Oil States International (OIS) Q2 2026 earnings summary

Executive summary

• Revenues reached $156.7 million, up 8% sequentially but down 5% year-over-year, with adjusted EBITDA at $19.0 million, up 14% sequentially, driven by growth in Downhole Technologies and Completion and Production Services segments.

• Net income was $5.9 million ($0.10 per share); adjusted net income was $8.4 million ($0.14 per share) after excluding one-time charges and gains.

• Backlog hit a decade-high of $451 million, with a book-to-bill ratio of 1.2x, reflecting strong bookings and diversified project mix.

• Over 70% of consolidated revenues in the first half of 2026 came from offshore and international activity, up from 50% in 2023.

• Retired $53 million in convertible senior notes and repurchased $5 million of common stock.

Financial highlights

• Offshore Manufactured Products segment revenue was $92.7 million with a segment EBITDA margin of 19%.

• Completion and Production Services segment revenue was $24.3 million, segment EBITDA $6.6 million, and margin about 27%.

• Downhole Technologies segment revenue was $39.7 million, segment EBITDA $4.2 million, with revenues at the highest level since Q2 2023.

• Operating income for Q2 2026 was $11.7 million, up 174% sequentially and 122% year-over-year.

• Cash used in operating activities was $6.3 million, mainly due to working capital investments for growth and backlog execution.

Outlook and guidance

• Q3 2026 guidance: revenues of $157–167 million and adjusted EBITDA of $18–20 million.

• Full-year 2026 guidance: revenues of $640–660 million and adjusted EBITDA of $77–83 million.

• Free cash flow for the full year expected at $35–40 million, excluding potential incremental asset sales.

• Backlog conversion rate expected at about 55% over 12 months due to multi-year military contracts.

• Management expects continued backlog growth and margin expansion, citing improving activity in offshore, international, and military markets.