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

Revenue for the quarter ended March 31, 2026, is $404.6 million, reflecting an increase of 33.5% year-over-year and 1.6% sequentially

Net income for the quarter ended March 31, 2026, is $23.8 million, improving 205.4% sequentially and 129.3% year-over-year

Diluted Earnings per Share (EPS) for the three months ended March 31, 2026 is $0.23, representing an increase of 109.1% year-over-year and 201.3% sequentially

Adjusted EBITDA (a non-GAAP measure)** for the quarter ended March 31, 2026, is $76.7 million, improving 22.7% year-over-year

Operating cash flow for the quarter ended March 31, 2026, is $30.7 million, growing 50.1% year-over-year

HOUSTON, TX / ACCESS Newswire / May 11, 2026 / 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 period ended March 31, 2026. The Company delivered the following results for the periods presented:

Three Months Ended

Variance

March 31, 2026

December 31, 2025

March 31, 2025

Sequential

Year- over- year

404,586

398,262

303,102

1.6

33.5

23,827

7,803

10,391

205.4

129.3

26,733

31,879

12,963

(16.1

106.2

76,671

84,414

62,463

(9.2

22.7

0.23

0.08

0.11

201.3

109.1

0.26

0.32

0.14

(17.8

85.7

**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 months ended March 31, 2026.

Stefan Angeli, Chief Financial Officer, commented, "First Quarter 2026 delivered outstanding results despite the geopolitical conflict with strong operational execution driving continued growth and profitability. Revenue reached $404.6m, an all-time high, supported by sustained activity across our core markets and increasing contributions from our hydraulic fracturing operations, particularly in our Saudi Arabia's Jafurah unconventional field.

Net income increased to $23.8 million, underscoring the growing earnings power of the business as we scale. Adjusted EBITDA is $76.7 million, demonstrating the resilience of our operating model and the benefits of disciplined execution, even against a significantly more complex operating backdrop. We generated $30.7 million of operating cash flow while absorbing working capital build related to Ramadan and higher activity, with net debt broadly stable versus year-end and free cash flow largely in line with the prior year quarter. We continue to execute at scale and capitalize on the multi-year opportunity set in the region."

Sherif Foda, Chairman and Chief Executive Officer, commented, "Amid an escalation in regional security tensions driven by recent conflict in the Middle East, NESR delivered a strong start to 2026, underpinned by resilient operations and continued client trust across our core markets. We maintained uninterrupted activity at scale, supported by secure supply chains, localized capabilities, and proven operational agility. We focused on the reliable supply of inventory and products to maintain operating capacity and capabilities despite the logistics challenges and sharp increase of costs. Recent multi-year contract awards in Kuwait and North Africa further reinforce our competitive positioning and long-term growth visibility. We reiterate our commitment to the clients by being physically by their side, and I visited the majority of our operating units across the region as we see accelerated investment potential to diversify and increase both Oil and Gas capacity in the region."

Net Income and Adjusted Net Income Results

Net income for the quarter ended March 31, 2026, is $23.8 million, increasing $16.0 million sequentially and $13.4 million year-over-year. The increases were primarily attributable to strong flow-through from incremental revenue generated by higher activity levels in the Company's hydraulic fracturing and well testing service lines.

Adjusted net income for the quarter is $26.7 million and included $2.9 million of "Total Charges and Credits impacting Adjusted Net Income and Adjusted Diluted EPS," primarily attributable to $2.1 million of other write-offs (recoveries) and provisions (releases of provisions). The $2.1 million includes $3.6 million of foreign currency transaction remeasurement losses, partially offset by a $1.3 million favorable adjustment to the Company's lease accounting 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 $0.23 of diluted EPS for the quarter ended March 31, 2026, improving $0.15 sequentially and $0.12 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 March 31, 2026, is $0.26.

Adjusted EBITDA Results

The Company produced Adjusted EBITDA of $76.7 million during the quarter ended March 31, 2026, up 22.7% year-over-year. 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:

404,586

398,262

303,102

76,671

84,414

62,463

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 $93.0 million as of March 31, 2026, compared to $124.8 million as of December 31, 2025, and $78.7 million as of March 31, 2025.

Free cash flow, a non-GAAP measure, for the quarter ended March 31, 2026, is negative $5.3 million, compared to negative $9.6 million for the same period in 2025. The increase is primarily attributable to higher net income in 2026 as compared to 2025, partially offset by higher capital expenditures during the three months ended March 31, 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 March 31, 2026, is $287.4 million, of which $111.9 million is classified as short-term, compared to $310.1 million and $118.8 million, respectively, 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, totaled $194.4 million as of March 31, 2026, compared to $185.3 million as of December 31, 2025. The increase in Net Debt is primarily driven by lower cash and cash equivalents at March 31, 2026, relative to December 31, 2025, reflecting seasonal cash and working capital requirements. A reconciliation of the applicable GAAP measures to Net Debt is presented in Table 4, "Reconciliation to Net Debt."

In May 2026, the Company's has approved a capital return program consisting of (i) a quarterly cash dividend anticipated to commence in the fourth quarter of 2026 at an expected rate of $0.10 per Ordinary Share and (ii) authorization for the repurchase of up to $50.0 million of the Company's Ordinary Shares from time to time in open market transactions, privately negotiated transactions, or otherwise, at prevailing market prices, and subject to market conditions, applicable legal requirements, and liquidity considerations.

About National Energy Services Reunited Corp.

Founded in 2017, NESR is one of the largest national oilfield services providers in the MENA and Asia Pacific regions. 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 May 11, 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: catastrophic events, geopolitical conflict, 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, may require significant capital expenditures, which 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, competition, including for capital and technological advances, 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 period ended March 31, 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)

March 31, 2026

December 31, 2025

92,956

124,797

227,932

178,020

171,341

121,186

96,206

94,834

9,706

13,237

26,214

33,125

54,753

54,511

10,513

10,664

689,621

630,374

476,154

465,454

42,434

47,086

645,095

25,977

20,300

44,649

43,210

1,923,930

1,851,519

483,048

421,064

64,500

47,353

54,250

30,843

25,092

15,152

12,351

1,984

2,948

17,408

24,715

660,288

604,920

175,542

191,378

918

1,691

36,971

36,321

22,683

18,447

32,319

30,846

928,721

883,603

906,311

902,845

88,829

65,002

995,209

967,916

1,923,930

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)

March 31, 2026

March 31, 2025

404,586

303,102

(352,755

)

(265,647

)

51,831

37,455

(11,103

)

(11,821

)

(4,693

)

(4,693

)

36,035

20,941

(6,543

)

(8,284

)

1,449

1,059

30,941

13,716

(7,114

)

(3,325

)

23,827

10,391

100,803,435

96,139,181

102,931,550

96,710,484

0.24

0.11

0.23

0.11

NATIONAL ENERGY SERVICES REUNITED CORP. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

(In US$ thousands)

For the three-month period ended

March 31, 2026

March 31, 2025

23,827

10,391

33,779

36,035

2,502

1,856

(373

)

(363

)

(192

)

(143

)

1,132

(1,239

)

480

(16

)

853

920

1,118

(50,392

)

(27,524

)

(50,154

)

(18,339

)

6,910

8,834

(2,224

)

(5,567

)

3,531

746

429

(2,646

)

(1,934

)

2,137

61,419

15,094

1,127

(847

)

30,745

20,485

(36,004

)

(30,124

)

402

637

(833

)

(2,000

)

(36,435

)

(31,487

)

(16,125

)

(17,537

)

19,587

26,841

(26,498

)

(26,252

)

(1,000

)

(710

)

(1,265

)

(601

)

(25,301

)

(18,259

)

(30,991

)

(29,261

)

132,696

107,956

101,705

78,695

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

March 31, 2026

December 31, 2025

March 31, 2025

Net

Diluted

Net

Diluted

Net

Diluted

Income

EPS

Income

EPS

Income

EPS

23,827

0.23

7,803

0.08

10,391

0.11

258

1,488

0.02

8,076

0.08

1,118

0.01

455

7,112

0.07

(227

)

248

(837

)

(0.01

)

4,712

0.05

2,108

0.02

3,670

0.04

1,030

0.01

2,906

0.03

(3)

24,076

0.24

2,572

0.03

2,906

0.03

24,076

0.24

2,572

0.03

26,733

0.26

31,879

0.32

12,963

0.14

(1)

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, as described above. In the quarter ended December 31, 2025, Total Charges and Credits impacting Adjusted EBITDA included $0.3 million of costs associated with the restatement of our 2018-2020 financial statements, including the SEC inquiry and remediation, $8.1 million of technology impairments, $7.1 million of current expected credit loss (releases) provisions mainly in Oman, $0.2 million of litigation (releases) provisions, $4.7 million of restructuring projects, and $3.7 million of other write-offs (recoveries) and provisions (release of provisions) primarily related to a vendor bankruptcy and resulting provision for a construction-in-process prepayment previously made in Saudi Arabia. In the quarter ended March 31, 2025, Total Charges and Credits impacting Adjusted EBITDA included $1.5 million of costs associated with the restatement of our 2018-2020 financial statements, including the SEC inquiry and remediation, $1.1 million of impairments, ($0.2) million of current expected credit loss (releases) provisions, ($0.8) million of litigation (releases) provisions, and $1.0 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 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 December 31, 2025, were $24.1 million, inclusive of $24.1 million of Charges and Credits impacting Adjusted EBITDA. Total Charges and Credits impacting Adjusted Net Income and Adjusted Diluted EPS for the quarter ended March 31, 2025, were $2.6 million, inclusive of $2.6 million of Charges and Credits impacting Adjusted EBITDA.

(3)

Does not foot due to rounding.

Table 2 - Reconciliation of Net Income to Adjusted EBITDA

23,827

7,803

10,391

7,114

7,173

3,325

6,543

7,539

8,284

36,281

37,823

37,891

2,906

24,076

2,572

76,671

84,414

62,463

(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 (used in) operating activities to Free Cash Flow

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

30,745

264,242

138,590

6,681

98,486

20,485

(36,004

)

(143,454

)

(42,834

)

(40,753

)

(29,743

)

(30,124

)

(5,259

)

120,788

95,756

(34,072

)

68,743

(9,639

)

Table 4 - Reconciliation to Net Debt

64,500

67,323

47,353

54,250

60,350

175,542

191,378

238,651

(92,956

)

(124,797

)

(78,695

)

194,439

185,331

287,629

For inquiries regarding NESR, please contact:

Blake Gendron or Stefan Angeli

National Energy Services Reunited Corp.

832-925-3777

[email protected]

SOURCE: National Energy Services Reunited Corp.