National Energy Services Reunited Corp. (NESR) released its first-quarter 2026 financial results on Monday, announcing the initiation of a quarterly cash dividend of $0.10 per share starting in the fourth quarter, alongside a $50 million share repurchase authorization. The company reaffirmed its target to achieve a $2 billion annualized revenue run rate by 2026.
The financial report indicates NESR's Q1 revenue reached $404.6 million, a 33.5% year-over-year increase, setting a new record and surpassing market expectations of $376.4 million. Net profit was $23.8 million, surging 129% compared to the same period last year and more than doubling from the previous quarter. Adjusted earnings per share were $0.26, an 86% increase from $0.14 a year ago, exceeding analyst estimates of $0.21. Adjusted EBITDA stood at $76.7 million, with a margin of 19%, which included approximately $4 million in additional freight and logistics costs related to geopolitical conflicts.
The company announced the launch of a capital return program, featuring a quarterly dividend of $0.10 per share (annualized $0.40) commencing in Q4 2026 and authorizing the repurchase of up to $50 million of common stock over the next 12 months. Chief Financial Officer Stefan Angeli stated that this move reflects the company's confidence in the sustainability of its cash flow and aims to establish a sustainable base dividend.
On the operational front, the company maintained robust growth driven by continued progress on the Saudi Jafurah project and new contracts in Kuwait and North Africa. Despite regional instability, the company upheld "100% customer operational reliability" and established a 30-day, 60-day, and 90-day supply chain security system. Management anticipates the full-year EBITDA margin to remain between 21% and 21.5%, with a free cash flow conversion rate of approximately 35% to 40%. Full-year capital expenditures are projected to be around $180 million.
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