National Energy Services Reunited reduced net debt to $99.6 million during the second quarter of 2026 as operating cash flow surged 466.6% year-over-year to $174 million amid record activity across its Middle East and North Africa oilfield services platform.
Net debt declined from $185.3 million at the end of 2025 and $223 million a year earlier. Cash and equivalents increased to $175 million from $124.8 million at year-end, while total debt declined to $274.6 million from $310.1 million.
NESR attributed the improvement in net debt primarily to stronger accounts receivable collections and cash generation. Free cash flow reached $99.9 million during Q2 compared with $68.7 million a year earlier and negative $5.3 million in the first quarter.
The balance-sheet improvement accompanied a sharp acceleration in operations. Q2 revenue increased 59.1% year-over-year and 28.7% sequentially to $520.8 million. Net income nearly tripled to $44 million, increasing 189.6% year-over-year.
Adjusted EBITDA increased 50.5% to $106.2 million and rose 38.5% sequentially. Diluted EPS increased 168.8% to $0.43.
Management said the higher profitability was driven by strong flow-through from incremental revenue as activity increased across hydraulic fracturing, well testing and wireline logging. NESR said it is operating at record activity levels on recently awarded contracts throughout the region despite ongoing geopolitical conflict.
The company generated more than $200 million of operating cash flow during the first half and approximately $95 million of free cash flow, demonstrating increased operating leverage as its regional contract portfolio ramps.
KEY QUOTES:
“Our stellar second quarter performance reflects the strength of NESR’s differentiated platform, the dedication of our people and the continued confidence our customers place in us. Despite the continued conflict in the region, we maintained our presence intact in all operating units with no interruption to any of our customers’ activities.”
“We are executing at record activity levels on our recently awarded contracts across the region while maintaining operational excellence, technology leadership and local capabilities that have become the hallmark of NESR.”
Sherif Foda, Chairman And Chief Executive Officer Of National Energy Services Reunited
