NESR Defies Regional Conflict with Record Q2, Fueled by Key Contracts

HOUSTON, TX – August 10, 2026

In a striking display of operational resilience, National Energy Services Reunited Corp. (NESR) today announced record-breaking financial results for the second quarter of 2026, delivering staggering growth that stands in sharp contrast to the geopolitical instability roiling its core market. The Houston-based energy services provider, which operates exclusively in the Middle East and North Africa (MENA), reported revenue of $520.8 million, a 59.1% surge year-over-year, and saw its net income nearly triple to $44.0 million, an increase of 189.6% from the same period last year.

The performance, which significantly outpaced analyst expectations, underscores the company's ability to navigate a complex operating environment marked by the ongoing US-Iran conflict. While the conflict has triggered the largest global energy supply disruption in history and led the International Energy Agency (IEA) to slash its 2026 oil demand forecast, NESR has capitalized on the urgent need for regional production, demonstrating the power of a localized, deeply entrenched strategy.

A Blueprint for Growth Amid Volatility

While many firms grapple with logistical snarls and security challenges, NESR's leadership credits its success to a differentiated platform that has maintained operational continuity. "Despite the continued conflict in the region, we maintained our presence intact in all operating units with no interruption to any of our customers' activities," stated Sherif Foda, Chairman and Chief Executive Officer of NESR. This achievement is not merely a matter of fortune; it reflects a business model built on deep local integration, with localized labor forces and equipment that can be rapidly mobilized as national oil companies push to sustain and increase activity.

This resilience is particularly noteworthy as competitors have reported varying degrees of disruption. While activity has resumed in many parts of the Middle East, some international players have faced security-related slowdowns in markets like Iraq. NESR, by contrast, appears to have successfully leveraged its status as a regional champion to execute on its backlog. The company’s performance suggests that in times of crisis, national oil companies are prioritizing partners who can guarantee execution and minimize disruption, a role NESR has proven adept at filling.

The Engine of Profitability: Specialized Services and Strategic Contracts

The story behind NESR’s explosive growth is not just about resilience, but also about strategic positioning. The company’s revenue and profit surge was primarily driven by what it calls "record activity levels" in its most advanced service lines: hydraulic fracturing, well testing, and wireline logging. These services are at the heart of the MENA region's structural pivot toward gas monetization and the development of vast unconventional resources.

Operational momentum in Saudi Arabia was the primary catalyst, with the company's Production Services segment, largely driven by hydraulic fracturing, now accounting for approximately 63% of total revenue. This aligns perfectly with the Kingdom's ambitious unconventional gas development plans, most notably the Jafurah shale program. In late 2025, NESR secured a multi-billion dollar, five-year contract from Saudi Aramco for completion services in the Jafurah basin, a landmark award that is now visibly translating into powerful top- and bottom-line growth. This contract positions NESR as a critical partner in a project expected to require drilling dozens of horizontal wells annually, demanding extensive fracturing and completion expertise.

This momentum is not confined to a single market or contract. The company has methodically built a formidable backlog across the region. In March 2026, it announced $300 million in multi-year cementing contracts in Kuwait and North Africa. Just this month, it followed up with another $300 million in contract awards in Kuwait, spanning both its Production and Drilling & Evaluation segments. These wins solidify its footprint and demonstrate a sustained ability to capture high-value, long-term work in a market where national oil companies increasingly favor performance-based contracts with trusted partners.

Forging a Fortress Balance Sheet

Beyond the headline revenue and profit numbers, NESR’s Q2 report reveals a story of impressive financial discipline and potent cash generation. The company’s ability to convert growth into tangible financial strength is a key differentiator for investors. Operating cash flow for the quarter was a massive $174.0 million, while free cash flow hit $99.9 million.

This robust cash generation has enabled a dramatic improvement in the company's balance sheet. Net Debt was slashed from $185.3 million at the end of 2025 to just $99.6 million as of June 30, 2026. This nearly 50% reduction in six months brings the company's net debt-to-Adjusted EBITDA ratio to a highly conservative 0.3x.

CFO Stefan Angeli commented on the results, stating, "Higher activity levels and disciplined execution translated into pronounced margin expansion, record profitability and robust cash generation." He attributed the performance to "effective working capital management and a continued focus on capital allocation," highlighting strong accounts receivable collections and disciplined control over payments. This financial fortitude provides NESR with significant flexibility. The company has already signaled its intent to begin returning capital to shareholders, with a planned quarterly dividend and a $50 million share repurchase program approved in May, expected to commence in the fourth quarter. This move marks a new phase of maturity for the company, demonstrating confidence in its ability to fund future growth while simultaneously rewarding its investors.