8-K: Oil States International Reports Q2 2026 Results

Oil States International announced second quarter 2026 results with consolidated revenues of $157 million, a 14% increase in Adjusted EBITDA to $19 million, and a backlog of $451 million.

Summary

• Oil States International reported second quarter 2026 results, with consolidated revenues of $156.7 million, an increase of 8% sequentially from $145.4 million in the first quarter.
• Net income for the quarter was $5.9 million, or $0.10 per share, compared to $1.1 million, or $0.02 per share, in the prior quarter.
• Adjusted EBITDA, a non-GAAP measure, was $19.0 million, a 14% increase from $16.7 million in the first quarter.
• The Offshore Manufactured Products segment's backlog reached $451 million, its highest level since March 2015, with quarterly bookings of $114 million, resulting in a book-to-bill ratio of 1.2x.
• The Downhole Technologies segment generated $39.7 million in revenue, the highest since the second quarter of 2023.
• The company retired the remaining $53 million of its convertible senior notes and repurchased $5 million of its common stock.

Sentiment

Score: 6

Explanation: StockSavvy.ai views this as a moderately positive report, with strong sequential growth in key metrics and a robust backlog, though year-over-year performance shows some weakness.

Positives

• Consolidated revenues increased 8% sequentially to $156.7 million.
• Adjusted EBITDA increased 14% sequentially to $19.0 million.
• Net income saw a significant sequential increase of 433% to $5.9 million.
• The Offshore Manufactured Products segment's backlog reached $451 million, the highest in over a decade, with a book-to-bill ratio of 1.2x.
• Downhole Technologies segment revenue of $39.7 million is the highest since Q2 2023.
• Completion and Production Services segment revenue increased 13% sequentially.
• The company successfully retired $53 million in convertible senior notes.
• The company repurchased $5 million of its common stock.

Negatives

• Consolidated revenues decreased 5% year-over-year.
• Adjusted EBITDA decreased 10% year-over-year.
• Offshore Manufactured Products segment revenue decreased 13% year-over-year.
• Offshore Manufactured Products segment operating income decreased 18% year-over-year.
• Offshore Manufactured Products segment Adjusted Segment EBITDA decreased 15% year-over-year.
• Completion and Production Services segment revenue decreased 18% year-over-year.
• Completion and Production Services segment Adjusted Segment EBITDA decreased 20% year-over-year.
• The company used $6.3 million in cash for operating activities during the second quarter of 2026.

Risks

• The impact of geopolitical conflicts and tensions.
• Changes in tariffs and duties on imported materials and exported finished goods.
• The level of supply and demand for oil and natural gas.
• Fluctuations in the current and future prices of oil and natural gas.
• The level of exploration, drilling and completion activity.
• General global economic conditions.
• The cyclical nature of the oil and natural gas industry.
• The financial health of our customers.

Future Outlook

The company believes it is in the early stages of increased investment by its customers and is encouraged by the sustained growth in its backlog, combined with improving activity across offshore, international, and military markets. Management remains focused on growing backlog, expanding margins, and improving cash generation for stockholders.

Management Comments

• "Our second quarter results demonstrated the resilience of Oil States product and services portfolio, as Adjusted EBITDA was in line with our expectations despite revenue being tempered by the timing of certain customer awards."
• "We are encouraged by the continued strength of our backlog, with quarterly bookings totaling $114 million, yielding a 1.2x quarterly book-to-bill ratio and total backlog of $451 million, the highest level in over a decade."
• "With sequential quarterly improvements reported in our Downhole Technologies and Completion and Production Services segments, we believe we are in the early stages of increased investment by our customers."
• "The sustained growth in our backlog, combined with improving activity across offshore, international and military markets, reinforces our confidence in the long-term opportunity set ahead of us."
• "As we progress through the second half of 2026, we continue build upon our differentiated portfolio of products and services that are aligned with our customers most critical projects, and we remain focused on growing our backlog, expanding margins and improving cash generation for our stockholders."

Industry Context

StockSavvy.ai notes that Oil States International's results reflect a mixed environment in the energy services sector. While sequential improvements in key segments and a strong backlog are positive indicators, year-over-year declines in revenue and EBITDA suggest ongoing market pressures and competition within the oil and gas industry.

Stakeholder Impact

• Stockholders may benefit from the company's focus on improving cash generation and the repurchase of common stock.
• Customers in the energy, military, and industrial sectors will continue to receive manufactured products and services.
• Suppliers may see increased demand due to higher bookings and backlog in the Offshore Manufactured Products segment.

Next Steps

• Continue to build upon the differentiated portfolio of products and services.
• Focus on growing backlog.
• Focus on expanding margins.
• Focus on improving cash generation for stockholders.

Key Dates

Recommendation

The company shows sequential improvement and a strong backlog, indicating positive momentum. However, year-over-year declines and the inherent cyclicality and risks in the oil and gas industry warrant a cautious 'hold' rating until sustained growth is demonstrated.

Keywords

Oilfield Services, Energy Equipment, Manufactured Products, Downhole Technologies, Offshore, Production Services, Backlog, EBITDA