Nine Energy Service, Inc.

Nine reported Q2 revenue of $141.8 million and adjusted gross profit of $19.9 million. Adjusted EBITDA was $8.6 million, below original guidance. Q2 also included G&A expense of $15.6 million, D&A of $7.2 million, and net cash used in operating activities of $2.3 million. Cash and cash equivalents were $16.8 million at June 30, with $30 million available on the credit facility and total liquidity of $46.8 million; borrowings were $97.3 million. Segment highlights included cementing revenue of $55.3 million, wireline revenue of $23 million, completion tools revenue of $37.1 million, and coiled tubing revenue of $26.4 million. For Q3, management expects revenue of $133 million to $143 million and adjusted EBITDA flat to modestly down from Q2; full-year CapEx is expected to be $20 million to $30 million.

Ann Fox framed the quarter as a story of broad business momentum obscured by an unusual coiled tubing disruption. She said the lost units were a temporary issue, not a sign of structural weakness, and emphasized that completion tools, dissolvable products, cementing, and Haynesville wireline expansion are all contributing to the longer-term opportunity. Her tone was constructive but cautious, repeatedly pointing to market volatility, pricing lag, and operator capital discipline.

Heather Schmidt detailed the quarter’s financials and liquidity, noting $141.8 million of revenue, $19.9 million of adjusted gross profit, $16.8 million of cash, $30 million of revolver availability, and $97.3 million of borrowings. She said Q2 CapEx was $4.8 million, bringing year-to-date CapEx to $10.4 million, and reaffirmed full-year CapEx of $20 million to $30 million. On the call, she also indicated cash flow neutrality through the second half and said the company feels relatively comfortable with the balance sheet, while monitoring the ABL closely.

Analysts focused heavily on the coiled tubing outage, asking whether the revenue decline implied little slack in the market and whether similar fleet problems could recur. Management said the loss of nearly 20% of the fleet was significant, but stressed that the issue was temporary, tied to an unusual maintenance failure and one unit getting stuck in difficult conditions, not to poor maintenance across the fleet. Questions also centered on pricing and margins; management said differentiated businesses like tools and cementing have better pricing power, but there are lags between cost inflation and repricing, especially with large-volume customers. The CFO also said CapEx should land in the middle to lower end of the guided range and that the company expects cash flow neutrality in the second half.