Oil States Announces Third Quarter 2025 Results

View all news 10/31/2025 Consolidated revenues of $165 million Net income of $2 million, or $0.03 per share Adjusted net income totaled $5 million, or $0.08 per share, excluding restructuring charges (a non-GAAP measure(1)) Adjusted EBITDA (a non-GAAP measure(1)) of $21 million Generated cash flows from operations of $31 million Purchased $6 million principal amount of convertible senior notes and $4 million of common stock Offshore Manufactured Products segment's backlog increased 10% sequentially, with quarterly bookings of $145 million yielding a book-to-bill ratio of 1.3x Oil States International, Inc. (NYSE: OIS): Three Months Ended % Change (Unaudited, In Thousands, Except Per Share Amounts) September 30, 2025 June 30, 2025 September 30, 2024 Sequential Year-over-Year Consolidated results: Revenues $ 165,180 $ 165,406 $ 174,348 — % (5 )% Operating income (loss)(2) 4,748 5,277 (11,041 ) (10 )% n.m. Net income (loss) 1,900 2,811 (14,349 ) (32 )% n.m. Adjusted net income, excluding charges and credits(1) 4,717 5,401 2,696 (13 )% 75 % Adjusted EBITDA(1) 20,804 21,089 21,531 (1 )% (3 )% Revenues by segment: Offshore Manufactured Products $ 108,627 $ 106,586 $ 102,234 2 % 6 % Completion and Production Services 27,525 29,424 40,099 (6 )% (31 )% Downhole Technologies 29,028 29,396 32,015 (1 )% (9 )% Revenues by destination: Offshore and international $ 123,356 $ 119,114 $ 113,856 4 % 8 % U.S. land 41,824 46,292 60,492 (10 )% (31 )% Operating income (loss) by segment(2): Offshore Manufactured Products $ 17,603 $ 16,989 $ 19,310 4 % (9 )% Completion and Production Services 948 1,877 (18,267 ) (49 )% n.m. Downhole Technologies (4,667 ) (3,992 ) (3,653 ) (17 )% (28 )% Corporate (9,136 ) (9,597 ) (8,431 ) 5 % (8 )% Adjusted Segment EBITDA(1): Offshore Manufactured Products $ 22,275 $ 21,105 $ 23,303 6 % (4 )% Completion and Production Services 7,953 8,254 5,413 (4 )% 47 % Downhole Technologies (689 ) 1,220 1,078 n.m. n.m. Corporate (8,735 ) (9,490 ) (8,263 ) 8 % (6 )% ___________________ (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) included charges totaling: $3.6 million for the three months ended September 30, 2025; $3.7 million for the three months ended June 30, 2025; and $18.2 million for the three months ended September 30, 2024. See “Segment Data” below for additional information. Oil States International, Inc. reported net income of $1.9 million, or $0.03 per share, and Adjusted EBITDA of $20.8 million for the third quarter of 2025 on revenues of $165.2 million. Reported third quarter 2025 net income included charges of $3.6 million ($2.8 million after-tax or $0.05 per share) associated primarily with the continued exit of certain U.S. land-based operations and facilities. These results compare to revenues of $165.4 million, net income of $2.8 million, or $0.05 per share, and Adjusted EBITDA of $21.1 million reported in the second quarter of 2025, which included charges and credits of $3.3 million ($2.6 million after-tax or $0.04 per share) associated primarily with the exit of certain U.S. land-based activities. Oil States’ President and Chief Executive Officer, Cindy B. Taylor, stated: “In the third quarter of 2025, we continued to focus on our offshore and international exposed operations while managing through headwinds in the United States created by lower commodity prices, falling U.S. activity levels and increasing costs associated with tariffs on imported goods. With our focus on capital discipline and improving investor returns, we generated cash flow from operations of $31 million, increased our Offshore Manufactured Products segment backlog by 10%, and continued to optimize our U.S. land focused operations. During the quarter, we returned $10 million to Oil States’ stakeholders – purchasing $6 million of our convertible senior notes and $4 million of our common stock.” Business Segment Results (See Segment Data and Adjusted Segment EBITDA tables below) Offshore Manufactured Products Offshore Manufactured Products reported revenues of $108.6 million, operating income of $17.6 million and Adjusted Segment EBITDA of $22.3 million in the third quarter of 2025, compared to revenues of $106.6 million, operating income of $17.0 million and Adjusted Segment EBITDA of $21.1 million reported in the second quarter of 2025. Adjusted Segment EBITDA margin was 21% in the third quarter of 2025, compared to 20% in the second quarter of 2025. Backlog totaled $399 million as of September 30, 2025, its highest level since June 2015. Third quarter bookings totaled $145 million, yielding a quarterly and year-to-date book-to-bill ratio of 1.3x. Third quarter segment bookings were augmented by long-term, military product contract awards. Completion and Production Services Our Completion and Production Services segment reported revenues of $27.5 million, operating income of $0.9 million and Adjusted Segment EBITDA of $8.0 million in the third quarter of 2025, compared to revenues of $29.4 million, operating income of $1.9 million and Adjusted Segment EBITDA of $8.3 million reported in the second quarter of 2025. Adjusted Segment EBITDA margin was 29% in the third quarter of 2025, compared to 28% in the second quarter of 2025. In 2024, the segment began implementing actions in its U.S. land-based businesses to reduce future costs, which are continuing in 2025. These management actions included: the consolidation, relocation and exit of certain U.S. land-driven service locations; the exit of certain U.S. land-driven service offerings; and reductions in the segment’s workforce in the United States. As a result, during the third and second quarters of 2025, the segment recorded U.S. facility exit and severance charges totaling $2.7 million and $1.8 million, respectively. As a result of our restructuring actions implemented over recent quarters, the segment’s Adjusted EBITDA margin expanded from 13% in the third quarter of 2024 to 29% in the third quarter of 2025. Downhole Technologies Downhole Technologies reported revenues of $29.0 million, an operating loss of $4.7 million and an Adjusted Segment EBITDA loss of $0.7 million in the third quarter of 2025, compared to revenues of $29.4 million, an operating loss of $4.0 million and Adjusted Segment EBITDA of $1.2 million in the second quarter of 2025. Corporate Corporate operating expenses in the third quarter of 2025 totaled $9.1 million, which included severance charges of $0.3 million. Interest Expense, Net Net interest expense totaled $1.8 million in the third quarter of 2025, which included $0.6 million of non-cash amortization of deferred debt issuance costs. Cash Flows During the third quarter of 2025, the Company generated $30.7 million of cash flows from operations and $23.2 million of free cash flows (a non-GAAP measure – see Note (E)). Additionally, the Company purchased $6.0 million principal amount of its 4.75% convertible senior notes (the “Convertible Notes”) at a slight discount to par and repurchased $4.1 million of its common stock. Year-to-date stock repurchases total $16.2 million, or 5%, of shares outstanding as of December 31, 2024. Financial Condition Cash on-hand totaled $67.1 million at September 30, 2025. No borrowings were outstanding under the Company’s amended asset-based revolving credit facility (the “ABL Facility”) at September 30, 2025. On July 28, 2025, the Company amended its ABL Facility to provide for: additional borrowing availability; lower interest charges; and the retirement of its remaining Convertible Notes at maturity in April 2026 using, in part, availability under the ABL Facility. Conference Call Information The call is scheduled for October 31, 2025 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 (888) 210-3346 in the United States or by dialing +1 (646) 960-0253 internationally and using the passcode 7534957. 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, industrial and military 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 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 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, geopolitical conflicts and tensions, 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 for the year ended December 31, 2024, and the subsequently filed Quarterly Reports on Form 10-Q and Periodic Reports on Form 8-K. 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 Nine Months Ended September 30, 2025 June 30, 2025 September 30, 2024 September 30, 2025 September 30, 2024 Revenues: Products $ 106,492 $ 107,342 $ 100,798 $ 314,385 $ 303,706 Services 58,688 58,064 73,550 176,139 224,287 165,180 165,406 174,348 490,524 527,993 Costs and expenses: Product costs 85,561 83,936 79,167 249,826 236,807 Service costs 43,085 41,404 57,422 126,837 173,766 Cost of revenues (exclusive of depreciation and amortization expense presented below) 128,646 125,340 136,589 376,663 410,573 Selling, general and administrative expense 20,756 22,981 22,754 66,267 71,623 Depreciation and amortization expense 12,128 11,898 13,635 36,051 42,528 Impairment of goodwill — — — — 10,000 Impairments of intangible assets — — 10,787 — 10,787 Impairments of operating lease assets — 1,358 2,579 1,358 2,579 Other operating (income) expense, net (1,098 ) (1,448 ) (955 ) (5,479 ) 76 160,432 160,129 185,389 474,860 548,166 Operating income (loss) 4,748 5,277 (11,041 ) 15,664 (20,173 ) Interest expense, net (1,773 ) (1,692 ) (1,824 ) (5,043 ) (5,986 ) Other income, net 362 636 731 1,136 1,311 Income (loss) before income taxes 3,337 4,221 (12,134 ) 11,757 (24,848 ) Income tax provision (1,437 ) (1,410 ) (2,215 ) (3,888 ) (1,574 ) Net income (loss) $ 1,900 $ 2,811 $ (14,349 ) $ 7,869 $ (26,422 ) Net income (loss) per share: Basic $ 0.03 $ 0.05 $ (0.23 ) $ 0.13 $ (0.42 ) Diluted 0.03 0.05 (0.23 ) 0.13 (0.42 ) Weighted average number of common shares outstanding: Basic 57,946 59,154 62,084 59,089 62,357 Diluted 58,016 59,154 62,084 59,144 62,357 OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In Thousands) September 30, 2025 December 31, 2024 (Unaudited) ASSETS Current assets: Cash and cash equivalents $ 67,052 $ 65,363 Accounts receivable, net 201,617 194,336 Inventories, net 222,869 214,836 Prepaid expenses and other current assets 19,656 23,691 Total current assets 511,194 498,226 Property, plant, and equipment, net 273,253 266,871 Operating lease assets, net 16,388 19,537 Goodwill, net 70,490 69,709 Other intangible assets, net 114,664 125,862 Other noncurrent assets 26,330 24,903 Total assets $ 1,012,319 $ 1,005,108 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Current portion of long-term debt $ 103,097 $ 633 Accounts payable 58,600 57,708 Accrued liabilities 37,852 36,861 Current operating lease liabilities 7,344 7,284 Income taxes payable 1,066 2,818 Deferred revenue 73,200 52,399 Total current liabilities 281,159 157,703 Long-term debt 1,890 124,654 Long-term operating lease liabilities 13,888 17,989 Deferred income taxes 6,835 5,350 Other noncurrent liabilities 19,581 18,758 Total liabilities 323,353 324,454 Stockholders’ equity: Common stock 806 786 Additional paid-in capital 1,143,685 1,137,949 Retained earnings 281,529 273,660 Accumulated other comprehensive loss (66,201 ) (79,532 ) Treasury stock (670,853 ) (652,209 ) Total stockholders’ equity 688,966 680,654 Total liabilities and stockholders’ equity $ 1,012,319 $ 1,005,108 OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (In Thousands) (Unaudited) Nine Months Ended September 30, 2025 2024 Cash flows from operating activities: Net income (loss) $ 7,869 $ (26,422 ) Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation and amortization expense 36,051 42,528 Impairment of goodwill — 10,000 Impairments of intangible assets — 10,787 Impairments of operating lease assets 1,358 2,579 Stock-based compensation expense 5,756 6,408 Amortization of deferred financing costs 1,235 1,168 Deferred income tax provision (benefit) 852 (2,798 ) Gains on disposals of assets (5,455 ) (2,956 ) Net gains on extinguishment of 4.75% convertible senior notes (375 ) (515 ) Other, net (2,192 ) 83 Changes in operating assets and liabilities: Accounts receivable (3,417 ) 21,173 Inventories (5,287 ) (18,406 ) Accounts payable and accrued liabilities 2,692 (17,554 ) Deferred revenue 20,801 (2,015 ) Other operating assets and liabilities, net (4,913 ) 3,624 Net cash flows provided by operating activities 54,975 27,684 Cash flows from investing activities: Capital expenditures (28,186 ) (23,309 ) Proceeds from disposition of property and equipment 5,416 5,132 Proceeds from disposition of assets held for sale 8,409 10,279 Other, net (99 ) (431 ) Net cash flows used in investing activities (14,460 ) (8,329 ) Cash flows from financing activities: Revolving credit facility borrowings 512 22,678 Revolving credit facility repayments (512 ) (22,678 ) Purchases of 4.75% convertible senior notes (20,269 ) (10,846 ) Other debt and finance lease repayments, net (283 ) (481 ) Payment of financing costs (188 ) (1,119 ) Purchases of treasury stock (16,186 ) (5,149 ) Shares added to treasury stock as a result of net share settlements due to vesting of stock awards (2,458 ) (2,596 ) Net cash flows used in financing activities (39,384 ) (20,191 ) Effect of exchange rate changes on cash and cash equivalents 558 (291 ) Net change in cash and cash equivalents 1,689 (1,127 ) Cash and cash equivalents, beginning of period 65,363 47,111 Cash and cash equivalents, end of period $ 67,052 $ 45,984 Cash paid for: Interest $ 4,033 $ 4,206 Income taxes, net 4,648 2,695 OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES SEGMENT DATA (In Thousands) (Unaudited) Three Months Ended Nine Months Ended September 30, 2025 June 30, 2025 September 30, 2024 September 30, 2025 September 30, 2024 Revenues: Offshore Manufactured Products Project-driven: Products $ 67,729 $ 68,653 $ 58,164 $ 195,506 $ 171,053 Services 30,172 27,907 32,754 82,503 89,011 97,901 96,560 90,918 278,009 260,064 Military and other products 10,726 10,026 11,316 29,800 30,583 Total Offshore Manufactured Products 108,627 106,586 102,234 307,809 290,647 Completion and Production Services 27,525 29,424 40,099 91,468 133,812 Downhole Technologies 29,028 29,396 32,015 91,247 103,534 Total revenues $ 165,180 $ 165,406 $ 174,348 $ 490,524 $ 527,993 Operating income (loss): Offshore Manufactured Products(1) $ 17,603 $ 16,989 $ 19,310 $ 48,868 $ 44,270 Completion and Production Services(2) 948 1,877 (18,267 ) 6,328 (19,221 ) Downhole Technologies(3) (4,667 ) (3,992 ) (3,653 ) (10,783 ) (16,873 ) Corporate(4) (9,136 ) (9,597 ) (8,431 ) (28,749 ) (28,349 ) Total operating income (loss) $ 4,748 $ 5,277 $ (11,041 ) $ 15,664 $ (20,173 ) ________________ (1) Operating income for the three months ended September 30, 2025, June 30, 2025 and September 30, 2024, and nine months ended September 30, 2025 and September 30, 2024 included charges of $0.6 million, $0.3 million, $0.4 million, $0.8 million and $3.4 million associated with the consolidation and relocation of certain manufacturing and service facilities and other cost reduction measures. (2) Operating income (loss) for the three months ended September 30, 2025, June 30, 2025 and September 30, 2024, and nine months ended September 30, 2025 and September 30, 2024, included $2.7 million, $2.2 million, $15.9 million, $5.8 million and $18.5 million, respectively, in costs associated with the consolidation and exit of certain underperforming service offerings and locations. Additionally, during the three and nine months ended September 30, 2024, the segment incurred $1.3 million and $2.7 million, respectively, of costs associated with the defense of certain patents related to proprietary technologies. (3) Operating loss for the three months ended June 30, 2025 and nine months ended September 30, 2025 included $1.2 million in charges associated primarily with the exit of a leased facility. Operating loss for the nine months ended September 30, 2024 included a non-cash goodwill impairment charge of $10.0 million, recognized in connection with the first quarter 2024 realignment of segment components. Additionally, during the three and nine months ended September 30, 2024, the segment incurred $0.6 million in costs associated primarily with the exit of an underperforming location. (4) Operating loss for the three and nine months ended September 30, 2025 included $0.3 million in severance charges. OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL INFORMATION ADJUSTED EBITDA (A) (In Thousands) (Unaudited) Three Months Ended Nine Months Ended September 30, 2025 June 30, 2025 September 30, 2024 September 30, 2025 September 30, 2024 Net income (loss) $ 1,900 $ 2,811 $ (14,349 ) $ 7,869 $ (26,422 ) Interest expense, net 1,773 1,692 1,824 5,043 5,986 Income tax provision 1,437 1,410 2,215 3,888 1,574 Depreciation and amortization expense 12,128 11,898 13,635 36,051 42,528 Impairment of goodwill — — — — 10,000 Impairments of intangible assets — — 10,787 — 10,787 Impairments of operating lease assets — 1,358 2,579 1,358 2,579 Facility consolidation/closure and other charges 3,560 2,301 4,840 6,791 11,775 Losses (gains) on extinguishment of 4.75% convertible senior notes 6 (381 ) — (375 ) (515 ) Adjusted EBITDA $ 20,804 $ 21,089 $ 21,531 $ 60,625 $ 58,292 ________________ (A) The term Adjusted EBITDA consists of net income (loss) plus net interest expense, taxes, depreciation and amortization expense, impairments of goodwill, intangible and operating lease assets, and facility consolidation/closure and other charges, less losses (gains) 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 (B) (In Thousands) (Unaudited) Three Months Ended Nine Months Ended September 30, 2025 June 30, 2025 September 30, 2024 September 30, 2025 September 30, 2024 Offshore Manufactured Products: Operating income $ 17,603 $ 16,989 $ 19,310 $ 48,868 $ 44,270 Other income, net 139 140 8 321 29 Depreciation and amortization expense 3,958 3,703 3,631 11,269 11,571 Facility consolidation/closure and other charges 575 273 354 848 3,364 Adjusted Segment EBITDA $ 22,275 $ 21,105 $ 23,303 $ 61,306 $ 59,234 Completion and Production Services: Operating income (loss) $ 948 $ 1,877 $ (18,267 ) $ 6,328 $ (19,221 ) Other income, net 229 115 723 440 767 Depreciation and amortization expense 4,089 4,083 5,749 12,444 17,875 Impairments of intangible assets — — 10,787 — 10,787 Impairments of operating lease assets — 403 2,092 403 2,092 Facility consolidation/closure and other charges 2,687 1,776 4,329 5,393 8,254 Adjusted Segment EBITDA $ 7,953 $ 8,254 $ 5,413 $ 25,008 $ 20,554 Downhole Technologies: Operating loss $ (4,667 ) $ (3,992 ) $ (3,653 ) $ (10,783 ) $ (16,873 ) Depreciation and amortization expense 3,978 4,005 4,121 12,012 12,646 Impairment of goodwill — — — — 10,000 Impairments of operating lease assets — 955 487 955 487 Facility consolidation/closure and other charges — 252 123 252 123 Adjusted Segment EBITDA $ (689 ) $ 1,220 $ 1,078 $ 2,436 $ 6,383 Corporate: Operating loss $ (9,136 ) $ (9,597 ) $ (8,431 ) $ (28,749 ) $ (28,349 ) Other income (expense), net (6 ) 381 — 375 515 Depreciation and amortization expense 103 107 134 326 436 Other charges 298 — 34 298 34 Losses (gains) on extinguishment of 4.75% convertible senior notes 6 (381 ) — (375 ) (515 ) Adjusted Segment EBITDA $ (8,735 ) $ (9,490 ) $ (8,263 ) $ (28,125 ) $ (27,879 ) ________________ (B) The term Adjusted Segment EBITDA consists of operating income (loss) plus other income (expense), depreciation and amortization expense, impairments of goodwill, intangibles and operating lease assets, and facility consolidation/closure and other charges, less losses (gains) 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 AND CREDITS (C) AND ADJUSTED NET INCOME (LOSS) PER SHARE, EXCLUDING CHARGES AND CREDITS (D) (In Thousands, Except Per Share Amounts) (Unaudited) Three Months Ended Nine Months Ended September 30, 2025 June 30, 2025 September 30, 2024 September 30, 2025 September 30, 2024 Net income (loss) $ 1,900 $ 2,811 $ (14,349 ) $ 7,869 $ (26,422 ) Impairment of goodwill — — — — 10,000 Impairments of intangible assets — — 10,787 — 10,787 Impairments of operating lease assets — 1,358 2,579 1,358 2,579 Facility consolidation/closure and other charges 3,560 2,301 4,840 6,791 11,775 Losses (gains) on extinguishment of 4.75% convertible senior notes 6 (381 ) — (375 ) (515 ) Total adjustments, before taxes 3,566 3,278 18,206 7,774 34,626 Tax benefit (749 ) (688 ) (1,161 ) (1,633 ) (2,990 ) Total adjustments, net of taxes 2,817 2,590 17,045 6,141 31,636 Adjusted net income, excluding charges and credits $ 4,717 $ 5,401 $ 2,696 $ 14,010 $ 5,214 Weighted average number of diluted common shares outstanding 58,016 59,154 62,412 59,144 62,648 Adjusted diluted net income per share, excluding charges and credits $ 0.08 $ 0.09 $ 0.04 $ 0.24 $ 0.08 ________________ (C) Adjusted net income, excluding charges and credits consists of net income (loss) plus impairments of goodwill, intangible and operating lease assets, and facility consolidation/closure and other charges, less losses (gains) on extinguishment of Convertible Notes. Adjusted net income, excluding charges and credits 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 and credits as a supplemental disclosure because its management believes that adjusted net income, excluding charges and credits provides investors a helpful measure for comparing its operating performance with previous and subsequent periods. (D) Adjusted net income per share, excluding charges and credits is calculated as adjusted net income, excluding charges and credits divided by the weighted average number of common shares outstanding. Adjusted net income per share, excluding charges and credits 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 and credits as a supplemental disclosure because its management believes that adjusted net income per share, excluding charges and credits 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 FREE CASH FLOW (E) (In Thousands) (Unaudited) Three Months Ended Nine Months Ended September 30, 2025 June 30, 2025 September 30, 2024 September 30, 2025 September 30, 2024 Net cash flows provided by (used in) operating activities $ 30,685 $ 14,995 $ 28,802 $ 54,975 $ 27,684 Less: Capital expenditures (8,706 ) (10,322 ) (7,428 ) (28,186 ) (23,309 ) Plus: Proceeds from disposition of property and equipment 1,199 2,532 2,660 5,416 5,132 Proceeds from disposition of assets held for sale — 909 — 8,409 10,279 Free cash flow $ 23,178 $ 8,114 $ 24,034 $ 40,614 $ 19,786 ________________ (E) The term free cash flow consists of net cash flows provided by 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 operating activities, which is the most directly comparable measure of financial performance calculated under GAAP. Company Contact: Lloyd A. Hajdik Oil States International, Inc. Executive Vice President, Chief Financial Officer and Treasurer (713) 652-0582 Source: Oil States International, Inc. View all news