Oil States Q1 2026 Earnings Call Summary

1Key Financial Results and Metrics

Revenues: $145 million

Adjusted EBITDA: $17 million

Net Income: $1 million ($0.02 per share); adjusted net income of $5 million ($0.09 per share) after excluding impairment and exit charges.

Offshore Manufactured Products Segment: Revenues of $91 million, adjusted EBITDA of $19 million (20% margin).

Backlog: $430 million, a slight decrease from year-end but up 20% year-over-year.

Book-to-Bill Ratio: 0.9x for the quarter; management expects a full-year ratio of 1x or greater.

2Strategic Updates and Business Highlights

The company is focusing on offshore and international markets, with 72% of Q1 revenues derived from these areas, up from 66% in Q1 2025.

Continued emphasis on cost control and monetization of exited facilities.

The Offshore Manufactured Products segment is performing strongly, supported by a diversified backlog including military contracts.

Recent technological advancements recognized with two 2026 Spotlight on New Technology Awards for geothermal and drilling technologies.

The company has ample liquidity with $59 million in cash and no outstanding borrowings under its credit agreement.

3Forward Guidance and Outlook

Q2 2026 Guidance: Expected revenues between $157 million and $162 million, with EBITDA of $18 million to $20 million.

The company remains cautious about the full-year outlook due to geopolitical uncertainties, particularly in the Middle East, which may impact demand and project timelines.

4Bad News, Challenges, or Points of Concern

Geopolitical tensions in the Middle East have led to project delays and increased costs, affecting revenue generation.

The U.S. land market remains soft, with operators prioritizing capital discipline, which may limit growth potential in that segment.

The duration of the Middle East conflict poses a risk to future international expansion and overall market stability.

5Notable Q&A Insights

Order Flow in Offshore Markets: Increased activity noted in Latin America (Guyana, Brazil) and some recovery in West Africa and the North Sea.

U.S. Land Activity: There are expectations for increased activity and pricing, driven by private operators leading the charge.

Backlog Conversion Confidence: Historically, 60-70% of backlog converts to revenue; however, longer-duration military contracts may extend this timeline to about 50-60%.

Manufacturing Capacity: The company has sufficient manufacturing capacity and plans to add shifts as needed to meet potential demand increases. Overall, Oil States is navigating a challenging geopolitical landscape while positioning itself for growth in offshore and international markets, with a strong focus on technology and operational efficiency.