National Energy Services Reunited Corp. reported third‑quarter 2025 revenue of $295.3 million, a 9.8 percent drop from the $327.4 million earned in Q2 2025 and a 12.2 percent decline from the $336.2 million recorded in Q3 2024. The revenue shortfall is largely attributable to softer demand in the Middle East and North Africa (MENA) region, where the company’s core drilling and completion services have seen reduced activity amid a broader slowdown in upstream investment.
Net income rose 16.7 percent sequentially to $17.7 million, up from $15.2 million in Q2 2025, and fell 14.0 percent year‑over‑year from $20.6 million in Q3 2024. GAAP diluted earnings per share reached $0.18, a 15.6 percent increase from $0.15 in Q2 2025. While the GAAP EPS beat the consensus estimate of $0.15 by $0.03, the adjusted diluted EPS of $0.16 missed the consensus of $0.1816 by 11.8 percent, though it beat the Zacks consensus of $0.15 by $0.01. The earnings improvement is driven by disciplined cost management and a shift toward higher‑margin service contracts.
Adjusted EBITDA fell 9.4 percent sequentially to $64.0 million, down from $70.2 million in Q2 2025, and declined 20.1 percent year‑over‑year from $78.6 million in Q3 2024. The adjusted EBITDA margin contracted to 21.7 percent from 21.9 percent in the prior quarter, reflecting higher input costs and a lower revenue base. Nevertheless, the margin remains robust, indicating that cost‑control initiatives are partially offsetting the revenue decline.
Management highlighted that the company’s cost‑control program—encompassing reduced discretionary spending, renegotiated supplier contracts, and tighter project oversight—has helped preserve profitability amid the MENA slowdown. The CFO noted that “strong cost discipline and improved execution” have been key to maintaining margins. In addition, the company secured a large Saudi Jafurah integrated frac contract, which is expected to provide a significant revenue boost in the coming quarters and supports the company’s long‑term growth strategy.
The company reiterated its guidance for the remainder of 2025, maintaining a full‑year revenue outlook of $1.18 billion to $1.20 billion, up from the $1.14 billion to $1.16 billion range previously issued. Adjusted operating income guidance was raised to $64.0 million to $66.0 million, reflecting confidence in cost discipline and the anticipated impact of the new Saudi contract. Management emphasized a focus on countercyclical investment and a target of at least 30 percent growth, signaling optimism about future upside despite current headwinds.
The earnings release was met with a mixed market reaction. Investors noted that revenue missed the consensus estimate of $313.6 million, while the adjusted EPS miss relative to the consensus of $0.1816 contributed to a cautious stance. The company’s ability to improve net income and maintain a healthy adjusted EBITDA margin, however, provided a counterbalance to the revenue shortfall, suggesting resilience in the face of regional demand softness.
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