Energy firm NESR beats Q4 profit estimates due to higher margins, new contracts

Overview

• National Energy Services Reunited's Q4 revenue grew 15.9% yr/yr, beating analyst expectations

• MENA energy services provider's adjusted EPS for Q4 beat analyst expectations

• Adjusted EBITDA for Q4 rose 32% sequentially, beating analyst expectations

Outlook

• Company focuses on executing backlog efficiently in 2026

• Company positioned for growth with strong operational momentum

Result Drivers

• CONTRACT MOBILIZATION - Revenue growth driven by improved utilization and early stages of mobilization on new contracts, per CFO Stefan Angeli

• COST EXECUTION - Adjusted EBITDA margins remained stable, highlighting effective cost controls and scalability of operations, per CFO Stefan Angeli

• IMPAIRMENT CHARGES - Net income impacted by non-cash impairment charges and restructuring costs, offset by higher revenues

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the oil related services and equipment peer group is "buy"

• Wall Street's median 12-month price target for National Energy Services Reunited Corp is $21.00, about 0.8% above its February 13 closing price of $20.83

• The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 11 three months ago

Press Release: ID:nACS4zlQfa

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