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Dec 31, 2024

NESR Q4 2024 Earnings Report

NESR reported strong Q4 results with record quarterly adjusted EBITDA and increased revenue and earnings.

Key Takeaways

NESR delivered a solid Q4 2024, with revenue reaching $343.7 million and net income rising sharply to $26.8 million. The company also achieved record adjusted EBITDA of $87.2 million and maintained strong cash generation and debt reduction.

Revenue for Q4 2024 was $343.7 million, up from $336.2 million in Q3.

Net income for Q4 reached $26.8 million, up significantly from the prior year.

Adjusted EBITDA hit a quarterly record of $87.2 million with a 25.4% margin.

Free cash flow for the quarter stood at $21.2 million, aiding in net debt reduction.

Total Revenue
$344M
Previous year: $308M
+11.8%
EPS
$0.3
Previous year: $0.02
+1400.0%
Adjusted EBITDA
$87.2M
Previous year: $79.5M
+9.8%
Adj. EBITDA Margin
25.4%
Net Cash from Operations
$46.3M
Cash and Equivalents
$108M
Previous year: $67.8M
+59.2%
Free Cash Flow
$21.2M

NESR

NESR

Forward Guidance

NESR expects moderate softness in early 2025 due to seasonal factors but remains confident in strong full-year performance.

Positive Outlook

  • Confident in full-year 2025 performance
  • Strong customer relationships in MENA region
  • Recent contract wins in drilling segment
  • Continued progress in decarbonization initiatives
  • Technological advancement in produced water treatment

Challenges Ahead

  • Expected seasonal spending slowdown in H1 2025
  • Geopolitical uncertainty in operating regions
  • Impact of Ramadan on project timelines
  • Potential volatility in oil and gas markets
  • Delays in procurement due to macroeconomic conditions