Cash flow generation remains inconsistent, highlighted by a swing from a $95.8 million free cash flow surplus in 2025Q4 to a $5.3 million deficit in 2026Q1 due to working capital volatility.
| Cash from Operations | 274.5M | 264.24M | 229.33M | 176.96M | 92.58M | 127.74M | 134.45M | 89.09M | 83.19M |
| Operating CF Margin % | - | 19.96% | 17.62% | 15.44% | 10.18% | 14.57% | 16.12% | 13.53% | 30.66% |
| Operating CF Growth % | 289.97% | 15.22% | 29.59% | 91.15% | -27.53% | -4.99% | 50.92% | 7.09% | - |
| Net Income | 64.57M | 51.13M | 76.31M | 12.58M | -36.42M | -64.57M | 16.55M | 39.36M | 28.35M |
| Depreciation & Amortization | 104.25M | 141.73M | 142.78M | 142.23M | 115.84M | 122.13M | 120.72M | 88.11M | 38.41M |
| Stock-Based Compensation | 3.89M | 0 | 6.03M | 6.76M | 9.27M | 9.76M | 7.83M | 5.65M | 106K |
| Deferred Taxes | -2.83M | -5.2M | -2.72M | -3.75M | -10.26M | -12.14M | -3.24M | -3.94M | 598K |
| Other Non-Cash Items | 59.54M | 28.33M | 16.09M | 11.43M | 12.91M | 9.79M | -4.56M | 2.71M | 7.94M |
| Working Capital Changes | 45.07M | 48.25M | -9.16M | 7.71M | 1.23M | 62.78M | -2.85M | -42.81M | 7.89M |
| Change in Receivables | -113.62M | -58.93M | 9.42M | -22.97M | -29.25M | -8.29M | -2.62M | -39.18M | -5M |
| Change in Inventory | 3.77M | 425K | -633K | 11.95M | -16.76M | -3.24M | -11.87M | -21.31M | -8.12M |
| Change in Payables | 113.07M | 116.16M | 0 | 0 | 0 | 0 | 5.27M | 36.64M | 9.17M |
| Cash from Investing | -157.2M | -152.24M | -111.13M | -83.46M | -146.71M | -164.54M | -96.44M | -107.34M | -52.04M |
| Capital Expenditures | -149.34M | -143.45M | -105.11M | -68.19M | -122.42M | -107.08M | -82.63M | -107.94M | -48.66M |
| CapEx % of Revenue | 10.48% | 10.83% | 8.07% | 5.95% | 13.46% | 12.21% | 9.91% | 16.39% | 17.93% |
| Acquisitions | 3.22M | 4.91M | 0 | 0 | 0 | -51.92M | -13.22M | 0 | -624K |
| Investments | - | - | - | - | - | - | - | - | - |
| Other Investing | -11.87M | -13.69M | -6.03M | 758K | -6.93M | -5.54M | -587K | 600K | -51.42M |
| Cash from Financing | -94.31M | -87.26M | -78.06M | -104.53M | -72.8M | 167.54M | -36.24M | 66.58M | -32.14M |
| Debt Issued (Net) | -84.64M | -78.26M | -74.12M | -88.76M | -58.35M | 190.93M | -32.41M | 72.29M | -7.87M |
| Equity Issued (Net) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -20M |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -9.67M | -9.01M | -3.94M | -15.77M | -14.44M | -23.39M | -3.83M | -5.72M | -4.27M |
| Net Change in Cash | 14.26M | 16.84M | 40.13M | -11.03M | -126.92M | 130.76M | 1.81M | 48.31M | -1.03M |
| Free Cash Flow | 125.16M | 120.79M | 124.22M | 108.77M | -29.84M | 20.67M | 51.82M | -18.85M | 34.54M |
| FCF Margin % | 8.78% | 9.12% | 9.54% | 9.49% | -3.28% | 2.36% | 6.21% | -2.86% | 12.73% |
| FCF Growth % | 50.12% | -2.77% | 14.21% | 464.52% | -244.38% | -60.12% | 374.96% | -154.57% | - |
| FCF per Share | 1.22 | 1.22 | 1.30 | 1.15 | -0.32 | 0.23 | 0.58 | -0.22 | 0.80 |
| FCF Conversion (FCF/Net Income) | 1.94x | 5.17x | 3.01x | 14.07x | -2.54x | -1.98x | 8.12x | 2.26x | 2.72x |
| Interest Paid | 0 | 0 | 38.31M | 33.91M | 19.24M | 9.89M | 13.05M | 17.29M | 7.99M |
| Taxes Paid | 0 | 0 | 12.94M | 15.22M | 10.99M | 12.78M | 15.64M | 19.19M | 3.29M |
Sovereign payment cycle volatility
As reported in financial statements, NESR's operating cash flow frequently decouples from net income, with the OCF/NI ratio reaching an extreme 17.76x in 2025Q4, suggesting that reported earnings are significantly less reliable than cash generation as a measure of the company's underlying operational performance.
The wide variance between net income and operating cash flow indicates that non-cash charges and working capital swings dominate the bottom line. Investors should monitor this divergence, as it implies that accounting profits may not accurately reflect the actual cash-generating capacity of the firm's service contracts.
Based on quarterly data, NESR's free cash flow trajectory remains highly volatile, swinging from a positive $95.8 million in 2025Q4 to a negative $5.3 million in 2026Q1, which underscores the difficulty in maintaining consistent cash margins amidst fluctuating project-based capital requirements in the MENA region.
The inability to sustain positive free cash flow suggests that the company's capital intensity is highly sensitive to the timing of regional NOC project cycles. This lack of predictability complicates valuation models, as cash flow generation appears tethered to lumpy contract milestones rather than steady-state operations.
According to recent SEC filings, NESR's capital expenditure as a percentage of revenue has fluctuated significantly, peaking at 13.8% in 2025Q3, which indicates a heavy reliance on continuous equipment reinvestment to maintain its competitive positioning within the demanding Middle Eastern oilfield services market.
The high level of maintenance capex relative to revenue suggests that the company must constantly reinvest to keep its fleet operational in harsh desert environments. This capital intensity may limit the firm's ability to generate meaningful excess cash, even during periods of high contract activity.
Financial data reveals that working capital changes are the primary driver of cash flow volatility, with a $77.1 million inflow in 2025Q4 followed by a $31.3 million outflow in 2026Q1, reflecting the inherent risks of dealing with sovereign-linked payment cycles in the energy sector.
The significant quarterly swings in working capital suggest that NESR's liquidity is heavily dependent on the collection speed of its NOC clients. Investors should remain cautious, as any delay in receivables from these sovereign entities could rapidly tighten the company's available cash position.
Quick answers to the most common questions about buying NESR stock.
National Energy Services Reunited Corp. (NESR) generated $264.2M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
National Energy Services Reunited Corp. (NESR) generated $120.8M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
National Energy Services Reunited Corp. (NESR) spent $143.5M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.