Financial Performance - Revenues for Q1 2025 were $159,938, a decrease of 4.0% from $167,262 in Q1 2024, with product revenues increasing by 6.0% to $100,551, while service revenues decreased by 18.6% to $59,387[13]. - Net income for Q1 2025 was $3,158, compared to a net loss of $13,374 in Q1 2024, marking a significant turnaround[14]. - Operating income improved to $5,639 in Q1 2025 from a loss of $11,177 in Q1 2024, indicating better operational efficiency[13]. - Cash flows from operating activities were $9,295 in Q1 2025, a recovery from cash used of $11,360 in Q1 2024[22]. - The company reported comprehensive income of $8,697 in Q1 2025, compared to a comprehensive loss of $16,401 in Q1 2024, driven by positive currency translation adjustments[14]. - The company reported a net increase in contract assets of $7.8 million for Q1 2025, primarily due to $20.6 million in revenue recognized during the period[36]. - The company’s income tax expense for the three months ended March 31, 2025, was $1.0 million, compared to $24 thousand for the same period in 2024[58]. - The company’s capital expenditures for the three months ended March 31, 2025, amounted to $9.2 million[66]. - Consolidated total revenues for the first three months of 2025 decreased by $7.3 million, or 4%, compared to the same period in 2024, primarily due to the exit of underperforming service offerings which generated $16.8 million in revenues in Q1 2024[108]. - Net income for the first three months of 2025 was $3.2 million, or $0.05 per share, compared to a net loss of $13.4 million, or $0.21 per share, in Q1 2024, which included a non-cash goodwill impairment charge of $10.0 million[106]. Assets and Liabilities - Total assets decreased to $990,735 as of March 31, 2025, from $1,005,108 at the end of 2024, reflecting a reduction in overall asset base[17]. - As of March 31, 2025, total accounts receivable was $186.3 million, a decrease from $197 million as of December 31, 2024, with an allowance for doubtful accounts of 1%[34]. - Total long-term debt as of March 31, 2025, was $124.7 million, slightly up from $124.7 million as of December 31, 2024[41]. - The company’s deferred revenue (contract liabilities) decreased by $1.5 million to $50.9 million as of March 31, 2025[35]. - The company’s inventories increased to $255.1 million as of March 31, 2025, compared to $253.8 million as of December 31, 2024[37]. - The company had $123.5 million principal amount of 2026 Notes outstanding as of March 31, 2025, with a maturity date of April 1, 2026[135]. - Total debt represented 15% of the combined total debt and stockholders' equity as of March 31, 2025, down from 16% as of December 31, 2024[144]. Shareholder Activities - The weighted average number of common shares outstanding decreased to 60,167 in Q1 2025 from 62,503 in Q1 2024, reflecting share repurchase activities[13]. - The company purchased 1.0 million shares of common stock at a total cost of $5.3 million during the three months ended March 31, 2025, leaving $36.0 million remaining under the current share repurchase authorization[54]. - The company repurchased $5.3 million of common stock during Q1 2025, leaving $36.0 million remaining under the share repurchase authorization[139]. - A total of 1,493,961 shares were purchased from January 1 through March 31, 2025, at an average price of $5.19 per share[160]. - The Board of Directors authorized a $50 million share repurchase program, with $14 million utilized as of March 31, 2025[161]. Operational Efficiency - The company incurred $12,025 in depreciation and amortization expenses in Q1 2025, down from $14,195 in Q1 2024, suggesting a reduction in asset depreciation[13]. - The company’s amortization expense for Q1 2025 was $3.8 million, down from $4.3 million in Q1 2024[40]. - Selling, general and administrative expenses for the quarter were $22.496 million, with $9.129 million attributed to corporate expenses[68]. - Corporate expenses increased by $0.7 million, or 8%, in Q1 2025 compared to Q1 2024, primarily due to higher performance-based incentive compensation costs[126]. - The Downhole Technologies segment reported an operating loss of $2.1 million in Q1 2025, an improvement from a $12.1 million loss in Q1 2024, which included a $10.0 million goodwill impairment charge[125]. Market Conditions and Future Outlook - Management expects that the trade conflict and increased crude oil production could adversely affect demand for the company's products and services, particularly in the United States, over the balance of 2025[84]. - The company expects continued volatility in crude oil and natural gas prices due to geopolitical conflicts and economic conditions, which may impact customer capital investment decisions[88]. - The average price of Brent crude oil for the quarter ended March 31, 2024, was $82.92 per barrel, while WTI crude averaged $77.50 per barrel[82]. - The spot price of WTI crude oil declined approximately 20% in April 2025 due to trade tariffs and OPEC+ plans to increase production, raising uncertainties about future demand[83]. Strategic Investments - The company is investing in research and product development for alternative energy sources, including offshore wind and deep-sea mineral gathering opportunities[92]. - The company expects to invest approximately $25 million in capital expenditures during 2025, funded by available cash and internally generated funds[133].

Financial Data and Key Metrics Changes - The company reported revenues of $160 million for Q1 2025, meeting the guidance range of $160 million to $170 million, with adjusted EBITDA of $19 million, exceeding the expected range of $17.5 million to $18.5 million [4][11] - Adjusted net income totaled $4 million, or $0.06 per share, after excluding facility exit charges of $1 million [11] - Cash flow from operations was $9 million, reversing the historical trend of negative cash flow in Q1 due to seasonal working capital [5][12] Business Line Data and Key Metrics Changes - Offshore Manufactured Products segment generated revenues of $93 million with an adjusted EBITDA of $18 million, resulting in an adjusted EBITDA margin of 19%, down from 23% in the previous quarter [11][12] - Completion and Production Services segment reported revenues of $35 million and adjusted EBITDA of $9 million, with an adjusted EBITDA margin of 25%, significantly up from 12% in the fourth quarter [11][12] - Downhole Technologies segment generated revenues of $33 million with adjusted EBITDA of $2 million [12] Market Data and Key Metrics Changes - The company experienced strong demand in international and offshore regions, leading to bookings of $136 million and the highest backlog since September 2015, with a book-to-bill ratio of 1.5 times for the quarter [5][14] - Despite economic volatility and potential tariff impacts, the company anticipates that the majority of its backlog, which consists of projects outside the U.S., will remain largely unaffected [14][16] Company Strategy and Development Direction - The company plans to focus on organic growth opportunities, research and development, debt repayment, and share repurchases to drive value for customers and stockholders [16] - Strategic actions have been implemented to mitigate potential negative impacts from tariffs, including optimizing the supply chain and adjusting pricing to customers [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing demand for offshore and international products, despite potential pressures from domestic market conditions and crude oil prices [14][16] - The company expects strong free cash flow generation for the full year, with cash flow from operations projected to range between $65 million and $75 million [13][16] Other Important Information - The company plans to be opportunistic regarding share repurchases due to low stock prices and aims to maintain a robust free cash flow yield [16][32] - The anticipated impact of tariffs on costs is estimated to be in the range of 5% to 10% higher, particularly affecting the Downhole Technologies segment [38] Q&A Session Summary Question: Insights on bookings and backlog - Management noted that long-term development drilling programs are less affected by short-term commodity price fluctuations, indicating confidence in ongoing projects [20][21] Question: Sequential improvement in Completion and Production Services - Management highlighted that the recovery in Gulf operations and cost reduction efforts contributed to improved margins, with expectations for continued positive performance [25][28] Question: Balance sheet and capital allocation strategy - Management confirmed a focus on aggressive share repurchases and debt reduction, given the current low stock price and upcoming debt maturity [30][32] Question: Impact of tariffs on costs - Management indicated that the tariff impacts are expected to be minimal, with similar cost increases anticipated across competitors in the Downhole Technologies segment [38][40]

Financial Data and Key Metrics Changes - The company reported revenues of $160 million for Q1 2025, meeting the guidance range of $160 million to $170 million, with adjusted EBITDA of $19 million, exceeding the expected range of $17.5 million to $18.5 million [5][13] - Adjusted net income totaled $4 million, or $0.06 per share, after excluding facility exit charges of $1 million [13] - Cash flow from operations was $9 million, reversing the historical trend of negative cash flow in Q1 due to seasonal working capital [6][13] Business Line Data and Key Metrics Changes - Offshore Manufactured Products segment generated revenues of $93 million with an adjusted EBITDA of $18 million, resulting in an adjusted EBITDA margin of 19%, down from 23% in the previous quarter [13][14] - Completion and Production Services segment reported revenues of $35 million and adjusted EBITDA of $9 million, with an adjusted EBITDA margin of 25%, significantly up from 12% in the fourth quarter [13][14] - Downhole Technologies segment generated revenues of $33 million with adjusted EBITDA of $2 million [14] Market Data and Key Metrics Changes - The company experienced strong demand in international and offshore regions, leading to bookings of $136 million and the highest backlog since September 2015, with a book-to-bill ratio of 1.5 times [6][17] - Despite concerns over tariffs and potential economic impacts, the company anticipates that operations outside the U.S. will remain largely unaffected [9][12] Company Strategy and Development Direction - The company plans to focus on organic growth opportunities, research and development, debt repayment, and share repurchases to drive value for shareholders [18] - Strategic actions have been implemented to mitigate potential negative impacts from tariffs, including optimizing the supply chain and adjusting pricing [10][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing demand for offshore and international products, despite potential pressures from domestic market conditions and crude oil prices [17] - The company maintained its full-year revenue guidance of $700 million to $735 million and EBITDA guidance of $88 million to $93 million, citing strong bookings and improved margins [18] Other Important Information - The company generated $9 million from the monetization of equipment and inventory, which was used for capital expenditures and share repurchases [6][14] - Planned capital expenditures for the year are expected to total $25 million, with a significant portion allocated to the new facility in Batam, Indonesia [14][15] Q&A Session Summary Question: Insights on bookings and backlog - Management noted that long-cycle projects, particularly in development drilling, are less affected by short-term commodity price fluctuations, indicating a stable outlook for ongoing projects [21][22] Question: Impact of Gulf operations on margins - Management confirmed that Gulf operations were a major driver of margin improvement, with expectations for continued positive activity in the region [27][30] Question: Share repurchase strategy amidst low stock prices - The company plans to be aggressive in share repurchases given the current low stock price, while also considering debt reduction as a priority [31][34] Question: Potential tariff impacts on costs - Management indicated that tariff impacts are expected to be minimal, with potential cost increases in the Downhole Technologies segment being manageable through price adjustments [40][42]

Financial Data and Key Metrics Changes - The company reported revenues of $160 million for Q1 2025, meeting the guidance range of $160 million to $170 million, with adjusted EBITDA of $19 million, exceeding the expected range of $17.5 million to $18.5 million [4][12] - Cash flow from operations was $9 million, reversing the historical trend of negative cash flow in Q1 due to seasonal working capital trends [5][12] - The company generated $9 million from the monetization of equipment and inventory, which was used for capital expenditures and share repurchases [5][12] Business Line Data and Key Metrics Changes - Offshore Manufactured Products segment generated revenues of $93 million with an adjusted EBITDA of $18 million, resulting in an adjusted EBITDA margin of 19%, down from 23% in the previous quarter [12] - Completion and Production Services segment reported revenues of $35 million and adjusted EBITDA of $9 million, with an adjusted EBITDA margin of 25%, significantly up from 12% in the previous quarter [12][13] - Downhole Technologies segment had revenues of $33 million and adjusted EBITDA of $2 million [13] Market Data and Key Metrics Changes - The company experienced strong demand in international and offshore regions, leading to bookings of $136 million and the highest backlog since September 2015, with a book-to-bill ratio of 1.5 times [5][15] - Despite concerns over tariffs and potential economic downturns, the company anticipates that operations outside the U.S. will remain largely unaffected [6][8] Company Strategy and Development Direction - The company plans to focus on organic growth opportunities, research and development, debt repayment, and share repurchases to drive value for customers and stockholders [17] - The strategic sourcing of goods and materials is being assessed to mitigate potential impacts from U.S. tariffs, with a focus on maintaining operations and profitability [6][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing demand for offshore and international products, despite potential pressures from domestic market conditions and crude oil prices [15] - The company maintained its annual revenue guidance of $700 million to $735 million and EBITDA guidance of $88 million to $93 million for 2025, citing strong bookings and improved margins [17] Other Important Information - The company plans to be opportunistic regarding share repurchases due to low stock prices and aims for a free cash flow conversion rate of over 40% [33] - The impact of tariffs on costs is expected to be in the range of 5% to 10%, particularly affecting the Downhole Technologies segment [37][38] Q&A Session Summary Question: Insights on bookings and backlog - Management noted that long-term development drilling programs are less affected by short-term commodity price fluctuations, indicating confidence in ongoing projects [20][21] Question: Impact of Gulf operations on margins - Management highlighted a strong recovery in Gulf operations, contributing to improved margins in the Completion and Production Services segment, with expectations for continued positive activity [26][30] Question: Capital allocation priorities - The company plans to prioritize share repurchases and debt reduction, given the current low stock price and upcoming debt maturity [31][33] Question: Tariff impact on costs - Management indicated that tariff impacts are expected to be minimal, with similar cost increases anticipated across competitors in the Downhole Technologies segment [38][40]

Company Performance - Oil States International (OIS) reported quarterly earnings of $0.06 per share, exceeding the Zacks Consensus Estimate of $0.05 per share, compared to a loss of $0.03 per share a year ago, representing an earnings surprise of 20% [1] - The company posted revenues of $159.94 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 3.24%, and down from $167.26 million year-over-year [2] - Over the last four quarters, OIS has surpassed consensus EPS estimates three times, but has topped consensus revenue estimates only once [2] Stock Performance - OIS shares have declined approximately 30.6% since the beginning of the year, while the S&P 500 has decreased by 5.3% [3] - The current Zacks Rank for OIS is 4 (Sell), indicating expectations of underperformance in the near future [6] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.10 on revenues of $174.15 million, and for the current fiscal year, it is $0.36 on revenues of $698.37 million [7] - The estimate revisions trend for OIS is currently unfavorable, which may change following the recent earnings report [6] Industry Context - The Oil and Gas - Mechanical and Equipment industry, to which OIS belongs, is currently ranked in the bottom 10% of over 250 Zacks industries, suggesting potential challenges ahead [8]

Financial Performance - Consolidated revenues for Q1 2025 were $159.9 million, a decrease of 3% sequentially and 4% year-over-year[5]. - Net income for Q1 2025 was $3.2 million, or $0.05 per share, down 79% from $15.2 million in Q4 2024[6]. - Adjusted EBITDA for Q1 2025 was $18.7 million, consistent with Q4 2024, but up 21% from $15.5 million year-over-year[3]. - Revenues for Q1 2025 were $159.938 million, a decrease of 2.0% from $164.595 million in Q4 2024 and a decrease of 4.4% from $167.262 million in Q1 2024[29]. - Net income for Q1 2025 was $3.158 million, compared to a net income of $15.164 million in Q4 2024 and a net loss of $13.374 million in Q1 2024[29]. - Operating income for Q1 2025 was $5.639 million, down from $18.484 million in Q4 2024 and a loss of $11.177 million in Q1 2024[29]. - Adjusted net income for Q1 2025 was $3,892,000, compared to $5,537,000 in Q4 2024 and a loss of $1,873,000 in Q1 2024[45]. - Free cash flow for Q1 2025 was $9,322,000, a recovery from a negative free cash flow of $19,157,000 in Q1 2024[48]. Segment Performance - Offshore Manufactured Products segment revenues were $92.6 million, down 14% sequentially but up 7% year-over-year[3]. - Completion and Production Services segment revenues increased by 15% sequentially to $34.5 million, with an Adjusted Segment EBITDA margin of 25%[13]. - Downhole Technologies segment revenues rose to $32.8 million, with an operating loss of $2.1 million, an improvement from the previous quarter[15]. - The company reported an operating income of $14,276,000 in the Offshore Manufactured Products segment for Q1 2025, down from $21,009,000 in Q4 2024 but up from $10,603,000 in Q1 2024[42]. - Completion and Production Services segment showed an operating income of $3,503,000 in Q1 2025, recovering from a loss of $4,004,000 in Q4 2024[42]. - Downhole Technologies segment reported an operating loss of $2,124,000 in Q1 2025, an improvement from a loss of $4,031,000 in Q4 2024[42]. Cash Flow and Assets - Cash flows from operations were $9 million, reversing a historical trend of negative cash flows in Q1[7]. - Cash and cash equivalents increased to $66.828 million at the end of Q1 2025, up from $65.363 million at the end of Q4 2024[31]. - Total assets decreased to $990.735 million as of March 31, 2025, from $1,005.108 million as of December 31, 2024[31]. Awards and Contracts - The company received the 2025 Spotlight on New Technology Award for its TowerLok™ Wind Tower Connector technology[21]. - Oil States received a contract award exceeding $25 million for a deepwater production facility project in Brazil in Q1 2025, along with multi-year project awards totaling $26 million[27]. Other Financial Metrics - The company incurred facility consolidation/closure and other charges of $930,000 in Q1 2025, compared to $1,941,000 in Q4 2024[45]. - The weighted average number of diluted common shares outstanding was 60,167,000 in Q1 2025, down from 61,392,000 in Q4 2024[45]. - The company reported a tax provision of $196,000 for Q1 2025, compared to a tax benefit of $2,560,000 in Q4 2024[45]. - Backlog reached $357 million, the highest level since September 2015, with a book-to-bill ratio of 1.5x[12]. - The company continued to invest in expanding its manufacturing capabilities in Batam, Indonesia to meet growing international customer demand[27]. - The company completed the manufacture of its third Merlin™ Mineral Riser system, designed for a water depth of 6,000 meters[27].

Core Viewpoint - The article highlights the potential of Oil States International (OIS) as a strong value stock, supported by its favorable financial metrics and Zacks Rank. Group 1: Company Overview - Oil States International (OIS) currently holds a Zacks Rank of 2 (Buy) and an A grade for Value [4] - The stock is trading at a P/E ratio of 7.42, significantly lower than the industry average of 11.08 [4] - OIS's Forward P/E has fluctuated between 7.03 and 28.91 over the past year, with a median of 13.79 [4] Group 2: Financial Metrics - The P/S ratio for OIS is 0.3, compared to the industry's average P/S of 0.64, indicating potential undervaluation [5] - OIS has a P/CF ratio of 4.71, which is lower than the industry's average P/CF of 5.50, suggesting a solid cash outlook [6] - Over the past 12 months, OIS's P/CF has ranged from 3.59 to 9.28, with a median of 6.47 [6] Group 3: Investment Potential - The combination of OIS's strong earnings outlook and favorable financial ratios suggests that the stock is likely undervalued at present [7]

Group 1 - Oil States International (NYSE: OIS) has strategic priorities set for the start of 2025, focusing on the oilfield equipment services sector [1] - The analyst has over 14 years of experience in stock analysis, with a specific focus on the energy sector for the past 7 years [1] - The company also covers the Industrial Supply industry, indicating a diversified analytical approach [1] Group 2 - There is no current stock, option, or derivative position held by the analyst in any mentioned companies, nor plans to initiate such positions in the near future [2] - The article expresses the analyst's own opinions without any compensation from the companies discussed [2]

Group 1: Momentum Investing Overview - Momentum investing deviates from the traditional strategy of "buying low and selling high," focusing instead on "buying high and selling higher" for quicker profits [1] - Fast-moving trending stocks can be challenging to enter at the right time, as they may lose momentum if future growth does not justify their high valuations [2] Group 2: Investment Strategy - A safer investment approach involves targeting bargain stocks that exhibit recent price momentum, utilizing tools like the Zacks Momentum Style Score to identify promising stocks [3] - Oil States International (OIS) is highlighted as a strong candidate, showing a four-week price change of 7.6%, indicating growing investor interest [4] Group 3: Performance Metrics - OIS has demonstrated a 0.4% gain over the past 12 weeks, with a beta of 2.1, suggesting it moves 110% higher than the market in either direction [5] - The stock has a Momentum Score of B, indicating a favorable time to invest based on momentum [6] Group 4: Earnings and Valuation - OIS has received a Zacks Rank 2 (Buy) due to upward revisions in earnings estimates, which typically attract more investor interest [7] - The stock is trading at a Price-to-Sales ratio of 0.47, suggesting it is undervalued, as investors pay only 47 cents for each dollar of sales [7] Group 5: Additional Opportunities - Besides OIS, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting further investment opportunities [8] - The Zacks Premium Screens offer over 45 different strategies tailored to various investing styles, aiding in stock selection [9]

Core Viewpoint - The article emphasizes the importance of value investing and highlights Oil States International (OIS) as a strong value stock based on its financial metrics and Zacks Rank [1][2][7]. Company Analysis - Oil States International (OIS) has a Zacks Rank of 2 (Buy) and an A grade for Value, indicating strong potential for value investors [4]. - The stock is currently trading at a P/E ratio of 11.88, which is lower than the industry average of 13.88, suggesting it may be undervalued [4]. - OIS has a P/B ratio of 0.50, significantly lower than the industry average of 1.21, further indicating its attractive valuation [5]. - The P/S ratio for OIS stands at 0.47, compared to the industry average of 1.21, reinforcing the notion that the stock is undervalued [6]. - Overall, OIS's financial metrics suggest it is likely undervalued, and its earnings outlook appears strong, making it an impressive value stock at this time [7].