National Energy Services Reunited Corp (NAS:NESR)

Q2 2026 National Energy Services Reunited Corp Earnings Call Transcript

Aug 10, 2026 / 12:00 PM GMT

Release Date Price: $35.79 (+23.33%)

Transcript 10-Q8-K

Key Points

Positve

Record Q2 2026 revenue of $520.8 million, up 28.7% sequentially and 59.1% year-over-year, exceeding the $2 billion annualized run rate target ahead of schedule.
Adjusted EBITDA reached a record $106.2 million with a 20.4% margin, driven by strong operational execution and the Jafura contract ramp-up.
Record adjusted net income of $45.5 million and adjusted diluted EPS of $0.44, reflecting strong operating leverage.
Robust cash generation with Q2 operating cash flow of $174 million and free cash flow of $99.9 million, despite temporary working capital timing.
Net debt reduced to $99.6 million, with a net leverage ratio of just 0.3x, providing significant financial flexibility.
New capital allocation framework includes initiating a quarterly dividend of $0.10 per share and a $50 million share repurchase program.
Expansion into new markets like Syria and the Ahmadi Innovation Valley contract in Kuwait, unlocking new growth opportunities.
Strong countercyclical investment strategy and supply chain resilience, maintaining 100% reliability during regional disruptions.
Full-year 2026 revenue outlook raised to a minimum of $2 billion, with confidence in achieving the $3 billion 3B3 target faster than planned.
Successful auditor transition to PwC, reflecting the company's growth and commitment to best-in-class governance.

Negative

Incremental freight and logistics costs of approximately $4 million (80 basis points) in Q2 due to regional geopolitical disruptions.
Lower activity in Iraq, which continued to be impacted by regional disruptions, acting as a principal headwind.
Expected credit loss provision of $1 million related to a North Africa customer.
Higher inventory balances as the company proactively secured critical materials, tying up cash.
Full-year adjusted EBITDA margins expected to remain broadly in line with 2025 levels, despite revenue growth, due to geopolitical cost pressures.
Capital expenditures increased to $210-215 million for 2026, reflecting higher investment needs.
Potential for further margin pressure if regional situation deteriorates materially, impacting freight and logistics costs.
The company's growth is heavily dependent on the successful execution of large contracts like Jafura, which may face execution risks.
The 3B3 target relies on winning new tenders and expanding into new countries, which may be delayed by geopolitical factors.
The company's technology ventures (e.g., NEDA, Roya) are still in early stages and may not contribute significantly to revenue in the near term.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

NESR.OQ - National Energy Services Reunited Corp.
Q2 2026 National Energy Services Reunited Corp Earnings Call
Aug 10, 2026 / 12:00PM GMT

=====================
Presentation
--------------------------------------------------------------------------------
Unidentified_1 [1]
--------------------------------------------------------------------------------
Greetings and welcome to the NESR Report Second Quarter 2026 Financial Results.

At this time, all participants are in a listen-only mode. A brief 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.

As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Blake Gendron, Vice President of Investor Relations.

Thank you, sir. You may begin.

--------------------------------------------------------------------------------
Unidentified_2 [2]
----------------------------------------------------------

Already have an account? Log in

Get the full story

Subscribe Now

	Access to All Earning Calls and Stock Analysis
	30-Year Financial on one screen
	All-in-one Stock Screener with unlimited filters
	Customizable Stock Dashboard
	Real Time Insider Trading Transactions
	8,000+ Institutional investors’ 13F holdings
	Powerful Excel Add-in and Google sheets Add-on
	All data downloadable
	Quick customer support
	And much more...

7-Day Free Trial · Cancel Anytime

Subscription fee may be tax deductible.

Excellent

4.6 out of 5

Trustpilot

Research Tools

All-In-One Screener Stock Ideas Stock List Guru List Guru Real-Time Picks Insider List Insider Trades Economic Indicators Sector & Industry Performance DCF Calculator Calculators Discussion Board

Product

Pricing Plans Excel Add-In Google Sheets Add-on Data API Stock Comparison Table Manual of Stocks Instant Alerts Mobile App Newsletters Signup 中文

Education

Financial Glossary Tutorials FAQ Buffett Indicator Shiller P/E Yield Curve Today U.S. Inflation Rate Global Market Valuation Fed Net Liquidity Buffett Assets Allocation

Company

About GuruFocus Career Contact Us Advertise Term of Use Privacy Policy Referral Program Partner Program

Survey

We'd love to learn more about your experiences on GuruFocus.com and how we can improve!

Take Survey

Disclaimers

GuruFocus.com is not operated by a broker or a dealer. Under no circumstances does any information posted on GuruFocus.com represent a recommendation to buy or sell a security. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute investment advice or recommendations. The individuals or entities selected as "gurus" may buy and sell securities before and after any particular article and report and information herein is published, with respect to the securities discussed in any article and report posted herein. Gurus may be added or dropped from the GuruFocus site at any time. In no event shall GuruFocus.com be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or available on GuruFocus.com, or relating to the use of, or inability to use, GuruFocus.com or any content, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Past performance is a poor indicator of future performance. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute investment advice or recommendations. The information on this site is in no way guaranteed for completeness, accuracy or in any other way. The gurus listed in this website are not affiliated with GuruFocus.com, LLC. Stock quotes are provided by QuoteMedia, Inc. (CSI). Company fundamental data is provided by Morningstar. Analyst estimates data is sourced from both Refinitiv and Morningstar, with priority given to Refinitiv data. Data is updated daily.