diluted EPS $0.43 Q2 2026; up 168.8% year over year

Adjusted EBITDA $106.2 million Q2 2026; up 50.5% year over year

Operating Cash Flow $174.0 million Q2 2026; up 466.6% year over year

Free Cash Flow $99.9 million Q2 2026; up $31.2 million year over year

Cash and Equivalents $175.0 million As of June 30, 2026

Net Debt $99.6 million As of June 30, 2026

Previous Earnings Reports

5 past events · Latest: May 11 (Positive)

Same Type Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
May 11	Q1 2026 earnings	Positive	+10.1%	Revenue and earnings growth accompanied the company’s first-quarter results.
Feb 17	Q4 2025 earnings	Positive	+16.0%	Revenue growth and improved adjusted EBITDA accompanied fourth-quarter results.
Nov 13	Q3 2025 earnings	Positive	+7.2%	Higher revenue, earnings, and contract activity accompanied third-quarter results.
Aug 20	Q2 2025 earnings	Positive	+14.0%	Revenue, net income, EBITDA, and cash flow improved year over year.
Jun 03	Q1 2025 earnings	Negative	-5.5%	Reported earnings coincided with a negative 24-hour price reaction.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Across five tag-matched earnings events, four had positive 24-hour reactions and one had a negative reaction, indicating generally aligned historical earnings performance.

Key Terms

gaap, non-gaap, adjusted ebitda, net debt, +1 more

5 terms

gaap financial

"The Company presents its financial results in accordance with generally accepted accounting principles"

GAAP, or Generally Accepted Accounting Principles, are a set of standardized rules and guidelines that companies follow when preparing their financial statements. They ensure consistency, transparency, and comparability across different companies, making it easier for investors to understand and compare financial information accurately. This helps investors make informed decisions based on trustworthy and uniform financial reports.

View in glossary

non-gaap financial

"management believes that using additional non-GAAP measures will enhance the evaluation"

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

View in glossary

adjusted ebitda financial

"The Company produced Adjusted EBITDA of $106.2 million during the quarter"

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

net debt financial

"Net Debt, a non-GAAP measure defined as current installments of long-term debt"

Net debt is the total amount a company owes after subtracting the cash and assets it has that can be used to pay off that debt. It shows how much debt is truly a burden, helping investors understand if a company is financially healthy or heavily borrowed. Think of it like calculating how much money you owe after using your savings to pay part of it.

View in glossary

hydraulic fracturing technical

"higher activity levels in the Company's hydraulic fracturing, well testing"

Hydraulic fracturing is a method for extracting oil and natural gas that involves injecting pressurized fluid and small solid particles into underground rock to create and hold open tiny cracks, allowing trapped fuel to flow to a well. For investors, it matters because successful fracturing can sharply increase a well’s output and revenue potential, while also carrying higher upfront costs, regulatory scrutiny, and environmental risks that can affect a company’s value.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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• Revenue for the quarter ended June 30, 2026, is $520.8 million, reflecting an increase of 59.1% year-over-year and 28.7% sequentially
• Net income for the quarter ended June 30, 2026, is $44.0 million, improving 189.6% year-over-year and 84.7% sequentially
• Diluted Earnings per Share (EPS) for the quarter ended June 30, 2026 is $0.43, representing an increase of 168.8% year-over-year and 85.8% sequentially
• Adjusted EBITDA (a non-GAAP measure)** for the quarter ended June 30, 2026, is $106.2 million, improving 50.5% year-over-year and 38.5% sequentially
• Operating cash flow for the quarter ended June 30, 2026, is $174.0 million, growing 466.6% year-over-year and 76.7% sequentially
• Free cash flow (a non-GAAP measure)** for the quarter ended June 30, 2026, is $99.9 million, growing $105.2 million sequentially and $31.2 million year-over-year

HOUSTON, Aug. 10, 2026 /PRNewswire/ -- National Energy Services Reunited Corp. ("NESR" or the "Company"), a leading integrated energy services provider in the Middle East and North Africa ("MENA"), today announced its financial results as of and for the three-month and six-month periods ended June 30, 2026. The Company delivered the following results for the periods presented:

		Three Months Ended												Variance
(in thousands except per share amounts and percentages)		June 30, 2026				March 31, 2026				June 30, 2025				Sequential				Year- over- year
Revenue		$	520,752			$	404,586			$	327,368				28.7	%			59.1	%
Net income			44,017				23,827				15,201				84.7	%			189.6	%
Adjusted net income (non-GAAP)**			45,469				26,733				20,130				70.1	%			125.9	%
Adjusted EBITDA (non-GAAP)**			106,184				76,671				70,559				38.5	%			50.5	%
Diluted EPS			0.43				0.23				0.16				85.8	%			168.8	%
Adjusted Diluted EPS (non-GAAP)**			0.44				0.26				0.21				68.3	%			109.5	%

**The Company presents its financial results in accordance with generally accepted accounting principles in the United States of America ("GAAP"). However, management believes that using additional non-GAAP measures will enhance the evaluation of the profitability of the Company and its ongoing operations. Please see Tables 1, 2, 3, and 4 below for reconciliations of GAAP to non-GAAP financial measures. The Consolidated Balance Sheets, Consolidated Statements of Operations, and Consolidated Statements of Cash Flows are derived from the consolidated financial statements presented in our Quarterly Report on Form 10-Q as of and for the three-month and six-month periods ended June 30, 2026.

Stefan Angeli, Chief Financial Officer, commented, "The second quarter was another exceptional quarter for NESR, delivering record revenue, record Adjusted EBITDA and our strongest quarterly earnings to date. Revenue grew 59% year-over-year to $520.8 million, while net income nearly tripled from the prior year to $44.0 million, demonstrating the significant operating leverage embedded in our business. Higher activity levels and disciplined execution translated into pronounced margin expansion, record profitability and robust cash generation. During the first half of the year, we generated over $200 million of operating cash flow, produced nearly $95 million of free cash flow and reduced net debt, reflecting effective working capital management and a continued focus on capital allocation. These results reinforce the scalability of the NESR platform and our ability to consistently translate growth into expanding profitability, strong cash generation and long-term shareholder value."

Sherif Foda, Chairman and Chief Executive Officer, commented, "Our stellar second quarter performance reflects the strength of NESR's differentiated platform, the dedication of our people and the continued confidence our customers place in us. Despite the continued conflict in the region, we maintained our presence intact in all operating units with no interruption to any of our customers' activities. We are executing at record activity levels on our recently awarded contracts across the region while maintaining operational excellence, technology leadership and local capabilities that have become the hallmark of NESR. With our recent contract wins and expanding technology offerings, we are confident in our path to realizing our vision, in continuing to deliver exceptional value, and in being clearly recognized as the trusted partner of choice for our customers."

Net Income and Adjusted Net Income Results

Net income for the quarter ended June 30, 2026, is $44.0 million, increasing $28.8 million year-over-year and $20.2 million sequentially. The increases were primarily attributable to strong flow-through from incremental revenue generated by higher activity levels in the Company's hydraulic fracturing, well testing, and wireline logging service lines.

Adjusted net income for the quarter is $45.5 million and included $1.5 million of "Total Charges and Credits impacting Adjusted Net Income and Adjusted Diluted EPS," primarily attributable to $1.0 million of current expected credit loss provisions. A detailed reconciliation of net income and diluted EPS to Adjusted Net Income and Adjusted Diluted EPS, including a complete list of adjusting items, is presented in Table 1 below under "Reconciliation of Net Income and Diluted EPS to Adjusted Net Income and Adjusted Diluted EPS."

The Company reported $0.43 of diluted EPS for the quarter ended June 30, 2026, improving $0.20 sequentially and $0.27 year-over-year. Adjusted for the impact of Total Charges and Credits impacting Adjusted Net Income and Adjusted Diluted EPS, Adjusted Diluted EPS, a non-GAAP measure described in Table 1 below, for the quarter ended June 30, 2026, is $0.44.

Adjusted EBITDA Results

The Company produced Adjusted EBITDA of $106.2 million during the quarter ended June 30, 2026, up 50.5% year-over-year and 38.5% sequentially. Adjusted EBITDA includes adjustments for certain Total Charges and Credits impacting Adjusted EBITDA (those not related to interest, taxes, and/or depreciation and amortization). The Company posted the following results for the periods presented:

(in thousands)		Quarter ended June 30, 2026				Quarter ended March 31, 2026				Quarter ended June 30, 2025
Revenue		$	520,752			$	404,586			$	327,368
Adjusted EBITDA		$	106,184			$	76,671			$	70,559

A detailed reconciliation of net income to Adjusted EBITDA, including a complete list of adjusting items, is presented in Table 2 below under "Reconciliation of Net Income to Adjusted EBITDA."

Balance Sheet

Cash and cash equivalents were $175.0 million as of June 30, 2026, compared to $124.8 million as of December 31, 2025, and $131.8 million as of June 30, 2025.

Free cash flow, a non-GAAP measure, for the quarter ended June 30, 2026, is $99.9 million, compared to $68.7 million for the same period in 2025. The difference between periods was primarily driven by higher net income and improved working capital management year-over-year, and in particular more closely controlling timing of payments on Accounts payable and accrued expenses in relation to payment terms, as partially offset by higher capital expenditures during the six-months ended June 30, 2026. A reconciliation of the applicable GAAP measures to free cash flow is presented in Table 3, titled "Reconciliation of Net cash provided by (used in) operating activities to Free Cash Flow."

Total debt as of June 30, 2026, was $274.6 million, of which $114.9 million was classified as short-term, compared to total debt of $310.1 million, including $118.8 million classified as short-term, as of December 31, 2025. Net Debt, a non-GAAP measure defined as current installments of long-term debt, short-term borrowings, and long-term debt, less cash and cash equivalents, was $99.6 million as of June 30, 2026, compared to $185.3 million as of December 31, 2025. The decrease in Net Debt was primarily attributable to higher cash and cash equivalents at June 30, 2026, reflecting strong accounts receivable collections and cash generation during the quarter ended June 30, 2026. A reconciliation of the applicable GAAP measures to Net Debt is presented in Table 4, "Reconciliation to Net Debt."

About National Energy Services Reunited Corp.

Founded in 2017, NESR is one of the largest national oilfield services providers in the Middle East and North Africa. With over 7,000 employees, representing more than 60 nationalities in 16 countries, the Company helps its customers unlock the full potential of their reservoirs by providing Production Services such as Hydraulic Fracturing, Cementing, Coiled Tubing, Filtration, Completions, Stimulation, Pumping and Nitrogen Services. The Company also helps its customers to access their reservoirs in a smarter and faster manner by providing Drilling and Evaluation Services such as Drilling Downhole Tools, Directional Drilling, Fishing Tools, Testing Services, Wireline, Slickline, Drilling Fluids and Rig Services.

Conference Call

A conference call is scheduled for 8:00 AM ET on August 10, 2026, to discuss the financial results. Investors, analysts and members of the media are invited to participate by dialing in to the U.S. toll-free line at 1-877-407-0890 or the international line at 1-201-389-0918, approximately 10 minutes prior to the start of the call.

A live, listen-only earnings webcast will also be broadcast simultaneously under the "Investors" section of the Company's website at www.nesr.com. Following the end of the conference call, a replay will be available after the event under the "Investors" section of the Company's website.

Forward-Looking Statements

This communication contains forward-looking statements (as such term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended). Any and all statements contained in this communication that are not statements of historical fact may be deemed forward-looking statements. Terms such as "may," "might," "would," "should," "could," "project," "estimate," "predict," "potential," "strategy," "anticipate," "attempt," "develop," "plan," "help," "believe," "continue," "intend," "expect," "future," and terms of similar import (including the negative of any of these terms) may identify forward-looking statements. However, not all forward-looking statements may contain one or more of these identifying terms. Forward-looking statements in this communication may include, without limitation, the plans and objectives of management for future operations, projections of income or loss, earnings or loss per share, capital expenditures, dividends, capital structure or other financial items, the Company's future financial performance, expansion plans and opportunities, completion and integration of acquisitions, and the assumptions underlying or relating to any such statement.

The forward-looking statements are not meant to predict or guarantee actual results, performance, events or circumstances and may not be realized because they are based upon the Company's current projections, plans, objectives, beliefs, expectations, estimates and assumptions and are subject to a number of risks and uncertainties and other influences, many of which the Company has no control over. Actual results and the timing of certain events and circumstances may differ materially from those described by the forward-looking statements as a result of these risks and uncertainties. Factors that may influence or contribute to the accuracy of the forward-looking statements or cause actual results to differ materially from expected or desired results may include, without limitation: changing commodity prices, market volatility and other market trends affecting customer demand for our services, public health crises and other catastrophic events, the level of capital spending by our customers, political, market, financial and regulatory risks, including those related to the geographic concentration of our operations and customers, our operations, including maintenance, upgrades and refurbishment of our assets, which may require significant capital expenditures that may or may not be available to us, operating hazards inherent in our industry and the ability to secure sufficient indemnities and insurance, our ability to successfully integrate acquisitions, conditions in the Middle East, including uncertainty and instability resulting from the conflict between the United States, Israel and Iran and other regional hostilities, and other risks and uncertainties set forth in the Company's most recent Annual Report on Form 10-K, filed with the Securities and Exchange Commission (the "SEC").

You are cautioned not to place undue reliance on forward-looking statements because of the risks and uncertainties related to them and to the risk factors. The Company disclaims any obligation to update the forward-looking statements contained in this communication to reflect any new information or future events or circumstances or otherwise, except as required by law. You should read this communication in conjunction with other documents which the Company may file or furnish from time to time with the SEC.

The preliminary financial results for the Company as of and for the three-month and six-month periods ended June 30, 2026, included in this press release, represent the most current information available to management. The Company's actual results when disclosed in its subsequent Quarterly Report on Form 10-Q may differ from these preliminary results as a result of the completion of the Company's financial statement closing procedures, final adjustments, completion of the independent registered public accounting firm's audit procedures, and other developments that may arise between now and the disclosure of the final results.

NATIONAL ENERGY SERVICES REUNITED CORP. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (UNAUDITED) (In US$ thousands, except share data)
		June 30, 2026				December 31, 2025
Assets
Current assets
Cash and cash equivalents		$	174,994				124,797
Accounts receivable, net			208,832				178,020
Unbilled revenue			173,327				121,186
Service inventories			126,378				94,834
Prepaid assets			21,713				13,237
Retention withholdings			41,368				33,125
Other receivables			55,226				54,511
Other current assets			13,534				10,664
Total current assets			815,372				630,374
Non-current assets
Property, plant and equipment, net			530,685				465,454
Intangible assets, net			38,047				47,086
Goodwill			645,095				645,095
Operating lease right-of-use assets			25,696				20,300
Other assets			42,295				43,210
Total assets		$	2,097,190			$	1,851,519
Liabilities and equity
Liabilities
Accounts payable and accrued expenses			603,187				421,064
Current installments of long-term debt			64,500				64,500
Short-term borrowings			50,415				54,250
Income taxes payable			37,042				25,092
Other taxes payable			16,069				12,351
Operating lease liabilities			1,415				2,948
Other current liabilities			29,029				24,715
Total current liabilities			801,657				604,920
Long-term debt			159,706				191,378
Deferred tax liabilities			660				1,691
Employee benefit liabilities			39,337				36,321
Non-current operating lease liabilities			23,026				18,447
Other liabilities			30,759				30,846
Total liabilities			1,055,145				883,603
Commitments and contingencies
Equity
Preferred shares, no par value; unlimited shares authorized; none issued and outstanding at June 30, 2026, and December 31, 2025, respectively			-				-
Ordinary shares and additional paid-in capital, no par value; unlimited shares authorized; 100,851,754, and 100,787,173 shares issued and outstanding at June 30, 2026, and December 31, 2025, respectively			909,130				902,845
Retained income			132,846				65,002
Accumulated other comprehensive income			69				69
Total equity			1,042,045				967,916
Total liabilities and equity		$	2,097,190			$	1,851,519

 

NATIONAL ENERGY SERVICES REUNITED CORP. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (In US$ thousands, except share data and per share amounts)
		For the three-month period ended								For the six-month period ended
Description		June 30, 2026				June 30, 2025				June 30, 2026				June 30, 2025
Revenues		$	520,752			$	327,368			$	925,338			$	630,470
Cost of services			(439,460)				(283,484)				(792,215)				(549,131)
Gross profit			81,292				43,884				133,123				81,339
Selling, general and administrative expenses (excluding Amortization)			(12,018)				(12,099)				(23,121)				(23,920)
Amortization			(4,433)				(4,694)				(9,126)				(9,387)
Operating income			64,841				27,091				100,876				48,032
Interest expense, net			(7,038)				(8,562)				(13,581)				(16,846)
Other income, net			1,115				940				2,564				1,999
Income before income tax			58,918				19,469				89,859				33,185
Income tax expense			(14,901)				(4,268)				(22,015)				(7,593)
Net income		$	44,017			$	15,201			$	67,844			$	25,592
Weighted average shares outstanding:
Basic			100,850,601				96,428,791				100,827,148				96,284,786
Diluted			103,218,410				97,639,507				103,084,578				97,152,215
Earnings per share:
Basic		$	0.44			$	0.16			$	0.67			$	0.27
Diluted		$	0.43			$	0.16			$	0.66			$	0.26

 

NATIONAL ENERGY SERVICES REUNITED CORP. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (In US$ thousands)
		For the six-month period ended
Description		June 30, 2026				June 30, 2025
Cash flows from operating activities:
Net income		$	67,844			$	25,592
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			69,885				71,912
Share-based compensation expense			5,172				3,578
(Gain) on disposal of assets			(2,360)				(886)
Non-cash interest expense			192				531
Deferred tax expense (benefit)			4,880				(431)
Allowance for doubtful receivables and unbilled revenue			1,784				(782)
Charges on obsolete service inventories			1,283				920
Impairments and other charges			-				1,492
Other operating activities, net			71				354
Changes in operating assets and liabilities:
(Increase) decrease in accounts receivable			(32,046)				(53,001)
(Increase) decrease in unbilled revenue			(52,140)				(2,901)
(Increase) decrease in retention withholdings			(8,243)				15,162
(Increase) decrease in inventories			(32,827)				(3,040)
(Increase) decrease in prepaid assets			(8,475)				(6,815)
(Increase) decrease in other current assets			(2,582)				(5,102)
(Increase) decrease in other long-term assets and liabilities			(1,581)				2,764
Increase (decrease) in accounts payable and accrued expenses			181,504				64,509
Increase (decrease) in other current liabilities			12,397				5,115
Net cash provided by operating activities			204,758				118,971
Cash flows from investing activities:
Capital expenditures			(110,108)				(59,867)
IPM investments			-				-
Proceeds from disposal of assets			1,881				1,438
Other investing activities			(1,333)				(4,000)
Net cash used in investing activities			(109,560)				(62,429)
Cash flows from financing activities:
Proceeds from long-term debt			-				-
Repayments of long-term debt			(32,250)				(35,073)
Proceeds from short-term borrowings			42,242				53,464
Repayments of short-term borrowings			(46,086)				(47,031)
Payments on capital leases			(3,638)				(1,427)
Payments on seller-provided financing for capital expenditures			(3,820)				(1,203)
Other financing activities, net			-				(1,426)
Net cash used in financing activities			(43,552)				(32,696)
Effect of exchange rate changes on cash			-				-
Net increase (decrease) in cash, cash equivalents, and restricted cash			51,646				23,846
Cash and cash equivalents, beginning of period			132,696				107,956
Cash, cash equivalents, and restricted cash, end of period		$	184,342			$	131,802

 

NATIONAL ENERGY SERVICES REUNITED CORP. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(Unaudited)
(In US$ thousands except per share amounts)

The Company uses and presents certain key non-GAAP financial measures to evaluate its business and trends, measure performance, prepare financial projections and make strategic decisions. Included in this release are discussions of earnings before interest, income tax and depreciation and amortization adjusted for certain non-recurring and non-core expenses ("Adjusted EBITDA"), net income and diluted earnings per share ("EPS") adjusted for certain non-recurring and non-core expenses ("Adjusted Net Income" and "Adjusted Diluted EPS," respectively), as well as a reconciliation of these non-GAAP measures to net income and diluted EPS, respectively, in accordance with GAAP. The Company also discusses the non-GAAP balance sheet measure of the sum of our recorded current installments of long-term debt, short-term borrowings, and long-term debt less cash and cash equivalents ("Net Debt") in this release and provides a reconciliation to the GAAP measures of cash and cash equivalents, current installments of long-term debt, short-term borrowings, and long-term debt to Net Debt. The Company also discusses Free Cash Flow reconciled to Operating Cash Flow.

The Company believes that the presentation of Adjusted EBITDA, Adjusted Net Income, and Adjusted Diluted EPS provides useful information to investors in assessing its financial performance and results of operations as the Company's board of directors, management and investors use Adjusted EBITDA, Adjusted Net Income, and Adjusted Diluted EPS to compare the Company's operating performance on a consistent basis across periods by removing the effects of changes in capital structure (such as varying levels of interest expense), asset base (such as depreciation and amortization), items that do not impact the ongoing operations (transaction, integration, and startup costs) and items outside the control of its management team. Similarly, Net Debt is used by management as a liquidity measure used to illustrate the Company's debt level absent variability in cash and cash equivalents, and the Company believes that the presentation of Net Debt provides useful information to investors in assessing its financial leverage. Adjusted EBITDA, Adjusted Net Income, and Adjusted Diluted EPS should not be considered as an alternative to operating income, net income, or diluted EPS, respectively, the most directly comparable GAAP financial measures. Net Debt also should not be considered as an alternative to GAAP measures of cash and cash equivalents, current installments of long-term debt, short-term borrowings, and long-term debt. Finally, Free Cash Flow is used by management as a liquidity measure to illustrate the Company's ability to produce cash that is available to be distributed in a discretionary manner, after excluding investments in capital assets. Free Cash Flow should not be considered as an alternative to Net cash provided by (used in) operations or Net cash provided by (used in) investing activities, respectively, the most directly comparable GAAP financial measures. Non-GAAP financial measures have important limitations as analytical tools because they exclude some but not all items that affect the most directly comparable GAAP financial measure. You should not consider non-GAAP measures in isolation or as a substitute for an analysis of the Company's results as reported under GAAP.

Table 1 - Reconciliation of Net Income and Diluted EPS to Adjusted Net Income and Adjusted Diluted EPS
		Quarter ended								Quarter ended								Quarter ended
		June 30, 2026								March 31, 2026								June 30, 2025
		Net				Diluted				Net				Diluted				Net				Diluted
		Income				EPS				Income				EPS				Income				EPS
Net Income		$	44,017			$	0.43			$	23,827			$	0.23			$	15,201			$	0.16
Add/(Subtract): Charges and Credits impacting Adjusted EBITDA, Adjusted Net Income, and Adjusted Diluted EPS:
Costs associated with the restatement of our 2018-2020 financial statements, including the SEC inquiry and remediation			123				-				28				-				884				0.01
Impairments			-				-				-				-				374				-
Current expected credit loss (releases) provisions			965				0.01				455				-				419				-
Litigation (releases) provisions			92				-				248				-				724				0.01
Restructuring projects			163				-				67				-				1,389				0.01
Loss of inventory in fire			-				-				-				-				-				-
Other write-offs (recoveries) and provisions (release of provisions)			109				-				2,108				0.02				1,139				0.01
Total Charges and Credits impacting Adjusted EBITDA (1)			1,452				0.01				2,906				0.03	(3)			4,929				0.05	(3)
Add/(Subtract): Charges and Credits impacting only Adjusted Net Income and Adjusted Diluted EPS:
Adjustments to uncertain tax positions and unrecognized tax benefits			-				-				-				-				-				-
Total Charges and Credits impacting Adjusted Net Income and Adjusted Diluted EPS (2)			1,452				0.01				2,906				0.03				4,929				0.05
Total Adjusted Net Income and Adjusted Diluted EPS		$	45,469			$	0.44			$	26,733			$	0.26			$	20,130			$	0.21

	(1)	In the quarter ended June 30, 2026, Total Charges and Credits impacting Adjusted EBITDA included $0.1 million (as rounded) of costs associated with the restatement of our 2018-2020 financial statements, including the SEC inquiry and remediation, $1.0 million of current expected credit loss (releases) provisions, $0.1 million of litigation (releases) provisions, $0.2 million of restructuring projects, and $0.1 million of other write-offs (recoveries) and provisions (release of provisions). In the quarter ended March 31, 2026, Total Charges and Credits impacting Adjusted EBITDA included $0.0 million (as rounded) of costs associated with the restatement of our 2018-2020 financial statements, including the SEC inquiry and remediation, $0.5 million of current expected credit loss (releases) provisions, $0.2 million of litigation (releases) provisions, $0.1 million of restructuring projects, and $2.1 million of other write-offs (recoveries) and provisions (release of provisions) primarily related to foreign currency transaction remeasurement losses partially offset by a favorable adjustment to the Company's lease accounting provisions. In the quarter ended June 30, 2025, Total Charges and Credits included $0.9 million of costs associated with the restatement of our 2018-2020 financial statements, including the SEC inquiry and remediation, $0.4 million of impairments, $0.4 million of current expected credit loss (releases) provisions, $0.7 million of litigation (releases) provisions, $1.4 million of restructuring projects, and $1.1 million of other write-offs (recoveries) and provisions (release of provisions).
	(2)	Total Charges and Credits impacting Adjusted Net Income and Adjusted Diluted EPS for the quarter ended June 30, 2026, was $1.5 million inclusive of Total Charges and Credits impacting Adjusted EBITDA of $1.5 million. Total Charges and Credits impacting Adjusted Net Income and Adjusted Diluted EPS for the quarter ended March 31, 2026, was $2.9 million inclusive of Total Charges and Credits impacting Adjusted EBITDA of $2.9 million. Total Charges and Credits impacting Adjusted Net Income and Adjusted Diluted EPS for the quarter ended June 30, 2025, were $4.9 million, inclusive of $4.9 million of Charges and Credits impacting Adjusted EBITDA.
	(3)	Does not foot due to rounding.

 

Table 2 - Reconciliation of Net Income to Adjusted EBITDA
		Quarter ended June 30, 2026				Quarter ended March 31, 2026				Quarter ended June 30, 2025
Net Income		$	44,017			$	23,827			$	15,201
Add:
Income Taxes			14,901				7,114				4,268
Interest Expense, net			7,038				6,543				8,562
Depreciation and Amortization			38,776				36,281				37,599
Total Charges and Credits impacting Adjusted EBITDA (3)			1,452				2,906				4,929
Total Adjusted EBITDA		$	106,184			$	76,671			$	70,559

	(3)	Total Charges and Credits impacting Adjusted EBITDA are described in Table 1 above. Total Charges and Credits impacting Adjusted EBITDA exclude items related to interest, income tax and depreciation and amortization.

 

Table 3 - Reconciliation of Net cash provided by operating activities to Free cash flow
		3 months ended June 30, 2026				3 months ended March 31, 2026				12 months ended December 31, 2025				3 months ended December 31, 2025				3 months ended September 30, 2025				3 months ended June 30, 2025				3 months ended March 31, 2025
Net cash provided by operating activities		$	174,013			$	30,745			$	264,242			$	138,590				6,681				98,486				20,485
Less:
Capital expenditures			(74,104)				(36,004)				(143,454)				(42,834)				(40,753)				(29,743)				(30,124)
Free cash flow		$	99,909			$	(5,259)			$	120,788			$	95,756			$	(34,072)			$	68,743			$	(9,639)

 

Table 4 - Reconciliation to Net Debt
		As of June 30, 2026				As of December 31, 2025				As of June 30, 2025
Current installments of long-term debt		$	64,500			$	64,500			$	65,912
Short-term borrowings			50,415				54,250				65,997
Long-term debt			159,706				191,378				222,916
Less:
Cash and cash equivalents			(174,994)				(124,797)				(131,802)
Net Debt		$	99,627			$	185,331			$	223,023

 

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SOURCE NATIONAL ENERGY SERVICES REUNITED

FAQ

What were NESR (NESR) revenues and growth in Q2 2026?

NESR reported Q2 2026 revenue of $520.8 million, up 59.1% year-over-year and 28.7% sequentially. According to NESR, this growth was driven by higher activity levels in hydraulic fracturing, well testing, and wireline logging service lines across the Middle East and North Africa.

How profitable was NESR (NESR) in the second quarter of 2026?

NESR generated Q2 2026 net income of $44.0 million, with diluted EPS of $0.43. According to NESR, net income increased 189.6% year-over-year and 84.7% sequentially, reflecting strong operating leverage and margin expansion from incremental revenue growth.

What were NESR (NESR) Q2 2026 Adjusted EBITDA and cash flow?

NESR reported Q2 2026 Adjusted EBITDA of $106.2 million and operating cash flow of $174.0 million. According to NESR, free cash flow, a non-GAAP measure, was $99.9 million for the quarter, supported by higher net income and effective working capital management.

How did NESR (NESR) net debt change by June 30, 2026?

NESR’s Net Debt (non-GAAP) was $99.6 million as of June 30, 2026. According to NESR, this compares to $185.3 million at December 31, 2025, with the reduction mainly driven by higher cash balances from strong accounts receivable collections and cash generation.

What were NESR (NESR) financial results for the first half of 2026?

For the six months ended June 30, 2026, NESR reported revenue of $925.3 million and net income of $67.8 million. According to NESR, this compares to revenue of $630.5 million and net income of $25.6 million for the same period in 2025.

What was NESR (NESR) free cash flow performance in Q2 2026?

NESR generated Q2 2026 free cash flow of $99.9 million, a non-GAAP measure. According to NESR, this compares with $68.7 million in Q2 2025, with the year-over-year improvement primarily reflecting higher net income and tighter control of payment timing within working capital.

When is the NESR (NESR) Q2 2026 earnings conference call and how can investors join?

NESR scheduled its Q2 2026 earnings conference call for 8:00 AM ET on August 10, 2026. According to NESR, participants can dial 1-877-407-0890 (U.S. toll-free) or 1-201-389-0918 (international), or access a live listen-only webcast via the company’s investor relations website.