National Energy Services Reunited Corp. Q4 FY2025 earnings call

• Sherif Foda mentioned ending 2025 with stronger-than-expected fourth quarter results, safely kicking off the largest unconventional frac program, managed costs, and achieved record revenue and free cash flow. - Discussed Middle East macro with steady activity growth in MENA region, tied to global energy, tech, geopolitics. - Details on specific countries: Kuwait with $8 - $10B upstream spend through 2030, Abu Dhabi with $150B oil and gas investment plan, North Africa with surge in Libya, etc. - Start-up of Jafurah frac project, initiated in early Nov, ramping safely with HSE as top priority. - Stefan Angeli discussed financial results, cash flow, liquidity, and outlook for 2026 including muted seasonality in Q1 2026, expected margin improvement, capital expenditures, and cash flow projections.

Fourth quarter 2025 revenue was $398.3 million, an all-time high, up 34.9% sequentially and 15.9% year-over-year. Adjusted EBITDA for Q4 was $84.4 million with a margin of 21.2%. Full year 2025 revenue totaled $1.324 billion, up 1.7% year-over-year. Full year adjusted EBITDA was $281.4 million with margins of 21.3%. Fourth quarter operating and free cash flow were strong. Full year cash flow from operations was $264.2 million and free cash flow was $120.8 million. Gross debt totaled $310 million and net debt was $185.3 million as of Dec 31, 2025.

• For Q1 2026, expect muted seasonality due to ramp of recent contract awards and resilient growth in Kuwait and North Africa, offsetting impact of Ramadan. - Full year 2026 EBITDA margins expected to be broadly consistent with 2025, with gradual sequential improvement. - Q1 2026 interest expense expected ~$7.5M, full year ~$22M. - Full year 2026 capital expenditures expected ~$165M. - Cash flow from operations in 2026 expected strong, free cash flow projected ~35% - 40% conversion from adjusted EBITDA.

• Q: John Anderson asked about Jafurah ramp-up, supply chain, and path to $2B run rate.

A: Sherif Foda said started Nov 1st, ramping with coordination, expecting steady state by Q2, adding fleets in Q3/Q4. - Q: Saurabh Pant asked about Jafurah optimization and margin profile.

A: Sherif Foda talked about looking at U.S. shale examples, incremental efficiencies from cost initiatives and technology advancements. - Q: Saurabh Pant asked about Kuwait ramp-up for NESR and tender line of sight.

A: Sherif Foda said spend already ongoing, NESR can double business in Kuwait, tenders to be awarded this year, some in end of Q1, some Q2/Q3. - Q: Joshua Silverstein asked about investments to support growth, new technologies, and acquisitions.

A: Sherif Foda and Stefan Angeli talked about CapEx plans, VC-style R&D with startups, and commercializing technologies. - Q: Derek Podhaizer asked about state of Saudi business ex Jafurah.

A: Sherif Foda said Saudi activity ramping up, rigs coming back, tender backlog on LSTK. - Q: Sherif Elmaghrabi asked about Oman mobilization costs and markets outside existing footprint.

A: Sherif Foda said Oman cost was onetime, Syria and other markets monitored with discussions ongoing. - Q: Tate Sullivan asked about Saudi foreign investment restrictions and critical minerals.

A: Sherif Foda said no impact on NESR, and NESR is part of Saudi's critical minerals initiatives. - Q: Jeffrey Robertson asked about margin profile of tenders and impact in 2026.

A: Sherif Foda said margin level to remain same, awards in 2026 with some effect in second half or 2027.