Oil States International(US:OIS)2025-10-31 15:54Financial Performance - For the three months ended September 30, 2025, total revenues were $165,180,000, a decrease of 5.7% compared to $174,348,000 in the same period of 2024[10]. - Product revenues increased to $106,492,000 in Q3 2025, up 5.0% from $100,798,000 in Q3 2024, while service revenues decreased to $58,688,000, down 20.2% from $73,550,000[10]. - The net income for the three months ended September 30, 2025, was $1,900,000, compared to a net loss of $14,349,000 in the same period of 2024, representing a significant turnaround[12]. - Operating income for the nine months ended September 30, 2025, was $15,664,000, compared to an operating loss of $20,173,000 for the same period in 2024[10]. - The company reported a comprehensive income of $600,000 for Q3 2025, compared to a comprehensive loss of $4,782,000 in Q3 2024[12]. - For the nine months ended September 30, 2024, the net loss was $26,422 thousand, compared to a net income of $7,869 thousand for the same period in 2025[19]. - Net income for Q3 2025 was $1.9 million, or $0.03 per share, compared to a net loss of $14.3 million, or $0.23 per share, in Q3 2024[120]. - Consolidated total revenues for the first nine months of 2025 decreased by $37.5 million, or 7%, compared to the first nine months of 2024, reflecting the exit of underperforming service offerings[144]. Assets and Liabilities - Total current assets increased to $511,194,000 as of September 30, 2025, compared to $498,226,000 at the end of 2024, reflecting a growth of 2.0%[15]. - Cash and cash equivalents increased to $67,052,000 as of September 30, 2025, up from $65,363,000 at the end of 2024[15]. - The total liabilities decreased slightly to $323,353,000 as of September 30, 2025, from $324,454,000 at the end of 2024[15]. - The company’s retained earnings increased to $281,529,000 as of September 30, 2025, compared to $273,660,000 at the end of 2024, indicating improved profitability[15]. - The total stockholders' equity decreased from $709,545 thousand on December 31, 2023, to $684,806 thousand by September 30, 2024, reflecting a decline of approximately 3.5%[18]. - As of September 30, 2025, total long-term debt was $1.89 million, a significant decrease from $124.65 million as of December 31, 2024[42]. - The outstanding principal amount of the 2026 Notes was $102.8 million as of September 30, 2025, down from $123.5 million as of December 31, 2024[52]. Cash Flow and Expenditures - Cash flows provided by operating activities for the nine months ended September 30, 2024, were $27,684 thousand, significantly lower than $54,975 thousand for the same period in 2025, indicating a 98.5% increase[19]. - The company reported capital expenditures of $8.71 million for the three months ended September 30, 2025, compared to $7.43 million in the same period of 2024[70][75]. - Capital expenditures totaled $28.2 million in the first nine months of 2025, compared to $23.3 million in the same period of 2024[170]. - During the first nine months of 2025, the company used $39.4 million in financing activities, including repurchasing $20.8 million principal amount of 2026 Notes for $20.3 million and repurchasing 3.2 million shares of common stock for $16.2 million[171]. Revenue Segments - The Offshore Manufactured Products segment generated revenues of $108.63 million for the three months ended September 30, 2025[70]. - The Completion and Production Services segment reported revenues of $27.53 million for the same period[70]. - For the three months ended September 30, 2025, total project-driven revenue was $97,901 thousand, an increase of 7% from $90,918 thousand in the same period of 2024[80]. - For the nine months ended September 30, 2025, total project-driven revenue reached $278,009 thousand, up 7% from $260,064 thousand in 2024[80]. - Revenues from products and services transferred to customers over time accounted for approximately 63% of consolidated revenues for the nine months ended September 30, 2025, compared to 67% in 2024[80]. Market Conditions and Challenges - The average price of Brent crude oil for the third quarter of 2025 was $69.03 per barrel, a decline from $80.01 per barrel in the same quarter of 2024[91]. - The average price of WTI crude oil for the third quarter of 2025 was $65.78 per barrel, down from $76.43 per barrel in the same quarter of 2024[91]. - The company anticipates that ongoing trade conflicts and increased crude oil production by OPEC+ will adversely affect demand for its products and services in the U.S. over the remainder of 2025[94]. - An explosion at a major supplier's facility is expected to disrupt the supply chain for perforating products, potentially affecting production in the latter part of Q4 2025[95]. Compliance and Governance - The company has filed various amendments to its Certificate of Incorporation and Bylaws, ensuring compliance with SEC regulations[3][3.2]. - Certifications from the Chief Executive Officer and Chief Financial Officer were submitted in accordance with the Securities Exchange Act of 1934[31.1][31.2]. - The company is committed to transparency and regulatory compliance through the filing of necessary certifications and reports[32.1][32.2]. - The Executive Vice President and Chief Financial Officer, Lloyd A. Hajdik, has signed the report, affirming its accuracy and completeness[209].