Oil States International, Inc.

Oil States reported Q2 2026 revenue of $157 million, up 8% sequentially, and adjusted EBITDA of $19 million, up 14% sequentially. Net income was $6 million, or $0.10 per share, and adjusted net income was $8 million, or $0.14 per share. Offshore Manufactured Products revenue was $93 million with segment EBITDA of $18 million, or above 19% margin; Completion and Production Services revenue was $24 million with segment EBITDA of $7 million and about 27% margin; Downhole Technologies revenue was $40 million with segment EBITDA of $4 million. Backlog was $451 million, up 5% sequentially and 24% year over year, and book-to-bill was 1.2x. For Q3, the company guided to revenue of $157 million-$167 million and adjusted EBITDA of $18 million-$20 million. Full-year guidance is revenue of $640 million-$660 million and adjusted EBITDA of $77 million-$83 million. Free cash flow is expected to be $35 million-$40 million for the full year, excluding any incremental second-half asset sales that could add $5 million-$10 million. Cash on hand at June 30 was $20 million and debt was $18 million.

Lloyd Hajdik emphasized that Oil States is benefiting from a strategic mix shift toward offshore, international, and higher-margin differentiated products, with over 70% of first-half 2026 revenue tied to offshore and international activity versus about 50% in 2023. He said the company remains positioned for a longer-cycle deepwater upcycle, citing energy security, low inventories, limited spare capacity, and customer interest in offshore and subsea development. His tone was constructive but measured, repeatedly noting that near-term timing can be volatile because of geopolitical disruptions and contract delays.

Matt Autenrieth highlighted the quarter’s sequential growth in revenue and EBITDA, along with the quality of earnings after adjusting for note extinguishment, facility exit, and transition charges. He pointed to segment margins of above 19% in Offshore Manufactured Products and about 27% in Completion and Production Services, while noting Downhole Technologies was helped by stronger demand and mix but still faces elevated input costs for tungsten, explosive powder, and copper. He also detailed cash usage of $6 million from operations, $7 million of asset-sale proceeds versus $3 million of capex, $19 million of assets held for sale, $20 million of cash, $18 million of debt, and $5 million of share repurchases during the quarter.

Analysts focused on backlog quality, margin upside, Downhole recovery, free cash flow, and the outlook for military and offshore orders. Management said Offshore Manufactured Products margins are currently around the 20% level, with potential to move into the low 20s in 2027 and beyond as backlog grows and mix improves. On Downhole, Lloyd said the improvement was driven more by a better U.S. land market and stronger perforating/completion tool demand than by restructuring, and Matt said working capital should unwind in the second half, helping full-year free cash flow of $35 million-$40 million. On military, Lloyd said Block 6 awards are multi-year and should start generating revenue in 2027, while non-block orders continue at a smaller annual pace.