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National Energy Services Reunited Corp

National Energy Services Reunited Corp

NESR
$27.99USD↑+0.39%+0.11 today

MARKET CAP

2.8B

P/E (TTM)

29.5x

FWD P/E

12.1x

DAY RANGE

$27 – $29

52W RANGE

$6
$30

AI Summary

Stalk
TrimMedium

The stock is in a Stage 3 distribution regime with a pronounced Double Top highlighting a shift away from the prior uptrend. Medium-term bias is bearish while the longer-term uptrend remains intact, creating structural asymmetry. Short-term conditions are neutral near mid-range support around the 50-day EMA, lacking a clear breakdown. Execution is deferred until rallies into the upper distribution range near the double top resistance zone, where a rejection would offer a favorable entry. A decisive break and hold above resistance would invalidate this bearish bias.

  • ↑Q1 2026 revenue reached $404.6M (+33.5% YoY), aiming for ~$2B run rate in 2026
  • ↑Solid $2–3B contract backlog gives strong earnings visibility
  • ↓Forward P/E of 44.1x vs industry average indicates valuation risk
Full analysis →

The case for & against

Bull & Bear analysis

Bullish

National Energy Services Reunited Corp (NESR) operates in the oilfield services sector, primarily delivering integrated solutions for the upstream oil and gas market across the Middle East and North Africa (MENA). With a robust focus on unconventional gas development and technological advancement, the company is strategically positioned to leverage the increasing demand for energy resources driven by geopolitical shifts and domestic capacity expansions within the region. NESR holds a unique place as it aligns itself with significant market trends, ensuring resilience and growth amidst macroeconomic volatility.

Bull says

  • ↑Q1 2026 revenue reached $404.6M (+33.5% YoY), aiming for ~$2B run rate in 2026
  • ↑Solid $2–3B contract backlog gives strong earnings visibility
  • ↑Free cash flow of $70–80M in FY2025 underscores operational efficiency
  • ↑Plans to initiate $0.10 quarterly dividend from Q4 2026 and $50M buyback
  • ↑Strong momentum factors and earnings yield, plus a 0.74% dividend yield
  • ↑Net debt of $194M (0.66x EBITDA) supports financial flexibility

Bear says

  • ↓Forward P/E of 44.1x vs industry average indicates valuation risk
  • ↓Negative profitability factors signal weak margin conversion and profit generation
  • ↓Insider selling of $135.7M without offsetting buys raises confidence concerns
  • ↓Geopolitical tensions in MENA may drive up logistics costs and disrupt operations
  • ↓Dependence on multi-year contracts exposes revenues to commodity and economic swings
  • ↓Downward earnings revisions and smaller size factor may limit future upside

Earnings Call · Q1 2025 · Mgmt. Guidance

Updated 07-01-2026neutral

Transcript signals

Bull points

  • most of the markets in the Middle East, apart from Saudi, were flat to up in Q125 versus Q124, and we continue to see this stability for the rest of 25 as it stands now.
  • Despite the overall headwinds in rigged releases in Saudi Arabia for our full year 25, we expect revenue growth due to our recent contract wins and successful technology deployments that Sharif previously highlighted.
  • Margins for Q2 25 should slightly improve on Q1 25 with the modestly higher revenues and the impact of our cost reduction program initiated in April.

Bear points

  • have all led to lower oil prices and lower rig counts in certain countries. All this has impacted the Q1-25 results of the oilfield services sector that makes forecasting the short-term outlook difficult.
  • The sequential decrease in Saudi was mainly on slowdowns in our main project, Jude Ramadan.
  • The free cash flow for Q125 was negative $9.6 million, with CapEx at $30 million, as we continue to front-end load our growth and technology deployments.
Read full transcript analysis ›