Oil States International, Inc. reported strong third-quarter results driven by backlog growth and solid project execution. 75% of revenues came from offshore and international projects, reflecting a shift in revenue mix. Backlog increased to $399 million, with a 29% increase in bookings. US land activity declined due to lower crude oil prices and OPEC decisions. Completion and production services segment saw revenue declines due to reduced US land activity. The company generated $31 million in cash flow from operations, with ongoing deleveraging efforts in place. Oil States received safety awards and remains focused on offshore and international growth.
Revenues increased by 2% sequentially in the third quarter, with adjusted segment EBITDA rising by 6%. Backlog increased to $399 million, with a 29% increase in bookings. The company expects total incremental revenue and earnings growth moving into 2026. US land completion activity declined significantly. The Completion and Production Services segment saw revenue declines due to the reduction in US land activity. Cash flow from operations increased by 105% in the quarter, with ongoing deleveraging efforts in place.
Oil States International, Inc. forecasts a strong fourth quarter with revenues expected to rise by 8% to 13% sequentially. Adjusted EBITDA is expected to range from $21 million to $22 million in the fourth quarter. Cash flows from operations are expected to improve in the fourth quarter, with annual amounts surpassing $100 million. The company is committed to optimizing operations, making targeted investments, and leveraging cutting-edge technologies for growth.
The company’s focus on offshore and international presence continues amid solid demand. Backlog is at a decade high, with continued strength expected in future bookings. Analysts anticipate an improvement in offshore and international markets, with a growing global focus on exploration and offshore development. Oil States International, Inc. remains strategically positioned for market opportunities, emphasizing cash flow conversion rates and free cash flow yield.
Oil States International, Inc. has demonstrated strong financial performance, with revenues of $165 million and adjusted consolidated EBITDA of $21 million in the third quarter. The company’s Offshore Manufactured Products segment reported revenues of $109 million and adjusted segment EBITDA of $22 million. In the Completion and Production Services segment, revenues were $28 million with adjusted segment EBITDA of $8 million. Downhole Technologies segment reported revenues of $29 million with an adjusted segment EBITDA loss of $1 million.
The company’s strategic shift towards offshore and international projects has resulted in revenue growth and margin improvement. The focus on high-margin projects, efficient operations, and technological advancements has positioned Oil States International, Inc. for continued growth. The company’s commitment to safety, innovation, and financial strength underscores its value proposition for investors. Oil States International, Inc. looks towards a bright future of sustained growth and profitability in the energy sector.
Read more at Yahoo Finance: Oil States (OIS) Q3 2025 Earnings Call Transcript