Financial Data and Key Metrics Changes - Total Q1 revenues were $280 million, up 3% sequentially, with adjusted EBITDA of $94 million, up 1.2% sequentially [7][10] - GAAP net income for Q1 was $54 million, down from $57 million in the previous quarter, primarily due to professional fees incurred at corporate [11] - Adjusted net income and earnings per share were $59 million and $0.73 per share, respectively, compared to $57 million and $0.71 per share in the fourth quarter [11] Business Line Data and Key Metrics Changes - Pressure Control segment revenues were $190 million, up 7.7% sequentially, driven by customer drilling efficiencies [7][8] - Operating income for the Pressure Control segment increased by $3.5 million or 6.9% sequentially, while operating margins decreased by 20 basis points [8] - Spoolable Technologies segment revenues were $93 million, down 3.6% sequentially due to lower domestic customer activity [9] Market Data and Key Metrics Changes - International shipments in the Spoolable Technologies segment increased, partially offsetting the decline in domestic activity [9][22] - Sales to international locations were up 30% quarter over quarter, driven by robust demand in Canada [22] Company Strategy and Development Direction - The company is focused on mitigating tariff impacts by increasing alternative sourcing and ramping up production from its Vietnam facility [15][16] - The company expects to neutralize increased tariff expenses by mid-next year, maintaining profitability despite potential margin compression [19][20] - The company remains committed to international expansion and is evaluating further reductions in planned capital expenditures due to market uncertainty [13][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in delivering strong cash flows despite a clouded industry outlook, citing a supportive customer base and diverse supply chain [26] - The company anticipates a decline in pressure control revenue for Q2 due to moderating levels of products sold per rig followed [20] - Management noted that major customers are sticking with the company due to its reliability and sustainability of supply chain [42] Other Important Information - The company paid a quarterly dividend of $0.13 per share, resulting in a cash outflow of approximately $11 million [12] - The company ended the quarter with a cash balance of $348 million, a sequential increase of approximately $5 million [12] Q&A Session Summary Question: Transition from China to Vietnam - Management confirmed that transitioning sourcing to Vietnam will largely neutralize tariff impacts, maintaining absolute profitability despite margin percentage declines [33] Question: Customer Behavior During Downturns - Management noted that customers are attempting to pull forward purchases, but the company has denied these requests to maintain fairness among all customers [39] Question: M&A Opportunities - Management indicated that private equity firms are currently offering attractive prices for oil field service investments, but the focus remains on existing business operations [45] Question: Impact of Tariffs on Margins - Management acknowledged that while there may be some margin compression in the second half of the year due to tariffs, diversification of the supply chain will help mitigate impacts [65] Question: Market for Sour Flexible Pipe - Management expressed optimism about the growing market for sour flexible pipe, particularly in the Middle East, where demand is expected to increase [82]