NESR Q3 Revenue Rises 70.9% as Net Income Nearly Doubles

National Energy Services Reunited Corp. (NESR ) announced its third-quarter 2026 results on November 9, 2026, reporting revenue of US$504.7 million, up 70.9% from a year earlier, and net income of $34.3 million, up 93.5%. The year-over-year gains contrasted with weaker sequential results and a quarterly free-cash-flow deficit, even as the board declared a $0.10 dividend per ordinary share.

Revenue was 3.1% below the second quarter of 2026 and net income fell 22.0% sequentially. NESR attributed the changes between periods primarily to fluctuations in activity levels in hydraulic fracturing, well testing and wireline logging.

Chairman and Chief Executive Officer Sherif Foda said the company maintained “100% operational presence across all our operating units” during the ongoing regional conflict.

Adjusted Profit Growth Lags Revenue

Adjusted EBITDA, a company-defined profitability measure, rose 49.9% year over year to $95.9 million but fell 9.7% from the second quarter. Its year-over-year growth lagged revenue growth, so the top-line expansion did not translate into an equivalent gain in this adjusted profitability measure.

Adjusted net income, which removes specified charges and credits from reported earnings, was $39.6 million. The $5.3 million adjustment consisted principally of a $2.9 million impairment related to an equity investment and $1.1 million of current expected credit-loss provisions, accounting for the difference between adjusted and reported profit.

Working Capital and Spending Pressure Cash Flow

Free cash flow, which NESR defines as operating cash flow less capital expenditures, was negative $45.9 million, compared with negative $34.1 million in the prior-year quarter. Operating activities used $3.2 million of cash and capital expenditures totaled $42.7 million. NESR attributed the wider year-over-year deficit primarily to increased working-capital requirements and modestly higher capital expenditures, partly offset by higher net income and noncash adjustments.

For the first nine months of 2026, operating cash flow was $201.5 million against $152.8 million of capital expenditures, leaving positive free cash flow of $48.7 million. That cumulative surplus is important context for the quarterly deficit: cash generation was positive for the year to date even though third-quarter investment exceeded the cash supplied by operations.

Net debt, defined as borrowings less cash and cash equivalents, declined to $160.5 million at September 30, 2026, from $185.3 million at December 31, 2025. NESR attributed the reduction primarily to debt repayments during 2026, partly offset by lower cash.

The board declared the dividend on November 6, 2026. It is payable December 10, 2026, to shareholders of record on December 3, 2026.

The results leave NESR with a clear financial tension: activity and earnings are growing rapidly year over year, while working capital and capital spending are absorbing cash. Positive nine-month free cash flow and the debt reduction show that the quarterly deficit is not the whole picture, but whether operating cash generation keeps pace with expansion remains a key question for subsequent results.