National Energy Services Reunited Corp. Q3 FY2025 earnings call

• Secured winning position for massive frac tender in Jafurah, a multiyear, multibillion-dollar award. - Countercyclical investment strategy allowing capitalization on global weakness. - Identified mega themes from FII and ADIPEC: energy demand growth driven by AI and GCC leadership in AI revolution, and strong US-Gulf geopolitical relations. - Operational efficiency with strong cost discipline and improved execution across portfolio. - NEDA projects in pilot phase for water mineral recovery, lithium, focusing on sustainable operations.

In Q3 2025, overall revenue was $295.3 million, down 9.8% sequentially and 12.2% year over year. Sequential decline was due to contract transition in Saudi Arabia, partially offset by growth in Kuwait, Qatar, and Iraq. Year-over-year decline was from contract transition in Saudi Arabia, timing/lumpiness of product sales, but offset by growth in Kuwait, Oman, Egypt, Algeria, Iraq, and Libya. Adjusted EBITDA for 2025 was $64 million, margin 21.7%, consistent with Q2 2025. Cash flow from operations and free cash flow were below expectations due to delayed collections, but Q4 2025 cash flow from operations was expected to be healthy.

• Full-year 2025 revenue expected to be broadly in line with 2024 levels, with Q4 2025 revenue a record. - Q4 2025 and full-year 2025 EBITDA margins expected to be in line with Q3 2025. - Anticipate 2026 revenue run rate of approximately $2 billion. - Capital expenditures for full year expected to be $140 to $150 million. - Free cash flow for 2025 projected $70 to $80 million, with positive trajectory in 2026. - Debt refinancing plan on track to complete by end of 2025 or early 2026.

• Global macroeconomic volatility impacting short-term forecasting. - Market volatility continuing to affect the outlook. - Ongoing debt refinancing and capital expenditure commitments tying up cash flow.

Q: Congratulations on the Jafurah win. How are you pricing competitively and maintaining margins?

A: Been working with Aramco for years, locally embedded, knew how to take cost out of integrated project, invested countercyclically.

Q: Roadmap for Jafurah development?

A: Started executing from Nov 1, plan to deliver stages with flexibility, aiming for over 1,000 stages per month by 2026.

Q: Unconventional development in MENA and contract value of tenders?

A: Middle East has rich unconventional resources, Abu Dhabi, Algeria, Libya, etc., working on $23B in tenders.

Q: Uncommitted work at Jafurah and investment needed?

A: Uncommitted work can be taken by qualified companies, already invested in equipment for Jafurah, will keep adding as needed.

Q: Updates on NEDA projects and margins?

A: NEDA projects in pilot phase, margins for 2026 expected similar to 2025, aiming for margin improvement in later years through efficiencies.