National Energy Services Reunited Corp. (NESR): Results of Operations and Financial Condition
National Energy Services Reunited Corp. (NESR) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 National Energy Services Reunited Corp. Reports Second Quarter 2026 Financial Results ● 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, 2
How this was made
The 30-second read
Why it matters
The disclosure provides fresh earnings and cash-flow figures, including operating cash flow and free cash flow, plus cash and debt levels at June 30, 2026, which can drive immediate re-rating versus prior expectations.
Market read
NESR’s Q2 2026 results show strong YoY and sequential growth in revenue, net income, adjusted EBITDA, and cash generation, which is likely to be the dominant near-term driver for the stock’s trading narrative.
What to watch
The filing notes higher capital expenditures during the first half and provides only partial balance-sheet context (e.g., net debt definition cut off), so traders should verify leverage trends and any contract concentration risk in the full exhibit.
National Energy Services Reunited Corp. Reports Second Quarter 2026 Financial Results
Revenue, net income, diluted EPS, Adjusted EBITDA, operating cash flow and free cash flow all increased year-over-year and sequentially, while cash increased and Net Debt declined.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| RevenueGAAP | $ 520,752 | 28.7 % | 59.1 % |
| Net incomeGAAP | 44,017 | 84.7 % | 189.6 % |
| Adjusted net incomenon-GAAP | 45,469 | 70.1 % | 125.9 % |
| Adjusted EBITDAnon-GAAP | 106,184 | 38.5 % | 50.5 % |
| Diluted EPSGAAP | 0.43 | 85.8 % | 168.8 % |
| Adjusted Diluted EPSnon-GAAP | 0.44 | 68.3 % | 109.5 % |
| Operating cash flowGAAP | $174.0 million | 76.7% | 466.6% |
| Free cash flownon-GAAP | $99.9 million | $105.2 million | $31.2 million |
| Cash and cash equivalentsGAAP | $175.0 million | – | – |
| Total debtGAAP | $274.6 million | – | – |
| Short-term debtGAAP | $114.9 million | – | – |
| Net Debtnon-GAAP | $99.6 million | – | – |
| Total Charges and Credits impacting Adjusted Net Income and Adjusted Diluted EPSnon-GAAP | $1.5 million | – | – |
| Current expected credit loss provisionsother | $1.0 million | – | – |
What drove it
- Higher activity levels in hydraulic fracturing, well testing, and wireline logging service lines drove strong flow-through from incremental revenue.
- Higher net income and improved working capital management year-over-year supported free cash flow.
- Strong accounts receivable collections and cash generation during the quarter supported higher cash and cash equivalents and lower Net Debt.
- The Company cited record activity levels on recently awarded contracts across the region and expanding technology offerings.
Concerns
- Management cited continued conflict in the region, although it stated that the Company maintained its presence intact in all operating units with no interruption to customer activities.
- The filing identifies changing commodity prices, market volatility, customer capital spending, and political, market, financial and regulatory risks as factors that could affect results.
- Free cash flow was partially offset by higher capital expenditures during the six-months ended June 30, 2026.
What to watch
- Whether higher activity levels in hydraulic fracturing, well testing, and wireline logging continue to support revenue growth and operating leverage.
- Cash conversion and working capital management, including the timing of payments on Accounts payable and accrued expenses in relation to payment terms.
- Execution on recently awarded contracts and expanding technology offerings amid continued regional conflict.
- Further changes in cash, total debt, and Net Debt.
Balance sheet and cash flow
- 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.
- Operating cash flow for the quarter ended June 30, 2026, was $174.0 million, growing 466.6% year-over-year and 76.7% sequentially.
- Free cash flow for the quarter ended June 30, 2026, was $99.9 million, compared to $68.7 million for the same period in 2025.
- 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 was $99.6 million as of June 30, 2026, compared to $185.3 million as of December 31, 2025.
Analysis
NESR reported a strong second quarter, with revenue of $ 520,752, up 59.1 % year-over-year and 28.7 % sequentially. Net income was 44,017, up 189.6 % year-over-year and 84.7 % sequentially, while diluted EPS was 0.43, up 168.8 % year-over-year and 85.8 % sequentially. Management attributed the earnings increase primarily to strong flow-through from incremental revenue generated by higher activity levels in hydraulic fracturing, well testing, and wireline logging.
The quarter showed substantial growth in non-GAAP profitability. Adjusted EBITDA was 106,184, increasing 50.5 % year-over-year and 38.5 % sequentially. Adjusted net income was 45,469 and Adjusted Diluted EPS was 0.44. The adjustment to adjusted net income and adjusted diluted EPS included $1.5 million of Total Charges and Credits, primarily $1.0 million of current expected credit loss provisions.
Cash generation was also a central feature of the release. Operating cash flow was $174.0 million, growing 466.6% year-over-year and 76.7% sequentially, while free cash flow was $99.9 million. The Company attributed the year-over-year free-cash-flow improvement to higher net income and improved working capital management, particularly closer control of payment timing on Accounts payable and accrued expenses relative to payment terms. Higher capital expenditures during the six-months ended June 30, 2026 partially offset that improvement.
The balance sheet strengthened during the first half. Cash and cash equivalents were $175.0 million, compared to $124.8 million as of December 31, 2025, while total debt was $274.6 million compared to $310.1 million at December 31, 2025. Net Debt declined to $99.6 million from $185.3 million, which the Company attributed to strong accounts receivable collections and quarterly cash generation. Management also described record activity on recently awarded contracts and no customer-activity interruption despite continued regional conflict.
No forward financial guidance was provided in the filing text. The principal operating items to monitor are the durability of activity-led revenue growth, continued conversion of earnings into operating cash flow and free cash flow, working capital execution, and the effect of regional conflict and other cited market risks on customer activity and contract execution.
Management, verbatim
The second quarter was another exceptional quarter for NESR, delivering record revenue, record Adjusted EBITDA and our strongest quarterly earnings to date.
Stefan Angeli, Chief Financial Officer
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.
Sherif Foda, Chairman and Chief Executive Officer
Not in the filing
stated, not guessed- Forward guidance for revenue, gross margin, operating expenses, tax rate, capital expenditures, earnings, or other financial metrics was not provided.
- Prior-quarter operating cash flow was not reported.
- Prior-quarter free cash flow was not reported.
- Gross margin was not reported.
- Operating income was not reported.
- GAAP operating expenses were not reported.
- Income-tax expense or tax rate was not reported.
- Segment revenue and segment-level growth were not reported.
- Capital returns, including share repurchases and dividends, were not reported.
- A prior quarterly outlook was not provided.
- Prior-year and prior-quarter comparisons for cash, total debt, short-term debt, and Net Debt on the same disclosed period basis were not reported.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
This is an SEC Form 8-K (Item 2.02) with Exhibit 99.1 reporting NESR’s Q2 2026 results and related financial condition metrics.
Ticker impact
NESR reported Q2 2026 revenue of $520.8M (+59.1% YoY) and net income of $44.0M (+189.6% YoY) in its 8-K.
Bias upward for the next session(s) as the filing provides fresh, detailed earnings and cash-flow datapoints.
The 8-K discloses GAAP and non-GAAP profitability, operating cash flow ($174.0M), free cash flow ($99.9M), and balance-sheet cash/debt levels as of June 30, 2026, which are actionable for positioning.
Market effects
Reinforces demand and margin expansion for integrated energy services in MENA, potentially supporting sentiment for regional oilfield services peers.
Highlights resilience of operations despite ongoing regional conflict, which may affect perceived risk premia for MENA-focused service providers.
Limited direct global read-through, but contributes to the broader oilfield services earnings tape.
Counterpoint
Record profitability may be partly driven by working-capital timing and activity levels that could normalize in subsequent quarters.
Key entities
- companyNational Energy Services Reunited Corp.
Integrated energy services provider in MENA; reported Q2 2026 revenue, net income, EPS, adjusted EBITDA, and cash-flow metrics.
- executiveStefan Angeli
CFO quoted on record revenue, adjusted EBITDA, earnings, and cash generation.
- executiveSherif Foda
Chairman and CEO quoted on contract wins, technology offerings, and uninterrupted customer activity.
