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OIL STATES INTERNATIONAL, INC (OIS)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 2025 delivered resilient offshore-driven results amid U.S. land softness: revenue $165.4M (+3% q/q, -11% y/y), GAAP diluted EPS $0.05, adjusted diluted EPS $0.09, and adjusted EBITDA $21.1M (+13% q/q) .
  • Offshore Manufactured Products outperformed: revenue +15% q/q to $106.6M, adjusted segment EBITDA +18% q/q to $21.1M; backlog reached $363M (highest since Sep-2015) with $112M bookings and 1.1x book-to-bill .
  • Guidance: maintained full-year EBITDA $88–$93M; lowered full-year revenue to $685–$700M; Q3 guidance set at revenue $165–$170M and EBITDA $21–$23M .
  • Versus S&P Global consensus: revenue missed ($165.4M vs $170.7M*), Primary EPS beat ($$0.09 vs $0.083*), and EBITDA was roughly in line ($$21.1M vs $21.0M*). Values retrieved from S&P Global.
  • Capital allocation remains a catalyst: $14.8M of converts retired at ~97% of par and $6.7M of buybacks in Q2; ABL amended to expand availability and reduce interest expense ahead of April 2026 converts maturity .

What Went Well and What Went Wrong

What Went Well

  • Offshore strength and backlog expansion: “Revenues from our Offshore Manufactured Products segment increased 15% sequentially…Bookings totaled $112 million…backlog of $363 million…book-to-bill 1.1x” .
  • Mix improvement and cost actions: U.S. land mix fell to 28% from 36% y/y as restructuring progressed; adjusted EPS of $0.09 and adjusted EBITDA +13% q/q reflected higher-margin offshore/international mix .
  • Liquidity and deleveraging: $15.0M cash from operations, $8.1M free cash flow, no ABL borrowings, and additional convertible note repurchases alongside share buybacks .

What Went Wrong

  • U.S. land pressure: CPS revenue -15% q/q and Downhole -10% q/q amid frac spread and rig declines; CPS/Downhole adjusted segment EBITDA down a combined 12% q/q .
  • Segment-level profitability headwinds: Downhole reported a $4.0M operating loss (vs. -$2.1M in Q1), including non-cash lease impairments and severance .
  • Revenue below Street: consolidated revenue $165.4M missed S&P Global consensus ($170.7M*), driven by U.S. land activity reductions and planned exits of commoditized service lines. Values retrieved from S&P Global. Management stressed exits improve margins/free cash flow despite revenue declines .

Financial Results

MetricQ2 2024Q1 2025Q2 2025
Revenue ($USD Millions)$186.383 $159.938 $165.406
GAAP Diluted EPS ($USD)$0.02 $0.05 $0.05
Adjusted Diluted EPS ($USD)$0.07 $0.06 $0.09
Net Income ($USD Millions)$1.301 $3.158 $2.811
Adjusted Net Income ($USD Millions)$4.391 $3.892 $5.401
Operating Income ($USD Millions)$2.045 $5.639 $5.277
Adjusted EBITDA ($USD Millions)$21.306 $18.732 $21.089

Segment revenue and profitability

SegmentQ2 2024 Revenue ($M)Q1 2025 Revenue ($M)Q2 2025 Revenue ($M)Q2 2024 Op Inc ($M)Q1 2025 Op Inc ($M)Q2 2025 Op Inc ($M)Q2 2024 Adj Seg EBITDA ($M)Q1 2025 Adj Seg EBITDA ($M)Q2 2025 Adj Seg EBITDA ($M)
Offshore Manufactured Products$101.556 $92.596 $106.586 $14.357 $14.276 $16.989 $20.131 $17.926 $21.105
Completion & Production Services$46.421 $34.519 $29.424 $(0.535) $3.503 $1.877 $8.548 $8.801 $8.254
Downhole Technologies$38.406 $32.823 $29.396 $(1.141) $(2.124) $(3.992) $3.114 $1.905 $1.220
Corporate (Adj Seg EBITDA)——————$(10.487) $(9.900) $(9.490)

Key KPIs and cash metrics

KPIQ2 2024Q1 2025Q2 2025
Backlog ($USD Millions)—$357 $363
Bookings ($USD Millions)—$136 $112
Book-to-Bill (x)—1.5x 1.1x
Offshore & International Revenue ($USD Millions)$118.625 $106.237 $119.114
U.S. Land Revenue ($USD Millions)$67.758 $53.701 $46.292
Cash from Operations ($USD Millions)$10.242 $9.295 $14.995
Free Cash Flow ($USD Millions)$14.909 $9.322 $8.114

Vs. S&P Global consensus (Q2 2025)

MetricConsensusActual
Revenue ($USD Millions)$170.739*$165.406
Primary EPS ($USD)$0.083*$0.09
EBITDA ($USD Millions)$21.041*$21.089

Values retrieved from S&P Global.

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
RevenueFY 2025$700M–$735M (Q4’24 call reiterated on Q1’25 call) $685M–$700M Lowered
EBITDAFY 2025$88M–$93M $88M–$93M Maintained
RevenueQ3 2025—$165M–$170M New quarterly
EBITDAQ3 2025—$21M–$23M New quarterly
Cash from OperationsFY 2025$65M–$75M $65M–$75M Maintained
CapExFY 2025~$25M ~$30M (Batam facility + LIWP rental riser builds) Raised
U.S. Land MixFY 2025 trajectory—Targeting lower mix via exits; land mix 28% in Q2 vs 36% y/y Mix improving
ABL FacilityAs of Jul 28, 2025—Amended for more availability and lower interest, planning for 2026 convert maturity Improved liquidity terms

Earnings Call Themes & Trends

TopicPrevious Mentions (Q4 2024 and Q1 2025)Current Period (Q2 2025)Trend
Offshore demand/backlogQ4: backlog $311M; offshore international resilient . Q1: backlog $357M; book-to-bill 1.5x .Backlog $363M; bookings $112M; book-to-bill 1.1x; expecting >1 book-to-bill through 2025 .Improving/stable
U.S. land restructuringQ4/Q1: exited commoditized lines; closures; margin focus .Exited 3 more facilities; land mix down to 28% of revenue; CPS margin 28% despite lower revenue .Ongoing improvement
Tariffs/macroQ1: tariff exposure minimal; pass-through in perforating; crude price volatility .“Do not anticipate a material impact”; modest cost increases in perforating .Stable/minor headwind
Technology/new productsQ1: MPD IRJ adoption; Brazil awards; TowerLok OTC award .Hart Energy award for LIWP; MPD IRJ continues to be highlighted; LIWP rental riser build .Expanding adoption
CapEx/Batam facilityQ1: guided ~$25M; Batam expansion .CapEx raised to ~$30M; Batam completes Q3; LIWP rental riser investment .Near-term elevated then normalizing
Capital allocationQ4: $50M buyback authorization; deleveraging . Q1: opportunistic buybacks .$6.7M buybacks; $14.8M converts retired at 97% of par; plan further opportunistic actions .Shareholder-friendly

Management Commentary

  • “Our consolidated results…were driven by continued strength of international and offshore activity supported by backlog growth…Backlog totaled $363 million…book-to-bill 1.1x.” — Cindy Taylor, President & CEO .
  • “Operating results…were challenged…due to industry-wide reduction in U.S. land completion-related activity…U.S. land-driven revenue mix declined from 36%…to 28%.” — Cindy Taylor .
  • “We are maintaining our full-year EBITDA guidance…However, our revenue guidance needs to be updated…reduce…to $685 million–$700 million…Q3 revenues $165 million–$170 million and EBITDA $21 million–$23 million.” — Cindy Taylor .
  • “We generated revenues of $165 million and adjusted consolidated EBITDA of $21 million…adjusted net income…$5 million or $0.09 per share.” — Lloyd Hajdik, EVP & CFO .
  • “We repurchased $7 million of our common stock…and purchased $15 million of our convertible senior notes at a slight discount…amended our revolving credit facility to provide for additional borrowing availability [and] lower interest.” — Lloyd Hajdik .

Q&A Highlights

  • Offshore momentum vs. industry pushouts: OIS’s exposure skewed to long-cycle production infrastructure, less impacted by short-term macro; bookings outlook remains robust with book-to-bill >1 .
  • Tariffs: Management does not anticipate material impact overall; modest cost pressure in perforating (Downhole) to be passed through given industry-wide similar inputs .
  • CapEx: Raised to ~$30M for 2025 (Batam completion and LIWP rental riser builds), partly offset by proceeds from asset sales as land facilities are exited .
  • Mix/margins trajectory: CPS land contribution ~11–12%; margin accretion expected through 2H25 and into 2026; company targets upper-20s to low-30s EBITDA margins longer-term on streamlined mix .
  • 4Q step-up: Expected to be led by Offshore Manufactured Products with backlog conversion; POC contracts support visibility .

Estimates Context

  • Revenue missed S&P Global consensus ($165.4M vs $170.7M*). Values retrieved from S&P Global.
  • Primary EPS (S&P’s measure) beat ($$0.09 vs $0.083*). Values retrieved from S&P Global.
  • EBITDA was roughly inline/slight beat ($$21.1M vs $21.0M*). Values retrieved from S&P Global.
  • Street may lower FY revenue models following guidance cut to $685–$700M while keeping EBITDA largely intact at $88–$93M, implying higher 2025 margins on mix and cost actions .

Key Takeaways for Investors

  • Offshore/international strength continues to offset U.S. land weakness; backlog and bookings support H2 acceleration and a Q4 step-up, anchoring EBITDA resilience .
  • FY revenue guidance cut (to $685–$700M) without changing EBITDA ($88–$93M) signals margin quality improvement from mix high-grading and restructuring .
  • Capital returns and deleveraging are active: $6.7M buybacks and $14.8M converts repurchased, with ABL amendments improving flexibility ahead of April 2026 maturity .
  • Segment focus: Own the offshore cycle (Offshore Manufactured Products), maintain CPS profitability despite lower land activity, and stabilize Downhole via cost actions and selective pass-throughs .
  • Near-term trading: Watch bookings cadence and backlog conversion; any upside in Q3/Q4 revenues vs guidance would catalyze sentiment given H2 weighted profile .
  • Medium term: Technology wins (MPD IRJ, LIWP) and Batam capacity expansion underpin product differentiation and pricing power, supporting 20–22% offshore segment margins longer term .
  • Risks: Tariff policy shifts, OPEC+ actions, and U.S. land further softening; management’s diversified sourcing and exits mitigate, but Downhole remains the most exposed .
Notes: Values marked with * are retrieved from S&P Global (consensus estimates and recorded actuals).