National Energy Services 2025 Q3 Earnings EPS Declines 18.2% Despite Revenue Beat

National Energy Services (NESR) reported Q3 2025 earnings on November 14, 2025, with revenue declining 12.2% to $295.31 million. The company’s EPS dropped 18.2% to $0.18, though it outperformed the Zacks Consensus Estimate of $0.15. The stock gained 32.08% month-to-date, signaling positive short-term momentum.

Revenue

Production Services led with $174.44 million, while Drilling and Evaluation Services contributed $120.87 million. Total external revenue fell to $295.31 million, reflecting a 12.2% year-over-year decline. The segment breakdown underscores the company’s focus on core operations, though broader market challenges impacted overall growth.

Earnings/Net Income

Net income dropped 14% to $17.74 million, with EPS at $0.18, a 18.2% decline from the prior year. Despite the drop, NESR maintained profitability for six consecutive years, highlighting operational resilience. The EPS beat, however, suggests execution improvements amid market headwinds.

Post-Earnings Price Action Review

The strategy of buying NESR after a revenue beat and holding for 30 days historically yielded positive results, supported by the stock’s 32.08% month-to-date surge. The earnings beat of $0.16 (surpassing Zacks’ $0.15 estimate) drove investor optimism, with CEO Sherif Foda emphasizing cost control and strategic investments. The Zacks Rank #3 (Hold) rating reflects stable expectations, though revised earnings estimates (down 7.9% in 30 days) caution against over-optimism. NESR’s focus on debt reduction and countercyclical investments positions it to capitalize on market opportunities, though analysts project 2025 revenue of $1.31 billion and EPS of $0.74.

CEO Commentary

Sherif Foda, Executive Chairman and CEO, highlighted the company’s “strong execution and cost control,” emphasizing safety and strategic investments. The countercyclical investment strategy aims to leverage global weaknesses, while debt reduction plans underscore financial discipline. Foda noted the importance of operational readiness, signaling confidence in navigating market volatility.

Guidance

Full-year 2025 revenue is projected at $1.31 billion, with EPS guidance at $0.74. The consensus EPS estimate for Q4 2025 stands at $0.25, with $359.72 million in revenue expected. Analysts have revised 2025 EPS downward by 7.9% over 30 days, reflecting tempered expectations.

Additional News

Barclays maintained an Overweight recommendation for NESR, assigning a $15.71 price target (12.44% upside from $13.97). Institutional ownership increased by 45.52%, with Encompass Capital and SCF Partners boosting stakes. Additionally, Dodge & Cox raised its portfolio allocation by 72.79%, signaling growing institutional confidence.