1Q26 Quick Look - Delivered Solid Results Despite Middle East Challenges

研报英文原文证据摘录

1Q26 Quick Look - Delivered Solid Results Despite Middle East Challenges

H O T C O M M E N T

M a y 1 1 , 2 0 2 6

National Energy Services Reunited (NESR) Overweight

CONCLUSION PRICE: US$23.10

NESR reported $77mm adj. EBITDA, ahead of $73mm PSC/consensus with topline TARGET: US$30.00

increasing 2% q/q to $405mm, above $386mm/$377mm PSC/consensus. NESR 6.5x 2027E EBITDA estimate, using 2026E net

navigated the challenges impacting the Middle East successfully, delivering a solid 4% debt

EBITDA beat, containing margins at 19%, inline with our estimate, while increasing topline

2% q/q to reach a record high, beating PSC/consensus by 5% and 7%, respectively. Derek Podhaizer

Sr. Research Analyst, Piper Sandler & Co.

As expected, FCF was light at a $5mm loss, but outperformed ($20)mm/($8)mm PSC/ 212 284-9485, derek.podhaizer@psc.com

consensus, driven primarily by working capital headwinds impacting the region, a similar Michael Sunshine

dynamic felt by its peers. NESR's results reflect its unique multi-year, multi-billion dollar Research Analyst, Piper Sandler & Co.

Jafurah completion award, which continues to scale and generate a differentiated earnings 212 284-9417, michael.sunshine@psc.com

stream. Additionally, mgmt reiterated recent multi-year contracts in Kuwait and North Africa

reinforcing its competitive position in the region. On the call, we'll be focused on the RISKS TO ACHIEVEMENT OF

2Q26 margin impact related to elevated logistics costs and the potential shareholder return PT & RECOMMENDATION

framework. Less-than-expected awarded services in Saudi

Arabia and Kuwait, oil & gas macro volatility,

greater-than-expected Int’l deceleration.

Detailed earnings variance table on page 2.

Price Performance - 1 Year

USD

Source: Company Reports, Bloomberg, PSC Research