OIS — Oil States International, Inc.

Summary of Oil States International, Inc. (OIS) Q4 2025 Earnings Call

1. Key Financial Results and Metrics

• Revenues: $178 million, an 8% increase sequentially and year-over-year.
• Adjusted EBITDA: $23 million, also a 9% sequential increase, at the top of guidance.
• Net Loss: $117 million ($2.04 per share), impacted by long-lived asset impairments and restructuring charges.
• Adjusted Net Income: $8 million ($0.13 per share) after excluding charges.
• Cash Flow from Operations: $50 million, up 63% sequentially; full-year cash flow from operations totaled $105 million.
• Free Cash Flow: $94 million for the full year, representing a 92% increase year-over-year.
• Backlog: Increased to $435 million, the highest since March 2015, with a book-to-bill ratio of 1.3 times.

2. Strategic Updates and Business Highlights

• Focus on optimizing business mix towards offshore and international markets, with 77% of revenues from these sectors.
• Successful restructuring efforts in Completion and Production Services and Downhole Technologies segments led to improved margins.
• Offshore Manufactured Products segment saw a remarkable 1,312% sequential increase in adjusted EBITDA.
• Continued development and deployment of advanced offshore technologies, including the Merlin deep sea mineral riser system.
• Strong cash position with cash exceeding debt by $15 million at year-end.

3. Forward Guidance and Outlook

• 2026 Full-Year Revenue Guidance: Expected between $680 million and $700 million.
• 2026 Full-Year EBITDA Guidance: Expected between $90 million and $95 million.
• Q1 2026 Revenue Guidance: Anticipated between $150 million and $155 million, typically the weakest quarter.
• CapEx: Planned investments of $20 million to $25 million for 2026.
• Strong cash flows expected despite a working capital build.

4. Bad News, Challenges, or Points of Concern

• Net Loss: Significant due to impairments and restructuring costs, indicating ongoing challenges in certain segments.
• Impairments: Noncash impairments in Downhole Technologies segment totaling $112 million, reflecting a shift away from older product technologies.
• U.S. Land Activity: Expected to remain subdued, which may impact overall revenue growth.
• Market Conditions: Potential headwinds from fluctuating crude prices and competition in the U.S. land market.

5. Notable Q&A Insights

• Completion and Production Services: The restructuring impact is expected to stabilize, with lower charges anticipated in 2026.
• Backlog Margins: Margins are expected to remain consistent, with potential upside from improved absorption and product mix.
• Military Products: Acknowledged as a steady revenue stream, with potential for growth due to increased defense spending.
• M&A Strategy: Focus on differentiated technologies, primarily in offshore international markets, rather than U.S. land operations.
• Tariff Impact: Recent tariff changes may stabilize costs, particularly for perforating products, which had been adversely affected.

Overall, OIS demonstrated strong operational performance and strategic repositioning, with a positive outlook for 2026 despite facing certain challenges and a significant net loss in Q4 2025.