Energy Services' 15min chart shows KDJ Death Cross and Bearish Marubozu.

The 15-minute chart for Energy Services has recently triggered a KDJ Death Cross and a Bearish Marubozu at 08/21/2025 13:00, indicating a shift in momentum towards a downtrend. This suggests that the stock price has a high likelihood of further decreasing, as sellers are currently controlling the market. Furthermore, the bearish momentum is expected to persist.

National Energy Services Reunited Corp. (NASDAQ:NESR), a leading integrated energy services provider in the MENA region, reported robust Q2 2025 financial results. Revenue reached $327.4 million, up 8.0% sequentially, while net income grew 46.3% to $15.2 million. The company achieved an Adjusted EBITDA of $70.6 million, representing a 13.0% sequential increase. Notable achievements include strong cash flow performance with operating cash flow of $119.0 million for H1 2025, improving 6.0% year-over-year. The company's financial position strengthened with Net Debt to trailing twelve-month Adjusted EBITDA ratio reaching an all-time low of 0.74. NESR also successfully remediated previously identified material weaknesses and completed all SEC settlement requirements from August 2024.

The company's financial metrics show strong sequential momentum across all key financial metrics. Revenue reached $327.4 million, growing 8.0% quarter-over-quarter, though only 0.7% year-over-year. This sequential growth outpaces the broader energy services sector in the MENA region, suggesting market share gains. The company's profitability metrics show even stronger sequential improvement, with net income increasing 46.3% to $15.2 million and Adjusted EBITDA rising 13.0% to $70.6 million. The Adjusted EBITDA margin expanded by 95 basis points to 21.6%, reflecting improved operational efficiency and cost control measures.

However, year-over-year comparisons reveal profitability challenges, with net income declining 19.5% and Adjusted EBITDA dropping 10.3% from Q2 2024. Cash flow generation remains a standout strength, with $98.5 million in operating cash flow for Q2 2025 and $68.7 million in free cash flow. This robust cash conversion has enabled NESR to significantly improve its balance sheet, reducing Net Debt to $223 million and achieving a Net Debt to TTM Adjusted EBITDA ratio of 0.74x – an all-time low for the company. This deleveraging strengthens NESR's financial flexibility amid market uncertainties.

The remediation of previously identified material weaknesses in internal controls and the completion of all SEC settlement requirements remove a significant overhang for investors. This governance improvement, combined with management's commentary on "a contract winning streak" in key service lines, positions NESR favorably for continued operational execution despite acknowledged headwinds from OPEC+ supply releases and geopolitical tensions in the region.

[1] https://www.stocktitan.net/news/NESR/national-energy-services-reunited-corp-reports-second-quarter-2025-cvlggp2qkwzp.html