National Energy Services Reunited: 2Q26 Preview: Advantage at Home, Earned in the Field

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National Energy Services Reunited: 2Q26 Preview: Advantage at Home, Earned in the Field

DA - 27E ($ mn) 509 535 5.2%

and localized security protocols rather than permanent reservoir damage, setting

up a meaningful box of incremental work to restore flow assurance and integrity Quarterly Forecasts (FYE Dec)

(pipeline cleaning, purging, nitrogen, slickline, coiled tubing, well testing, plugs, Adj. EPS ($)

and integrity checks). The company's key message remains that this recovery work 2025A 2026E 2027E

Q1 0.13 0.26A 0.52

is service-intensive and should lift intervention and workover demand by ~20-30% Q2 0.21 0.40 0.62

versus prior expectations, with some customers potentially pulling forward Q3 0.18 0.53 0.73

capacity expansion as a direct consequence of the conflict, which supports better- Q4 0.31 0.67 0.90

than-expected revenue growth in 2Q of low-to-mid teens alongside the reiterated FY 0.83 1.86 2.78

~100bps of q/q EBITDA margin expansion. The company's growth is anchored by Style Exposure

Jafurah, where NESR has scaled to 4 fleets (with a 5th expected by end of 3Q26

and a 6th in early 2027) under a per-stage model that rewards efficiency gains.

Beyond Jafurah, we highlight an intact ~$3bn tender pipeline (with majority of

remaining awards expected in 3Q and rest in 4Q), along with $3-4bn tender

pipeline across Kuwait, UAE, and North Africa, where Middle East contracts often

run 5-9 years. We expect 2027 to bring strong growth across UAE, Kuwait,

Algeria, Libya, Egypt, and Jafurah. On the capital allocation front, management

reiterated a $0.10 quarterly dividend beginning in 4Q, an initially opportunistic

$50mm buyback, and FY26 capex held around ~$180mm with an emphasis on

prioritizing organic growth, all while reaffirming a credible, tangible path to a ~