Oil States International Reports $1.9 Million Net Income in Q3 2025, Significant Recovery from Previous Year

Oil States International, Inc. reported a net income of $1.9 million, or $0.03 per share, for the third quarter of 2025, a significant recovery from a net loss of $14.3 million, or $0.23 per share, in the same period last year. For the nine months ended September 30, 2025, the company achieved a net income of $7.9 million, or $0.13 per share, compared to a net loss of $26.4 million, or $0.42 per share, for the corresponding period in 2024. The improved financial performance was attributed to strategic decisions to exit underperforming service offerings and locations, alongside a reduction in operational costs.

Total revenues for the third quarter of 2025 were $165.2 million, down from $174.3 million in the prior year, primarily due to decreased service revenues, which fell by 20% to $58.7 million. Product revenues, however, increased by 6% to $106.5 million, driven by higher demand for project-driven products. For the nine-month period, total revenues decreased to $490.5 million from $528.0 million, reflecting a 7% decline largely due to the exit of certain service operations and lower U.S. land-based activity levels.

Operationally, the company has made significant changes, including the consolidation and exit of several service locations, which resulted in pre-tax charges of $3.6 million in the third quarter. The Offshore Manufactured Products segment reported a revenue increase of 6% year-over-year, supported by a backlog growth to $399 million as of September 30, 2025. The Completion and Production Services segment, however, saw a 31% decline in revenues, reflecting the impact of exiting underperforming operations. The Downhole Technologies segment also experienced a revenue decrease of 9%, attributed to lower U.S. customer activity levels.

In terms of financial health, Oil States reported total assets of $1.01 billion as of September 30, 2025, with cash and cash equivalents amounting to $67.1 million. The company has no outstanding borrowings under its asset-based revolving credit facility, which has a total available draw of $73.2 million. The company’s long-term debt, primarily consisting of $102.8 million in convertible senior notes due in April 2026, remains a focus as it plans to retire this debt at maturity.

Looking ahead, Oil States anticipates continued challenges in the U.S. land-based market due to fluctuating crude oil prices and competitive conditions. The company is actively seeking alternative sources for materials following a supply chain disruption caused by an explosion at a key supplier's facility. Management remains focused on optimizing operations and reducing costs while navigating the evolving market landscape, including the impacts of recent U.S. tax reforms and ongoing geopolitical tensions.