Q4 2025 National Energy Services Reunited Corp Earnings Call Transcript
Key Points
- National Energy Services Reunited Corp (NESR) reported a record high revenue of $398.3 million for the fourth quarter of 2025, marking a 34.9% sequential increase and a 15.9% year-over-year growth.
- The company successfully initiated the largest unconventional frac program in sectoral history, demonstrating strong operational execution and cost management.
- NESR's strategic focus on the Middle East and North Africa (MENA) region is yielding positive results, with significant growth in countries like Kuwait, Libya, and Saudi Arabia.
- The company achieved a strong free cash flow of $120.8 million for the full year 2025, representing a 43% conversion from adjusted EBITDA, highlighting the scalability of its platform.
- NESR is well-positioned for future growth, with plans to double the company's size over the next few years, supported by a robust pipeline of tenders and strategic investments in technology and decarbonization initiatives.
- The company faced $24.1 million in total charges impacting adjusted EBITDA, including credit loss provisions in Oman and impairment charges related to legacy technology investments.
- Margins remained stable but were pressured by competitively priced contract wins, with adjusted EBITDA margin at 21.2% for the fourth quarter.
- Interest expense for the fourth quarter was $7.5 million, and income tax expense was $7.2 million, impacting overall profitability.
- The company anticipates more muted seasonality in the first quarter of 2026, with margins expected to be weakest in the first quarter before improving sequentially.
- NESR's growth strategy involves significant capital expenditures, with planned investments of approximately $165 million for 2026, which could increase if additional contract wins are secured.
Greetings. Welcome to NSA Reports 4th quarter 2025 financial results conference call. At this time, all participants are in a listed only mode. A question-and-answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press 0 on your telephone keypad. Please note this conference is being recorded. I will now turn the conference over to Blake Gendron, Vice President of Vest relations.
Thank you. You may begin.
Thank you, Sherry. Hello and welcome to NER's fourth quarter 2025 earnings call. With me today are Sharif Foda, Chairman and Chief Executive Officer of NSA, and Stephan Angelli, Chief Financial Officer.
On today's call, we will comment on our 4th quarter results and overall performance. After ourpard remarks, we will open up the call to questions.
Before we begin, I'd like to remind our participants that some of the statements we'll be making today
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