National Energy Services Reunited Corp. (NASDAQ:NESR) shares surged more than 9% in premarket trading on Monday after the energy services company reported first-quarter results that exceeded analyst expectations.
The stock gained 9.05% ahead of the market open as investors reacted positively to the company’s strong operational performance despite ongoing geopolitical tensions across the region.
Revenue and Profit Rise Sharply
For the quarter ended March 31, 2026, NESR reported adjusted earnings per share of $0.23, surpassing analyst forecasts of $0.22.
Quarterly revenue reached $404.6 million, comfortably above the consensus estimate of $376.32 million and representing a 33.5% increase from $303.1 million in the same period last year. Revenue also improved 1.6% compared with the fourth quarter of 2025.
Net income climbed to $23.8 million during the quarter, marking growth of 129.3% year-over-year and 205.4% sequentially.
Adjusted EBITDA rose 22.7% from the prior-year period to $76.7 million, supported by continued activity across the company’s core operating markets and stronger contributions from hydraulic fracturing projects, particularly within Saudi Arabia’s Jafurah unconventional gas development.
“First Quarter 2026 delivered outstanding results despite the geopolitical conflict with strong operational execution driving continued growth and profitability,” said Stefan Angeli, Chief Financial Officer. “Revenue reached $404.6m, an all-time high, supported by sustained activity across our core markets.”
Cash Flow Improves Despite Working Capital Pressures
Operating cash flow increased 50.1% year-over-year to $30.7 million.
Free cash flow remained negative at $5.3 million, although this represented an improvement from negative $9.6 million recorded in the same quarter last year. The company said working capital requirements increased due to Ramadan-related timing effects and higher business activity levels.
Cash and cash equivalents stood at $93.0 million as of March 31, 2026, compared with $124.8 million at the end of 2025.
Net debt increased to $194.4 million from $185.3 million at December 31, 2025.
Company Launches Capital Return Programme
NESR also announced plans to introduce a shareholder return programme, including a quarterly dividend expected to begin during the fourth quarter of 2026 at $0.10 per share.
The company additionally authorised up to $50.0 million in share repurchases as part of its broader capital allocation strategy.