Oil States International (OIS) Q2 2024 earnings summary

Executive summary

• Q2 2024 net income was $1.3 million ($0.02 per share), including $3.9–$4.4 million in charges and credits; adjusted net income was $4.4 million ($0.07 per share) excluding these items.

• Consolidated revenues rose 11% sequentially to $186.4 million, driven by backlog conversion, offshore and international growth, and modest U.S. completion market share gains.

• Adjusted EBITDA increased 38% sequentially to $21.3 million, reflecting improved project activity, especially in Offshore Manufactured Products.

• Offshore and international project activity growth offset declines in U.S. natural gas investments and competitive pressures.

• Strategic optimization in Well-Site Services, including exiting underperforming U.S. locations, led to a 30% sequential increase in adjusted segment EBITDA despite a declining U.S. land market.

Financial highlights

• Q2 2024 revenues were $186.4 million, adjusted consolidated EBITDA was $21.3 million, and net income was $1.3 million ($0.02 per share).

• Adjusted net income, excluding one-time charges and credits, was $4.4 million ($0.07 per share).

• Cash flows from operations totaled $10.2 million; $10.3 million in proceeds from a facility sale were received.

• Gross debt to EBITDA was 1.5x and net was 1.2x at quarter-end.

• Book value per share was approximately $10.8 as of June 30, 2024 ($690.4 million equity, 63.8 million shares outstanding).

Outlook and guidance

• Adjusted EBITDA guidance for 2024 is confirmed at $85–$90 million.

• Free cash flow generation for 2024 is expected to be approximately $40 million, excluding a planned facility sale.

• Offshore and international activity is expected to drive results, with strong bookings and backlog supporting momentum into 2025.

• U.S. land drilling and completion spending is expected to remain at or near current levels for the rest of 2024.

• Management expects continued volatility in oil and gas prices, with customer spending influenced by commodity prices, regulatory environment, and global economic conditions.