Revenue growth reached 33.5% in 2026Q1, yet persistent margin compression is evident as gross margins declined from 17.2% in 2024Q4 to 11.7% in the most recent quarter.
| Sales/Revenue | 1.43B | 1.32B | 1.3B | 1.15B | 909.52M | 876.73M | 834.15M | 658.38M | 271.32M |
| Revenue Growth % | 8.99% | 1.72% | 13.6% | 25.99% | 3.74% | 5.1% | 26.7% | 142.66% | - |
| Cost of Goods Sold | 1.27B | 1.18B | 1.09B | 1.02B | 862.9M | 891.99M | 772.06M | 522.73M | 200.15M |
| COGS % of Revenue | - | 88.98% | 83.97% | 88.67% | 94.88% | 101.74% | 92.56% | 79.4% | 73.77% |
| Gross Profit | 160.33M | 145.96M | 208.67M | 129.88M | 46.61M | -15.26M | 62.09M | 135.65M | 71.17M |
| Gross Margin % | 11.25% | 11.02% | 16.03% | 11.33% | 5.13% | -1.74% | 7.44% | 20.6% | 26.23% |
| Gross Profit Growth % | - | -30.06% | 60.67% | 178.63% | 405.44% | -124.58% | -54.23% | 90.59% | - |
| Operating Expenses | 46.92M | 47.64M | 70.97M | 49.17M | 47.53M | 28.07M | 26.81M | 63.84M | 30.94M |
| OpEx % of Revenue | - | 3.6% | 5.45% | 4.29% | 5.23% | 3.2% | 3.21% | 9.7% | 11.4% |
| Selling, General & Admin | 46.92M | 47.64M | 52.2M | 49.17M | 47.53M | 28.07M | 26.81M | 63.84M | 30.34M |
| SG&A % of Revenue | - | 3.6% | 4.01% | 4.29% | 5.23% | 3.2% | 3.21% | 9.7% | 11.18% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | 0 | 18.77M | 0 | 0 | 0 | 0 | 0 | -573K |
| Operating Income | 113.41M | 98.32M | 137.7M | 80.7M | -917K | -43.33M | 35.28M | 71.81M | 39.66M |
| Operating Margin % | 7.96% | 7.43% | 10.58% | 7.04% | -0.1% | -4.94% | 4.23% | 10.91% | 14.62% |
| Operating Income Growth % | - | -28.6% | 70.63% | 8900.76% | 97.88% | -222.83% | -50.88% | 81.08% | - |
| EBITDA | 252.89M | 240.05M | 280.49M | 222.93M | 114.93M | 78.79M | 156M | 159.93M | 78.07M |
| EBITDA Margin % | 17.74% | 18.13% | 21.55% | 19.45% | 12.64% | 8.99% | 18.7% | 24.29% | 28.77% |
| EBITDA Growth % | 1.65% | -14.42% | 25.82% | 93.98% | 45.86% | -49.49% | -2.45% | 104.86% | - |
| D&A (Non-Cash Add-back) | 139.47M | 141.73M | 142.78M | 142.23M | 115.84M | 122.13M | 120.72M | 88.11M | 38.41M |
| EBIT | 113.41M | 98.32M | 135.38M | 75.67M | 4.33M | -45.41M | 44.97M | 71.41M | 39.66M |
| Net Interest Income | -30.77M | -32.51M | -39.88M | -45.83M | -34.13M | -15.17M | -15.88M | -18.97M | -6.72M |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 30.77M | 32.51M | 39.88M | 45.83M | 34.13M | 15.17M | 15.88M | 18.97M | 6.72M |
| Other Income/Expense | -35.79M | -37.92M | -42.21M | -50.86M | -28.88M | -17.25M | -6.18M | -19.38M | -7.29M |
| Pretax Income | 77.62M | 60.4M | 95.5M | 29.85M | -29.8M | -60.58M | 29.09M | 52.44M | 32.94M |
| Pretax Margin % | 5.45% | 4.56% | 7.34% | 2.6% | -3.28% | -6.91% | 3.49% | 7.96% | 12.14% |
| Income Tax | 13.05M | 9.27M | 19.19M | 17.27M | 6.62M | 3.99M | 12.54M | 13.07M | 4.59M |
| Effective Tax Rate % | 16.82% | 15.34% | 20.09% | 57.85% | -22.21% | -6.58% | 43.1% | 24.93% | 13.92% |
| Net Income | 64.57M | 51.13M | 76.31M | 12.58M | -36.42M | -64.57M | 16.55M | 39.36M | 30.63M |
| Net Margin % | 4.53% | 3.86% | 5.86% | 1.1% | -4% | -7.36% | 1.98% | 5.98% | 11.29% |
| Net Income Growth % | -15.84% | -32.99% | 506.6% | 134.54% | 43.59% | -490.02% | -57.94% | 28.53% | - |
| Net Income (Continuing) | 64.57M | 51.13M | 76.31M | 12.58M | -36.42M | -64.57M | 16.55M | 39.36M | 28.35M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | -8K | 0 | 0 |
| EPS (Diluted) | 0.63 | 0.52 | 0.80 | 0.13 | -0.39 | -0.71 | 0.18 | 0.45 | 0.71 |
| EPS Growth % | -20.21% | -35% | 515.38% | 133.33% | 45.07% | -494.44% | -60% | -36.62% | - |
| EPS (Basic) | - | 0.52 | 0.80 | 0.13 | -0.39 | -0.71 | 0.19 | 0.45 | 0.71 |
| Diluted Shares Outstanding | 102.93M | 99.11M | 95.65M | 94.75M | 92.96M | 91.04M | 89.12M | 87M | 42.97M |
| Basic Shares Outstanding | 100.8M | 98.44M | 95.43M | 94.75M | 92.96M | 91.04M | 88.85M | 87M | 42.88M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | 65.3% |
Geopolitical regional concentration risk
According to reported financial statements, NESR experienced a notable 33.5% revenue growth in 2026Q1, yet this follows a period of significant inconsistency, including a 12.2% contraction in 2025Q3, suggesting that the company's top-line performance remains highly sensitive to the timing of regional NOC project awards.
The recent acceleration in revenue appears to be driven by the cyclical nature of Middle Eastern energy infrastructure projects rather than consistent organic expansion. Investors should monitor whether this growth trajectory can be sustained or if it merely reflects the lumpy recognition of multi-year framework agreements.
As indicated by the latest income statement data, NESR's gross margin has struggled to maintain double-digit levels, hovering around 11.7% in 2026Q1, which represents a significant contraction from the 17.2% peak observed in 2024Q4, highlighting the company's limited pricing power in a competitive regional landscape.
The inability to sustain higher gross margins suggests that inflationary pressures on specialized equipment and labor are effectively neutralizing revenue gains. This margin profile warrants further investigation into whether the company's 'National Champion' positioning provides any genuine insulation against the aggressive pricing strategies of larger global competitors.
Based on the provided figures, NESR's operating income scaling appears inconsistent, with operating margins fluctuating between 6.6% and 12.7% over the last two years, indicating that the company has yet to achieve the operational efficiency required to decouple overhead growth from its high-intensity service revenue.
While SG&A expenses have remained relatively contained, the lack of consistent operating margin expansion suggests that the company's fixed-cost base remains a significant drag on profitability. The data implies that any future revenue growth may be partially offset by the ongoing maintenance and mobilization costs inherent in its regional operations.
Financial filings reveal that NESR's net income has been highly erratic, swinging from $26.8 million in 2024Q4 to $7.8 million in 2025Q4, which suggests that the company's bottom-line performance is susceptible to non-operating items and the timing of project-related costs that may obscure underlying operational health.
Short-sellers may focus on the volatility of net income as a sign of weak earnings quality and potential issues with revenue recognition timing. The reliance on specific sovereign-linked contracts creates a binary risk profile where the loss of a single major tender could disproportionately impact the company's ability to maintain its current profitability levels.
Quick answers to the most common questions about buying NESR stock.
For fiscal year 2025, National Energy Services Reunited Corp. (NESR) reported total revenue of $1.32B. This represents a 388.0% increase compared to $271.3M in 2017.
National Energy Services Reunited Corp. (NESR) is profitable, generating $51.1M in net income for the fiscal year ending 2025 with a net profit margin of 3.9%.
National Energy Services Reunited Corp. (NESR) reported an operating income of $98.3M, resulting in an operating profit margin of 7.4%. This margin reflects the operational efficiency of the business before interest and taxes.
National Energy Services Reunited Corp. (NESR) generated $146.0M in gross profit for the year, representing a gross profit margin of 11.0%. This demonstrates the company's core pricing power and production efficiency.