Nine Energy Service Reports 6% Revenue Growth to $150.5 Million in Q1 2025

Nine Energy Service, Inc. reported its financial results for the first quarter of 2025, revealing a revenue increase of 6% to $150.5 million, compared to $142.1 million in the same period last year. The growth was primarily driven by a significant rise in cementing services revenue, which surged by 18% due to a 32% increase in total cement job count. Additionally, wireline revenue rose by 6%, reflecting a 19% increase in completed wireline stages. However, this growth was partially offset by a 4% decline in completion tools revenue and a 3% decrease in coiled tubing revenue.

The company's net loss for the quarter narrowed to $7.1 million, down from a loss of $8.1 million in the prior year, marking a 12% improvement. This reduction in loss was attributed to increased revenues and improved operational efficiencies, as evidenced by a 7% rise in adjusted gross profit to $28.0 million. General and administrative expenses also increased by 8% to $13.3 million, primarily due to higher employee-related costs and professional fees.

In terms of operational metrics, Nine Energy Service's employee headcount remained stable, with no significant changes reported. The company continues to focus on enhancing its market share, particularly in the cementing division, which has shown resilience despite fluctuating market conditions. The average U.S. rig count remained stable at 588 rigs during the first quarter, indicating a consistent demand for oilfield services.

Strategically, Nine Energy Service has made significant changes to its debt structure. On May 1, 2025, the company entered into a new $125 million asset-based revolving credit facility, replacing its previous ABL Credit Facility. This move is expected to enhance liquidity and provide more favorable borrowing terms. The company reported $17.3 million in cash and cash equivalents as of March 31, 2025, along with $36.5 million in availability under the previous credit facility, resulting in a total liquidity position of $53.8 million.

Looking ahead, Nine Energy Service remains cautiously optimistic about the energy sector's long-term outlook, despite recent declines in oil prices and ongoing geopolitical uncertainties. The company anticipates that second-quarter revenues and profitability may decline compared to the first quarter due to these market pressures. However, it continues to implement cost-cutting measures and strategic initiatives aimed at improving operational efficiency and maintaining competitiveness in the evolving market landscape.