Q3 2025 National Energy Services Reunited Corp Earnings Call

Only mode, a question and answer session will follow the formal presentation.

Anyone who requires operator assistance during the conference. Please press star zero on your telephone keypad.

Speaker #3: Which brings me to our growth strategy, because success in net Jafra and across the region would not be our success without aggressive countercyclical investments. For decades, the oil service industry has matched investment, hiring, and R&D with the activity cycle.

As a reminder, this conference is being recorded.

I'd now like to turn the conference over to your host Mr. Blake Gendron, you may begin.

Thank you Keith Hello, and welcome to <unk> third quarter 2025 earnings call.

With me today are shriek photo chairman and Chief Executive Officer of Mercer, and Stephane <unk> Chief Financial Officer.

Speaker #3: But now that the cycle has global accelerated and shortened , the traditional out waiting the storm strategy no works . By the longer time the cycle turns , many companies are behind .

On today's call, we will comment on our third quarter results and overall performance.

After our prepared remarks, we will open up the call to questions.

Before we begin I'd like to remind our participants that some of the statements we'll be making today are forward looking these matters involve risks and uncertainties that could cause our results to differ materially from those projected in these statements.

Speaker #3: why Which is left a we've taken different approach . Invest during the downturn . It's been easier said than but done , as the only public Mena play , pure from the relative we stability of activity region and agility of decision making .

Operator: Thank you. We will now be conducting a question-and-answer session. If you would like to ask a question, please press Star 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press Star 2 if you'd like to remove your question from the queue. We ask to please limit your questions to one question and one follow-up. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the Star keys. Thank you. Our first question comes from the line of David Anderson with Barclays. Please go ahead.

I, therefore refer you to our latest earnings release filed earlier today and other SEC filings.

Speaker #3: Rig activity largely is in the decoupled commodity from on oil price focus on because of capacity building in gas because of and needs .

Our comments today May also include non-GAAP financial measures.

Additional details on reconciliations to the most directly comparable GAAP financial measures can be found in our press release, which is on our website.

Speaker #3: If any positioned to break company is well the pack and countercyclical investment market position , it's Nasser and establish a our customer Our approach value .

Finally feel free to contact us after the call with any additional questions you may have.

Our Investor Relations contact information is available on our website.

David Anderson: Good morning, Sharif. Obviously, congratulations on the big contract win in Jafurah. It's been a long road to get here. Great to see you guys rewarded for all the efforts you've done there on the unconventional field. Not surprisingly, those who didn't win the contract are, of course, saying you wanted a price that no one else was willing to go to. Can you please respond to that and just sort of tell us how you're able to price this more competitively than others, that you're still able to keep these margins at these great levels? How much of this is being a local player? What else is into this mix? Thank you, Sharif.

Speaker #3: board since our partner , particularly oil company . of are enough taking a NOC longer as a But term to be Naturally , small .

Now I'll hand, the call over to Sherif.

Thanks Blake.

Ladies and gentlemen, good morning, and thank you for participating in this conference call.

Todays call comes at a pivotal moment in the history of our firm.

Speaker #3: our That is window . downturn While exposed weakness industry , they in our also reveal who's actually planning for future . Our operational readiness is unmatched among our peers and is only possible because we are growing and investing , the while others are shrinking .

At our crews mobilized to delivered one of the largest project in sector history.

And company growth hits and you gear.

Despite the transition of key contracts in the third quarter.

Proud of the <unk> team for their strong execution and cost control with an unwavering focus on safety.

Sherif Foda: Thanks, Dave. Thanks for the congratulations. Obviously, I wouldn't comment on others, but I just can tell you very clearly, as we try to explain in great detail, we've been in this journey now for several years with our dear customer, Aramco. As we've been part of it and we've been performing, and I would say beating all the records in that domain, we understand exactly how the structure works. We are very locally embedded with all the ecosystem. As I tried to explain, we knew how to take the cost out of the system and look at the future of that project being three times at least what it was before.

Speaker #3: be To honest , it's no park walk in the trying to convince some shareholders board members of the strategy company in our sector often public suffer from short term pressure wants result cash .

As recently announced <unk> secured the winning position for the massive frac tender into Florida.

This multi year multibillion dollar award is a cornerstone achievement for the company.

Speaker #3: and they dividend want It is now . , particularly in a lower oil price environment and with tight risk mandates in public markets .

Upon which we will continue to build beyond our revenue target we set ourselves.

At the same time, we are also seeing a positive activity inflection beyond <unk> with continuing growth in Kuwait return of additional rigs in Saudi and increased activities in the majority of our countries.

Speaker #3: spent the last founding of the seven years since the company Everyone trying to convince the market Mena We upstream that fundamentals are inherently de-risked our financial , and results over the past few years have borne this out .

Our counter cyclical investment strategy is allowing us to capitalize on global weakness and boosting the company into a position of strength and operational readiness.

Speaker #3: current the lower oil Even in environment , the next outlook only continues to improve sure . To be aren't , we growing for growth sake .

Sherif Foda: How you are going to operate in that new paradigm, your cost control, your new supplier and partners, a lot of it is, for the people that do not know, this is an integrated project. Basically, we look at the sites, the water, the sand, the coiled tubing, the plugs, the flowback, the testing, in addition to frac. We knew exactly how to acquire equipment and use the weakness, if you like, of the US to take full advantage of that. We brought everything to the kingdom already. We invested, as I say, countercyclically because we knew the downturn could play a very big benefit for us. This will translate in maintaining our margins in this project going forward. As we try to explain, this is going to be much bigger and significantly bigger.

While others are cutting we are playing offense.

Speaker #3: investment Our strategy speaks to the countercyclical fact that there is ample return accretive expansion there for next still out , the strategy perhaps isn't available for others with a more established and mature market position with that , I'll pass .

I will dig into both <unk> and our broader strategy later in the call, but first want to take a slightly different angle and discuss to what they call Mega themes that have emerged from the recent <unk> event in Riyadh, followed by <unk> in Abu Dhabi.

Speaker #3: to the call Stefan to discuss the financials in And details .

Fai or future investment initiative known as Douglas of the Desert is one of the largest macro conference and leadership gatherings into work and.

Speaker #4: Sharif . to Good morning our Thank you . audience . Joining from the States . And United afternoon evening good to joining us from the those East , North Africa , Asia and Europe .

Speaker #4: Middle We are have you delighted to with us today . I am pleased to present an our financial results for the third quarter of 2025 and to share perspectives on outlook for the fourth quarter and the our full year In the three months since .

And as it back is the largest oil and gas conference globally.

Our participation was both timely with the deferred award and also crucial with the GCC at the epicentre of these two mega theme.

Speaker #4: we last spoke , global volatility macroeconomic has persisted . Factors ongoing such as uncertainty , inflationary pressures , reduced subsidies in developing economies , fully supplied oil markets , and additional Opec+ supply releases have collectively contributed to rangebound oil prices and lower reactivity in certain countries we , as also heard from our peers , these dynamics have weighed on the third quarter across 2020 results broader oilfield sector , making short services term forecasting increasingly challenging .

From these events the message was clear and crisp.

Theme, one energy demand and GCC leadership in the AI Revolution.

Sherif Foda: Our target is to maintain the same profitability as we had today and as we had before. The best thing to say is people have just to watch the results and the margins going forward, and that would be the best answer.

Traditionally energy is here to stay.

And demand growth will be super charged by the huge power demand of AI data centers and cyber security.

The AI powered demand commentary was nothing new but the signals from both Saudi and UAE. During this event suggest that the middle East AI raises on.

David Anderson: Well, we've seen it so far. It's great to see you continued on this journey here. Could you provide us a bit of a roadmap on the pace of development at Jafurah? How many crews are you going to have in this coming Q4? Where do you hope to be at the end of 2026? Just kind of ultimately, how many kind of wells or stages per month are you targeting? Any kind of details around that you could provide, please?

Speaker #4: Despite these headwinds , and as Sharif highlighted in his market overview , continue to invest we heavily and look at our long term vision with contract awards and ready for getting the years to come .

And significant investment is coming.

Most countries presented a vision of becoming the number three globally for AI after the U S and China.

Speaker #4: shift Now , to Q3 Our 2025 . overall third quarter revenue was 295.3 million , down 9.8% sequentially and 12.2% year over year sequentially .

What this means is that the region has moved beyond the concept of energy transition and is now focused on energy addition, in all forms including more oil more renewables and in particular more natural gas and solar.

Sherif Foda: Yeah. Obviously, I mean, I know all the details in great detail, but I will always leave this to my dear customer to say it. I can tell you we prepared to send all the extra equipment and crews in this quarter, so we are ready in Q4. We started the contract 1 November 2024, so we did not have to wait. Obviously, we had the transition in the business. We started executing using our today two fleets that are running as we speak from 1 November 2024. Our plan is to deliver those stages that Aramco wants us to deliver using the crews and the additional crew, the equipment that we already bought as well, and it is shipping to the kingdom. They will be there at the end of November, so we will be ready with the additional crew.

Speaker #4: Revenue declined primarily due to the transition between the major contract in Saudi Arabia , partially offset by solid growth in Kuwait , Qatar and Iraq year over year declined revenue due to the transition between the major contract in Saudi Arabia .

For <unk>. This means that establish leadership in unconventional aligns completely with the upcoming AI race in the region and.

Speaker #4: Timing and lumpiness of product sales , and partially offset by steady growth in Kuwait , Oman , Egypt , Algeria , Iraq and Libya .

In fact, our largest customer formerly increased sales gas growth target from 60% to 80% by 2030.

Speaker #4: Adjusted EBITDA for the quarter of third 2025 was $64 million , representing a margin of 21.7% , which was in line second with the levels .

This gas capacity for internal consumption will be critical to support our ambition in the country. The strategy that has been discussed across Mena.

Speaker #4: Despite lower revenues , margins remained on strong cost steady and , disciplined execution across our portfolio . Adjusted EBITDA includes adjustments for certain charges and credits , impacting adjusted EBITDA , totaling 6.9 million and primarily relating to a loss on inventory in a fire credit loss .

Theme to the Gulf region Geopolitically.

The relationship between the U S and Gulf States is clearly very strong.

This has positive implications for both energy market as Opex expand production with a nine on materially higher demand in the <unk> time horizon.

Speaker #4: Provisions cost tied to the remediation of material weakness controls , which is expected to decline dramatically , going forward . Interest expense for the third quarter of 25 was $8.1 million , and the tax expense $3.7 million .

Sherif Foda: Our plan after that is in 2026 how to execute the number of stages with the least amount of crews based on the efficiency gain we get, right? Which is very similar to what you have in the US. We believe that we can make a dish north of 1,000 stages per month every month. Aramco wants us to increase to all the way to 1,500. We are ready to do it, right? That is our plan, to execute with the flexibility up and down as they like. We have all the crews. We have all the people. Everybody is already there. As I said, as we planned this extremely well, we did not release people. We did not shut down. We kept investing. We hired our people. We had very good cost control.

And also foreign investment as multiple IOC make moves across the Mena region.

<unk> power and now power is knowledge cross border cooperation on AI is all time high between the U S. In the Gulf with bilateral investment deals already announced.

Speaker #4: normalizing for a net release of uncertain tax positions was and unrecognized tax After benefits in two geographies totalling $9.2 million , as normalized , this corresponds to an effective tax rate of 29.9% for Q3 25 and 24.8% year to date .

As the National champion of the Middle East, but also U S.

<unk> listed <unk> as a company made for the current political moment.

Speaker #4: Adjusted EPs for the quarter of 25 third was $0.16 . Adjusted EPs includes adjustments for certain charges and credits , impacting adjusted EPs totaling 2.3 million , including the net release of uncertain tax positions and unrecognized tax benefits in 2D to geographies described previously .

We have a role to play in the bridge building between the U S energy sector, and the Mena and national oil companies.

We can point to <unk> as a case study of how we can help U S expertise navigate the region.

Leveraging technology and efficiency, while empowering local content and human capital.

Speaker #4: Turning to cash flow and liquidity areas that have consistently been among our positive most over the past several years , third quarter cash flow from operations and free cash flow came in below expectations , reflecting lower working capital efficiency driven by delayed delayed collections , much of which was received in early Q4 25 .

We've talked about how this benefits our NOC partners, but it's worth noting that this also helps our IOC partners feel right at home and Mena.

Sherif Foda: If you do that and you have that flexibility, you will be able to deliver. Really, Aramco plan is very aggressive. I think you heard their earning call very clearly. They added the gas to 80%. They are really world-class in terms of planning, so they know exactly what to do. We work very, very close with them. We have a full team in their office, so we can be as flexible as they want us to be.

Which is a good segue to discuss our newfound position as the largest frac company and the middle East.

The <unk> attended represent the single largest single service contract and sector history.

Speaker #4: Consistent with our countercyclical approach , we continue to deploy tied to recent contract enable rapid wins to CapEx up . As of September 30th , gross debt our totaled 332.9 million and debt net was 263.3 million .

And as the outright winner of the committed scope. Our net steam has clearly earned its reputation for pushing the envelope on efficiency.

David Anderson: Sharif, if I could ask squeezing one last question. You've had at least a crew or even work on Jafurah for, I think, as you said, about five years or even more now. Now Jafurah has taken this next step up, and your company has taken up a next step of growth. Can you help us provide a little bit of a sense of the incremental EBITDA here? Stephan, I think you said can you repeat what you said? I think you said $2 billion run rate by the end of 2026. If that's sort of the number incrementally, I come up with something like $100 million incremental EBITDA, something in that neighborhood. Is that low? Is that high? Am I in the range? Just trying to get a sense of the kind of 2026 incremental.

It is a remarkable achievement and we think our derisked customer for the trust.

Speaker #4: net debt to adjusted Our EBITDA ratio stood at 0.93 , remaining below our target of one times . threshold On a trailing 12 month basis .

Having started from zero and Frac, just five years ago.

<unk> now as efficient as any leading Permian operation.

Speaker #4: Our return on capital or employed Rocky , was 10.1% , reflecting the continued execution of our robust growth investment strategy . Now , looking ahead , we expect full year 25 revenues to be broadly in line year Based on 24 levels .

World Class case of science and data driven shale development orchestrated by Aramco.

In the early days of NES involvement. This included our open technology platform approach.

Speaker #4: this outlook , one can infer our Q4 25 revenue revenue expectation , which record performance represents a consistent with the start up of the awarded recently contracts discussed earlier by Sharif .

More recently this has involved the huge investments in infrastructure logistics best in class supply chain across sand water chemicals maintenance and other dimension across multiple product line within this integrated <unk> product.

Stefan Angeli: On incremental, that's approximately correct, right? For the full year of 2026, I would use the same margin as the full year of 2025, right, as a total, right? Total corporate. The $100 million quoting is approximately correct.

Speaker #4: Both Q4 2025 EBITA and full year 2025 EBITDA margin percentages are expected to be in line with the 2025 year-to-date adjusted EBITDA margin percentages for Q3, reflecting continued operational discipline and execution consistency. Implied in our outlook is the expectation that we will exit full year 2025 at a revenue record run rate.

<unk>.

David Anderson: Awesome. Okay. Thank you, gentlemen. Congratulations once again.

We have driven substantial cost out of the system.

Sherif Foda: Thank you, sir.

Initially on integration efficiency gains and agnostic Lee the use of leading technology from around the world.

Operator: Thank you. Our next question comes from the line of Jeff Robertson with Water Tower Research. Please go ahead.

We challenge the status quo and brought fit for purpose and sometimes made in the kingdom technology to have the best locally meet that includes site preparation local sand chemicals continue being perforation, while testing flowback now we are on the path to fully.

Jeff Robertson: Thank you. Good morning.

Speaker #4: Positioning us for continued growth in 2026, we anticipate ending the full year 2026 with a revenue run rate of approximately $2 billion.

David Anderson: Sharif, in Jafurah, can you talk about the ramp-up in activity over the next couple of years?

Sherif Foda: Yeah. I mean, if you look at, I would say, from the big picture, you have a first gas at the end of this year, and you have 1 BCF in 2027, 2 BCF in 2030 with the condensate and NGLs, right? Which means you have all the rigs running in Jafurah and the other two, South Ghawar and North Arabia, which is all the unconventional in Saudi, right? If you take that up and you think about the ramp-up and the number of stages, anything between 2x to 3x what we used to do now. It's a very significant project, a very significant number of wells, number of stages to be delivered. As I try to reply again, there is a flexibility in the system. Saudi will definitely decide if they want to do, let's say, 15,000 stages, 20,000 stages, 25,000 stages per year.

Speaker #4: Supported by our contract expanding base and sustained execution momentum for Q4 2025, we expect interest expense to be approximately $8 million, and our normalized full year 2025 effective tax rate (ETR) to remain in the mid-20% range.

Embed AI into our operation predicting failures and ensure flawless delivery and another level of efficiency breaking world record.

But cracking the code on unconventional does not stop at Saudi.

Speaker #4: Consistent with prior guidance , capital expenditures or CapEx for the full year are anticipated to be in the range of 140 to $150 million , in line with the previous guidance and reflecting the positive outcomes of the recent tenders .

The service delivery model that we've developed alongside our partners that Aramco is the blueprint that we can take across the Mena region to unlock additional unconventional development, particularly for natural gas.

Speaker #4: We expect Q4 25 cash flow from operations to be very healthy , driven by the seasonal , seasonally high fourth quarter collections . As a result , free cash flow year 25 is projected to be in the range of 70 to $80 million , which we view as robust given the CapEx investments significant during the year to support our recent contract wins .

There are huge ambition and potential for unconventional in several countries that we operate in.

And all of our top customers are coming to us to fully understand how we can unlock the resources.

Which brings me back to our broader growth strategy, because net success in <unk> and across the region would not be possible without our aggressive counter cyclical investment playbook.

Speaker #4: These investments are expected to position us very for a positive free cash trajectory flow in 2026 . Finally , we expect to do not be materially impacted by changes in tariff policy .

For decades, the oil service industry has matched investment hiring in R&D with the activity cycle.

Sherif Foda: You have the flexibility and ability to go up and down with that based on their demand and obviously based on productivity and the national agenda, right? Our role is to ensure that we have that flexibility ready and ensure as well that we can add crew, release crew, decrease crew, or update as they like. Today, our plan is to have full four crews running all the time in a very, I would say, efficient way to ensure that you can deliver those number of stages that are required with the number of wells because now the wells are drilled extremely, extremely much faster than before. Obviously, again, they did, as I said, the science-driven approach to deliver those wells much faster than before, but in a very efficient way, very professional way. Now there is an inventory of wells.

Speaker #4: housekeeping Now on to topics . As noted last quarter , we have remediated all previously identified material weaknesses and this has been formally disclosed to update the SEC .

But now that the global cycle has accelerated and shortened the traditional waiting out the storm strategy no longer works.

Speaker #4: We continue to strengthen our internal processes and controls, which have played a vital role in supporting our financial health and operational discipline.

By the time the cycle turns many companies are left behind.

Which is why we've taken a different approach invest during the downturn.

Speaker #4: The company is currently in the process of refinancing its debt facility and remains on track complete the refinancing by the end of to the year .

It's been easier said than done, but thats, the only public pure play we benefit from the relative stability of activity in the region and agility of decision making Rick.

Speaker #4: 25 or early January 26th . This initiative is expected to further enhance financial flexibility for the remainder of 25 in the first half of 26 , given the continued market volatility , the ongoing debt refinancing and the capital expenditure commitments tied to new contract awards , including the start up of the largest frac contract in the world , the company intends to deploy all excess cashflow exclusively towards debt reduction .

Rig activity is largely decoupled from commodity price on oil because of focus on capacity building and in gas because of domestic needs.

If any company is well positioned.

To break from the pack and establish a counter cyclical investment market position its nets.

Speaker #4: This approach reinforces reinforces our commitment to balance sheet strength and financial discipline . During of strategic investment and growth . Once these initiatives have stabilized by mid this period 2026 , we will reevaluate our capital allocation program to maximize value for our shareholders .

And our customer value our board approach, particularly since our NOC partner themselves are taking a longer term view of oil fundamentals.

Sherif Foda: Most of the unconventional project, for people around the world to know, it's really about do you have the inventory of wells and the pads ready? You can plan your frac crews to get ready on those pads, right? You pre-intervene, you prepare those wells, and then you frac them, and then they put them online when they are ready, right? This project, again, I keep saying it's a blueprint because it's very differently made than others, right? It's well planned, very high in advance. There was an exploration phase. Obviously, these wells were not hooked, right? They were fracced but stopped, but then they're all hooked, and now they're all in production, right? We plan to have at least three to four times what we used to have before.

As a company net that is small enough to be a giant but large enough to escape.

Speaker #4: The outlook across the Middle East and North Africa region remains favorable. We expect these markets will lead an activity recovery as market fundamentals move towards equilibrium, supported by sustained investment in oil and ongoing gas capacity projects across several of our core geographies.

That is our window, while downturn exposed weakness in our industry. They also reveal who is actually planning for the future.

Our operation readiness is unmatched among our peers and is only possible because we are growing and investing while others are shrinking.

Speaker #4: NASA remains focused on its core strategic priorities , delivering profitable revenue growth , enhancing execution efficiency , expanding our technology portfolio , maintaining disciplined debt , and improving working capital efficiency .

To be honest is no walk in the park trying to convince some shareholders board members of the strategy.

Public company in our sector often suffer from short term pressure, everyone want results cash dividend and they want them now it is understandable, particularly in the lower oil price environment and with tight risk mandates and public market.

Speaker #4: All of which are expected to drive reduction sustainable financial performance . Going forward . On behalf of management , I'd like to thank our entire workforce for their outstanding efforts in delivering these results in contract awards , as well as our shareholders and banking consortium for their continued trust and The outlook for remains highly NASA , supported favorable consistent execution on our major by our contract wins , strategic investments and growing market opportunities .

Speaker #4: All of which are expected to drive reduction sustainable financial performance . Going forward . On behalf of management , I'd like to thank our entire workforce for their outstanding efforts in delivering these results in contract awards , as well as our shareholders and banking consortium for their continued trust and The outlook for remains highly NASA , supported favorable consistent execution on our major by our contract wins , strategic investments and growing market support .

We spent the last seven years since the founding of the company trying to convince the market that mean upstream fundamental are inherently derisked an.

Sherif Foda: We are ready for the variability up and down as our client wants us to do.

In our financial results over the past few years have borne this out.

David Anderson: Sharif, in the context of a blueprint, can you share some perspective on unconventional development over the next couple of years in other markets in the Middle East and North Africa, and how NESR is positioned to take advantage of that? Alongside that, is there any color you could share over the contract value of tenders that you all are working on that might have an impact in 2026 or 2027?

Even in the current lower oil environment, the net outlook only continuous to improve.

Speaker #3: Stefan . Let me conclude . In short , a confluence of macro and industry trends are aligning to next supercharge the story . A wave of AI investment and fruitful geopolitical collaboration in the Gulf is fundamentally positive for NASA .

To be sure we arent growing for growth sake.

Our counter cyclical investment strategy speaks to the fact that there is ample return accretive expansion still out there for net.

Speaker #3: As a key player in the unconventional gas renaissance bold decision to invest and . solid long term Next , strategy is working as unique our position as the national champion of Mina and US Nasdaq listed .

The strategy, perhaps isn't available for others with a more established and mature market position.

Sherif Foda: Let me try to, yeah, to separate. The unconventional, I mean, again, I'm talking here as well for the wider audience. If you look today on the Middle East, obviously, it's extremely rich in conventional resources, right? You will never go and develop something that is expensive if you have something very easy to produce. Now, because of the success of Saudi unlocking that unconventional play in a very cost-efficient and very professional manner, now people opened up and said, wow, why can't I do the same? Obviously, if you have all these reserves, that means your source rock exists. But is it economical, and do you need it? That's why it's a bit opposite to the US.

And with that I'll pass the call to Stephane to discuss the financials in detail.

Thank you Sherry.

Good morning to our audience joining from the United States and good afternoon or good evening to those joining us from the Middle East North Africa Asia and Europe.

Speaker #3: We are in the best position more than ever to the appetite of the G.c.c capacity growth . While securing build on long term contracts Japura award .

We are delighted to have you with us today.

I am pleased to present, an update on our financial results for the third quarter of 2025 and to share perspectives on our outlook for the fourth quarter and the full year.

Speaker #3: elevates our profile and puts significantly The the future firmly in our . And there are more hands awards to and will be announced very soon .

In the three months since we last spoke global macroeconomic volatility has persisted factors such as ongoing trade uncertainty inflationary pressures reduced subsidies in developing economies fully supply the oil markets and additional OPEC plus supply releases have collectively contributed to range bound oil prices and lower re.

Speaker #3: With oil come activity inflection outside of Japura continued growth in Kuwait and North Africa , and all time high activity across most of our countries , translating into region fundamentals that positive match the equally positive position we have in the region .

Sherif Foda: It's actually because they have a lot of oil, but they want a lot of gas, again, for what they're saying for their AI revolution, for internal consumption, etc. Now they are looking at all these plays, and where are they? Obviously, you know that Abu Dhabi as well is doing exactly the same, and they started this already. They have a development already on their unconventional play very successfully. Two clients already, or you have EOG and Petronas already there doing the same. You have as well two separate international oil companies looking at unlocking this unconventional in UAE. The others are looking at it. If you look at the basin, Algeria has an amazing unconventional resource, Ahnet Basin, and it's very similar to actually Vaca Muerta in Argentina. You have Libya that have resources.

Activity in certain countries.

We have also heard from our peers. These dynamics have weighed on the third quarter 2025 results across the broader oilfield services sector by can short term forecasting increasingly challenging <unk>.

Speaker #3: And we will capitalize on all those tailwinds . I'd like to close by thanking all of our employees and their families . They broke records , delivered flawlessly , and secured several billions of dollars of contracts .

Barclays headwinds and it's Sri highlighted in these market overview, we continue to invest heavily look at our long term vision with contract awards and getting ready to be used to come now.

Speaker #3: We still have big ambitions for the future , not only in more contract awards , but in innovation , sustainability and technologies . Our success would not be possible without the steadfast support of our beloved customers , who we know very well and honored to be their trusted partners .

Now shifting to Q3 2025, our overall third quarter revenue was $295 3 million down nine 8% sequentially and 12, 2% year over year sequentially revenue declined primarily due to the transition between the major contract in Saudi Arabia.

Speaker #3: With that, we are ready to take your questions. Kate, please open the floor.

Firstly offset by solid growth in Kuwait, Qatar Iraq.

Speaker #1: Thank you. We will now be conducting a question and answer session. If you would like to ask a question, please press star, telephone one on your keypad.

Year over year revenue decline due to the transition between the major contract in Saudi Arabia timing and Lumpiness of product sales and partially offset by steady growth in Kuwait.

Sherif Foda: You have Egypt with Abu Rawash and Apollonia. You have Kuwait now is even looking at it, Qatar as well. That is why I call it the Renaissance. Basically, people will look into all these plays and see is it conventional, unconventional, how much does it cost to produce a barrel of gas, how much it is or a unit of gas, and how much is to produce oil. If it is economical, they will do it, and then they will develop it. Because again, the whole narrative changed totally in the world with you need a lot of traditional energy in addition to the others, which means gives me to the point that you have to look into the unconventional. I believe you are going to see this more and more in the coming years.

Speaker #1: A confirmation tone will indicate your line is in the question queue . You may press star two . If you'd like to remove your question from the queue .

On Egypt, Algeria, Iraq and Libya.

Speaker #1: We ask you to please limit your questions to one question and one follow-up for participants using speaker equipment. It may be necessary to pick up your handset before pressing the star keys.

Adjusted EBITA for the third quarter of 2025 was $64 million representing.

Representing a margin of 21, 7%, which was in line with the second quarter 2005 levels, Despite lower revenues.

Speaker #1: Thank you . Our first question comes from the line of David Anderson with Barclays . Please go ahead .

Margins remained steady on strong cost discipline and improved execution across our portfolio.

Speaker #5: Good morning Sharif . And congratulations on the big contract win in the long road to get here . Great guys to see you rewarded for all the efforts you've been you've done there on the unconventional field .

Adjusted EBITDA includes adjustments for certain charges and credits impacted adjusted EBITDA totaling $6 9 million, primarily related to a loss of inventory and a fire credit loss provisions cost tied to the remediation of material weaknesses controls, which is expected to decline dramatically going forward.

Speaker #5: Not surprisingly , those who didn't win contract are of course saying you wanted a that no one else is price willing to go to .

Speaker #5: Can you please respond to that and just sort .

Sherif Foda: Now, on your other question, was no, you had another question.

Interest expense for the third quarter of <unk> 25 was $8 1 million.

Speaker #3: Of

Speaker #3: .

Speaker #5: Tell how you're us price this more able to competitively than others , that you're still able to keep these margins at these great levels ?

And the tax expense was $3 $7 million after normalizing for net release of uncertain tax positions in unrecognized tax benefits in two geographies totaling $9 2 million as normalized this corresponds to an effective tax rate of 49, 9% for Q3, 25 and 24 eight.

David Anderson: Just can you share the color on the value of contracts that NESR is currently working on or working to secure that could impact 2026 and 2027?

Speaker #5: How much of this is being a local player ? What else is in this mix ? Thank you . Sharif .

Speaker #3: Dave , and Thanks , thanks for the congratulations . And obviously I wouldn't comment on others , I just can tell but you very clearly is we explain try to in great detail .

Sherif Foda: Look, I mean, we are tendering huge contracts. Obviously, the biggest by far on a scale with Jafurah, and this is done. We are bidding a lot of tenders in Kuwait and in other countries. I would say it's $2 to 3 billion additional tenders we are running. We are going to announce as we know the results of those. Obviously, that will translate into all the additional revenue we were saying. That's why we keep saying, I mean, I used to always say we're going to double the growth of EMINA. Now this is irrelevant because if EMINA is going to be 5%, let's say, we are going to grow at least 30%, right? Minimum. Definitely now our growth profile and our additional is much higher scale than what the market is going to grow.

Speaker #3: We've been in this journey now for for several years with our dear customer , Aramco . And as we we've been part of it and we've been , you know , performing and I would say all the beating records in , in that , in that domain , we understand exactly how the structure works is very we are very locally embedded with all the ecosystem .

Percent year to date.

Adjusted EPS for the third quarter of 25 to <unk>.

Adjusted EPS includes adjustments for certain charges and credits.

And adjusted EPS totaling $2 3 billion, including the net release of uncertain tax positions in unrecognized tax benefits into two geographies described previously.

Turning to cash flow and liquidity areas that have consistently been among the most positive over the past several years.

Speaker #3: As I try to explain, we are looking at how to take costs out of the system and envision the future of that project being at least three times what it was before.

Third quarter cash flow from operations and free cash flow came in below expectations, reflecting lower working capital efficiency driven by delight the clip.

Slide collections much of which was received in early Q4 'twenty five.

Speaker #3: So how you are going to operate in that new paradigm , your cost control , your new supplier and partners ? You know , a lot of it is for the people that do not know is an this integrated project .

Consistent with our counter cyclical approach, we continue to deploy capex tied to recent contract wins with notable rapid operational ramp up.

As of September 30, our gross debt totaled $332 9 million net debt was $2 $63 3 million, our net debt to adjusted EBITDA ratio stood at nine.

David Anderson: Thank you.

Speaker #3: So basically we look at the sites , the water , the sand , the tubing , the plugs , the flowback , the testing .

Operator: Our next question comes from the line of Sharif El-Maghrabi with BTIG. Please go ahead.

Speaker #3: In addition to frack , we knew exactly how to acquire equipment and use of the weakness , if you like , of the US to to take full advantage of that .

Nine three remaining below our target threshold of one times on a trailing 12 months basis. Our return on capital employed for Rocky was 10, 1%, reflecting the continued execution of our robust growth investment strategy. Now looking ahead, we expect full year 'twenty five revenues to be broadly in line with <unk>.

Sharif El-Maghrabi: Hi, Sharif. Thanks for taking my question. I want to ask about the uncommitted work at Jafurah. Just to make it a two-parter, when could Aramco tender for that, I guess, and what are they looking for? Also, on your side, what's it going to take from an investment point of view over and beyond what you've already been able to build countercyclically?

Speaker #3: We brought everything to the Kingdom already . So we invested , as I say , counter-cyclical , because we knew the downturn could play a very big benefit for us .

<unk> 24 levels.

Based on this outlook one can infer a Q4 'twenty five revenue revenue expectation, which represents a record performance consistent with the startup of the recently awarded contracts discussed earlier by choice.

Speaker #3: And this will translate in maintaining our margins in this project , going forward . So as we try to explain , this is is going to be much bigger and significantly bigger .

Sherif Foda: Okay, let me clarify. This contract is already done, right? The Jafurah, the way it works is there is a tender, and we all participated. They have what you call a winner for 100% of the committed work, which is us. Then everybody else signed that contract, right, or a similar contract. That is what we call uncommitted. That piece of the pie for Aramco, they decide as they like when to start, who takes it. They want to diversify. Everybody can operate in that. This is not going to be, this is already done, finished. Basically, all the service companies, what they call, they signed these contracts. Very similar to, by the way, what happened in the last one.

Both Q4, 25% beta and <unk> 25, a beta margin percentages are expected to be in line with Q3, 25 and year to date adjusted EBITA margin percentages, reflecting continued operational discipline and execution consistency.

Speaker #3: So our target is to maintain the same profitability as we had today and as we had before. The best thing to say is that people just have to watch the results and the margins going forward.

Slide it out outlook is the expectation that we will exit full year 25 at a revenue record run rate positioning are positioning us for continued growth in 2026, we anticipate ending full year 2026, with a revenue run rate of approximately $2 billion supported by our expanded.

Speaker #3: And that would be the best answer .

Speaker #5: Well , we've seen it so far . So it's great to see you continue to on the on this journey here . So could you provide us a bit of a roadmap on the pace of development of Euphora .

Speaker #5: So how many crews are you going to have in this coming fourth quarter ? Where do you hope to be at the end of 26 ?

Contract base and sustained execution momentum.

Speaker #5: I'm just kind of ultimately how many kind of wells or stages month per are you targeting any any kind of details around that ?

For Q4, 25, we expect interest expense to be approximately $8 million and our normalized full year twenty-five ETR to remain in the mid 20% range consistent with prior guidance.

Speaker #5: You could provide ? Please .

Speaker #3: Yeah . So obviously , I mean , I know all the details and great details , but I will always leave this to my dear customer to , to say it , but I can tell you we prepared to send all the extra equipment and crews in , in , in this quarter .

Sherif Foda: That scope could be big, and people would work, anyone who were approved in that list and they were qualified and signed the contract, can operate and execute that piece of the contract. Again, Aramco always keeps that flexibility for them as a very professional client. They can invite, they can add, they can cancel. When you call it uncommitted, it's uncommitted from both parties, right? You don't have to do it, and Aramco can call it and not call it. Obviously, us have a very good opportunity to execute that scope as well.

Capital expenditures Capex for the full year.

Anticipated to be in the range of $1 $40 million to $150 million in line with our previous guidance, reflecting the positive outcomes of the recent tenders.

We expect Q4 25 cash flow from operations to be very healthy driven by the seasonal seasonally high fourth quarter collections as a result free cash flow for full year 'twenty five is projected to be in the range of $70 million to $80 million, which we view as robust given the significant capex investments made during the year.

Speaker #3: So then we are ready in Q4 . So we started the contract 1st of November . So we didn't have to wait . Obviously , we had the transition and in the business and we started executing using our today , two fleets that are running as we speak from from November 1st and our plan is to deliver those stages that Aramco wants us to deliver using the crews and the additional crew that we , the that we already bought as well .

To support our recent contract wins.

These investments are expected to position us for a very positive free cash flow trajectory in 2026.

Finally, we do not expect to be materially impacted by changes in global tariff policy.

Sharif El-Maghrabi: Got it. That's pretty helpful. Thank you.

Speaker #3: And is shipping to the kingdom , they will be there in of November . So we end will be ready with the additional crew .

Sherif Foda: What was the other part? Investment needed?

Now onto housekeeping tasks as noted last quarter, we have remediated. All previously identified material weaknesses. In this update has been formally disclose to the SEC. We continued to strengthen our internal processes and controls, which would play the bottom role in supporting our financial health and operational discipline.

Sharif El-Maghrabi: The investment.

Sherif Foda: I was asked.

Sharif El-Maghrabi: Go ahead, sorry.

Sherif Foda: I was asking about if there's any other rigs or equipment that you need to buy over and beyond what you've already got for this contract. Yeah. I mean, obviously, what we did ourselves is we purchased, it's in our CapEx number already that Stephan explained. We purchased all the additional equipment that we need to execute on this contract. That's why we managed to start immediately the contract, 1 November. Now, as we go along, we will definitely keep adding equipment, right? Because this, for example, let's say we are ready now with three fleets. We need a fourth fleet. We need additional equipment because this has surface well testing, coil tubing, perforation, wireline, so be it. We will definitely keep investing in that to make sure that we can execute the contract professionally.

Speaker #3: So our plan that is after in 26 . How to execute the number of stages least with the of amount crews based on the efficiency gains we get .

Speaker #3: Right , which is very similar to what you have in US . the So we believe that we can make , you know , additional , you know , in north of 1000 stages per month , every month .

Company is currently in the process of refinancing that debt facility remains on track to complete the refinancing by the end of the year 'twenty five for early January 26. This initiative is expected to further enhance financial flexibility.

Speaker #3: And based Aramco wants us to increase to all the way to 1500 . We are ready to do it So that is plan our is to execute with the flexibility up and down as they like .

The remainder of 'twenty five in the first half of 'twenty six given the continued market volatility the ongoing debt refinancing and the capital expenditure commitments tied to new contract awards, including the startup of the largest frac contract in the world. The company intends to deploy all excess cash flow exclusively towards debt reduction.

Speaker #3: And we have all the crews , we have all the people . Everybody is already there . So as I said , as we planned this extremely well , we did not release people .

This approach resources reinforces our commitment to balance sheet strength and financial discipline. During this period of strategic investment and growth.

Speaker #3: We did not shut down . So we kept investing . We hired our people . We had a very good cost control . And if you do that and you have that flexibility , you will be able to deliver .

Once these initiatives have stabilized by mid 2026, we will reevaluate our capital allocation program to maximize value for our shareholders.

Sherif Foda: The key for us, and I guess the key for you and the investment community, is we said we are going to maintain our CapEx the same. If we spend $140 million, $150 million in 2025, we're going to spend exactly the same in 2026 with 30% to 40% growth in revenue, which gives you that stability that we know exactly how much CapEx we need to spend and how much cash flow we're going to get because we are, again, taking the full advantage of the weakness of the outside markets, right? The project, I would say, is very well designed. From our side, we did a very good job and very detailed work, exactly what we need and what we don't need. We already front-loaded that in 2025 to ensure that we can execute flawlessly and deliver to the client without any hiccups in the future.

Speaker #3: So , so really Aramco plan is very aggressive . think you heard I they're earning call very clearly . They added the gas to 80% .

Outlook across the Middle East and North Africa region remains favorable we expect these markets believes that activity recovery as market fundamentals move towards equilibrium supported by sustained investment in overcapacity and ongoing gas expansion projects across several of our core geographies.

Speaker #3: They are really world class in terms of planning . So they know exactly what to do . And we work very very close with them .

Speaker #3: We have a full team in their office, so we can be as flexible as they want to be.

So it remains focused on its core strategic priorities delivering profitable revenue growth.

Speaker #5: Sharif of Mecca: I'd like to squeeze in one last question. You've been... you've had at least a crew or even work engine for...

Enhancing execution efficiency, expanding our technology portfolio, maintaining discipline debt reduction and improving working capital efficiency all of which are expected to drive sustainable financial performance going forward.

Speaker #5: I think , as you said , about five years or even more now . But now taking this next it's step up and your company is taking up a next step of growth .

Speaker #5: Can you help us provide a little bit of a sense of the incremental EBITDA Stefan , I think you here ? said , can you repeat what you said ?

On behalf of management I'd like to thank our entire workforce.

Outstanding efforts in delivering these results in contract awards as well as our shareholders and banking consortium for their continued trust and support the outlook for <unk> remains highly favorable supported by our consistent execution on our major contract wins strategic investments and growing market opportunities now I'll turn the call back to Sean.

Speaker #5: I think you said $2 billion run rate by the end of 26 , and if that's sort of the numbers , incrementally , I come up with something like 100 , $100 million incremental something EBITDA , in that neighborhood is that low .

Sharif El-Maghrabi: Great, thanks again.

Sherif Foda: Thanks.

Speaker #5: Is that high ? Am I in the range just trying to get a sense in kind of 26 .

Operator: Our next question comes from the line of Jeff Robertson with Water Tower Research. Please go ahead.

Speaker #4: On That's incremental . approximately correct . Right . For the full for the full of 26 , I would use the same year , year right .

Yeah.

David Anderson: Thank you. Sharif, can you share any updates on some of the NEDA projects you're working on, especially with some of the water initiatives in Saudi Arabia?

Thanks Stefan.

Let me conclude and short a confluence of macro and industry trends are aligning to supercharge the Netsuite story.

Speaker #4: 25 , As a total total corporate . right But the hundred million dollars you're quoting is approximately correct .

Speaker #5: Okay . Thank you . Gentlemen , congratulations . again .

Sherif Foda: Look, we are doing so much in that, but obviously, because of the significance, we decided to speak about it in the next one when we know the results as well. As we said last time, we are on pilots, several pilots on water, mineral recovery, lithium. Those projects are in the pilot phase now. They are physically in the country. We are doing the test with our customer in several locations. We will be able to really give you a bit more color based on the results of all those pilots. We're very excited about it.

A wave of AI investment and fruitful geopolitical collaboration in the Gulf is fundamentally positive for NIM.

Speaker #3: Thank

Speaker #3: sir you .

Speaker #1: question comes Our next Once line of Jeff Robertson with Thank you . water Tower Research . Please go ahead .

As a key player in the unconventional gas financials.

Net bold decision to invest and have solid long term strategy is working.

Speaker #6: Thank you . Good morning . Sharif and Euphoria . Can you talk about the ramp up in activity over the couple of next years ?

Our unique position as the national champion of Mina and U S. NASDAQ listed we are in the best position ever to build on the appetite of the GCC capacity growth, while securing long term contracts.

Speaker #3: mean , Yeah . I at look if you picture , the big right , you have first gas in end of this year a and you have one BCF in 27 , in , in 2030 two BCF with the condensate and NGLs .

The <unk> award elevates, our profile significantly and puts the future firmly in our hands.

Speaker #3: Right , which means and you rigs in , in , in running January and other two south and North which is all and the the unconventional in Saudi .

And there are more awards to come and will be announced very soon.

Sherif Foda: I personally love the story because I believe that this can make something so different in the world that nobody did in the entire industry, in the universe, actually, where basically you're going to start to say, I can produce oil and gas, and I can produce a lot of other material that is good for the world, for the earth, for the climate. I am cleaning the water economically. I am bringing minerals, and I'm selling it to other industry. The best would be if I can get lithium at economical scale, make batteries. The narrative of the industry becomes extremely positive, regardless if the ESG is out of flavor now or in. I think our commitment is a long-term sustainability of our industry.

With oil activity inflection outside of Jefferies <unk> co.

Continued growth in Kuwait, and North Africa, and all time high activity across most of our countries.

Speaker #3: Right . Arabia if you take up and you about think the ramp up and the number of stages . that , you know , two x to three x , what to do now .

Translating into positive region fundamentals that matched the equally positive position we have in the region.

Speaker #3: between So we used it's a very significant project , a very significant number of number wells , states to be of delivered . And as I try to to reply again flexibility in the system .

And we will capitalize on all of those tailwind.

I'd like to close by thanking all of our employees and their families.

They broke records delivered flawlessly and secured several billions of dollars of contracts.

Speaker #3: And will Saudi definitely decide if to do , they want , there is a let's say , 15,000 stages , 20,000 stages , 25,000 stages per year .

We still have big ambition for the future not only in more contract awards, but in innovation sustainability and technology.

Speaker #3: And you have the flexibility and to go up and down with that based on what demand . And obviously based on ability productivity and their national agenda .

Our success would not be possible without the steadfast support of our beloved customers, who we know very well and honored to be their trusted partner.

Sherif Foda: As I say, if the world needs all this oil, gas, and energy, we have to make sure that we can do this sustainably. We will be able to give you a bit more color in our next call based on the results of all those pilots.

Speaker #3: Right . So our role is to ensure that we have that flexibility and ensure as that we can add crew ready or , or well decrease crew or update as like .

With that we're ready to take your question Kate Please open the floor.

Thank you we will now be conducting a question and answer session. If he would like to ask a question. Please press star one on your telephone keypad, a confirmation tone will indicate your line is in the question queue. You May press star two if you'd like to remove your question from the queue.

Speaker #3: they our is to have plan full four crews running all the time in a very way to ensure that you can deliver those number I would say , efficient That is , are required with the that number of wells , stages .

David Anderson: Thank you.

Operator: As a reminder, if you'd like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you'd like to remove your question from the queue. One moment while we pull for questions. Our next question comes from John Ajay with Oppenheimer. Please go ahead.

Please limit your questions to one question and one follow up.

For participants using speaker equipment and may be necessary to pick up your handset before pressing the star keys.

Speaker #3: because wells are drilled extremely , extremely , much faster than now the before . Obviously , again , they did as I the said , approach science to driven deliver those wells much before , faster than very but in a efficient way , very professional way .

Thank you. Our first question comes from the line of David Anderson with Barclays. Please go ahead.

Good morning, Shar anything obviously, congratulations on the big contract win in Q4, while long road to get here great to see you guys reward for all the efforts you've been you've done there on the unconventional field.

John Ajay: Yes. Hi. Sharif, on a couple of things. Can you give us a sense for the visibility and the confidence that you have in hitting the $2 billion exit run rate for 2026? What do you think the growth rate for NESR looks like over the year or two that follow that, and the level of visibility and confidence you would have in that growth rate, and maybe what an 80% confidence level might be for a 2027 and/or 2028 exit run rate based on that trajectory?

Speaker #3: So now there is inventory wells of most of the unconventional an the world to know . It's really about do you have the inventory of wells pads and the ready ?

Not surprisingly those who didn't win the contractor of course as you want at a price that no one else was willing to go to.

Speaker #3: So then you can plan your frack crews ready on to get paths , right . those So you pre intervene . prepare those You then you wells and frack them and then they put them on online .

Can you please respond to that and just sort of tell us how you're able to price more competitively than others, but you're still able to keep these margins at these great levels. How much of this is being a local player what else is into this mix.

Speaker #3: When they are ready, they are right. This project, so again, I keep saying it has a blueprint that is very well made compared to others.

Thanks, Dave Thanks for the congratulation and obviously I wouldn't comment on others, but I can tell you very clearly.

Speaker #3: Right . Because it's well differently planned , very high in exploration There was an phase and then wells were not hooked . Right .

We tried to explain in greater detail we've been in this journey now for.

Sherif Foda: Thanks, Ajay. If I will tell you on the 2026 level of confidence, 99%, I would say. Those contracts are awarded, and those contracts are signed. The work started. I would say the level of confidence we have on the delivery, and barring anything happen in the world, it should be kind of very, very steady and very, very sure. Now, if I look at our growth profile '27, '28, definitely it's going to still growing because that's contract, for example, and others are all five years. We have a backlog of tenders that are very, very solid.

Speaker #3: obviously these So were fracked , but stopped . But then hooked . And then now they're they they're all all in Right . So advance .

For several years with our customer and noncore and as we have been part of it and we've been performing and I would say, beating all the records are in that in that domain, we understand exactly how the structure work.

Speaker #3: 3 to 4 times what have we used to before . And we again least ready are the variability up and down as our client wants us to .

As a very we're very locally embedded with all the ecosystem.

Speaker #3: do

Speaker #6: In the context of a You Share blueprint, can you provide some perspective on the next couple of years and developments in markets in the Middle East and Africa, and how Nasser is positioned to take advantage of that?

And as I tried to explain we knew how to take the cost out of the system.

And look at the future of that project being three times the at least what it was before it. So how you are going to operate in that new paradigm.

Speaker #6: And then alongside that , is there any color you can over to take the contract value of tenders that you all are that might , might have an impact in the

Your cost control your new supplier and partners.

A lot of it is for the people that do not know is that this is an integrated project. So basically when you look at the sites the water the San <unk> being the blogs.

Sherif Foda: If we believe we win our fair market share on that, at least with the growth that we see in Libya and Kuwait, that is more than the average of the 5% growth rate that the region will see, definitely we will have the continuation of that growth rate. It will not be obviously 30% or 40% like we're going to have in 2026 over 2025, but you will have a very good, at least 10% to 15% growth rate following that. Now, if we are more successful in the tenders that are coming, which obviously that's our plan, and we ensure that we can secure those and deliver on them in the same way flawlessly that we're planning to do the Jafurah, then definitely we can opt for a much higher growth rate in 2027 and 2028.

Speaker #3: so let

Speaker #3: try

The flowback testing in addition to Frac, we knew exactly how to.

Acquired equipment and.

Use of the weakness if you like of the U S to take full advantage of that we brought everything to the kingdom already.

Speaker #3: is expensive if you have something very easy to to produce . Now today of the success because of Saudi unlocking that unconventional in a play very cost efficient and very now people open up and say , professional why can't I do the same ?

So we invested as I say counter cyclically, because we knew the downturn could play a very big benefit for us and this will translate in maintaining our margins in this project going forward. So as we tried to explain this is it's going to be much bigger and a significantly bigger two hour.

Target is to maintain the same profitability.

As we had today and as we have before.

The best thing to say is people have just to watch the results and the margins going forward and that would be the best answer.

Speaker #3: Now they are all looking at these plays and where they are. So obviously, you're working in Dhabi as well because it's doing exactly the same.

Speaker #3: now they are rock they they started this already . know that development gas . under unconventional play . Very successfully . Two clients already or you have .

Sherif Foda: In addition to that, we have obviously our technology and kind of out-of-the-box portfolio that the market that we are trying to create. We have NEDA, which is our decarbonization arm. There is plenty of pilots, plenty of investment, venture capital style as we have on water, on emission, and definitely on the lithium story. If this cracks, I keep saying our target is to have this segment as $500 million. You need to make sure it's economical. We don't have this in our plan. This is what I call all the add-on if we crack the code. You have obviously our technology on ROIA, which is the rotary steerable MWD, LWD. Again, we need to commercialize it professionally. We are doing all the extensive testing, and we have a plan or our target internally for a much bigger market share.

Well, we've seen it so far so.

It's great to see you continue to on the on this journey here. So could you provide us a bit of a roadmap on the pace of development that you for how.

Speaker #3: EOG and Petronas already . They're the same . doing So you have as well two separate international oil company at unlocking this unconventional in UAE .

How many crews are you going to have in this coming fourth quarter, but where do you hope to be at the end of 'twenty six so I'm just kind of ultimately how many kind of wells or stages per month are you targeting.

Speaker #3: And looking then so others are looking the at it . So if you look at the basin , Algeria has an amazing unconventional resource .

Details around that you could provide place.

Yes, so obviously I mean, I know all the details in great detail, but I will always leave this to my customer to say.

Speaker #3: Arnot basin . And it's very similar to actually Vaca muerta in Argentina . You have Libya that have resources . You have Abu Egypt with Rawash and So you have Apollonia .

But I can tell you.

We yes.

Prepared to send all the extra equipment and crews in.

Speaker #3: Kuwait now is even looking at it . Qatar as well . So there will that's why I be the Renaissance . Basically , people it look into all these plays and see conventional is it , unconventional ?

In this quarter. So then we are ready in Q4. So we started the contract first of November. So we didn't have to wait obviously, we had the transition and in the business and we started executing.

Speaker #3: How much does it produce to produce cost to of gas ? How much a barrel is or a unit of gas and how much is to produce oil if it is economical , they it will do and then because again , they will the develop it , whole narrative change totally in the where you world need a lot of traditional energy .

Using our today two fleets that are running as we speak.

Sherif Foda: We don't have this again in the numbers. All this is add-on to our growth profile. This will all translate, I would say, as revenue growth that is significant, would be, to answer your question, 2027, 2028, 2029, 2030, right? Because now you know that these projects are economical, commercial, bigger in size, and can translate to significant revenue and margins.

From from November 1st.

Our plan is to deliver those stages that aramco wants us to deliver a using the crews and the addition of crude that we the equipment that we already bought as well.

Speaker #3: In addition to the others , which means gives me the point that you have to look into the to And I believe you unconventional .

And is shipping to the king them they will be there.

In end of November so we will be ready with the additional crew so our plan after that.

Speaker #3: I see this going to more and more in the coming years. Now, your other question was, know that you had another question.

John Ajay: Yeah. That sounds great. Sharif, also, what type of margins do you have high confidence in for the next few years? Just without the water and just kind of on what your high confidence baked-in growth is from existing contracts, what would you see as the multi-year margin evolution?

Is in 'twenty six how to execute the number of stages with the least amount of crew is based on the efficiency gains we get right, which is very similar to what you have in the U S. So we believe that we can make.

Speaker #3: .

Speaker #6: you share Just can any color on value of contracts that you necessary is that currently working on or working to secure that could impact the 26

Additionally.

North of a thousand stages per month.

Speaker #3: So , look , I mean , we

Speaker #3: tendering are huge contract . Obviously the biggest by far on a scale with Jafra and and this and seven ? is done , we are lot bidding a of tenders in , in Kuwait and in other countries .

Every months and bids for our ample wants us to increase two all the way to 300, we are ready to do it right. So that is our plan is to execute with the flexibility.

David Anderson: I'll take that. For 2026, as I said to Dave in a few questions before, we see the margin for 2026 being the same as 2025. It will be somewhere between 21% and 22%, right? ±1% on that. It's probably in the high 90% confidence level, right? Going forward in 2027 and 2028, right? We want to try, we will use the same margins for our own internal model, but we'll try as efficiencies come, more supply chain, greater revenues. You have revenue efficiencies, overhead efficiencies, supply chain savings. We'll endeavor to try and get margin improvement. Over time, we want to try and get back to the 23% to 25% level, right? That's our goal.

Speaker #3: it's 2 or $3 billion additional tenders . We are running . So are going to we announce as as we know the results of those .

Up and down as they like and we have all the crews we have all the people everybody is already there. So as I said as we planned this extremely well we did not release deep.

Speaker #3: And obviously that will translate into all the additional revenue were we signing . So if you if you that's why keep saying , I we I used to always say we're we gonna double the growth Mena .

Did not shut down so we kept investing we hired our people we had a very good cost control and if you do that and you have that flexibility will be able to deliver so.

Speaker #3: mean is irrelevant because if Mena to is going know , let's 5% , say this grow at least 30% , Now right ? Minimum .

So really our ramp up plan is very aggressive I think you heard the earning call very clearly they added the gas to 80%.

They are really world class in terms of planning so they know exactly what to do and we work very very close with them. We have a full team in their office. So we can be as flexible as they want us to be.

Speaker #3: So , so our definitely now profile be , you growth and our additional is much higher scale than to grow .

Speaker #3: market is going

Speaker #6: you Thank

John Ajay: How is ROIA progressing relative to what we might have thought at the beginning of the year? What type of growth is embedded in that $2 billion exit run rate? Is this an area that could contribute above the $2 billion if it goes really well, or is it kind of success there baked into that $2 billion exit run rate?

Sure It feels like a squeezing one last question from you.

At least accrual even work Angela for Frederick as you said about five years or even more now but now just four has taken this next step up in your company has taken up the next step of growth.

Speaker #1: The question comes from the line of Sharif Elmaghraby with what the Btig. Please, our next go.

Speaker #1: ahead

Speaker #7: thanks for taking my question . want to Sharif , about the ask uncommitted work at Jafra just to make it a two I parter .

Can you help us provide a little bit of a sense of the incremental EBITDA here, that's what I thought.

Can you just repeat what you said I think you said $2 billion run rate by the end of 'twenty for the peso, let alone or incrementally I come up with something like 100, <unk> hundred million dollars incremental EBITDA or something in that neighborhood is that low is that how you might be in the range just trying to get a sense of kind of 26 incremental that's approximately correct right for the full year.

Speaker #7: When when could Aramco tender for that , I guess . And what looking are they for ? And then also on your side , what's it going to take investment view .

Sherif Foda: Yeah. Our numbers rate is a very limited ROIA in 2026. It's going from 2027 onwards, right? As a number, again, as a significant number to that ecosystem. Why? Because ROIA, rotary steerable, LWD, all this, what we call it, we do an extensive testing to the technology to ensure it is working, and I commercialize it when we are happy. Actually, it's a push-pull. The clients are pushing us to do more work, and we are resisting that because we want to make sure it works perfectly, right? I would say it will contribute, and you will see it in the numbers in 2027, 2028. It will be there in 2026, but it's not a significant number, and it is included in our $2 billion exit rate.

Speaker #7: Over from an and beyond point of what you've been to build able already cyclically counter .

Speaker #3: so okay , let me So clarify this contract is already done . Right ? So the jafra , the way , the way it is there is a and we all participated .

For the full year of 2006, I would use the same margin as the full year 'twenty five as a total alright total corporate.

Do you need quoting approximately correct.

Okay. Thank you gentlemen, congratulations once again thank.

Speaker #3: They have what they call a winner for the , the the , the , the 100% of the committed work , which is And us .

Thank you Sir.

Okay.

Thank you. Our next question comes from the line of Jeff Robertson with water Tower of research. Please go ahead.

Speaker #3: then works else contract . Right . Or a similar contract tender . And what we call uncommitted . So that that the piece of for Aramco , they decide as they like when start .

Speaker #3: then works else contract . Right . Or a similar contract tender . And what we call uncommitted . So that that the piece of for Aramco , they decide as they like when to it want to .

Speaker #3: then works else contract . Right . Or a similar contract tender . And what we call uncommitted . So that that the piece of for Aramco , they decide as they like when to it want to . signed that diversify They .

Thank you good morning sure. If in Q4 can you talk about the ramp up in activity over the next couple of years.

Yeah, I mean, if you look at.

Speaker #3: Everybody can operate in that . So not going to be this is already done finished . this is we basically all the the service companies what they call the sands contracts and very similar to by the way , what happened in the last one .

I would say from the Big picture right you have the first gas.

In the end of this year.

And you have one Bcf and 27 two bcf.

In 2030, with the condensate and Ngls right, which means then you have all the rigs running in <unk> and <unk>.

John Ajay: Great. Well, thanks a lot.

Speaker #3: So that that scope could be big and people would work . Anyone who were approved in that list and they were qualified and signed the contract can operate and and execute that piece of the of contract .

Sherif Foda: Thank you.

Operator: This now concludes our question-and-answer session. I would like to turn the floor back over to Mr. Sharif Foda for closing comments.

And the other two.

He'll go out of North Korea, which is all the unconventional in Saudi right. So if you take that up.

Sherif Foda: Thank you very much. We don't want to take any more of your time. Appreciate all the support, and we thank again all our shareholders, employees, and customers for their trust, and looking forward for an amazing 2026. Thank you.

You think about the ramp up and the number of stages anything between.

Speaker #3: And again Aramco always keeps that flexibility for the as a very professional client so they can can add they them cancel . So it's what they when you call it uncommitted from uncommitted it's both parties .

Two X two to three X what we used to do that so it's a very significant project a very significant number of wells number of stages to be delivered.

Operator: Ladies and gentlemen, thank you for your participation. This does conclude today's teleconference. You may disconnect your lines, and have a wonderful day.

And as I tried to to reply again, there is flexibility in the system.

Speaker #3: Right . So you don't have to do it . And Aramco can call it and not call it . And obviously us have invite they very good opportunity to execute scope as well that .

And Saudi will definitely decide if they want to do lets say 15000 stages 20000 stages 25 stages per year, and you have the flexibility and ability to go up and down with that based on what that demand and obviously based on productivity.

Speaker #7: it . That's that's helpful . Thank you pretty .

Speaker #7: it . That's that's helpful . Thank you pretty . Got

Speaker #3: was the other part And and what investment needed . So the .

Speaker #7: was asking Investment I .

Speaker #3: Go ahead .

Speaker #7: Sorry about if there's any other rigs or equipment that you need to buy over and beyond what you've for this contract already got .

And the national.

Canada right. So our role is to ensure that we have that flexibility ready and ensure it is one that we can add crew.

Speaker #3: Yeah . I mean , obviously a did what we ourselves is we . Purchased it's in our CapEx number already that Stefan explained .

Released crew order or decreased crew or update as daylight.

Speaker #3: We purchased all additional the equipment that we need to execute contract . we That's why managed to on this immediately . contract The November 1st .

To date, our plan is to have full four crews running.

All the time and are very.

Speaker #3: Now , as we go we will along , definitely keep equipment adding , right ? Because this , for example , let's say we now with three fleets .

I would say efficient way to ensure that you can deliver dose number of stages that are that are required with the number of wells because now the wells are drilled extremely extremely much faster than before obviously again.

Speaker #3: We need a fourth fleet. We need additional equipment because our surface area is ready for testing tubing, well, wireline, and perforation. So be it.

As I said, the science driven approach to deliver those wells much faster than before but in a very efficient way very professional way. So now there is an inventory of wells in most of the unconventional project for people around the world to know it's really about do you have the inventory of wells in the pad.

Speaker #3: So we will definitely keep investing in that to make sure that we can contract professionally . The key for execute the I for guess the key and you the investment community , is we said going to maintain CapEx same .

Speaker #3: the So if we spend 140 , 150,000,000 in 25 , we're going to spend exactly the same in with 26 30% , 40% growth in revenue , you which gives that stability that we we know exactly how much CapEx we need much cash to spend flow we're going to get , because we are , again , taking the full the advantage of weakness of the outside market , right ?

<unk> ready. So then you can plan your frac crews to get ready on those paths right. So if we intervene you prepare those wells and then you frac them and then they put them on online when they are ready right. So this project is again it.

I keep saying it the blueprint because it's a very differently maybe than others right because it's well planned very high in advance there was an exploration phase.

Speaker #3: So the is very well designed from project , I would say our side . We we did a very good job and very detailed work .

And then obviously these wells would not hooked right. So.

Speaker #3: Exactly what we need and what we don't need . And we already front loaded that in 25 to we can ensure that execute flawlessly and deliver to the client without any hiccups in the future .

They were fracked, but stopped but then they are all hooked and then now that oil production right. So.

We plan to have at least three to four times, what we used to have before.

And again, we are ready for the variability up and down as our clients want us to do.

Speaker #7: Great . Thanks again .

Speaker #3: Thanks .

If in the context of our blueprint can you share some perspective on unconventional development over the next couple of years had whereas in other markets.

Speaker #1: from the line of Our next Jeff Robertson question comes with Water Research . Tower Please go ahead .

Speaker #6: Sharif , share any you updates of the on some projects you're working on , especially with some of the initiatives in Saudi water Arabia ?

The middle East and North Africa, and how investors positioned to take advantage of that and then alongside that and is there any color you could share over.

Speaker #3: Look , we are doing so much in that . But obviously because of would say , the we we decided the I speak about to it .

Speaker #3: Look, we are doing so much in that. But obviously, because of, I would say, the... we decided the... I speak about significance we as well.

No.

Contract value of tenders that you all are working on that.

Nice to have an impact in 2026 and seven.

Speaker #3: know the as we said last time , we results are on pilots pilots water on , mineral , several recovery , lithium , those projects are in the pilot phase are physically in the country .

So let me try to two separate so the unconventional I mean again I'm talking here as well for the wider audience. If you look today on.

The middle East, obviously, it's extremely rich and conventional resources right. So you would never go and develop something that is expensive. If you have something very easy to produce now because of the success of Saudi unlocking that unconventional play in a very cost efficient.

Speaker #3: now . We are They test with our customer . In several locations . We will be able to really give you a bit more color based on the results of all those pilots .

And and very professional manner now people opened up and say Wow why can't I do the same in that because obviously if you add up all these reserves that means your source rock exist, but is it economical and you need it and that's why it's a bit odd.

Speaker #3: So we're very excited it about . I am personally love the story because I that this believe can make something different so in the world that nobody did in the entire industry , in the you're going to basically start say to universe , actually , , I can and gas where and I can produce a lot of other that is material produce oil good the for world , for the earth , for the climate .

Opposite the U S. It's actually because they have a lot of oil, but they want a lot of gas again for what is.

Same for better AI Revolution for internal consumption et cetera. So now they are looking at all these.

Plays and where are they so obviously youll know that Abu Dhabi as well as doing exactly the same and they they started this already they have a development already on the unconventional play very successfully.

Speaker #3: I am cleaning the water I am bringing minerals , and I'm selling it to other industry economically . . And the best would be if I lithium at economical scale can get , make batteries , you know , and you know , the of the narrative industry becomes extremely positive regardless if the ESG is out of favor .

<unk> clients already or do you have.

EOG and Petronas already they're doing the same so you have as well to separate.

International oil company looking at unlocking this unconventional in UAE and then so the others are looking at it. So if you look at the basin Algeria has an amazing.

Speaker #3: Now or in . But I think our commitment is a long term sustainability of our . And as I say , if the word needs all this oil and gas and energy , we have to make sure that we can do this sustainably .

Conventional resource.

In that basin, and it's very similar to actually become winter.

Speaker #3: So we will be able to give you a bit more color in our next call . Based on the results of all those pilots .

Argentina, you have Libya that have resources, you have Egypt with about a wash and Apollonia. So you have Kuwait that was even looking at it Qatar as well so there will be.

Speaker #6: Thank you .

That's why I call. It the Renaissance basically people will look into all these plays and see it at convention.

Speaker #1: As a reminder , if like to you'd question , please press One on your telephone keypad Star . A confirmation tone will indicate your the line is in question queue .

Unconventional how much does it cost.

Speaker #1: You may press star two if you'd like to remove your question from the queue . One moment while we pull for , our next questions question comes from John with AJ Oppam .

To produce a barrel of gas how much it's.

Unit of gas and how much is to produce oil if it is economically they will do it and then they will develop it because again the whole narrative change totally in the word where you need a lot of traditional energy. In addition to the others, which means gives me to the point that you have to look into.

Speaker #1: Press . Please go ahead .

Speaker #8: Yes . Hi . Curious on a couple of things . give us a sense Can you for the visibility and the confidence that you have in hitting the $2 billion exit run rate for 2026 ?

The unconventional and I believe you.

You are going to see this more and more in the coming years.

Speaker #8: What you think the growth rate Nasser for looks like ? You know , over the year or two that follow that and the level of visibility and confidence have in that growth rate and maybe what like you would an 80% confidence level might be for a 2027 and or 2028 exit run rate that based on trajectory .

Now on your other question was.

Not that you had another question.

Just can you share any color on that.

The value of contracts.

That measure is currently working on or just shallower that could impact 2006 and seven.

So look I mean, we are tendering huge contract obviously, the biggest by far and our scale with <unk>.

This is.

Speaker #3: Thanks , Ajay . So if I will tell you on the 2026 . Level of confidence , 99% , I would so say .

<unk> done.

Bidding a lot of tenders in Kuwait.

And in other countries and I would say, it's two 3 billion.

Additional tenders.

Tenders, we're running so.

Speaker #3: Those contracts are awarded and those contracts are signed work . The started . So I would say the level of confidence we have on the delivery and , you know , borrowing anything happened in the in the world .

We are going to announce as.

As we know the results of those and obviously that will translate into all.

The additional revenue we were saying so that's why we keep saying I mean.

Used to always say, we can double the growth of Amina now this is irrelevant because it means it's going to be 5%, let's say, we are going to grow at least 30% right minimum. So so definitely now our growth profile.

Speaker #3: It should be kind of very , very steady and very very , sure . Now , if I look at our growth profile .

Speaker #3: 2728 definitely is going to still growing because this contract , for example , and others are all five years . We have a backlog of of tenders that are very , very solid .

And our additional is much higher scale than what the market going to grow.

Thank you.

Speaker #3: So if we believe we win our fair market share on that , at least with the growth that we see in Libya , in Kuwait , that is more than the average of the 5% growth rate that the region will see .

Our next question comes from the line of Sharif Mcgratty with <unk>. Please go ahead.

Okay, great. Thanks for taking my question I wanted to ask about the uncommitted work at your floor just to make it a two parter when one could a railcar tender for that I guess and what are they looking for and then also.

Speaker #3: Definitely , we will have the continuation of that growth rate . It will not be obviously 30 , 40% like we're going to have in 26 But over 25 .

On your side, what's it going to take from an investment point of view over and beyond what you've already been able to build the counter cyclically.

Speaker #3: you will have a very good at least ten , 15% growth rate following Now , that . if we are more successful in tenders that are coming , which obviously that's our plan and we ensure that secure deliver those and on them in a same way flawlessly .

So so okay. Let me clarify this contract is already done right. So the <unk> the way the way. It works is there is a tender and we all participate at.

Speaker #3: That we're planning to do . The jafra then definitely we can opt for much higher growth rate in 27 and 28 . In to that , we have obviously our technology and kind of out of the box portfolio that the market that we are create .

They have what they call a winner for the 100% to 100% of the committed work, which is US and then everybody else signed that contract right or similar contracts.

And that is what we call uncommitted, so that that piece of the pie.

<unk> they decide that they like.

Speaker #3: trying to have Nedda , which is our decarbonization arm . There is plenty of pilots , plenty of investment , venture capital style , as we have on water , on emission and definitely on the lithium story .

When to start who takes it.

They want to diversify.

Body can operate in that so this is not going to be that this is already done.

Finished and we basically all the service companies what they called a sign this contract.

Speaker #3: If this cracks , I keep this . Our target is to have this segment as $500 million . So now you need to make sure it's economical .

Very similar to Baidu and what happened in the last one so.

That scope could be big and people would work.

Speaker #3: So we don't have this in our plans . This is what I call all the add on . If we crack the code and then you have obviously our technology on which is the the rotary steerable MWD .

Anyone who were approved in that list and they were qualified and signed the contract can operate and execute that piece of the of the contract.

Speaker #3: Again , we need to commercialize it professionally . We are doing all the extensive testing and we have a plan or our target internally for a much bigger market share .

And again, our anchor always keep that flexibility for them as a very professional client. They can invite they can add they can cancel so its what they call. It uncommitted is uncommitted from both parties right. So you don't have to do it and Aramco can call it and not call it and obviously us.

Speaker #3: We don't have this again in the numbers . All this is add on to our growth profile and this will all translate . I would say as revenue growth .

A very good opportunity to execute that scope as well.

Speaker #3: That is significant would be to answer your question , 2728 2930 right . Because now you know that these projects are economical , commercial , bigger in can size and translate to significant revenue and margins .

Yeah.

Got it that's very helpful. Thank you.

And.

And what was the other part investment needed.

Out of that.

Go ahead sorry.

If there is any other rigs or equipment that you need to buy over and beyond what you've already got for this contract.

Speaker #8: Yeah , that's sounds great . Curious also , what type of margins do you have ? High confidence in for the next few years ?

Yeah, I mean, obviously.

What we did ourselves is we.

Speaker #8: Just , you know , without the water and , you know , just kind of on what your high confidence baked in growth is from existing contracts .

Purchased it is in our Capex number already that Stefan explained we purchased all of the additional <unk>.

Equipment that we need to execute on this contract. That's why we have managed to start immediately the contract November 1st now as we go along we will definitely keep adding equipment right because.

Speaker #8: What would you see as the multi-year margin evolution ?

Speaker #4: I'll take that for 26 . As I said to Dave in a few questions before we see the margin for 26 being the same as 25 .

This for example, let's say we are ready now with three fleets, we need a fourth fleet.

Speaker #4: So it will be somewhere between 21 and 22% , right ? Plus or minus plus or -1% on that . It's probably in the high 90% confidence level , right .

Additional equipment because this has.

Surface, well testing coiled tubing perforation wireline.

Speaker #4: Going forward in the 20 are going forward in the 27 and 28 , right . We want to try . We will use the same margins for our own internal model , but we'll try as efficiencies come more supply chain , greater revenues .

So we will definitely keep investing in that to make sure that we can execute the contract progressing the key for us and I guess the key for you in the investment community is we said we are going to maintain our capex.

So if we spend 140 $150 million and 25, we cannot spend exactly the same in 2006 with 30% 40% growth in revenue, which gives you that stability that we know exactly how much capex, we need to spend and how much cash flow we can get.

Speaker #4: So you have revenue efficiencies , overhead efficiencies , supply chain savings . We'll we'll endeavor to try and get margin improvement . And you know , over time we want to try and get back to know , the , you the 23 to 25% level .

Speaker #4: Right . That's our goal .

Because we are again, taking the full advantage of the weakness of the outside market right.

Speaker #8: And how is Roya progressing relative to what we might have thought at the beginning of the year? And what type of growth is embedded in that?

So.

The project I would say, it's very well designed from our side. We we did a very good job in a very detailed work exactly what we need and what we don't need and we already are front loaded that in 'twenty five to ensure that we can execute flawlessly and delivered to the client without any hiccup.

Speaker #8: You know that 2 billion exit run rate and you know , is this an area that could contribute above it ? The 2 billion , if it goes really well , or is it kind of success there baked into that 2 billion .

In the future.

Speaker #3: So we yeah . So so the the our numbers is very limited . Roya in 2026 it's going from onwards . Right . As 27 a number again as a , as a , as a significant number to that ecosystem .

Great. Thanks again.

<unk>.

Okay.

Our next question comes from the line of Jeff Robertson with water Tower Research. Please go ahead.

Thank you <unk> can you share any updates on some of the leader projects Youre working on.

Speaker #3: Why . Because Roya rotary steerable all this what we call it . We do an extensive testing to the technology to ensure it is working and I commercialize it when we are happy .

Especially with some of the water initiatives in Saudi Arabia.

Look we are doing so much in that but obviously because of the I would say the significance, we decided to speak about it in the next one when we know the results as well so as we said last time, we are on pilots.

Speaker #3: So actually it's a push pull . So the clients are pushing us to do more work and we are resisting that because we want to make sure it works perfectly .

Several pilots.

On water mineral recovery.

Speaker #3: Right . So I would say it will contribute and you will see it in the numbers in 27 , 28 . They will it will be there in 26 .

Yes.

Those projects are in the pilot phase now they are physically in the country. We are doing the test.

Speaker #3: it's But not a significant number . It is included in our $2 billion exit rate .

With our customer.

In several locations.

We will be able to really give you a bit more color.

Speaker #8: Well thanks a lot Great . .

Based on the results of all of those pilots. So we're very excited about it.

Speaker #3: you Thank .

Speaker #1: This now concludes our question and answer session . I would like to turn the floor back over to Mr. Sharif Foda for closing comments .

I am personally loved.

Love the story, because I believe that this.

Can I make something so different and the word that nobody did in the entire industry and the universe actually where basically you're going to start to say I can produce oil and gas and AG.

Speaker #3: very Thank you much . We don't want to take any more of your time . Appreciate all the support . And we thank again all our shareholders , employees , customers for the trust and looking forward for an amazing 2026 .

And produce a lot of other material that is good for the word for the Earth for the climate.

Speaker #3: Thank you .

Speaker #1: Ladies and gentlemen , thank you for your participation . This does conclude today's teleconference . You may your lines and have disconnect a wonderful day .

Cleaning the water economically.

I'm, bringing minerals and I'm selling it to other industry and the best would be if I can get lithium at economical scale.

Make batteries.

And the narrative of the industry becomes extremely positive.

Regardless of the EOG is out of flavor now or in but I think our commitment is long term sustainability of our industry.

And as I say, if the world needs all of this oil and gas and energy we have to make sure that we can do this sustainably. So we will be able to give you a bit more color in our next call based on the results of all of those pilots.

Thank you.

As a reminder, if you'd like to ask a question. Please press star one on your telephone keypad, a confirmation tone will indicate your line is in the question queue. You May press star two if you'd like to remove your question from the Q1 moment, while we poll for questions.

Our next question comes from John J with Pam <unk>.

Please go ahead.

Yes, hi.

I'm curious on a couple of things can you give us a sense for the visibility and the confidence that you have in hitting the $2 billion exit run rate for 2026.

What you think the.

The growth rate for NASA it looks like.

Over the year.

A year or two that followed that.

And the level of visibility and confidence you have in that growth rate.

And maybe like an 80% confidence level might be for a 2027, <unk> 2028 exit run rate.

Based on that trajectory.

Thanks, James So if.

If I will tell.

Tell you on the 2026.

The.

Level of.

Confidence 99% I.

I would say so.

Those contracts are awarded and those contracts are signed.

Work started.

No.

I would say the level of confidence we have on the delivery and barring anything happened in the.

And the word.

It should be kind of very very steady and.

Very very sure now if I look at our growth profile.

728.

<unk> is going to still growing because thats contract for example, and others are all five years, we have a backlog of.

Of tenders that are very very solid so we believe we win our fair market share on that at least.

With the growth that we see in Libya in Kuwait.

It's more than the average.

<unk>.

The 5% growth rate that the region will see definitely we will have.

The continuation of that growth rate it would not be obviously 30, 40% like we're going to have in 'twenty six 'twenty five but you'll have a very good at least 15% growth rate. Following that now if we are more successful in the tenders that are coming which obviously.

That's our plan.

And then we ensure that we can secure those and deliver on them.

And in the same way flawlessly that we're planning to do the <unk> then definitely we can opt for much higher growth rate in 2011 and 28.

In addition to that we have obviously our.

Technology.

And kind of out of the box.

Portfolio.

The market that we're trying to create so we have net debt, which is our decarbonization arm. There is plenty of pilots plenty of investment.

Eventual capital style as we have on water on emission and definitely on the lithium story. If this cracks I keep saying this our target is to have this segment that's $500 million. So now you need to make sure. It's economical. So we don't have this in our plan.

This is what I call all the add on if we crack the code and then you have obviously our technology on <unk>.

Yet, which is the rotary steer a burden and WT SWT again, we need to commercialize it professionally we are doing all the extensive testing and we have a plan or our target internally for a much bigger market share. We don't have this again in the numbers. All this is Adam.

On to our growth profile and this will all translate I would say as revenue grows that is significant would be to answer. Your question. In 27, 28, 29 30, right. Because now you know that these projects are economical commercial bigger in size and can translate to.

A significant revenue and margins.

Yeah.

Sounds great.

Curious also what type of margin do you have high confidence in for the.

The next few years.

Without the.

Our water and <unk>.

Just kind of thing.

Our high confidence in our growth is from existing contracts, where would you see as the multiyear margin evolution.

I'll take that.

26.

You said the dive in.

There's a few questions before we see the margin for 2006 periods assignments.

25, so it will be somewhere between 21 and 22% plus.

Plus or minus plus or minus 1% on that it's probably in the high 90% confidence levels right.

Going forward into 'twenty.

Going forward in the 27% 28, right. We want a chart, we used to selling margins for early turtle model, but will drive as efficiencies curve will supply cherry greater revenues revenue efficiencies overhead efficiencies supply chain savings.

We will endeavor to try and get a.

Margin improvement.

Over time, we want to try and get back to you.

The 23% to 25% level right.

That's our goal.

And how is the ROI are progressing relative to what we might be getting of the year.

And what type of.

Growth is embedded in that 2 billion exit run rate and.

Is this an area that could contribute.

Part of it too.

2 billion, if it goes really well or is it kind of success they are baked into that $2 billion.

So we yes so.

So the.

Our numbers trade is very limited.

In 2026.

It's going from 27 onwards, right at the <unk> again.

A significant number to that.

Ecosystem, why because <unk> rotary cerebral eligibility all this what we call. It we do an extensive testing to the technology to ensure it is working and I commercialize it well and we are happy so actually it's the push pull so the clients are pushing.

As to do more work and we are resisting that.

Because we want to make sure it works perfectly right.

So I would say it will contribute and you would see it in the numbers.

In 2728, they will it will be there in 2006, but it's not a significant number.

And it is included in our $2 billion exit rate.

Great well, thanks a lot.

Thank you.

This now concludes our question and answer session I would like to turn the floor back over to Mr. Sharif, Florida for closing comments.

Thank you very much and we don't want to take any more of your time I. Appreciate all the support and we thank again, all our shareholders employees customers for their trust and looking forward.

An amazing 2026, thank you.

Ladies and gentlemen, thank you for your participation. This does conclude today's teleconference. You may disconnect your lines and have a wonderful day.