Oil States International Reports Q2 2026 Net Income of $5.9 Million Amid Revenue Decline

Oil States International, Inc. reported its financial results for the second quarter and first half of 2026, revealing a net income of $5.9 million, or $0.10 per share, for the three months ended June 30, 2026, compared to $2.8 million, or $0.05 per share, for the same period in 2025. For the first half of 2026, the company achieved a net income of $7.0 million, or $0.12 per share, up from $6.0 million, or $0.10 per share, in the prior year. Total revenues for the second quarter decreased by 5% to $156.7 million, down from $165.4 million in the previous year, while revenues for the first half fell by 7% to $302.0 million from $325.3 million.

The decline in revenue was attributed to the company's strategic exit from underperforming service offerings and facilities, particularly in the U.S. land-based market. Product revenues decreased by 8% in the second quarter, primarily due to lower project-driven sales, while service revenues remained relatively stable. The company noted that the ongoing military conflict in the Middle East and increased U.S. trade tariffs have also impacted customer activity and project delays, particularly in the Middle East region.

Operationally, Oil States International has made significant changes, including the consolidation and exit of certain operating locations and service offerings, which resulted in charges totaling $6.6 million for the first half of 2026. The company also recognized a pre-tax loss of $3.6 million associated with the extinguishment of its 2026 convertible senior notes, which were retired on April 1, 2026. The company’s total assets decreased to $839.5 million as of June 30, 2026, down from $883.4 million at the end of 2025, while total liabilities also fell to $258.1 million from $310.2 million.

In terms of operational metrics, the Offshore Manufactured Products segment reported a backlog of $451 million as of June 30, 2026, an increase from $435 million at the end of 2025. The Completion and Production Services segment experienced a revenue decline of 28% in the first half of 2026, while the Downhole Technologies segment saw a revenue increase of 16%, driven by higher demand for perforating and completion products. The company’s employee headcount has also been adjusted as part of its cost-reduction initiatives, although specific figures were not disclosed.

Looking ahead, Oil States International anticipates continued volatility in oil and gas prices due to geopolitical tensions and market conditions. The company remains focused on optimizing operations and improving returns, with plans to invest in research and development for alternative energy sources. The outlook for the remainder of 2026 will depend on the resolution of current market disruptions and the overall economic environment affecting the energy sector.