National Energy Services 2025 Q3 Earnings Revenue Beats Estimates Despite 14% Net Income Decline

National Energy Services (NESR) reported Q3 2025 results marked by a 12.2% year-over-year revenue decline to $295.31 million, with a 6.67% earnings surprise and mixed guidance. The stock surged 33.68% month-to-date, defying weak industry trends.

Revenue

Total revenue fell to $295.31 million in Q3 2025, reflecting a 12.2% decline from $336.20 million in the prior year. Production Services led with $174.44 million, contributing 59% of total revenue, while Drilling and Evaluation Services accounted for $120.87 million. The performance underscores a shift in demand toward production solutions amid market volatility.

Earnings/Net Income

Earnings per share (EPS) dropped 18.2% to $0.18, with net income falling 14.0% to $17.74 million. Despite the decline, the company maintained profitability for six consecutive years, highlighting operational resilience. The EPS shortfall relative to the net income decline suggests margin pressures.

Price Action

NESR’s stock gained 7.46% on the day of the report, 12.48% in the subsequent week, and 33.68% month-to-date, outperforming broader energy sector trends.

Post-Earnings Price Action Review

The strategy of buying NESR after a revenue beat and holding for 30 days historically yields positive returns, driven by short-term momentum from earnings surprises. Recent results, including a +6.67% EPS beat and a Jafurah contract win, signal long-term growth potential. The company’s focus on cost control and countercyclical investments has bolstered market confidence, with full-year 2025 EPS guidance at $0.74. This approach aligns with sustained profitability, making the 30-day holding period a viable strategy for capitalizing on post-earnings optimism.

CEO Commentary

CEO of National Energy Services emphasized operational efficiency and strategic investments in the Q3 earnings call, stating, “Our ability to deliver a revenue beat in a challenging market reflects our agility and commitment to innovation.” He highlighted the Jafurah contract as a catalyst for future growth and reiterated confidence in the company’s cost management framework. While acknowledging industry headwinds, the CEO underscored NESR’s focus on expanding its production services segment and enhancing operational readiness through targeted investments.

Guidance

The company guided to full-year 2025 EPS of $0.74 and revenue of $1.28 billion, with Q4 2025 expectations aligned with current market conditions. Management emphasized disciplined capital allocation, with CAPEX prioritized toward high-margin projects. Qualitatively, the company expects to maintain its market leadership in production services and expand its footprint in key regions, supported by its aggressive investment strategy.

Additional News

1. Jafurah Contract Win: NESR secured a multi-billion-dollar contract with Saudi Aramco in October 2025, signaling long-term growth in Middle East operations.

2. Zacks Rank Update: The stock received a Zacks Rank #3 (Hold) following mixed earnings estimate revisions, reflecting cautious optimism about future performance.

3. 45.4% YTD Stock Rally: NESR shares surged 45.4% year-to-date, outperforming the S&P 500’s 16.5% gain, driven by strong earnings and strategic momentum.