National Energy Services Reunited (NESR) is back in focus after reporting second quarter 2026 earnings, with higher sales, net income and earnings per share compared with the same period last year.

The recent Q2 2026 earnings beat, the ramp-up of contracts such as Jafurah in Saudi Arabia, and new Kuwait awards appear to sit behind a strong run in National Energy Services Reunited. The share price is at $36.31, with momentum building as the 90 day share price return of 42.62% feeds into a very large 3 year total shareholder return.

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The sharp move in National Energy Services Reunited after Q2 results can be read as either a catch up to stronger reported earnings and contracts, or as enthusiasm running ahead of fundamentals. How does the current valuation stack up?

Most Popular Narrative: 13.3% Undervalued

The most followed narrative puts National Energy Services Reunited's fair value at $41.86, above the latest close at $36.31, and links that gap to long dated contracts and Middle East activity.

Secured multi-year (3–9 year) contract durations, growing contract awards, and a backlog that extends to 2030+ give NESR a high degree of earnings visibility and reduce volatility, supporting more stable cash flow and profitability.

This narrative leans on rapid revenue expansion, a sharp lift in profit margins and a lower future P/E than many energy peers. Curious which assumptions carry the most weight.

Result: Fair Value of $41.86 (UNDERVALUED)

However, National Energy Services Reunited still faces concentration in MENA oil contracts, as well as high capital and working capital needs that could pressure cash flow and delay projects.

Another View: National Energy Services Reunited Through a P/E Lens

National Energy Services Reunited screens as undervalued on the fair value model, yet its current P/E of 39.2x is above both the US Energy Services industry at 26.9x and the estimated fair ratio of 31x. That premium points to higher valuation risk if expectations reset. Which signal do you trust more, the fair value model or the P/E comparison?

Next Steps

With sentiment around National Energy Services Reunited looking upbeat, it makes sense to move quickly and test the numbers yourself before opinions harden. To see what the optimism is grounded in, take a closer look at the 3 key rewards.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.