[Management View]
Revenue: $303.1 million, up 2.1% YoY but down 11.7% QoQ. Adjusted EBITDA: $62.5 million, margin of 20.6%, down 100 basis points YoY. Adjusted EPS: $0.14. Cash Flow from Operations: $20.5 million. Free Cash Flow: $20 million. Gross Debt: $366 million, Net Debt: $288 million. ROIC: 11.3%. Key growth drivers include new contracts in Kuwait, Oman, and UAE, and technology rollouts.

[Outlook]
Q2 2025: Sequential revenue growth expected, moderate YoY. Margin improvement anticipated. Full-Year 2025: Revenue growth expected, margins 100-200 basis points below last year. CapEx forecast at $125 million, potentially higher with new tenders. Strategic focus on segment leadership and cross-border capacity redeployment.

[Financial Performance]
Revenue increased 2.1% YoY but decreased 11.7% QoQ. Adjusted EBITDA margin down 100 basis points YoY. Adjusted EPS at $0.14. Cash flow impacted by higher DSO due to Ramadan. Free cash flow at $20 million, CapEx at $30 million. Gross debt at $366 million, net debt at $288 million. ROIC at 11.3%.

[Q&A Highlights]
Question 1: Are we getting close to the Saudi rig floor, and could we see Saudi activity pick up in the second half of the year?
Answer: Saudi activity is expected to remain soft for the rest of the year, with no pickup anticipated. Unconventional projects are growing as planned, with more rigs and frac crews being added.

Question 2: Can you get back to 25% margins by year-end?
Answer: It will take more time to reach 25% margins. Full-year margins are expected to be 100-200 basis points less than last year. Cost reduction measures should add 100-150 basis points to results from Q1.

Question 3: How are pricing trends in the Middle East, and how is the reduction in conventional activity in Saudi impacting overall trends?
Answer: Pricing is expected to soften as competition intensifies. Large tenders with long durations tend to see less discipline, leading to pricing drops.

Question 4: What are the growth opportunities within Kuwait?
Answer: Kuwait is tendering for multiple contracts across various segments. NESR is well-positioned to win several of these tenders, potentially making Kuwait the second-largest country for the company.

Question 5: What is the potential timing for North Africa contracts, and what would be considered a success in bidding?
Answer: Contracts in North Africa are expected to be awarded in the second half of the year. NESR aims to double its market share in the region by next year.

Question 6: What is NESR's strategy for scaling its business in the Middle East during a downturn?
Answer: NESR plans to invest heavily in the Middle East, leveraging its strong market position and relationships. The company aims to be a top-three player in every segment in the countries where it operates.

Question 7: How easy is it to move capacity and equipment within the Middle East?
Answer: It is very easy for NESR to move capacity and equipment within the Middle East due to established infrastructure and local expertise.

Question 8: What is the progress toward further commercialization of Roia, and where are the greatest opportunities for contract awards?
Answer: Roia's commercialization is focused on MWD, LWD, and RSS technologies. NESR is conducting extensive testing in Saudi, Oman, and Kuwait before expanding to other markets.

Question 9: What is the status of NEDA pilots, and is demand driven by unconventional development?
Answer: NEDA pilots are advancing, with a focus on mineral recovery and produced water recycling. The initiative aims to create new markets and is not solely driven by unconventional development.

[Sentiment Analysis]
Analysts expressed cautious optimism, focusing on NESR's strategic growth initiatives and market positioning. Management maintained a confident tone, emphasizing resilience and long-term growth potential despite market softness.

[Quarterly Comparison]
| Metric | Q1 2025 | Q4 2024 | Q1 2024 |
|-------------------------|---------------|---------------|---------------|
| Revenue | $303.1 million| $343.3 million| $297.8 million|
| Adjusted EBITDA | $62.5 million | $71.2 million | $63.1 million |
| Adjusted EBITDA Margin | 20.6% | 20.8% | 21.6% |
| Adjusted EPS | $0.14 | $0.16 | $0.15 |
| Cash Flow from Operations| $20.5 million| $25.3 million | $22.1 million |
| Free Cash Flow | $20 million | $23 million | $21 million |
| Gross Debt | $366 million | $370 million | $368 million |
| Net Debt | $288 million | $292 million | $290 million |
| ROIC | 11.3% | 11.5% | 11.4% |

[Risks and Concerns]
- Saudi upstream activity expected to soften further, impacting oil and gas operations.
- Increased DSO and temporary cash flow headwinds due to Ramadan.
- Softer pricing in Middle East tenders as competition intensifies.
- Full-year 2025 adjusted EBITDA margins guided to be 100-200 basis points below last year.

[Final Takeaway]
National Energy Services Reunited (NESR) demonstrated resilience in Q1 2025, with strategic growth initiatives and new contract wins offsetting regional seasonality and the impact of Ramadan. Management remains confident in sequential revenue and margin improvement for Q2 2025, driven by cost actions and technology deployments. While Saudi activity is expected to remain soft, NESR's focus on unconventional projects and strategic investments in Kuwait and other MENA regions positions the company for long-term growth. Investors should monitor the company's ability to navigate market softness and capitalize on new opportunities.