| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 51 | 36.9x | 17.8x | Around median | |
Growth | 83 | 23.5% | 7.1% | Top tier | |
Quality | 56 | 9.5% | 4.5% | Around median | |
Safety | 72 | — | 2.6x | Top tier | |
Capital Return | 82 | — | 2.12% | Top tier | |
Momentum | 96 | 226.9% | 2.9% | Top tier | |
Sentiment | 34 | 5 | 3 | Bottom tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
National Energy Services Reunited Corp. provides integrated services to the oil and gas sector in the Middle East and North Africa, including production, drilling, evaluation, hydraulic fracturing, and testing services, alongside ROYA technologies for advanced drilling and NEDA technologies for decarbonization and the recovery of minerals and water. The company relies on multi-year contracts, a workforce of approximately 8,000 employees based in its countries of operation, and a footprint that enables the transfer of personnel and equipment across regional markets. Management says NESR has become the largest hydraulic fracturing services provider in the Middle East, while the 3B3 strategy targets a $3 billion annualized revenue run rate by winning larger contracts, expanding core countries, and commercializing its technology portfolio.
In fiscal year 2026 quarter 2, NESR reported record revenue of $520.8 million, up 28.7% sequentially and 59.1% year over year, driven primarily by the operation of four fracturing fleets at the Jafurah project and growth in conventional Saudi operations, alongside improvements in Oman and Egypt, offset by weaker activity in Iraq. Gross profit according to EDGAR data was approximately $81.3 million, representing a gross margin of about 15.6%, while net income was $44.0 million, with a margin of approximately 8.4% and earnings per share of $0.43. On an adjusted basis, the company reported net income of $45.5 million and diluted earnings per share of $0.44, exceeding expectations of $0.35, while adjusted EBITDA reached $106.2 million with a margin of 20.4%.
Revenue for the twelve months ended in fiscal year 2026 was approximately $1.6 billion, with gross profit of $216.5 million and net income of $93.4 million, compared with revenue of $1.3 billion and net income of $51.1 million in fiscal year 2025. In fiscal year 2026 quarter 2, the company generated operating cash flow of $174 million and free cash flow of $99.9 million, or approximately $60 million after excluding a temporary $40 million timing benefit. Net debt declined to $99.6 million, equivalent to 0.3 times adjusted EBITDA, below management's long-term target of one time.
The average analyst price target is $41.25, within a wide range of $35 to $45, with a consensus rating of “Buy”; the average is above the 52-week range high of $36.94, while the low end reflects greater caution. The 52-week range is between $9.15 and $36.94, highlighting a significant revaluation associated with the acceleration in fiscal year 2026 quarter 2 results and the Kuwaiti contracts, but the absence of a published price-to-earnings ratio and the wide target range make execution and geographic risks essential considerations when assessing the valuation.
Figures in the text are as of 2026-08-31; the live price is shown at the top of the page.
Fiscal year 2026 quarter 2 revenue reached a record $520.8 million, up 28.7% sequentially and 59.1% year over year. Jafurah was the main driver, with four fracturing fleets operating throughout the period, alongside strong growth in conventional Saudi operations. Oman and Egypt also contributed to growth, while lower activity in Iraq offset part of these gains.
On August 5, 2026, NESR announced multiple Kuwaiti contracts with a total value of $300 million over five years. The contracts cover production, drilling, and evaluation services, expanding operating activities and adding several years of contracted revenue. The expansion includes the Ahmadi Innovation Valley contract, which enables the deployment of the Open Technology Platform and the conversion of successful technologies into long-term applications and contracts.
Net debt was $99.6 million as of June 30, 2026, and the ratio of net debt to adjusted EBITDA declined to 0.3 times, compared with a long-term target of no more than one time. The company generated $174 million in operating cash flow and $99.9 million in free cash flow in fiscal year 2026 quarter 2, or approximately $60 million after adjusting for the working-capital timing benefit. In contrast, the plan requires expected capital expenditure of between $210 million and $215 million during fiscal year 2026 to support new contracts and equipment.
Automated analysis for informational purposes only — not investment advice.
3B3 aims to reach a $3 billion annualized revenue run rate within three years of its launch in quarter 4 of the previous fiscal year, and management believes it could achieve this before the end of that period. The plan is based on winning larger shares of multi-year tenders, expanding core countries, and commercializing ROYA and NEDA technologies. However, execution requires securing actual contracts, and management indicated that some award decisions were delayed by approximately one quarter.
Regional disruptions added approximately $4 million in shipping and logistics costs in fiscal year 2026 quarter 2, equivalent to about 80 basis points of margin. Iraq also remained a major source of pressure due to lower activity, and the company had to use air freight and precautionary inventory to ensure service continuity. Management expects fiscal year 2026 quarter 3 costs not to exceed the increase recorded in the previous quarter unless regional conditions deteriorate materially.
NESR intends to begin quarterly dividends of $0.10 per share in fiscal year 2026 quarter 4, equivalent to $0.40 annually. It also maintains a $50 million, 12-month share repurchase program, with plans to evaluate renewing it after the authorization expires in fiscal year 2027 quarter 1. Management prioritizes these returns after investing in growth opportunities and maintaining net leverage at one time adjusted EBITDA or less.
