Oil States International Reports 9% Revenue Decline and Decreased Net Income in Q1 2026

Oil States International, Inc. reported a decline in financial performance for the first quarter of 2026, with total revenues of $145.4 million, down 9% from $159.9 million in the same period of 2025. The decrease was primarily driven by lower product and service revenues, which fell by $8.0 million and $6.6 million, respectively. The company’s net income also decreased significantly to $1.1 million, or $0.02 per share, compared to $3.2 million, or $0.05 per share, in the prior year. This decline in profitability was attributed to restructuring and asset impairment charges totaling $4.1 million, reflecting ongoing strategic adjustments in response to market conditions.

In terms of operational changes, Oil States has been actively consolidating and exiting certain U.S. land-based service operations, which has impacted revenue generation. The company reported a notable reduction in its Completion and Production Services segment, where revenues dropped by 38% year-over-year, largely due to the exit from underperforming service offerings. Conversely, the Offshore Manufactured Products segment saw a slight revenue decline of 1%, with operating income remaining stable at $14.4 million. The Downhole Technologies segment reported a small operating loss of $0.4 million, an improvement from the previous year’s loss of $2.1 million.

The company’s balance sheet as of March 31, 2026, showed total assets of $862.2 million, a decrease from $883.4 million at the end of 2025. Cash and cash equivalents were reported at $59.0 million, down from $69.9 million. The company’s long-term debt remained relatively stable, with $1.5 million reported as of the end of the first quarter. Notably, Oil States entered into a new cash-flow based credit agreement in January 2026, replacing its previous asset-based credit facility, which provides for total commitments of $125 million.

Looking ahead, Oil States anticipates continued challenges due to geopolitical tensions, particularly in the Middle East, which have led to increased costs and project delays. The company is also facing pressures from U.S. trade tariffs that have affected pricing and demand for its products. Despite these challenges, Oil States is focused on optimizing operations and improving returns, with a backlog of $430 million as of March 31, 2026, indicating potential future revenue opportunities. The company remains committed to monitoring market conditions and adjusting its strategies accordingly to navigate the evolving landscape of the energy sector.