Revenue growth accelerated to 33.5% YoY in 2026Q1, yet gross margin fell to 11.7% from 17.2% in 2024Q4, indicating persistent cost pressures.
National Energy Services Reunited Corp. (NESR) annual income statement — 8-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'17 |
|---|
| Sales/Revenue | 1.62B | 1.32B | 1.3B | 1.15B | 909.52M | 876.73M | 834.15M | 658.38M | 271.32M |
| Revenue Growth % | 23.55% | 1.72% | 13.6% | 25.99% | 3.74% | 5.1% | 26.7% | 142.66% | - |
| Cost of Goods Sold | 1.42B | 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 | 202.43M | 145.96M | 208.67M | 129.88M | 46.61M | -15.26M | 62.09M | 135.65M | 71.17M |
| Gross Margin % | 12.5% | 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 | 51.27M | 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 | 46.84M | 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 | 1000K | 0 | 18.77M | 0 | 0 | 0 | 0 | 0 | -573K |
| Operating Income | 151.16M | 98.32M | 137.7M | 80.7M | -917K | -43.33M | 35.28M | 71.81M | 39.66M |
| Operating Margin % | 9.34% | 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 | 290.87M | 240.05M | 280.49M | 222.93M | 114.93M | 78.79M | 156M | 159.93M | 78.07M |
| EBITDA Margin % | 17.97% | 18.13% | 21.55% | 19.45% | 12.64% | 8.99% | 18.7% | 24.29% | 28.77% |
| EBITDA Growth % | 6.57% | -14.42% | 25.82% | 93.98% | 45.86% | -49.49% | -2.45% | 104.86% | - |
| D&A (Non-Cash Add-back) | 139.7M | 141.73M | 142.78M | 142.23M | 115.84M | 122.13M | 120.72M | 88.11M | 38.41M |
| EBIT | 146.32M | 92.91M | 135.38M | 75.67M | 4.33M | -45.41M | 44.97M | 71.41M | 39.66M |
| Net Interest Income | -29.25M | -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 | 29.25M | 32.51M | 39.88M | 45.83M | 34.13M | 15.17M | 15.88M | 18.97M | 6.72M |
| Other Income/Expense | -34.09M | -37.92M | -42.21M | -50.86M | -28.88M | -17.25M | -6.18M | -19.38M | -7.29M |
| Pretax Income | 117.07M | 60.4M | 95.5M | 29.85M | -29.8M | -60.58M | 29.09M | 52.44M | 32.94M |
| Pretax Margin % | 7.23% | 4.56% | 7.34% | 2.6% | -3.28% | -6.91% | 3.49% | 7.96% | 12.14% |
| Income Tax | 23.69M | 9.27M | 19.19M | 17.27M | 6.62M | 3.99M | 12.54M | 13.07M | 4.59M |
| Effective Tax Rate % | 20.23% | 15.34% | 20.09% | 57.85% | -22.21% | -6.58% | 43.1% | 24.93% | 13.92% |
| Net Income | 93.38M | 51.13M | 76.31M | 12.58M | -36.42M | -64.57M | 16.55M | 39.36M | 30.63M |
| Net Margin % | 5.77% | 3.86% | 5.86% | 1.1% | -4% | -7.36% | 1.98% | 5.98% | 11.29% |
| Net Income Growth % | 27.84% | -32.99% | 506.6% | 134.54% | 43.59% | -490.02% | -57.94% | 28.53% | - |
| Net Income (Continuing) | 93.38M | 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) | 0.90 | 0.52 | 0.80 | 0.13 | -0.39 | -0.71 | 0.18 | 0.45 | 0.71 |
| EPS Growth % | 19% | -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 | 103.22M | 99.11M | 95.65M | 94.75M | 92.96M | 91.04M | 89.12M | 87M | 42.97M |
| Basic Shares Outstanding | 100.85M | 98.44M | 95.43M | 94.75M | 92.96M | 91.04M | 88.85M | 87M | 42.88M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | 65.3% |
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.
Key Metrics
Top Statement Risk
Geopolitical tensions and margin pressure
Metrics are mathematically derived from official filings.
Revenue Momentum Reaccelerates
NESR's revenue surged 33.5% year-over-year in 2026Q1 to $404.6M, according to the latest quarterly report, marking a sharp acceleration from the prior quarter's 15.9% growth and signaling robust demand in MENA.
The sequential acceleration from 15.9% in 2025Q4 to 33.5% in 2026Q1 suggests a strengthening demand environment, likely driven by increased NOC spending on unconventional gas and production services. The revenue base has expanded from $211.4M in 2021Q4 to over $400M, indicating a sustained growth trajectory. However, the sustainability of this pace depends on continued capex from Saudi Aramco and ADNOC, which remains a key monitor.
Gross Margin Compression Persists
Gross margin fell to 11.7% in 2026Q1 from 17.2% in 2024Q4, as reported in financial statements, reflecting persistent cost pressures and a mix shift that may be diluting profitability.
The decline from 17.2% to 11.7% over five quarters indicates structural margin erosion, possibly due to higher mobilization costs, inflationary pressures on materials, or increased competition. The 11.7% gross margin remains thin relative to the sector, and while operating margin improved to 8.9% in 2026Q1, the gross margin trend warrants close monitoring. If this compression continues, it could offset revenue growth benefits.
Operating Leverage Emerging
Operating income grew 17.3% sequentially in 2026Q1 to $36.0M, outpacing the 1.6% revenue increase, as per the latest income statement, indicating improving operating leverage.
The 8.9% operating margin in 2026Q1 is the highest in the last five quarters, up from 7.7% in 2025Q4, suggesting that SG&A costs are being controlled while revenue scales. SG&A as a percentage of revenue declined to 2.7% in 2026Q1 from 3.2% in 2025Q4, reflecting overhead efficiency. This leverage may be sustainable if revenue growth continues, but the thin gross margin limits the buffer.
Earnings Quality Mixed
Net income jumped to $23.8M in 2026Q1, a 205% increase from the prior quarter, but the 5.9% net margin is below the 7.8% seen in 2024Q4, per reported figures, suggesting non-operating factors may be at play.
The EPS of $0.23 in 2026Q1 is the highest in the series, but the net margin of 5.9% is lower than the 7.8% in 2024Q4, indicating that the earnings beat may be driven by one-time items or tax benefits. Stock-based compensation was zero in 2026Q1, which is unusual and may inflate reported earnings. Investors should scrutinize the sustainability of these earnings given the thin margins and potential for non-recurring gains.
COGS Dominates Cost Structure
COGS accounted for 88.3% of revenue in 2026Q1, as per the income statement, leaving little room for margin expansion and highlighting the high fixed-cost nature of operations.
The cost structure is heavily weighted toward COGS, which includes depreciation, labor, and materials, and has remained above 85% of revenue for the past five quarters. SG&A is relatively lean at around 3% of revenue, indicating disciplined overhead management. However, the high COGS ratio suggests that any revenue shortfall could quickly erode profitability, making cost control critical.
2021Q4 Turnaround Inflection
The 2021Q4 quarter marked a dramatic inflection, with gross margin swinging from -53.5% to positive territory in subsequent periods, as reported in financial statements, signaling a successful operational restructuring.
In 2021Q4, NESR reported a gross loss of $113.0M and a net loss of $85.8M, but by 2023Q4 it achieved a gross margin of 14.4% and net income of $2.3M. This turnaround likely resulted from fleet rationalization, cost-cutting, and improved contract terms. The lasting impact is a leaner cost base, but the recent margin compression suggests the benefits may be fading.
Margin Sustainability Questioned
Despite the strong EPS beat, the 11.7% gross margin in 2026Q1 is below the 17.2% in 2024Q4, as per the income statement, raising doubts about the durability of profitability.
Short-sellers might argue that the recent earnings beat is not sustainable given the declining gross margin trend. The 23% EPS beat in Q2 2025 could be a one-off, and the thin margins leave little room for error. Additionally, increased competition from Chinese OFS firms and geopolitical tensions could further pressure pricing and costs. If gross margins do not recover, operating leverage may not be enough to sustain earnings growth.