Core Insights - Oil States International (OIS) reported Q2 2025 earnings, highlighting a shift towards offshore and international projects to mitigate declines in U.S. land-based activities [1][4] - Adjusted diluted EPS was $0.09, surpassing Wall Street estimates, while GAAP revenue was $165.4 million, falling short of the expected $170.7 million [1][2] Financial Performance - Q2 2025 adjusted diluted EPS (non-GAAP) was $0.09, a 28.6% increase from $0.07 in Q2 2024 [2] - GAAP revenue decreased by 11.3% year-over-year from $186.4 million in Q2 2024 to $165.4 million in Q2 2025 [2] - Adjusted EBITDA was reported at $21.1 million, reflecting a 100% decline year-over-year [2] - Free cash flow dropped 45.6% from $14.9 million in Q2 2024 to $8.1 million in Q2 2025 [2] Business Segments Performance - The Offshore Manufactured Products segment saw a 5% year-over-year revenue increase to $106.6 million, driven by international and offshore activity [5] - Completion and Production Services revenue fell 37% year-over-year to $29.4 million, despite improved adjusted EBITDA margin to 28% [6] - Downhole Technologies faced a 61% decline in adjusted segment EBITDA, resulting in an operating loss of $4 million due to supply chain issues and weak demand [6] Strategic Focus - The company is focusing on long-term offshore projects that are less sensitive to oil price fluctuations, while addressing challenges in U.S. land operations through restructuring and cost management [4][7] - Offshore and international revenue accounted for 72% of total sales in Q2 2025, up from approximately 63.7% in Q2 2024 [7] Cost Management and Investments - Restructuring costs totaled $3.7 million, with $2.2 million related to Completion and Production Services [8] - Capital expenditures reached $10.3 million, including investments in a new facility in Batam, Indonesia, aimed at supporting offshore expansion [9] Innovation and Recognition - The company received an industry award for its Low Impact Workover Package, showcasing its commitment to developing advanced products [10] Outlook - Full-year 2025 revenue guidance is set between $700 million and $735 million, with EBITDA guidance of $88 million to $93 million [11] - The record backlog and strong international bookings provide some assurance for revenue stability, but ongoing U.S. market weakness may impact future outlook [11][12]