Oil States Announces Second Quarter 2025 Results

• 
  Net income of $3 million, or $0.05 per share, reported for the quarter
  
  


• 
  Adjusted net income totaled $5 million, or $0.09 per share, excluding restructuring charges and credits (a non-GAAP measure⁽¹⁾)
  
  


• 
  Consolidated revenues of $165 million rose 3% sequentially, driven by strength in the Offshore Manufactured Products segment
  
  


• 
  Adjusted EBITDA (a non-GAAP measure⁽¹⁾) of $21 million increased 13% sequentially
  
  


• 
  Generated cash flows from operations of $15 million
  
  


• 
  Purchased $15 million principal amount of our convertible senior notes and $7 million of our common stock
  
  


• 
  Offshore Manufactured Products segment's backlog increased sequentially to $363 million as of June 30, with a quarterly book-to-bill ratio of 1.1x
  
  


• 
  Recipient of the Hart Energy 2025 Meritorious Engineering Award for our Low Impact Workover Package™
  
  

Oil States International, Inc. reported net income of $2.8 million, or $0.05 per share, and Adjusted EBITDA of $21.1 million for the second quarter of 2025 on revenues of $165.4 million. Reported second quarter 2025 net income included charges and credits of $3.3 million ($2.6 million after-tax or $0.04 per share) associated primarily with the exit of U.S. land-based facilities, personnel reductions and gains on the extinguishment of convertible senior notes. These results compare to revenues of $159.9 million, net income of $3.2 million, or $0.05 per share, and Adjusted EBITDA of $18.7 million reported in the first quarter of 2025, which included charges of $0.9 million ($0.7 million after-tax or $0.01 per share) associated with the exit of U.S. land-based facilities closed in 2024.

Oil States' President and Chief Executive Officer, Cindy B. Taylor, stated:

"Our consolidated results in the second quarter were driven by continued strength of international and offshore activity supported by backlog growth over recent quarters. Revenues from our Offshore Manufactured Products segment increased 15% sequentially, totaling $107 million, while Adjusted Segment EBITDA totaled $21 million, up 18%. Bookings totaled $112 million in the period, yielding backlog of $363 million and a quarterly book-to-bill ratio of 1.1x.

"Operating results reported by our Completion and Production Services and Downhole Technologies segments were challenged during the quarter due to the industry-wide reduction in U.S. land completion-related activity. On a combined basis, the revenues and Adjusted EBITDA of these two segments declined 13% and 12%, respectively, from the first quarter of 2025.

"Our U.S. land-focused restructuring efforts continued during the most recent quarter. These ongoing efforts coupled with lower industry activity resulted in our U.S. land-driven revenue mix declining from 36% of total revenues in the second quarter of 2024 to 28% of total revenues in the current quarter.

"Our investments in technology and innovation were again recognized by a 2025 Meritorious Engineering award from Hart Energy for our Low Impact Workover Package, which incorporates our field-proven technologies to enhance plug and abandonment operations and safeguard aging wells.

"Cash flow generated in the quarter was used to fund capital expenditures, reduce debt and repurchase stock. Our capital expenditures in the first half of 2025 were elevated by strategic investments associated with the construction of our new manufacturing facility in Batam, Indonesia, which is nearing completion, and the manufacture of low-impact rental riser equipment built pursuant to international contract awards."

Business Segment Results

(See Segment Data and Adjusted Segment EBITDA tables below)

Offshore Manufactured Products

Offshore Manufactured Products reported revenues of $106.6 million, operating income of $17.0 million and Adjusted Segment EBITDA of $21.1 million in the second quarter of 2025, compared to revenues of $92.6 million, operating income of $14.3 million and Adjusted Segment EBITDA of $17.9 million reported in the first quarter of 2025. Adjusted Segment EBITDA margin was 20% in the second quarter of 2025, compared to 19% in the first quarter of 2025.

Backlog totaled $363 million as of June 30, 2025, its highest level since September 2015. Second quarter bookings totaled $112 million and yielded a quarterly book-to-bill ratio of 1.1x and a year-to-date ratio of 1.2x.

Completion and Production Services

Completion and Production Services reported revenues of $29.4 million, operating income of $1.9 million and Adjusted Segment EBITDA of $8.3 million in the second quarter of 2025, compared to revenues of $34.5 million, operating income of $3.5 million and Adjusted Segment EBITDA of $8.8 million reported in the first quarter of 2025. Adjusted Segment EBITDA margin was 28% in the second quarter of 2025, compared to 25% in the first quarter of 2025.

In 2024, the segment began implementing actions in its U.S. land-based businesses to reduce future costs, which are continuing in 2025. These management actions included: the consolidation, relocation and exit of certain U.S. land-driven service locations; the exit of certain U.S. land-driven service offerings; and reductions in the Company's workforce in the United States. During the second quarter of 2025, the segment recorded a non-cash lease impairment and other downsizing charges totaling $2.2 million.

Downhole Technologies

Downhole Technologies reported revenues of $29.4 million, an operating loss of $4.0 million and Adjusted Segment EBITDA of $1.2 million in the second quarter of 2025, compared to revenues of $32.8 million, an operating loss of $2.1 million and Adjusted Segment EBITDA of $1.9 million in the first quarter of 2025.

During the second quarter of 2025, the segment recorded a non-cash operating lease impairment and severance charges totaling $1.2 million.

Corporate

Corporate operating expenses in the second quarter of 2025 totaled $9.6 million.

Interest Expense, Net

Net interest expense totaled $1.7 million in the second quarter of 2025, which included $0.3 million of non-cash amortization of deferred debt issuance costs.

Cash Flows

During the second quarter of 2025, the Company generated $15.0 million of cash flows from operations and $8.1 million of free cash flows (a non-GAAP measure - see Note (E). The Company purchased $14.8 million principal amount of its 4.75% convertible senior notes (the "Convertible Notes") at 97% of par and repurchased $6.7 million of its common stock (2.3% of its shares outstanding as of March 31, 2025).

Financial Condition

Cash on-hand totaled $53.9 million at June 30, 2025. No borrowings were outstanding under the Company's asset-based revolving credit facility (the "ABL Facility") at June 30, 2025. On July 28, 2025, the Company amended its ABL Facility to provide for additional borrowing availability, lower interest charges and plan for the retirement of its remaining Convertible Notes at maturity in April 2026 using, in part, availability under the ABL Facility.

Industry Award

Demonstrating Oil States' constant commitment to advance the production of affordable and reliable energy, the Company was honored by Hart Energy in June 2025 as a recipient of the Meritorious Engineering Award in the category of Marine Construction and Decommissioning for its Low Impact Workover Package ("LIWP"). The LIWP uses field-proven technology to enhance plug and abandonment operations and safeguard aging wells. It integrates our lower riser package and emergency disconnect package technologies to create a tether-free, streamlined system that provides significant advantages compared to existing well intervention and decommissioning systems.

Conference Call Information

The call is scheduled for July 31, 2025 at 9:00 a.m. Central Daylight Time, is being webcast and can be accessed from the Company's website at www.ir.oilstatesintl.com. Participants may also join the conference call by dialing 1 (888) 210-3346 in the United States or by dialing +1 (646) 960-0253 internationally and using the passcode 7534957. A replay of the conference call will be available approximately two hours after the completion of the call and can be accessed from the Company's website at www.ir.oilstatesintl.com.

About Oil States

Oil States International, Inc. is a global provider of manufactured products and services to customers in the energy, industrial and military sectors. The Company's manufactured products include highly engineered capital equipment and consumable products. Oil States is headquartered in Houston, Texas with manufacturing and service facilities strategically located across the globe. Oil States is publicly traded on the New York Stock Exchange under the symbol "OIS".

For more information on the Company, please visit Oil States International's website at www.oilstatesintl.com.

Cautionary Language Concerning Forward Looking Statements

The foregoing contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements are those that do not state historical facts and are, therefore, inherently subject to risks and uncertainties. The forward-looking statements included herein are based on current expectations and entail various risks and uncertainties that could cause actual results to differ materially from those forward-looking statements. Such risks and uncertainties include, among others, the impact of changes in tariffs and duties on imported materials and exported finished goods, the level of supply and demand for oil and natural gas, fluctuations in the current and future prices of oil and natural gas, the level of exploration, drilling and completion activity, general global economic conditions, the cyclical nature of the oil and natural gas industry, geopolitical conflicts and tensions, the financial health of our customers, the actions of the Organization of Petroleum Exporting Countries and other producing nations ("OPEC+") with respect to crude oil production levels and pricing, supply chain disruptions, the impact of environmental matters, including executive actions and regulatory efforts to adopt environmental or climate change regulations that may result in increased operating costs or reduced oil and natural gas production or demand globally, consolidation of our customers, our ability to access and the cost of capital in the bank and capital markets, our ability to develop new competitive technologies and products, and other factors discussed in the "Business" and "Risk Factors" sections of the Company's Annual Report on Form 10-K for the year ended December 31, 2024, and the subsequently filed Quarterly Report on Form 10-Q and Periodic Report on Form 8-K. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date hereof, and, except as required by law, the Company undertakes no obligation to update those statements or to publicly announce the results of any revisions to any of those statements to reflect future events or developments.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250731998483/en/

  back