Oil States International Reports $3.2 Million Net Income in Q1 2025, Revenue Decline of 4%

Oil States International, Inc. reported a net income of $3.2 million, or $0.05 per share, for the first quarter of 2025, a significant recovery from a net loss of $13.4 million, or $(0.21) per share, in the same period last year. The company’s total revenues for the quarter were $159.9 million, down 4% from $167.3 million in the first quarter of 2024. This decline was primarily attributed to a decrease in service revenues, which fell by 19% to $59.4 million, largely due to the exit from underperforming service offerings. In contrast, product revenues increased by 7% to $100.6 million, driven by higher demand for connector and military products.

The company’s operating income improved to $5.6 million from an operating loss of $11.2 million in the prior year, reflecting the impact of strategic management actions taken in 2024 to exit certain service offerings and consolidate operations. Notably, the first quarter of 2024 included a $10 million non-cash goodwill impairment charge, which did not recur in the latest quarter. The reduction in costs associated with these strategic decisions contributed to a decrease in total costs and expenses, which fell to $154.3 million from $178.4 million year-over-year.

In terms of operational developments, Oil States International reported a backlog of $357 million in its Offshore Manufactured Products segment as of March 31, 2025, up from $311 million at the end of 2024. The segment achieved bookings of $136 million in the first quarter, resulting in a book-to-bill ratio of 1.5x, compared to 0.8x in the same quarter of the previous year. The company continues to focus on international and offshore projects, which are expected to drive future revenue growth.

The company’s balance sheet remains stable, with total assets of $990.7 million and cash and cash equivalents of $66.8 million as of March 31, 2025. Long-term debt stood at $124.7 million, with no borrowings under its $125 million asset-based revolving credit facility. The company is actively managing its capital structure and has authorized a $50 million stock repurchase program, of which $5.3 million has been utilized in the first quarter of 2025.

Looking ahead, Oil States International anticipates that ongoing market volatility, particularly in crude oil and natural gas prices, will continue to influence customer spending and demand for its products and services. The company is closely monitoring geopolitical developments and regulatory changes that may impact its operations. Management remains optimistic about the potential for growth in offshore and international markets, supported by a strong backlog and strategic initiatives aimed at enhancing operational efficiency.