Nine Energy Service (NINE) Q4 2024 earnings summary

Executive summary

• Achieved 2024 revenue of $554.1 million, with Q4 revenue at $141.4 million, up 2% sequentially and at the upper end of guidance.

• Net loss for 2024 was $41.1 million, with Q4 net loss at $8.8 million; adjusted EBITDA for the year was $53.2 million and $14.1 million for Q4, flat sequentially.

• Cementing and completion tools led revenue and profitability gains, with cementing revenue up 7% sequentially and market share rising to 19% in operating regions.

• Asset-light, technology-driven model with ~60% of revenue from technology-based businesses and a diversified customer base; strong safety record with TRIR down 22% to 0.49.

• Board of directors refreshed with new members bringing expertise in AI and oil & gas; management team remains unchanged.

Financial highlights

• Q4 2024 revenue: $141.4 million; adjusted gross profit: $26.2 million; adjusted EBITDA: $14.1 million; net loss: $8.8 million.

• Full-year 2024 revenue: $554.1 million; net loss: $41.1 million; adjusted EBITDA: $53.2 million.

• CapEx for 2024: $14.6 million; 2025 CapEx guidance: $15–25 million.

• Cash and equivalents at year-end: $27.9 million; total liquidity: $52.1 million; net debt: $319.1 million.

• Depreciation & amortization for 2024: $36.8 million; G&A expense: $51.3 million.

Outlook and guidance

• Q1 2025 revenue projected at $146–152 million, with sequential increases in revenue and adjusted EBITDA expected.

• 2025 US activity levels expected to be mostly stable; long-term demand for natural gas expected to rise, with over 30% of revenue levered to gas basins.

• FY 2025 CapEx guidance is $15–25 million.

• Anticipates growth in international tools market and continued market share gains in cementing and tools.

• Expects natural gas price recovery to drive activity, especially in Appalachia and Haynesville, starting Q2 2025.