National Energy Services Reunited Corp. Segments Disclosure
19. REPORTABLE SEGMENTS
Operating segments are components of an enterprise where separate financial information is available and that are evaluated regularly by the Company’s CODM in deciding how to allocate resources and in assessing performance. The Company reports segment information based on the “management” approach and its CODM is its Chief Executive Officer.
The Company’s services are similar to one another in that they consist of oilfield services and related offerings, whose customers are oil and natural gas companies. The results of operations of the service offerings are regularly reviewed by the CODM for the Company for the purposes of determining resource and asset allocation and assessing performance. The Company has determined that it has two reportable segments, Production Services and Drilling and Evaluation Services. The CODM evaluates the operating results of its reportable segments primarily based on revenue and segment operating (loss) / income. Segment operating (loss) / income does not include general corporate expenses, such as corporate overhead (costs incurred at the Company’s global and regional headquarter locations), share-based compensation, and transaction and integration costs, as these expenses are not allocated to the Company’s reportable segments and not reported to the Company’s CODM.
Production Services that are offered depend on the well life cycle in which the services may fall. They include, but are not limited to, the following types of service offerings: 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.
Drilling and Evaluation Services generates its revenue from the following service offerings: 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.
The Company’s operations and activities are located within certain geographies, primarily the MENA region.
Revenue from operations
| Year ended | ||||||||||||
December 31, 2025 | December 31, 2024 | December 31, 2023 | ||||||||||
| Reportable Segment: | ||||||||||||
| Production Services | $ | 815,999 | $ | 878,076 | $ | 785,642 | ||||||
| Drilling and Evaluation Services | 508,048 | 423,628 | 360,273 | |||||||||
| Total revenue from external customers | $ | 1,324,047 | $ | 1,301,704 | $ | 1,145,915 | ||||||
Long-lived assets
| As of | ||||||||
December 31, 2025 | December 31, 2024 | |||||||
| Reportable Segment: | ||||||||
| Production Services | $ | 222,306 | $ | 220,453 | ||||
| Drilling and Evaluation Services | 186,738 | 162,295 | ||||||
| Total Reportable Segments | 409,044 | 382,748 | ||||||
| Unallocated assets | 56,410 | 55,398 | ||||||
| Total long-lived assets | $ | 465,454 | $ | 438,146 | ||||
Unallocated assets mainly comprise of buildings and leasehold improvements in the countries which supports both the segments in the normal course of business.
Total segment operating income
| Year ended | ||||||||||||
December 31, 2025 | December 31, 2024 | December 31, 2023 | ||||||||||
| Reportable Segment: | ||||||||||||
| Production Services | $ | 100,318 | $ | 146,869 | $ | 111,060 | ||||||
| Drilling and Evaluation Services | 69,055 | 63,102 | 36,461 | |||||||||
| Total Reportable Segments | 169,373 | 209,971 | 147,521 | |||||||||
| Unallocated expenses | (71,053 | ) | (72,267 | ) | (66,818 | ) | ||||||
| Total Operating income | 98,320 | 137,704 | ) | 80,703 | ||||||||
| Interest expense, net | (32,513 | ) | (39,881 | ) | (45,826 | ) | ||||||
| Other (expense) / income, net | (5,409 | ) | (2,325 | ) | (5,031 | ) | ||||||
| Income before income tax | $ | 60,398 | $ | 95,498 | $ | 29,846 | ||||||
Unallocated expenses for the years ended December 31, 2025, 2024, and 2023, respectively, mainly include corporate selling, general, and administrative expenses (inclusive of amortization), offset in small part by a portion of these costs that are allocated to the reportable segments. As described elsewhere, corporate selling, general, and administrative expenses are primarily comprised of payroll and compensation costs for headquarters’ employees, professional and legal expenses relating to audit firms, consulting firms and legal counsel, and depreciation charges on headquarters’ offices and leasehold improvements.
Significant segment expenses, which represents the difference between segment revenue and pretax segment income, consist of the following:
| Year ended | ||||||||||||
| December 31, 2025 | December 31, 2024 | December 31, 2023 | ||||||||||
| Production Services: | ||||||||||||
| Compensation | $ | 187,855 | $ | 193,908 | $ | 173,539 | ||||||
| Cost of products, materials, and supplies | 246,994 | 262,003 | 231,642 | |||||||||
| Transport and rental | 118,958 | 115,025 | 99,432 | |||||||||
| Depreciation and amortization | 76,486 | 80,547 | 88,777 | |||||||||
| Other | 85,388 | 79,724 | 81,192 | |||||||||
| $ | 715,681 | $ | 731,207 | $ | 674,582 | |||||||
| Year ended | ||||||||||||
| December 31, 2025 | December 31, 2024 | December 31, 2023 | ||||||||||
| Drilling and Evaluation Services | ||||||||||||
| Compensation | $ | 153,775 | $ | 137,362 | $ | 121,707 | ||||||
| Cost of products, materials, and supplies | 72,637 | 70,740 | 64,144 | |||||||||
| Transport and rental | 100,598 | 68,783 | 52,736 | |||||||||
| Depreciation and amortization | 47,510 | 42,386 | 42,219 | |||||||||
| Other | 64,473 | 41,255 | 43,006 | |||||||||
| $ | 438,993 | $ | 360,526 | $ | 323,812 | |||||||
Other segment expenses include mobilization, occupancy, professional, and other costs.
Revenue by geographic area
| Year ended | ||||||||||||
December 31, 2025 | | December 31, 2024 | December 31, 2023 | |||||||||
| Geographic Area: | ||||||||||||
| Domestic (BVI) | $ | $ | $ | |||||||||
| MENA | 1,315,939 | 1,282,923 | 1,132,321 | |||||||||
| Rest of World | 8,108 | 18,781 | 13,594 | |||||||||
| Total revenue | $ | 1,324,047 | $ | 1,301,704 | $ | 1,145,915 | ||||||
Long-lived assets by geographic area
| As of | ||||||||
| December 31, 2025 | December 31, 2024 | |||||||
| Geographic area: | ||||||||
| Domestic (BVI) | $ | $ | ||||||
| MENA | 457,124 | 428,353 | ||||||
| Rest of World | 8,330 | 9,793 | ||||||
| Total long-lived assets | $ | 465,454 | $ | 438,146 | ||||
Significant customers
Revenues from four customers individually accounted for 49%, 9%, 8% and 7% of the Company’s consolidated revenues in the year ended December 31, 2025, 54%, 9%, 7% and 4% of the Company’s consolidated revenues in the year ended December 31, 2024, and 44%, 8%, 7% and 5% of the Company’s consolidated revenues in the year ended December 31, 2023.
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.