Oil States International, Inc.

What they do

Oil States makes and services engineered products for offshore and international oil and gas operations, provides completion and production services, and manufactures downhole tools. Offshore Manufactured Products supplies project-driven products and services plus military and other products. Completion and Production Services and Downhole Technologies serve primarily onshore activity. The company reports revenue split by destination, with $111.6 million offshore and international and $45.1 million from U.S. land in Q2 2026.

Revenue drivers

• Offshore Manufactured Products — Largest segment at $92.7 million in Q2 2026 (59% of total revenue), comprising $52.0 million of project-driven products, $32.4 million of project-driven services, and $8.4 million of military and other products.
• Downhole Technologies — Second-largest segment at $39.7 million in Q2 2026, up 35% year-over-year, which the company said was its highest revenue level since the second quarter of 2023.
• Completion and Production Services — Smallest segment at $24.3 million in Q2 2026, up 13% sequentially but down 18% year-over-year.

Recent performance

Q2 2026 revenue of $156.7 million rose 8% sequentially from $145.4 million but fell 5% from $165.4 million a year earlier. Operating income was $11.7 million versus $4.3 million in Q1 2026 and $5.3 million in Q2 2025. Net income was $5.9 million, or $0.10 per diluted share, and adjusted net income excluding charges and credits was $8.4 million, or $0.14 per share. Adjusted EBITDA of $19.0 million rose 14% sequentially but declined 10% year-over-year. Segment operating income was $13.9 million for Offshore Manufactured Products, $3.9 million for Completion and Production Services, and $2.7 million for Downhole Technologies, against a $8.9 million corporate loss.

Strategy

The company measures itself in three operating segments and reports bookings and backlog as a key indicator, with quarterly bookings of $114 million in Q2 2026 and total backlog of $451 million. It retired the remaining $53 million principal amount of convertible senior notes on April 1, 2026, and purchased $5 million of common stock in the quarter. It has exited service locations, recording charges of $2.2 million and $3.1 million in the 2025 periods within Completion and Production Services associated with exiting service locations. The amended 10-K was filed solely to correct a clerical error in the date of the auditor's report.

Risks

• Revenue tied to project timing — Q2 2026 revenue was tempered by the timing of certain customer awards, and quarterly revenue fell 5% year-over-year despite sequential growth.
• Offshore Manufactured Products concentration — This segment produced about 59% of Q2 2026 revenue but its operating income fell 18% year-over-year and adjusted segment EBITDA fell 15%.
• Recent annual losses — The company reported net losses of $11.3 million in 2024 and $109.4 million in 2025, with a 2025 diluted loss per share of $1.86.
• Volatile other income and expense — Other expense, net of $3.3 million in Q2 2026 versus other income of $0.6 million a year earlier reduced pre-tax income by $3.9 million year-over-year.

Outlook

Management said Q2 2026 Adjusted EBITDA was in line with expectations despite revenue timing, and pointed to backlog of $451 million as the highest level in over a decade. CEO Lloyd Hajdik said sequential improvements in Downhole Technologies and Completion and Production Services suggest the company is in the early stages of a recovery. Management cited a 1.2x quarterly book-to-bill ratio as evidence of continued backlog strength.