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- **$2B 2026 Target**: Jafurah contract to drive 30%+ CAGR, with 1,500 frac stages/month by end-2026.
- **Margin Resilience**: 21-22% EBITDA margin maintained despite 12% revenue decline, via cost control and local supply chain.
- **New Growth Frontiers**: NEDA water recycling pilots nearing commercialization, and 10+ new tenders in Kuwait/Qatar pipeline.
- **Balance Sheet Strength**: $70-80M free cash flow in 2025, with 2026+ free cash flow >$100M after Jafurah CapEx completion.

**【CEO Summary Section】**
- Secured the largest frac contract in history for Jafurah, with plans to deliver 1,000-1,500 stages/month by Q4 2026, supported by 4 fleets and local infrastructure.
- Emphasized countercyclical investment strategy, maintaining 21-22% EBITDA margins despite macro volatility, and targeting $2 billion annual revenue by 2026.
- Highlighted unconventional gas growth in MENA, with Kuwait, Algeria, and UAE expanding frac activity, and NEDA water recycling pilots nearing commercialization.

**【CFO Financial Commentary】**
- Q3 2025 revenue: $295.3M (-12.2% YoY), Adjusted EBITDA: $64M (21.7% margin), driven by cost control and contract execution.
- Full-year 2025 revenue expected flat vs. 2024, with Q4 2025 EBITDA margin ~21-22%, and free cash flow $70-80M after $140-150M CapEx.
- Targeting $2B 2026 run rate, with 10-15% CAGR beyond, supported by Jafurah and new tender wins in Kuwait/Qatar.

**【Q&A Key Highlights】**
- **Jafurah Execution**: 2 fleets operational in Q4 2025, ramping to 4 fleets by Q1 2026; 1,000+ stages/month achievable with current equipment.
- **Competitive Advantage**: Local supply chain (80%+ sand, chemicals sourced in-KSA) and AI-driven efficiency gains reduce costs 3x vs. U.S. peers.
- **NEDA Growth**: Water recycling pilots in final testing phase; lithium recovery potential could add $500M+ revenue stream by 2030.
- **Liquidity**: $332M gross debt (0.93x net debt/EBITDA), with 2026+ free cash flow >$100M/year after Jafurah CapEx ramp-down.


National Energy Services Reunited Corp. (NESR) Q3 2025 Earnings Call Transcript

- **Revenue Growth & Strategy**: Q2 revenue $327.4M (+8% QoQ, +0.7% YoY), driven by unconventional activity. Targeting $2B revenue via countercyclical investments in MENA anchor countries.
- **MENA Activity Uptick**: 2026 outlook for MENA growth, with Saudi, Kuwait, and North Africa leading. Algeria and Libya contracts to fuel production services.
- **Jafurah & Gas Focus**: Jafurah frac innovation expected to offset Saudi oil activity softness; MENA unconventional gas development accelerating.
- **Financial Strength**: 21.6% EBITDA margin, $68.7M free cash flow, net debt $223M (0.74x EBITDA). 2025 CapEx $125M+ for new contracts.
- **Decarbonization Progress**: Water recovery pilots nearing completion; potential for significant NEDA revenue if economics viable.

**【CEO Summary Section】**
- NESR achieved Q2 revenue of $327.4M, up 8% sequentially and 0.7% YoY, outpacing the sector. Growth driven by unconventional activity in Saudi, Egypt, and Iraq.
- Emphasized a countercyclical investment strategy, with $300M in free cash flow over 10 quarters, targeting $2B in revenue by leveraging anchor countries (Kuwait, Saudi, Algeria).
- Kuwait rig count at all-time high (200+ rigs), positioning NESR for long-term growth in drilling and production services.
- Jafurah project in Saudi expected to bridge near-term oil activity softness, with focus on gas development and frac innovation.
- MENA unconventional resource growth (gas, frac stages) expected to accelerate, with Algeria and Libya securing multi-year contracts.

**【CFO Financial Commentary】**
- Q2 adjusted EBITDA: $70.6M (21.6% margin), up 95bps sequentially. Free cash flow: $68.7M, driven by working capital efficiency.
- Full-year 2025 revenue expected higher than 2024, with Q4 margins slightly higher than Q2. 2026 outlook: MENA activity up due to Saudi, Kuwait, and North Africa tender wins.
- Net debt: $223M (0.74x EBITDA), below 1x target. CapEx: $125M+ for 2025, supporting new contract deployments.
- Material weakness remediation completed, with all controls now effective.

**【Q&A Key Highlights】**
- **2026 Outlook**: MENA activity to increase, with Saudi and Kuwait leading. Algeria and Libya contracts to drive production services growth.
- **Jafurah Contracts**: Tenders under evaluation; results expected in next 2-3 months, with potential for significant revenue upside.
- **NEDA (Decarbonization)**: Water recovery pilots in final stages; if economics viable, demand could exceed supply. Flaring-to-power projects also in pipeline.
- **Free Cash Flow Utilization**: Post-refinancing, buybacks may be considered, but priority remains debt reduction and CapEx for new contracts.
- **Kuwait Expansion**: Drilling and production services contracts secured, with plans to expand into coiled tubing, frac, and cementing by Q4 2025.

National Energy Services Reunited (NESR)-20 Aug 25-2025 Q2 Earnings call transcript

- **Resilient MENA Growth**: Despite global oil price weakness, NESR expects 2025 revenue growth driven by Kuwait (+25%+ YoY), Oman (5-year drilling contracts), and Saudi unconventional drilling.
- **Tech-Driven Margin Expansion**: Rotary Steerable System (RSS) commercialization in 3+ countries by 2025, with 2026 EBITDA margin target of 25%+ via cost cuts and tech monetization.
- **Kuwait Leadership**: 2025 tender wins could make Kuwait NESR's 2nd-largest market, with $1B+ multi-year contracts in fracturing, direction drilling, and workover.
- **Water-to-Wealth Vision**: Produced water mineral recovery pilot in Q3 2025, targeting rare earth sales to offset treatment costs and create new revenue streams.

**【CEO Strategic Overview】**
- **Market Cycle Reset**: NESR expects MENA upstream activity to remain resilient despite global oil price volatility. Saudi Arabia's unconventional drilling (e.g., Jafurah) will offset conventional rig declines, with Kuwait and UAE leading regional growth.
- **Geographic Focus**: Key wins in Oman (5-year drilling contracts), UAE (incremental contracts), and Kuwait (multi-billion dollar tenders) position NESR for 25%+ YoY growth in 2025. Kuwait could become NESR's 2nd-largest market by 2026.
- **Technology Differentiation**: Rotary Steerable System (RSS) commercialization in Oman and Saudi, plus produced water mineral recovery pilots in Saudi, are nearing scale. RSS testing footage exceeds 100,000 ft, with Kuwait deployment planned for Q3 2025.

**【CFO Financial Highlights】**
- **Q1 2025 Results**: Revenue $303.1M (+2.1% YoY), Adjusted EBITDA $62.5M (20.6% margin). Sequential decline due to Ramadan-related Saudi project delays.
- **2025 Outlook**: Revenue growth driven by contract wins, with Q2 sequential growth and modest YoY decline. 2025 CapEx $125M for tech deployment. Target 2026 EBITDA margin return to 25% via cost reduction and tech monetization.
- **Liquidity**: Net debt $288M (0.93x EBITDA), strong cash flow despite Q1 DSO increase. Warrant conversion to clear SPAC legacy overhang.

**【Q&A Key Themes】**
- **Saudi Activity**: Conventional rigs to drop 20% YoY, but unconventional drilling (+100+ rigs by 2026) and gas projects (e.g., Regulus) will offset. 2025 Saudi revenue flat, 2026+ growth from Jafurah tender results.
- **Margin Recovery**: 2025 EBITDA margin ~20-21%, targeting 25%+ in 2026 via cost cuts ($10M+ savings), RSS commercialization, and Kuwait wins.
- **Technology Scaling**: RSS to be deployed in 3+ countries by end-2025. Produced water mineral recovery pilot in Q3 2025, with rare earth sales potential to offset costs.


National Energy Services Reunited Corp. (NESR) Q1 2025 Earnings Call Transcript

- **Record Growth**: Q4 2024 revenue up 11.8% YoY to $343.7M; full-year $1.3B (+13.6% YoY), driven by Gulf and Libya.
- **Tech Breakthroughs**: ROYA Directional Drilling platform completes flagship well in Kuwait; NEDA delivers 2,000t CO2 for CCS pilot.
- **2025 Outlook**: 8-10% growth vs. MENA's low single-digit market, fueled by gas, Kuwait, and Libya.
- **Financial Strength**: Free cash flow $124M (40.1% EBITDA conversion), net debt down 35% to $275M.
- **Strategic Focus**: $100M+ for ROYA, NEDA, and Libya; 2025 may see capital returns if cash flow exceeds growth needs.

**【CEO Summary Section】**
- NESR achieved record Q4 2024 revenue of $343.7M (+11.8% YoY), driven by strong performance in Gulf countries and Libya. Full-year revenue reached $1.3B (+13.6% YoY).
- Key markets: Saudi Arabia (+double-digit growth), Kuwait (3rd largest country, +40% rigs), Oman (stable with ROYA deployment), and Libya (40+ new rigs targeting 1.6M bpd by mid-term).
- Technology highlights: ROYA Directional Drilling platform completed flagship single-run wellboard in Kuwait; NEDA delivered 2,000 metric tons of CO2 for CCS pilot in Indonesia.
- 2025 outlook: MENA upstream activity expected to grow low single-digits, with NESR targeting 8-10% growth via gas development, Kuwait expansion, and Libya ramp-up.

**【CFO Financial Commentary】**
- Q4 2024 adjusted EBITDA: $87.2M (25.4% margin, +157bps vs. Q3). Full-year EBITDA: $310.1M (+18.2% YoY, 23.8% margin).
- Free cash flow: $124M (40.1% of EBITDA), used to reduce net debt to $275M (-$153M over 2 years, 0.89x net debt/EBITDA ratio).
- EPS: $0.30 (Q4) and $1.04 (FY24, +96% YoY). Working capital efficiency improved with DSO at record low.
- 2025 capital allocation: ~$100M+ for growth (e.g., ROYA, NEDA, Libya), with potential for M&A in technology/IP.

**【Q&A Key Takeaways】**
- **Market Growth Sensitivity**: 80% of revenue not oil-price sensitive; gas development and AI/data centers drive MENA demand. Oil price below $60 could curtail marginal projects, but MENA's disciplined CapEx reduces downside risk.
- **Saudi Activity**: Jafurah unconventional gas program remains on track (~25,000 frac stages/year). Offshore rig count stable (~58 jack-ups), with focus on unconventional oil and gas.
- **ROYA Commercialization**: Q4 2025 target for full commercial deployment, with extensive testing in multiple geographies.
- **Valuation & Capital Return**: Warrants extended to June 2026. 2025 may see share buybacks/dividends if cash flow exceeds growth needs.
- **Kuwait Expansion**: 2025 tendering for ~10 product lines; Ahmadi Innovation Valley partnership positions NESR for long-term leadership.


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