National Energy Services Reunited (NESR) Q4 2024 earnings summary

Executive summary

• Achieved record revenue, EBITDA, and EPS in Q4 and full year 2024, with robust cash flow and strengthened balance sheet entering 2025.

• Relisted on NASDAQ in October 2024, marking a key milestone.

• Revenue for Q4 2024 reached $343.7M, up 11.8% year-over-year and 2.2% sequentially.

• Net income for Q4 2024 was $26.8M, a 1,087% year-over-year increase and 30.2% sequentially.

• Expanded operations and market share across core MENA countries, with notable growth in Saudi Arabia, Kuwait, and Libya.

Financial highlights

• Q4 2024 revenue reached $343.7M, up 2.2% sequentially and 11.8% year-over-year; full year revenue was $1.3B, up 13.6%.

• Adjusted EBITDA for Q4 was $87.2M (25.4% margin); full year adjusted EBITDA was $310.1M (23.8% margin), up 18.2% year-over-year.

• Adjusted EPS was $0.30 for Q4 and $1.04 for the year, up 96% year-over-year.

• Free cash flow for 2024 was $124.2M (40.1% conversion rate), up 14.2% year-over-year; net debt/EBITDA at 0.89x, down from 2.8x in 2022.

• Gross debt at year-end was $383M, reduced by $153M over two years.

Outlook and guidance

• Expects moderate, single-digit market growth in MENA for 2025, with NESR targeting 8–10% growth, outpacing the market.

• Margins in 2025 expected to track 2024 levels, with high single-digit revenue growth anticipated.

• Management expects a moderate sequential decline in the first half of 2025 due to geopolitics, seasonal spending, and Ramadan timing.

• Gas development and technology expansion (Roya, NEDA) are central to growth strategy.

• Capital return programs (buybacks/dividends) under consideration for H2 2025, depending on cash flow and project outcomes.