The Frac Fleet That Broke NESR's Revenue Record

NESR posts record $404.6m Q1 revenue as Aramco's Jafurah gas partnership accelerates

26 May 2026

National Energy Services Reunited posted record quarterly revenue of $404.6 million in Q1 2026, a 33.5% rise year-on-year, driven by hydraulic fracturing work at Saudi Arabia's Jafurah gas field. Net income doubled to $23.8 million. Adjusted EBITDA reached $76.7 million for the period ended March 31.

Behind those numbers is a multi-billion-dollar, five-year completion services contract signed with Saudi Aramco in late 2025. NESR moved from participating provider to primary integrated contractor, giving it a structurally embedded position at Jafurah, the largest unconventional gas development outside North America. Aramco's total lifecycle investment in the field is expected to exceed $100 billion, targeting output of 2 billion standard cubic feet per day by 2030.

A fourth fracturing fleet arrived on site during Q1. Stage completion rates are tracking ahead of projections, with performance benchmarks approaching those of leading Permian Basin operators.

Shareholders will receive a quarterly dividend of $0.10 per share from Q4 2026, alongside a $50 million buyback authorisation. Net debt-to-EBITDA of 0.66 times, well inside the company's 1.0 times ceiling, underpins both commitments. Management reiterated a target of reaching a $2 billion annual revenue run rate by year-end, supported by a tender pipeline of approximately $3 billion across the Middle East and North Africa. Analyst price targets moved sharply higher, with Barclays lifting its objective to $35 and UBS to $32.

Quarterly free cash flow came in at negative $5.3 million. The shortfall reflects Ramadan-driven working capital cycles and supply chain rerouting in Iraq during March, rather than any structural deterioration. Operational reliability held at 100% across all other active markets.

Two risks carry weight: heavy customer concentration around Aramco, and a projected global oil supply surplus that could slow contract momentum. Converting a $3 billion tender pipeline under both pressures will determine how durable this partnership proves.