Oil States International — Third Quarter 2026 Earnings Summary

Financial Performance:

• Consolidated revenues were $169.8 million, an 8% increase sequentially and a 3% increase year-over-year.
• Net income was $3.1 million ($0.05 per share), a 47% decrease sequentially but a 64% increase year-over-year.
• Adjusted net income was $8.5 million ($0.15 per share), a 1% increase sequentially and an 80% increase year-over-year.
• Adjusted EBITDA was $20.1 million, a 6% increase sequentially and a 3% decrease year-over-year.
• Operating income was $6.3 million, a 46% decrease sequentially but a 33% increase year-over-year.
• Adjusted operating income was $11.8 million, a 12% increase sequentially and a 43% increase year-over-year.
• Cash flows from operations were $5.3 million, tempered by $9.6 million in net working capital investments.
• Capital expenditures were $3.2 million; proceeds from asset sales were $5.1 million.
• Cash on hand totaled $22.9 million at September 30, 2026.
• Borrowings and letters of credit outstanding totaled $19.8 million and $17.0 million, respectively, leaving $58.0 million available under the Cash Flow Credit Agreement.
• Deferred revenue decreased to $84.8 million from $97.2 million at December 31, 2025.

Guidance and Future Outlook:

• Management stated third-quarter results exceeded guidance provided in July.
• The company remains focused on expanding backlog, delivering profitable growth, and generating strong cash flows.
• Oil States expects to benefit from a constructive multi-year offshore and international investment cycle.
• Strategic initiatives include disciplined capital allocation and selective growth investments to create long-term stockholder value.

Business Segments and Product Lines:

• Offshore Manufactured Products: Revenues increased 13% sequentially to $104.4 million. Backlog grew 7% sequentially to $482 million, the highest level since December 2014. Book-to-bill ratio was 1.3x. Adjusted Segment EBITDA was $18.8 million (18% margin).
• Completion and Production Services: Revenues decreased 5% sequentially to $23.2 million. Adjusted Segment EBITDA was $6.1 million (26% margin).
• Downhole Technologies: Revenues increased 6% sequentially to $42.2 million. Adjusted Segment EBITDA was $3.6 million (8% margin).
• Corporate: Reported an operating loss of $14.1 million and an Adjusted Segment EBITDA loss of $8.3 million. The operating loss included $5.5 million in charges primarily related to the retirement of the former President and CEO and facility exit costs.

Market and Competitive Landscape:

• Strong demand was noted within the Offshore Manufactured Products and Downhole Technologies segments.
• Contract bookings in Offshore Manufactured Products increased 18% sequentially to $135 million.
• The company highlighted its global manufacturing, engineering, and service capabilities as a competitive foundation.

Risks and Challenges:

• Forward-looking statements note risks including geopolitical conflicts, changes in tariffs, fluctuations in oil and natural gas prices, and supply chain disruptions.
• Risks include environmental regulations, customer financial health, and the cyclical nature of the industry.
• Specific charges in the quarter included executive transition costs ($3.3 million) and facility consolidation/closure costs ($2.2 million).

Management Commentary and Tone:

• CEO Lloyd Hajdik described results as exceeding guidance and reflecting continued execution across a diversified portfolio.
• Management expressed confidence in the resilience of offshore and international operations.
• The tone emphasized a strong financial position and the ability to return capital to stockholders through disciplined capital allocation.

Other Key Points:

• The company purchased $4.0 million of its common stock in the third quarter.
• The Board of Directors approved a new $50.0 million stock repurchase authorization expiring in October 2028.
• Net interest expense was $1.3 million, including $0.6 million of non-cash amortization of deferred debt issuance costs related to the expiration of $30 million in undrawn lender commitments.
• Income tax expense was $2.1 million, including the impact of changes in valuation allowances against deferred tax assets.
• The company reported a gain on the disposal of a facility held for sale of $4.1 million in the second quarter, which was excluded from adjusted results.