National Energy Services Reunited Corp (NASDAQ:NESR) Reports Mixed Q3 2025 Results Amid Strategic Contract Wins

Last update: Nov 13, 2025

National Energy Services Reunited Corp (NASDAQ:NESR), a prominent provider of integrated energy services in the MENA and Asia Pacific regions, reported its financial results for the third quarter of 2025. The company's performance presented a mixed picture, with profitability metrics showing sequential improvement but key top-line figures falling short of market expectations, leading to a negative reaction in pre-market trading.

Earnings and Revenue Versus Estimates

The company's quarterly results notably missed analyst projections on both revenue and earnings per share, which appears to be the primary driver behind the stock's pre-market decline of approximately 6.4%.

Revenue: NESR reported Q3 2025 revenue of $295.3 million, falling short of the analyst estimate of $313.6 million. This represents a 9.8% decrease from the previous quarter and a 12.2% decline year-over-year.
Earnings Per Share: The company posted an Adjusted Diluted EPS of $0.16, which was below the consensus estimate of $0.18. It is important to note that the GAAP Diluted EPS was $0.18, reflecting a 15.6% sequential increase.

Market Reaction and Performance Context

The immediate market reaction, as seen in the pre-market sell-off, reflects investor disappointment regarding the earnings and revenue miss. This negative sentiment contrasts with the stock's recent performance, which had been positive over the past month. The sharp pre-market drop suggests the quarterly results failed to meet the heightened expectations that had been building.

Key Financial and Operational Highlights

Despite the earnings miss, management highlighted several positive aspects of the quarter, emphasizing cost control and operational efficiency during a period of contract transition.

Profitability and Margins: Net income for the quarter was $17.7 million, a 16.7% increase from the previous quarter. The company achieved an Adjusted EBITDA of $64.0 million, representing a strong margin of 21.7% on the lower revenue base. CFO Stefan Angeli credited "strong cost discipline and improved execution" for preserving profitability.
Strategic Positioning and Outlook: The press release struck a forward-looking and optimistic tone, particularly regarding a recently awarded "massive Saudi Jafurah integrated frac contract" with Aramco. Chairman and CEO Sherif Foda stated that "the momentum is accelerating and firing on all cylinders to capture the growth for multiple years to come." While no specific quantitative financial outlook was provided for the next quarter or full year, management expressed confidence in a "meaningful improvement in operating cash flow during the fourth quarter."
Balance Sheet and Cash Flow: The company's Net Debt decreased to $263.3 million as of September 30, 2025, down from $274.9 million at the end of 2024. Operating cash flow for the first nine months of the year was $125.7 million, though free cash flow was a more modest $25.0 million, impacted by growth in accounts receivable.

Looking Ahead

The company's narrative is heavily focused on the future, banking on its strategic investments and newly secured contracts to drive the next phase of growth. The key challenge for NESR will be to translate this operational momentum and contract pipeline into financial results that meet or exceed market expectations in the coming quarters. Investors will be closely watching the Q4 results to see if the company can bridge the gap between its promising outlook and its recent financial performance.

For a detailed look at historical earnings and future analyst estimates for NESR, you can review the data here.

Disclaimer: This article is for informational purposes only and does not constitute financial advice, a recommendation, or an offer or solicitation to buy or sell any securities. The content presented is based on publicly available information and should not be relied upon for making investment decisions.