National Energy Services Reunited Corp.

RESULTS OF OPERATIONS

We operate our business through two operating segments and report our results of operations through two reporting segments, Production Services and Drilling and Evaluation Services, which aggregate services performed during distinct stages of a typical life cycle of an oil well.

Production Services. Our Production Services segment includes the results of operations from services that are generally offered and performed during the production stage of a well’s lifecycle. These services mainly include hydraulic fracturing, coiled tubing, stimulation and pumping, cementing, nitrogen services, filtration services, pipelines and industrial services, production assurance, artificial lift services, completions and integrated production management. Our Production Services accounted for 60% and 62% of our revenues for the three-month periods ended March 31, 2026, and March 31, 2025, respectively.

Drilling and Evaluation Services. Our Drilling and Evaluation Services segment includes the results of operations from services that are generally offered and performed during pre-production stages of a well’s lifecycle and related mainly to the operation of oil rigs. The services mainly include rigs and integrated services, fishing and downhole tools, thru-tubing intervention, tubular running services, directional drilling, drilling and completion fluids, pressure control, well testing services, wireline logging services and slickline services. Our Drilling and Evaluation Services accounted for 40% and 38% of our revenues for the three-month periods ended March 31, 2026, and March 31, 2025, respectively.

For a full discussion of our reportable segments, see the section entitled “Business” in Part I, Item 1 of our 2025 Annual Report.

Key Components of Revenues and Expenses

As of the end of the three-month period covered by this Quarterly Report, there have been no material changes to our key components of revenues and expenses. See the section entitled “Key Components of Revenues and Expenses” in Part II, Item 7 of our 2025 Annual Report for more information.

2026 compared to 2025

The following table presents our Consolidated Statements of Operations (Unaudited) data for the periods indicated (in US$ thousands):

Revenue*.*Revenue was $404.6 million for the three-month period ended March 31, 2026, compared to $303.1 million for the three-month period ended March 31, 2025.

The table below presents our revenue by segment for the periods indicated (in US$ thousands):

Production Services revenue was $241.0 million for the three-month period ended March 31, 2026, compared to $188.1 million for the three-month period ended March 31, 2025. The change in revenue was primarily due to increased hydraulic fracturing stages in Saudi Arabia.

Drilling and Evaluation Services revenue was $163.5 million for the three-month period ended March 31, 2026, compared to $115.0 million for the three-month period ended March 31, 2025. The change in revenue was primarily due to increased well testing activity in Saudi Arabia.

***Cost of services.***Cost of services was $352.8 million for the three-month period ended March 31, 2026, compared to $265.6 million for the three-month period ended March 31, 2025. Cost of services as a percentage of total revenue was 87.2% and 87.6% for the three-month periods ended March 31, 2026, and March 31, 2025, respectively. The change in cost of services as a percentage of total revenue is mainly due to increased activity levels in the period ended March 31, 2026, as compared to the prior year period, reflecting improved cost absorption as revenue scaled. Cost of services included depreciation expense of $29.1 million, and $29.5 million for the three-month period ended March 31, 2026, and March 31, 2025, respectively.

Gross profit. Gross profit was $51.8 million for the three-month period ended March 31, 2026, compared to $37.5 million for the three-month period ended March 31, 2025. Gross profit as a percentage of total revenue was 12.8% and 12.4% for the three-month period ended March 31, 2026, and the three-month period ended March 31, 2025, respectively. The change in trend is described under “Revenue” and “Cost of services.”

SG&A expense. SG&A expense, which represents costs associated with managing and supporting our operations, was $11.1 million for the three-month period ended March 31, 2026, compared to $11.8 million for the three-month period ended March 31, 2025. SG&A expense as a percentage of total revenue was 2.7% and 3.9% for the three-month period ended March 31, 2026, and March 31, 2025, respectively. The period-over-period decrease in SG&A expense was primarily attributable to lower spending on activities related to the remediation of the Company’s material weakness, as the Company completed remediation as of June 30, 2025 and therefore incurred significant remediation-related costs during the quarter ended March 31, 2025.

Amortization expense. Amortization expense was $4.7 million for the three-month period ended March 31, 2026, compared to $4.7 million for the three-month period ended March 31, 2025. Amortization expense is driven mainly by acquired intangible assets resulting from acquisitions.

Interest expense, net. Interest expense, net, was $6.5 million for the three-month period ended March 31, 2026, compared to $8.3 million for the three-month period ended March 31, 2025. Interest expense, net, decreased period-over-period, due to lower debt levels during 2026 as compared to 2025.

Other income, net. Other income, net, was $1.4 million for the three-month period ended March 31, 2026, compared to $1.1 million for the three-month period ended March 31, 2025.

Income tax expense. Income tax expense was $7.1 million for the three-month period ended March 31, 2026, compared to $3.3 million for the three-month period ended March 31, 2025. The decrease in effective tax rate period-on-period is primarily attributable to changes in geographic earnings mix, as well as higher pre-tax income relative to adjustments related to the Company’s uncertain tax positions and unrecognized tax benefits. See Note 7,Income Taxes, to our consolidated financial statements included in Item 1, “Financial Statements,” of this Quarterly Report.

Net income. Net income was $23.8 million for the three-month period ended March 31, 2026, compared to $10.4 million for the three-month period ended March 31, 2025.

Supplemental Segment Operating Income Discussion

Production Services operating income was $32.7 million for the three-month period ended March 31, 2026, compared to $20.0 million for the three-month period ended March 31, 2025. The change in Supplemental Segment Operating Income was primarily due to increased hydraulic fracturing stages in Saudi Arabia with a significant portion of incremental revenue translating into segment operating income.

Drilling and Evaluation operating income was $18.2 million for the three-month period ended March 31, 2026, compared to $16.1 million for the three-month period ended March 31, 2025. The change in Supplemental Segment Operating Income was primarily due to additional well testing activity in Saudi Arabia with a share of incremental revenue contributing to segment operating income.