Oil States Announces First Quarter 2026 Results

View all news 05/05/2026 Consolidated revenues of $145 million Net income of $1 million, or $0.02 per share Adjusted net income totaled $5 million, or $0.09 per share, excluding restructuring and asset impairment charges (a non-GAAP measure(1)) Adjusted EBITDA (a non-GAAP measure(1)) of $17 million Cash on-hand exceeded outstanding debt by $4 million at quarter-end Entered into an amended and restated cash-flow based credit agreement in January 2026 providing for borrowings of up to: $75 million under a revolving credit facility and $50 million under a multi-draw term loan facility Retired remaining $53 million principal amount of our convertible senior notes on April 1 with a combination of cash on-hand, borrowings under the revolving credit facility and the issuance of common stock Received two 2026 Spotlight on New Technology® awards from the SPE Offshore Technology Conference for our GeoLok™ Geothermal Wellhead and MPD Drill Ahead Tool Oil States International, Inc. (NYSE: OIS): Three Months Ended % Change (Unaudited, In Thousands, Except Per Share Amounts) March 31, 2026 December 31, 2025 March 31, 2025 Sequential Year-over-Year Consolidated results: Revenues $ 145,363 $ 178,464 $ 159,938 (19 )% (9 )% Operating income (loss)(2) 4,278 (113,635 ) 5,639 n.m. (24 )% Adjusted operating income, excluding charges(1) 8,350 10,973 6,569 (24 )% 27 % Net income (loss) 1,108 (117,246 ) 3,158 n.m. (65 )% Adjusted net income, excluding charges(1) 5,180 7,549 3,892 (31 )% 33 % Adjusted EBITDA(1) 16,687 22,771 18,732 (27 )% (11 )% Revenues by segment: Offshore Manufactured Products $ 91,419 $ 123,284 $ 92,596 (26 )% (1 )% Completion and Production Services 21,498 23,080 34,519 (7 )% (38 )% Downhole Technologies 32,446 32,100 32,823 1 % (1 )% Revenues by destination: Offshore and international $ 104,674 $ 136,526 $ 106,237 (23 )% (1 )% U.S. land 40,689 41,938 53,701 (3 )% (24 )% Operating income (loss) by segment(2): Offshore Manufactured Products $ 14,412 $ 20,296 $ 14,276 (29 )% 1 % Completion and Production Services 3,490 (2,313 ) 3,503 n.m. — % Downhole Technologies (445 ) (113,544 ) (2,124 ) 100 % 79 % Corporate (13,179 ) (18,074 ) (10,016 ) 27 % (32 )% Adjusted Segment EBITDA(1): Offshore Manufactured Products $ 18,523 $ 25,043 $ 17,926 (26 )% 3 % Completion and Production Services 6,136 7,354 8,801 (17 )% (30 )% Downhole Technologies 1,094 1,273 1,905 (14 )% (43 )% Corporate (9,066 ) (10,899 ) (9,900 ) 17 % 8 % ___________________ (1) These are non-GAAP measures. See “Reconciliations of GAAP to Non-GAAP Financial Information” tables below for reconciliations to their most comparable GAAP measures as well as further clarification and explanation. (2) Operating income (loss) for the three months ended March 31, 2026, December 31, 2025 and March 31, 2025 included asset impairment and restructuring charges totaling $4.1 million, $124.6 million and $0.9 million, respectively. See “Reconciliation of GAAP to Non-GAAP Financial Information” below for additional information. Oil States International, Inc. reported net income of $1.1 million, or $0.02 per share, and Adjusted EBITDA of $16.7 million for the first quarter of 2026 on revenues of $145.4 million. The first quarter 2026 net income included charges of $4.1 million ($4.1 million after-tax or $0.07 per share) associated with the continued exit of certain U.S. land-based operations and asset impairments. These results compare to revenues of $178.5 million, net loss of $117.2 million, or $2.04 per share, and Adjusted EBITDA of $22.8 million reported in the fourth quarter of 2025, which included charges of $124.9 million ($124.8 million after-tax or $2.17 per share) associated with asset impairments and U.S. land-based exit charges. Oil States’ President and Chief Executive Officer, Lloyd Hajdik, stated: “During the first quarter, our results were tempered by heightened geopolitical conflict and ongoing uncertainty in the Middle East, which contributed to contract award delays, reduced revenue and increased costs. Transitory project deferrals also impacted reported results in the quarter. While these factors weighed on near‑term activity, we remained focused on cost control, monetization of exited facilities and equipment and supporting our customers’ critical programs. We strengthened our balance sheet by reducing debt in early April, which enhances our financial flexibility. With a strong liquidity position and a more resilient capital structure, we believe Oil States is well positioned to navigate ongoing near-term volatility and longer-term structural changes.” Business Segment Results (See Segment Data and Adjusted Segment EBITDA tables below) Offshore Manufactured Products Offshore Manufactured Products reported revenues of $91.4 million, operating income of $14.4 million and Adjusted Segment EBITDA of $18.5 million in the first quarter of 2026, compared to revenues of $123.3 million, operating income of $20.3 million and Adjusted Segment EBITDA of $25.0 million reported in the fourth quarter of 2025. Adjusted Segment EBITDA margin was 20% in both the first quarter of 2026 and the fourth quarter of 2025. Backlog totaled $430 million as of March 31, 2026. First quarter bookings totaled $84 million, yielding a quarterly book-to-bill ratio of 0.9x. Completion and Production Services Our Completion and Production Services segment reported revenues of $21.5 million, operating income of $3.5 million and Adjusted Segment EBITDA of $6.1 million in the first quarter of 2026, compared to revenues of $23.1 million, operating loss of $2.3 million and Adjusted Segment EBITDA of $7.4 million reported in the fourth quarter of 2025. Adjusted Segment EBITDA margin was 29% in the first quarter of 2026, compared to 32% in the fourth quarter of 2025. The fourth quarter of 2025 included facility and equipment sale gains of $2.2 million. In 2024, the segment began implementing actions in its U.S. land-based businesses to exit certain commoditized offerings and reduce future costs, which continued into the first quarter of 2026 with the decision to exit an additional U.S. land-based service line. The related assets were reclassified to assets held for sale within Corporate as of March 31. During the fourth quarter of 2025, the segment recorded U.S. facility exit, severance and other charges totaling $5.0 million. Downhole Technologies Downhole Technologies reported revenues of $32.4 million, an operating loss of $0.4 million and Adjusted Segment EBITDA of $1.1 million in the first quarter of 2026, compared to revenues of $32.1 million, an operating loss of $113.5 million and Adjusted Segment EBITDA of $1.3 million in the fourth quarter of 2025. Planned profitability improvements have been delayed by higher raw material and shipping costs. During the fourth quarter of 2025, the Downhole Technologies segment recorded non-cash long-lived asset and inventory impairment charges totaling $111.8 million. Corporate Corporate operating expenses in the first quarter of 2026 totaled $13.2 million. In the first quarter of 2026 and the fourth quarter of 2025, asset impairment and restructuring charges of $3.9 million and $7.1 million, respectively, were recognized related to assets held for sale. Assets held for sale totaled $17.2 million at March 31, 2026. Interest Expense, Net Net interest expense totaled $1.2 million in the first quarter of 2026, which included $0.8 million of non-cash amortization of deferred debt issuance costs. Income Taxes During the first quarter of 2026, the Company recognized income tax expense of $2.1 million, which included the impact of valuation allowances recorded against deferred tax assets, certain discrete tax items and other non-deductible expenses, on pre-tax income of $3.3 million. The income tax benefit of approximately $0.9 million associated with the $4.1 million of restructuring, asset impairment and other charges recognized in the quarter was substantially offset by the impact of valuation allowances recorded on the deferred tax assets generated by these expenses. Cash Flows During the first quarter of 2026, the Company used $1.9 million of cash flows from operations largely to fund net working capital increases of $13.3 million. A net $3.4 million was used to fund capital expenditures. Financial Condition On January 28, 2026, the Company entered into an amended and restated cash-flow based credit agreement (the “Cash Flow Credit Agreement”) providing for aggregate lender commitments of up to: $75.0 million under revolving credit facility and $50.0 million under a multi-draw term loan facility, which is available through July 28, 2026. The Cash Flow Credit Agreement replaced the ABL Agreement and matures in January 2030. Cash on-hand totaled $59.0 million at March 31, 2026, exceeding outstanding debt by $4.0 million. As of March 31, 2026, the Company had no borrowings outstanding under the Cash Flow Credit Agreement and $12.7 million of outstanding letters of credit, leaving $112.3 million available to be drawn. On April 1, 2026, the Company retired the remaining $52.7 million principal amount of its 4.75% convertible senior notes outstanding (the “Convertible Notes”), with a combination of: $25.5 million of cash on-hand; borrowings of $25.0 million under the revolving credit facility; and the issuance of 529,428 shares of the Company’s common stock (with a fair value of $5.9 million). The Company will recognize a $3.6 million loss on the extinguishment of the Convertible Notes due to their settlement at a premium in the second quarter of 2026. 2026 Technology Awards Demonstrating Oil States’ constant commitment to advance the production of affordable and reliable energy, for a sixth consecutive year, the Company was honored by the SPE Offshore Technology Conference in March 2026 as a recipient of the Spotlight on New Technology® Award for its GeoLok™ Geothermal Wellhead and Drill Ahead Tool. GeoLok™ Geothermal Wellhead – Oil States recently introduced its GeoLok™ geothermal wellhead, which leverages field-proven oil and gas technology to solve the inherent challenges encountered in conventional high-temperature geothermal applications. The GeoLok wellhead, which incorporates an integrated tensioning system, is designed to improve geothermal well integrity, reduce casing, cementing and maintenance costs, and enhance geothermal energy production. The system maintains an open annulus to allow for constant monitoring and rate of change alarms to continuously communicate well health, enabling crews to initiate immediate shutdowns and intervention if necessary. The GeoLok wellhead also incorporates technology to detect corrosion, providing improved protection for shallow aquifers. This new technology provides geothermal operators with the opportunity to improve thermal and operational performance, while managing wellhead fatigue.MPD Drill Ahead Tool – Oil States has developed and commercially deployed a complementary MPD Drill Ahead Tool, which allows for the installation of the packers in the Company’s Managed Pressure Drilling (MPD) riser joint without the time and cost intensive removal and re-installation of the drill string. Prior to these proprietary innovations, packer assemblies in all managed pressure drilling systems were deployed using a dedicated running tool – which can result in significant non-productive time to retrieve and re-deploy the drill string on a deepwater vessel. Conference Call Information The call is scheduled for May 5, 2026 at 9:00 a.m. Central Daylight Time, is being webcast and can be accessed from the Company’s website at www.ir.oilstatesintl.com. Participants may also join the conference call by dialing 1 (585) 542-9983 in the United States or by dialing +1 (833) 461-5787 internationally and using the passcode 196865172. A replay of the conference call will be available approximately two hours after the completion of the call and can be accessed from the Company’s website at www.ir.oilstatesintl.com. About Oil States Oil States International, Inc. is a global provider of manufactured products and services to customers in the energy, military and industrial sectors. The Company’s manufactured products include highly engineered capital equipment and consumable products. Oil States is headquartered in Houston, Texas with manufacturing and service facilities strategically located across the globe. Oil States is publicly traded on the New York Stock Exchange and NYSE Texas under the symbol “OIS”. For more information on the Company, please visit Oil States International’s website at www.oilstatesintl.com. Cautionary Language Concerning Forward Looking Statements The foregoing contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements are those that do not state historical facts and are, therefore, inherently subject to risks and uncertainties. The forward-looking statements included herein are based on current expectations and entail various risks and uncertainties that could cause actual results to differ materially from those forward-looking statements. Such risks and uncertainties include, among others, 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, the actions of the Organization of Petroleum Exporting Countries (“OPEC”) and other producing nations (together with OPEC, “OPEC+”) with respect to crude oil production levels and pricing, supply chain disruptions, including as a result of natural disasters, industrial accidents, additional trade restrictions or the adoption of or increase in tariffs, or the threat thereof, the impact of environmental matters, including executive actions and regulatory efforts to adopt environmental or climate change regulations that may result in increased operating costs or reduced oil and natural gas production or demand globally, consolidation of our customers, our ability to access and the cost of capital in the bank and capital markets, our ability to develop new competitive technologies and products, and other factors discussed in the “Business” and “Risk Factors” sections of the Company’s Annual Report on Form 10-K, as amended by its Annual Report on Form 10-K/A, for the year ended December 31, 2025. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date hereof, and, except as required by law, the Company undertakes no obligation to update those statements or to publicly announce the results of any revisions to any of those statements to reflect future events or developments. OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (In Thousands, Except Per Share Amounts) (Unaudited) Three Months Ended March 31, 2026 December 31, 2025 March 31, 2025 Revenues: Products $ 92,580 $ 122,012 $ 100,551 Services 52,783 56,452 59,387 145,363 178,464 159,938 Costs and expenses: Product costs(1) 74,367 117,571 80,329 Service costs 37,222 41,500 42,348 Cost of revenues (exclusive of depreciation and amortization expense presented below)(1) 111,589 159,071 122,677 Selling, general and administrative expense 20,024 24,158 22,530 Depreciation and amortization expense 8,189 11,388 12,025 Long-lived and other asset impairments 1,384 98,963 — Other operating income, net (101 ) (1,481 ) (2,933 ) 141,085 292,099 154,299 Operating income (loss) 4,278 (113,635 ) 5,639 Interest expense, net (1,175 ) (809 ) (1,578 ) Other income, net 148 155 138 Income (loss) before income taxes 3,251 (114,289 ) 4,199 Income tax provision(2) (2,143 ) (2,957 ) (1,041 ) Net income (loss) $ 1,108 $ (117,246 ) $ 3,158 Net income (loss) per share: Basic $ 0.02 $ (2.04 ) $ 0.05 Diluted 0.02 (2.04 ) 0.05 Weighted average number of common shares outstanding: Basic 57,785 57,520 60,167 Diluted 58,439 57,520 60,167 ________________ (1) Cost of revenues (exclusive of depreciation and amortization expense) for the three months ended December 31, 2025 included a non-cash inventory impairment charge of $20.8 million (in product costs). (2) Income tax provision for the three months ended March 31, 2026 included a benefit of approximately $0.9 million associated with the $4.1 million of restructuring, asset impairment and other charges recognized in the first quarter of 2026, which was substantially offset by the impact of valuation allowances recorded on the deferred tax assets generated by these expenses. Income tax provision for the three months ended December 31, 2025 included a benefit of approximately $26.2 million associated with the $124.9 million of asset impairment, restructuring and other charges recognized in the fourth quarter of 2025, which was substantially offset by the impact of valuation allowances recorded on the deferred tax assets generated by these expenses. OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In Thousands) March 31, 2026 December 31, 2025 (Unaudited) ASSETS Current assets: Cash and cash equivalents $ 58,989 $ 69,914 Accounts receivable, net 187,215 202,445 Inventories, net 195,670 183,409 Assets held for sale 17,176 17,350 Prepaid expenses and other current assets 21,223 22,173 Total current assets 480,273 495,291 Property, plant, and equipment, net 238,685 244,382 Operating lease assets, net 13,463 12,731 Goodwill, net 70,268 70,524 Other intangible assets, net 29,994 31,455 Other noncurrent assets 29,473 29,048 Total assets $ 862,156 $ 883,431 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Current portion of long-term debt $ 53,416 $ 53,370 Accounts payable 64,322 68,090 Accrued liabilities 30,102 38,480 Current operating lease liabilities 5,914 7,286 Income taxes payable 1,578 1,759 Deferred revenue 92,759 97,195 Total current liabilities 248,091 266,180 Long-term debt 1,529 1,670 Long-term operating lease liabilities 12,717 12,654 Deferred income taxes 5,498 5,765 Other noncurrent liabilities 23,365 23,971 Total liabilities 291,200 310,240 Stockholders’ equity: Common stock 815 805 Additional paid-in capital 1,147,459 1,145,642 Retained earnings 165,391 164,283 Accumulated other comprehensive loss (67,482 ) (66,264 ) Treasury stock (675,227 ) (671,275 ) Total stockholders’ equity 570,956 573,191 Total liabilities and stockholders’ equity $ 862,156 $ 883,431 OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (In Thousands) (Unaudited) Three Months Ended March 31, 2026 2025 Cash flows from operating activities: Net income $ 1,108 $ 3,158 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Depreciation and amortization expense 8,189 12,025 Impairment of assets held for sale 1,384 — Stock-based compensation expense 1,827 1,838 Amortization of deferred financing costs 758 332 Deferred income tax provision (benefit) (58 ) 175 Gains on disposals of assets (344 ) (2,189 ) Other, net (1,461 ) (442 ) Changes in operating assets and liabilities: Accounts receivable 14,549 12,382 Inventories (12,852 ) 237 Accounts payable and accrued liabilities (12,175 ) (11,497 ) Deferred revenue (4,436 ) (1,491 ) Other operating assets and liabilities, net 1,626 (5,233 ) Net cash flows provided by (used in) operating activities (1,885 ) 9,295 Cash flows from investing activities: Capital expenditures (4,227 ) (9,158 ) Proceeds from disposition of property and equipment 396 1,685 Proceeds from disposition of assets held for sale 473 7,500 Other, net (10 ) (34 ) Net cash flows used in investing activities (3,368 ) (7 ) Cash flows from financing activities: Revolving credit facility borrowings 83 170 Revolving credit facility repayments (83 ) (170 ) Other debt and finance lease repayments, net (179 ) (171 ) Payment of financing costs (1,918 ) (6 ) Purchases of treasury stock — (5,346 ) Shares added to treasury stock as a result of net share settlements due to vesting of stock awards (3,952 ) (2,432 ) Net cash flows used in financing activities (6,049 ) (7,955 ) Effect of exchange rate changes on cash and cash equivalents 377 132 Net change in cash and cash equivalents (10,925 ) 1,465 Cash and cash equivalents, beginning of period 69,914 65,363 Cash and cash equivalents, end of period $ 58,989 $ 66,828 Cash paid for: Interest $ 283 $ 307 Income taxes, net 1,776 708 OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES SEGMENT DATA (In Thousands) (Unaudited) Three Months Ended March 31, 2026 December 31, 2025 March 31, 2025 Revenues: Offshore Manufactured Products Project-driven: Products $ 51,887 $ 79,782 $ 59,124 Services 30,710 32,848 24,424 82,597 112,630 83,548 Military and other products 8,822 10,654 9,048 Total Offshore Manufactured Products 91,419 123,284 92,596 Completion and Production Services 21,498 23,080 34,519 Downhole Technologies 32,446 32,100 32,823 Total revenues $ 145,363 $ 178,464 $ 159,938 Operating income (loss): Offshore Manufactured Products $ 14,412 $ 20,296 $ 14,276 Completion and Production Services 3,490 (2,313 ) 3,503 Downhole Technologies (445 ) (113,544 ) (2,124 ) Corporate (13,179 ) (18,074 ) (10,016 ) Total operating income (loss) $ 4,278 $ (113,635 ) $ 5,639 Adjusted operating income (loss)(1): Offshore Manufactured Products $ 14,604 $ 21,056 $ 14,276 Completion and Production Services 3,490 2,678 4,433 Downhole Technologies (445 ) (1,762 ) (2,124 ) Corporate (9,299 ) (10,999 ) (10,016 ) Total adjusted operating income (loss) $ 8,350 $ 10,973 $ 6,569 ________________ (1) These are non-GAAP measures. See “Reconciliations of GAAP to Non-GAAP Financial Information” tables below for reconciliations to their most comparable GAAP measures as well as for further detail of charges excluded from adjusted operating income (loss) in each of the periods presented. OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL INFORMATION ADJUSTED OPERATING INCOME, EXCLUDING CHARGES (A) (In Thousands) (Unaudited) Three Months Ended March 31, 2026 December 31, 2025 March 31, 2025 Operating income (loss) $ 4,278 $ (113,635 ) $ 5,639 Impairments of: Intangible assets — 80,248 — Fixed and lease assets — 11,640 — Assets held for sale 1,384 7,075 — Inventories — 20,798 — Facility consolidation/closure and other charges 2,688 4,847 930 Adjusted operating income $ 8,350 $ 10,973 $ 6,569 ________________ (A) Adjusted operating income, excluding charges consists of operating income (loss) plus impairments of assets and facility consolidation/closure and other charges. Adjusted operating income, excluding charges is not a measure of financial performance under GAAP and should not be considered in isolation from or as a substitute for operating income (loss) as prepared in accordance with GAAP. The Company has included adjusted operating income, excluding charges as a supplemental disclosure because its management believes that adjusted operating income, excluding charges provides investors a helpful measure for comparing its operating performance with previous and subsequent periods. OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL INFORMATION ADJUSTED SEGMENT OPERATING INCOME (LOSS), EXCLUDING CHARGES (B) (In Thousands) (Unaudited) Three Months Ended March 31, 2026 December 31, 2025 March 31, 2025 Offshore Manufactured Products: Operating income $ 14,412 $ 20,296 $ 14,276 Facility consolidation/closure and other charges 192 760 — Adjusted Segment Operating Income $ 14,604 $ 21,056 $ 14,276 Completion and Production Services: Operating income (loss) $ 3,490 $ (2,313 ) $ 3,503 Impairments of: Impairments of fixed and lease assets — 904 — Facility consolidation/closure and other charges — 4,087 930 Adjusted Segment Operating Income $ 3,490 $ 2,678 $ 4,433 Downhole Technologies: Operating loss $ (445 ) $ (113,544 ) $ (2,124 ) Impairments of: Intangible assets — 80,248 — Fixed and lease assets — 10,736 — Inventories — 20,798 — Adjusted Segment Operating Loss $ (445 ) $ (1,762 ) $ (2,124 ) Corporate: Operating loss $ (13,179 ) $ (18,074 ) $ (10,016 ) Impairments of assets held for sale 1,384 7,075 — Facility consolidation/closure and other charges 2,496 — — Adjusted Segment Operating Loss $ (9,299 ) $ (10,999 ) $ (10,016 ) ________________ (B) Adjusted Segment Operating Income (Loss), excluding charges consists of operating income (loss) plus impairments of assets and facility consolidation/closure and other charges. Adjusted Segment Operating Income (Loss), excluding charges is not a measure of financial performance under GAAP and should not be considered in isolation from or as a substitute for segment operating income (loss) as prepared in accordance with GAAP. The Company has included Adjusted Segment Operating Income (Loss), excluding charges as a supplemental disclosure because its management believes that Adjusted Segment Operating Income (Loss), excluding charges provides investors a helpful measure for comparing its operating performance with previous and subsequent periods. OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL INFORMATION ADJUSTED EBITDA (C) (In Thousands) (Unaudited) Three Months Ended March 31, 2026 December 31, 2025 March 31, 2025 Net income (loss) $ 1,108 $ (117,246 ) $ 3,158 Interest expense, net 1,175 809 1,578 Income tax provision 2,143 2,957 1,041 Depreciation and amortization expense 8,189 11,388 12,025 Impairments of: Intangible assets — 80,248 — Fixed and lease assets — 11,640 — Assets held for sale 1,384 7,075 — Inventories — 20,798 — Facility consolidation/closure and other charges 2,688 4,847 930 Losses on extinguishment of 4.75% convertible senior notes — 255 — Adjusted EBITDA $ 16,687 $ 22,771 $ 18,732 ________________ (C) The term Adjusted EBITDA consists of net income (loss) plus net interest expense, taxes, depreciation and amortization expense, impairments of assets, facility consolidation/closure and other charges and losses on extinguishment of Convertible Notes. Adjusted EBITDA is not a measure of financial performance under generally accepted accounting principles (“GAAP”) and should not be considered in isolation from or as a substitute for net income (loss) or cash flow measures prepared in accordance with GAAP or as a measure of profitability or liquidity. Additionally, Adjusted EBITDA may not be comparable to other similarly titled measures of other companies. The Company has included Adjusted EBITDA as a supplemental disclosure because its management believes that Adjusted EBITDA provides useful information regarding its ability to service debt and to fund capital expenditures and provides investors a helpful measure for comparing its operating performance with the performance of other companies that have different financing and capital structures or tax rates. The Company uses Adjusted EBITDA to compare and to monitor the performance of the Company and its business segments to other comparable public companies and as a benchmark for the award of incentive compensation under its annual incentive compensation plan. The table above sets forth reconciliations of Adjusted EBITDA to net income (loss), which is the most directly comparable measure of financial performance calculated under GAAP. OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL INFORMATION ADJUSTED SEGMENT EBITDA (D) (In Thousands) (Unaudited) Three Months Ended March 31, 2026 December 31, 2025 March 31, 2025 Offshore Manufactured Products: Operating income $ 14,412 $ 20,296 $ 14,276 Other income (expense), net (21 ) 46 42 Depreciation and amortization expense 3,940 3,941 3,608 Facility consolidation/closure and other charges 192 760 — Adjusted Segment EBITDA $ 18,523 $ 25,043 $ 17,926 Completion and Production Services: Operating income (loss) $ 3,490 $ (2,313 ) $ 3,503 Other income, net 129 364 96 Depreciation and amortization expense 2,517 4,312 4,272 Impairments of fixed and lease assets — 904 — Facility consolidation/closure and other charges — 4,087 930 Adjusted Segment EBITDA $ 6,136 $ 7,354 $ 8,801 Downhole Technologies: Operating loss $ (445 ) $ (113,544 ) $ (2,124 ) Depreciation and amortization expense 1,539 3,035 4,029 Impairments of: Intangible assets — 80,248 — Fixed and lease assets — 10,736 — Inventories — 20,798 — Adjusted Segment EBITDA $ 1,094 $ 1,273 $ 1,905 Corporate: Operating loss $ (13,179 ) $ (18,074 ) $ (10,016 ) Other income (expense), net 40 (255 ) — Depreciation and amortization expense 193 100 116 Impairments of assets held for sale 1,384 7,075 — Facility consolidation/closure and other charges 2,496 — — Losses on extinguishment of 4.75% convertible senior notes — 255 — Adjusted Segment EBITDA $ (9,066 ) $ (10,899 ) $ (9,900 ) ________________ (D) The term Adjusted Segment EBITDA consists of operating income (loss) plus other income (expense), depreciation and amortization expense, impairments of assets and facility consolidation/closure and other charges and losses on extinguishment of Convertible Notes. Adjusted Segment EBITDA is not a measure of financial performance under GAAP and should not be considered in isolation from or as a substitute for operating income (loss) or cash flow measures prepared in accordance with GAAP or as a measure of profitability or liquidity. Additionally, Adjusted Segment EBITDA may not be comparable to other similarly titled measures of other companies. The Company has included Adjusted Segment EBITDA as supplemental disclosure because its management believes that Adjusted Segment EBITDA provides useful information regarding its ability to service debt and to fund capital expenditures and provides investors a helpful measure for comparing its operating performance with the performance of other companies that have different financing and capital structures or tax rates. The Company uses Adjusted Segment EBITDA to compare and to monitor the performance of its business segments to other comparable public companies and as a benchmark for the award of incentive compensation under its annual incentive compensation plan. The table above sets forth reconciliations of Adjusted Segment EBITDA to operating income (loss), which is the most directly comparable measure of financial performance calculated under GAAP. OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL INFORMATION ADJUSTED NET INCOME (LOSS), EXCLUDING CHARGES (E) AND ADJUSTED NET INCOME (LOSS) PER SHARE, EXCLUDING CHARGES (F) (In Thousands, Except Per Share Amounts) (Unaudited) Three Months Ended March 31, 2026 December 31, 2025 March 31, 2025 Net income (loss) $ 1,108 $ (117,246 ) $ 3,158 Impairment of: Intangible assets — 80,248 — Fixed and lease assets — 11,640 — Assets held for sale 1,384 7,075 — Inventories — 20,798 — Facility consolidation/closure and other charges 2,688 4,847 930 Losses on extinguishment of 4.75% convertible senior notes — 255 — Total adjustments, before taxes 4,072 124,863 930 Income tax benefit impact of adjustments, net — (68 ) (196 ) Total adjustments, net of taxes 4,072 124,795 734 Adjusted net income, excluding charges $ 5,180 $ 7,549 $ 3,892 Adjusted weighted average number of common shares outstanding (G): Basic 57,785 57,520 60,167 Diluted 58,439 57,740 60,167 Adjusted net income per share, excluding charges and credits: Basic $ 0.09 $ 0.13 $ 0.06 Diluted $ 0.09 $ 0.13 $ 0.06 ________________ (E) Adjusted net income, excluding charges consists of net income (loss) plus impairments of assets and facility consolidation/closure and other charges and losses on extinguishment of Convertible Notes and the impact of these adjustments on income tax provision (benefit). Adjusted net income, excluding charges is not a measure of financial performance under GAAP and should not be considered in isolation from or as a substitute for net income (loss) as prepared in accordance with GAAP. The Company has included adjusted net income, excluding charges as a supplemental disclosure because its management believes that adjusted net income, excluding charges provides investors a helpful measure for comparing its operating performance with previous and subsequent periods. (F) Adjusted net income per share, excluding charges is calculated as adjusted net income, excluding charges divided by the weighted average number of common shares outstanding. Adjusted net income per share, excluding charges is not a measure of financial performance under GAAP and should not be considered in isolation from or as a substitute for net income (loss) per share as prepared in accordance with GAAP. The Company has included adjusted net income per share, excluding charges as a supplemental disclosure because its management believes that adjusted net income per share, excluding charges provides investors a helpful measure for comparing its operating performance with previous and subsequent periods. (G) The calculation of adjusted weighted average number of common shares outstanding for the three months ended December 31, 2025 included 220 thousand shares issuable pursuant to outstanding stock awards. OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL INFORMATION FREE CASH FLOW (G) (In Thousands) (Unaudited) Three Months Ended March 31, 2026 December 31, 2025 March 31, 2025 Net cash flows provided by (used in) operating activities $ (1,885 ) $ 50,148 $ 9,295 Less: Capital expenditures (4,227 ) (3,005 ) (9,158 ) Plus: Proceeds from disposition of property and equipment 396 6,420 1,685 Proceeds from disposition of assets held for sale 473 — 7,500 Free cash flow $ (5,243 ) $ 53,563 $ 9,322 ________________ (H) The term free cash flow consists of net cash flows provided by (used in) operating activities less capital expenditures plus proceeds from the disposition of property and equipment and assets held for sale. Free cash flow is not a measure of financial performance under GAAP and should not be considered in isolation from or as a substitute for cash flow measures prepared in accordance with GAAP. The table above sets forth reconciliations of free cash flow to net cash flows provided by (used in) operating activities, which is the most directly comparable measure of financial performance calculated under GAAP. Matthew Autenrieth Oil States International, Inc. Executive Vice President, Chief Financial Officer and Treasurer (713) 652-0582 Source: Oil States International, Inc. Multimedia Files: View all news