Oil States International Inc (NYSE:OIS) Reports Q3 2025 Earnings Miss, Stock Falls

Oil States International Inc (NYSE:OIS) reported financial results for the third quarter of 2025, delivering a performance that fell short of analyst expectations on the top and bottom lines. The company's earnings release highlighted a challenging environment for its U.S. land-based operations while showcasing strength in its offshore and international segments.

Earnings and Revenue Performance

The company reported revenue of $165.2 million for the third quarter, which came in below the analyst consensus estimate of $169.4 million. This represents a slight sequential decline from the $165.4 million reported in the second quarter of 2025 and a 5% decrease compared to the same quarter last year.

On the profitability front, the company reported adjusted earnings per share of $0.08, missing the $0.10 analyst estimate. The reported figures included several one-time charges that impacted the results:

• Adjusted net income totaled $4.7 million, down 13% sequentially
• Adjusted EBITDA reached $20.8 million, relatively flat compared to the previous quarter
• GAAP net income was $1.9 million, or $0.03 per share

Market Reaction and Price Action

The market responded negatively to the earnings miss, with the stock trading down approximately 4.3% in pre-market activity. This immediate reaction suggests investor disappointment with both the revenue shortfall and the earnings miss. The decline comes despite the stock having shown positive momentum in recent weeks, with gains of approximately 14% over the past two weeks and 11% over the past month.

Segment Performance Breakdown

The company's performance varied significantly across its business segments, reflecting the divergent conditions in offshore versus onshore markets:

• Offshore Manufactured Products: This segment demonstrated strength with revenues of $108.6 million, up 2% sequentially and 6% year-over-year. The segment achieved a 21% Adjusted EBITDA margin and reported record backlog of $399 million as of September 30, 2025 - the highest level since June 2015.
• Completion and Production Services: Revenues declined to $27.5 million, down 6% from the previous quarter and 31% year-over-year, reflecting challenges in U.S. land markets.
• Downhole Technologies: This segment reported revenues of $29.0 million and an Adjusted EBITDA loss of $0.7 million, continuing to face market headwinds.

Financial Position and Capital Allocation

Oil States maintained a solid financial position during the quarter:

• Generated $30.7 million in cash flow from operations
• Maintained $67.1 million in cash with no borrowings outstanding under its credit facility
• Returned $10 million to stakeholders through $6 million in convertible note repurchases and $4 million in common stock buybacks
• Year-to-date stock repurchases total $16.2 million, representing approximately 5% of shares outstanding

Outlook and Forward Estimates

While the company did not provide specific forward guidance in its release, current analyst estimates project full-year 2025 revenue of $688.4 million and Q4 2025 revenue of $190.5 million. The company's focus remains on capital discipline and optimizing its U.S. land operations while leveraging strength in offshore markets.

President and CEO Cindy B. Taylor commented on the results: "In the third quarter of 2025, we continued to focus on our offshore and international exposed operations while managing through headwinds in the United States created by lower commodity prices, falling U.S. activity levels and increasing costs associated with tariffs on imported goods."

For more detailed earnings analysis and future estimates, visit the OIS earnings and estimates page.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. The author holds no position in OIS stock. Readers should conduct their own research and consult with a qualified financial advisor before making any investment decisions.