National Energy Services Reunited Corp. (NESR) Q2 2025 Earnings Call Transcript
Revenue $327.4 million, up 8% sequentially and up 0.71% year-over-year. Growth driven by unconventional activity in Saudi, as well as growth in Egypt and Iraq. Year-over-year growth in Abu Dhabi, Algeria, Iraq, Egypt, and Jordan was partially offset by lower revenue in Saudi due to lumpiness of product sales.
Adjusted EBITDA $70.6 million with margins of 21.6%, up 95 basis points sequentially. Growth attributed to operational efficiency and market positioning.
Interest Expense $8.6 million for Q2 2025.
Tax Expense $4.3 million for Q2 2025, with an effective tax rate of 21.9% for Q2 and 22.9% for H1 2025.
Earnings Per Share (EPS) $0.21 for Q2 2025, up 50% from Q1 2025. Adjusted for charges and credits of $4.9 million, which included costs for remediation of material weakness controls, a small impairment, litigation provision, and restructuring costs.
Cash Flow from Operations $98.5 million for Q2 2025, driven by working capital efficiency, including better management of accounts receivable, accounts payable, and inventory.
Free Cash Flow $68.7 million for Q2 2025. H1 2025 free cash flow was $59.1 million, with a free cash flow conversion of 44.4%.
Capital Expenditures (CapEx) $29.7 million for Q2 2025, reflecting countercyclical investment strategy and new technology deployments. H1 2025 CapEx was $59.9 million.
Net Debt $223 million as of June 30, 2025, with a net debt to adjusted EBITDA ratio of 0.74x, below the 1x target for the fourth consecutive quarter.
Return on Capital Employed (ROCE) 10.8% on a trailing 12-month basis, aligned with the company's growth investment strategy.
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National Energy Services Reunited (NESR) Stock Rises 59.3% Over 12 Weeks
- Strong Price Growth: National Energy Services Reunited (NESR) has seen its stock price increase by 59.3% over the past 12 weeks, reflecting investors' sustained confidence in its potential upside, thereby enhancing its market appeal.
- Short-Term Trend Sustained: The stock has gained 26.4% in the last four weeks, indicating that the price trend remains solid, potentially providing investors with a favorable short-term investment opportunity.
- High Trading Signal: NESR is currently trading at 97.6% of its 52-week high-low range, suggesting that the stock may be on the verge of a breakout, further attracting investor attention.
- Strong Fundamental Support: With a Zacks Rank of #1 (Strong Buy), NESR ranks in the top 5% of over 4,000 stocks, indicating robust fundamentals driven by earnings estimate revisions and EPS surprises, which are expected to propel its stock price upward in the near term.
Guess, NESR, and Alkermes Rated Buy with Strong Value Characteristics
- Guess Earnings Estimate Up: Guess, Inc. (GES) holds a Zacks Rank #1, with its current year earnings estimate rising by 5.6% over the past 60 days, indicating strong growth potential in the apparel sector that may enhance its market competitiveness.
- National Energy Services Growth: National Energy Services Reunited Corp. (NESR) also carries a Zacks Rank #1, with next year's earnings estimate increasing by 4.1% in the last 60 days, reflecting a recovery trend in the oilfield services industry that could drive stock price appreciation.
- Alkermes Earnings Forecast Improvement: Alkermes plc (ALKS) maintains a Zacks Rank #1, with its current year earnings estimate up by 3.1% over the past 60 days, suggesting that ongoing innovations in the biopharmaceutical sector will enhance its investment appeal.
- Strong Value Scores: All three companies exhibit low price-to-earnings ratios, with Guess at 9.93, NESR at 11.85, and Alkermes at 19.23, all below their industry averages, highlighting their investment value and attracting more attention from value investors.
Goldman Sachs Cuts Netflix Price Target to $112 Ahead of Earnings
- Price Target Adjustment: Goldman Sachs has cut its price target for Netflix from $130 to $112, reflecting a cautious outlook ahead of the upcoming earnings report, which is expected to show solid performance by the end of 2025 as management executes its core strategic focus.
- Content Strategy: Goldman emphasizes that Netflix will continue to rely on original and returning original content to drive user engagement and growth, a strategy that may impact user retention and market share in the competitive streaming landscape.
- Market Expectations: While Goldman maintains a neutral rating on Netflix, the market's reaction to the forthcoming earnings report could lead to stock price volatility, particularly given the uncertainties in the macroeconomic environment.
- Competitive Pressure: Netflix faces competitive pressures from other streaming platforms, especially regarding content richness and user experience, which could affect its growth potential moving forward.
Gulfport Energy Shares Reach New Peaks Following $4 Million Investment by Another Investor
GeoSphere Capital Management's Investment: Florida-based GeoSphere Capital Management acquired 22,000 shares of Gulfport Energy Corporation, valued at approximately $4 million, representing a 3% shift in its reported assets under management.
Gulfport Energy's Performance: Gulfport Energy's stock has increased by 23% over the past year, significantly outperforming the S&P 500, with the company reporting strong financials including a net income of $111.4 million and plans for substantial stock buybacks.
Operational Momentum: Gulfport is experiencing operational growth, with an 11% increase in production and an expansion of its undeveloped inventory, which has attracted interest from investment firms like GeoSphere.
Market Context: The investment comes at a time when Gulfport is enhancing capital efficiency and prioritizing shareholder returns, indicating confidence in the company's future performance amid a disciplined approach in the energy sector.
Hedge Fund Increases $15 Million Investment in NESR Following Significant Stock Rise
GeoSphere Capital Management's Investment: GeoSphere Capital Management increased its stake in National Energy Services Reunited Corp. (NESR) by 481,228 shares in Q3, raising its total holdings to nearly 1.5 million shares valued at $15.3 million, making NESR the fund's largest position.
Performance of NESR: NESR shares have risen 67% over the past year, significantly outperforming the S&P 500, despite a year-over-year revenue decline; however, the company reported a sequential net income growth of 16.7%.
Future Outlook for NESR: The company is expected to benefit from major contract wins, including a significant award in Saudi Arabia, which could enhance its growth profile and earnings durability in the coming years.
Investment Strategy: GeoSphere's move to increase its NESR position indicates a focus on improving fundamentals rather than short-term momentum, suggesting confidence in the company's long-term prospects amidst a challenging operating environment.
Staar Surgical and Gold Royalty Experience Activist Involvement
Filing Overview: The disclosures are based on 13D filings with the SEC, which are required when an entity acquires more than 5% of a company's securities.
Reporting Requirements: Any subsequent changes in holdings or intentions must be reported through amended filings within a specified timeframe.
Timeframe of Disclosures: The material discussed pertains to filings made between November 20 and November 26, 2025.
Source of Information: The information is sourced from VerityData.
National Energy Services Reunited (NESR) Stock Rises 59.3% Over 12 Weeks
- Strong Price Growth: National Energy Services Reunited (NESR) has seen its stock price increase by 59.3% over the past 12 weeks, reflecting investors' sustained confidence in its potential upside, thereby enhancing its market appeal.
- Short-Term Trend Sustained: The stock has gained 26.4% in the last four weeks, indicating that the price trend remains solid, potentially providing investors with a favorable short-term investment opportunity.
- High Trading Signal: NESR is currently trading at 97.6% of its 52-week high-low range, suggesting that the stock may be on the verge of a breakout, further attracting investor attention.
- Strong Fundamental Support: With a Zacks Rank of #1 (Strong Buy), NESR ranks in the top 5% of over 4,000 stocks, indicating robust fundamentals driven by earnings estimate revisions and EPS surprises, which are expected to propel its stock price upward in the near term.
Guess, NESR, and Alkermes Rated Buy with Strong Value Characteristics
- Guess Earnings Estimate Up: Guess, Inc. (GES) holds a Zacks Rank #1, with its current year earnings estimate rising by 5.6% over the past 60 days, indicating strong growth potential in the apparel sector that may enhance its market competitiveness.
- National Energy Services Growth: National Energy Services Reunited Corp. (NESR) also carries a Zacks Rank #1, with next year's earnings estimate increasing by 4.1% in the last 60 days, reflecting a recovery trend in the oilfield services industry that could drive stock price appreciation.
- Alkermes Earnings Forecast Improvement: Alkermes plc (ALKS) maintains a Zacks Rank #1, with its current year earnings estimate up by 3.1% over the past 60 days, suggesting that ongoing innovations in the biopharmaceutical sector will enhance its investment appeal.
- Strong Value Scores: All three companies exhibit low price-to-earnings ratios, with Guess at 9.93, NESR at 11.85, and Alkermes at 19.23, all below their industry averages, highlighting their investment value and attracting more attention from value investors.
Goldman Sachs Cuts Netflix Price Target to $112 Ahead of Earnings
- Price Target Adjustment: Goldman Sachs has cut its price target for Netflix from $130 to $112, reflecting a cautious outlook ahead of the upcoming earnings report, which is expected to show solid performance by the end of 2025 as management executes its core strategic focus.
- Content Strategy: Goldman emphasizes that Netflix will continue to rely on original and returning original content to drive user engagement and growth, a strategy that may impact user retention and market share in the competitive streaming landscape.
- Market Expectations: While Goldman maintains a neutral rating on Netflix, the market's reaction to the forthcoming earnings report could lead to stock price volatility, particularly given the uncertainties in the macroeconomic environment.
- Competitive Pressure: Netflix faces competitive pressures from other streaming platforms, especially regarding content richness and user experience, which could affect its growth potential moving forward.
Gulfport Energy Shares Reach New Peaks Following $4 Million Investment by Another Investor
GeoSphere Capital Management's Investment: Florida-based GeoSphere Capital Management acquired 22,000 shares of Gulfport Energy Corporation, valued at approximately $4 million, representing a 3% shift in its reported assets under management.
Gulfport Energy's Performance: Gulfport Energy's stock has increased by 23% over the past year, significantly outperforming the S&P 500, with the company reporting strong financials including a net income of $111.4 million and plans for substantial stock buybacks.
Operational Momentum: Gulfport is experiencing operational growth, with an 11% increase in production and an expansion of its undeveloped inventory, which has attracted interest from investment firms like GeoSphere.
Market Context: The investment comes at a time when Gulfport is enhancing capital efficiency and prioritizing shareholder returns, indicating confidence in the company's future performance amid a disciplined approach in the energy sector.
Hedge Fund Increases $15 Million Investment in NESR Following Significant Stock Rise
GeoSphere Capital Management's Investment: GeoSphere Capital Management increased its stake in National Energy Services Reunited Corp. (NESR) by 481,228 shares in Q3, raising its total holdings to nearly 1.5 million shares valued at $15.3 million, making NESR the fund's largest position.
Performance of NESR: NESR shares have risen 67% over the past year, significantly outperforming the S&P 500, despite a year-over-year revenue decline; however, the company reported a sequential net income growth of 16.7%.
Future Outlook for NESR: The company is expected to benefit from major contract wins, including a significant award in Saudi Arabia, which could enhance its growth profile and earnings durability in the coming years.
Investment Strategy: GeoSphere's move to increase its NESR position indicates a focus on improving fundamentals rather than short-term momentum, suggesting confidence in the company's long-term prospects amidst a challenging operating environment.
Staar Surgical and Gold Royalty Experience Activist Involvement
Filing Overview: The disclosures are based on 13D filings with the SEC, which are required when an entity acquires more than 5% of a company's securities.
Reporting Requirements: Any subsequent changes in holdings or intentions must be reported through amended filings within a specified timeframe.
Timeframe of Disclosures: The material discussed pertains to filings made between November 20 and November 26, 2025.
Source of Information: The information is sourced from VerityData.
