Oil States International (OIS) Q1 2025 earnings summary

Executive summary

• Q1 2025 net income was $3.2 million ($0.05 per share), or $3.9 million ($0.06 per share) adjusted for $0.9 million in facility exit charges, compared to a net loss of $13.4 million in Q1 2024.

• Revenues were $159.9 million, down 4% year-over-year, mainly due to the exit of underperforming U.S. service offerings; excluding these, revenue increased 6%.

• Adjusted EBITDA was $18.7 million, up 21% year-over-year, with strong international demand and backlog conversion offsetting U.S. service exits.

• Generated $9.3 million in operating and free cash flow, reversing typical Q1 negative trend.

• Repurchased $5.3 million of common stock during the quarter.

Financial highlights

• Product revenue increased 7% year-over-year to $100.6 million, while service revenue declined 19% to $59.4 million.

• Gross margin improved as cost of revenues declined to $122.7 million from $125.6 million sequentially.

• Cash and cash equivalents stood at $66.8 million at quarter-end; net debt decreased by $1.4 million.

• No borrowings under the ABL Facility; $123.5 million principal of 2026 Notes outstanding.

• Weighted average shares outstanding: 60.2 million basic and diluted.

Outlook and guidance

• Full-year 2025 revenue guidance is $700–$735 million; EBITDA guidance is $88–$93 million.

• Offshore Manufactured Products backlog rose to $357 million, with a book-to-bill ratio of 1.5x, indicating strong future activity.

• Capital expenditures for 2025 are expected to be $25 million, funded by cash, operations, and available credit.

• Management is monitoring trade tariffs, OPEC+ production plans, and oil price volatility, adjusting sourcing and pricing strategies.

• Liquidity is sufficient to meet obligations, including the 2026 Notes maturity.