OIS

This article first appeared on GuruFocus. Revenue: $157 million, up 8% sequentially. Adjusted EBITDA: $19 million, up 14% sequentially. Net Income: $6 million, or $0.10 per share. Adjusted Net Income: $8 million, or $0.14 per share. Offshore Manufactured Products Revenue: $93 million with segment EBITDA of $18 million (margin above 19%). Completion and Production Services Revenue: $24 million with segment EBITDA of $7 million (margin of approximately 27%). Downhole Technology Revenue: $40 million with segment EBITDA of $4 million. Backlog: $451 million, up 5% sequentially and 24% year-over-year. Book-to-Bill Ratio: 1.2 times. Cash Used in Operating Activities: $6 million in the second quarter. Capital Investment: $3 million during the quarter. Cash on Hand: $20 million as of June 30. Outstanding Debt: $18 million as of June 30. Share Repurchases: $5 million of common stock repurchased in the second quarter. Third Quarter 2026 Guidance: Revenue of $157 million to $167 million and adjusted EBITDA of $18 million to $20 million. Full Year 2026 Guidance: Revenue of $640 million to $660 million and adjusted EBITDA of $77 million to $83 million. Warning! GuruFocus has detected 3 Warning Sign with OIS. Is OIS fairly valued? Test your thesis with our free DCF calculator. Release Date: July 30, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Oil States International Inc (NYSE:OIS) achieved a book-to-bill ratio of 1.2 times in Q2 2026, with backlog increasing to $451 million, the highest level in over a decade. The company reported sequential revenue growth of 8% and adjusted EBITDA growth of 14%, driven by strong performance in downhole technologies and completion and production services segments. Offshore manufactured products segment delivered strong EBITDA margins above 19%, with production platform and connector products providing positive uplift. Downhole technology segment saw revenue at its highest level since Q2 2023, with volumes for shaped charges and short guns doubling quarter-over-quarter. The company maintains a strong balance sheet with ample liquidity, having retired its convertible senior notes and repurchased $5 million of common stock during the quarter. Management expects full-year free cash flow of $35 million to $40 million, with potential additional proceeds from asset sales. Geopolitical disruptions in the Middle East continue to cause contract award delays, impacting near-term revenue conversion in project-driven businesses. Input costs for shaped charges remain elevated, particularly for tungsten, explosive powder, and copper, pressuring margins in the downhole technology segment. Certain drilling, connector, and production facility product orders have been delayed, pushing some revenue recognition from 2026 into 2027. Working capital investments, primarily in inventory for long-lead materials and rising raw material costs, led to negative operating cash flow of $6 million in Q2. The company's third-quarter guidance implies a sequential decline in revenue and adjusted EBITDA, reflecting ongoing timing uncertainties. Full-year 2026 guidance was not raised despite strong backlog, indicating management's caution about near-term market volatility. Q: How are pricing and margins trending across the new orders that drove the backlog to its highest level since 2015, given the optimism around the offshore ramp?A: Lloyd Hajdik (President and CEO) stated that the margins on new orders are accretive to existing backlog. While the segment is guided to around a 20% EBITDA margin (19.3% this quarter), he noted that historically, when backlog was at higher levels, quarterly EBITDA margins reached the low 20% range (22%-23%). He expects to achieve this in 2027 and beyond as the backlog grows, buoyed by more traditional production facility and drilling content. Q: How much of the Downhole Technologies revenue improvement reflects restructuring benefits versus an improving US land market, and how sustainable are the margins?A: Lloyd Hajdik attributed the improvement primarily to an improving land market, with fract spread and rig counts up quarter-over-quarter. Volumes for shape charges and short guns doubled sequentially. He highlighted that the revamp of the perforating product line, including new Flex Precision guns and Flex Orbit, has seen tremendous customer uptake. The company expects demand to remain at these levels in the third and fourth quarters. Q: What are the expectations for order flow and backlog conversion rates for the offshore manufacturing business for the balance of the year?A: Lloyd Hajdik explained that certain drilling connector and production facility orders expected in Q3 and Q4 have been delayed due to Middle East disruptions, but they are expected to be received. He noted that 48% of the current backlog is tied to multi-year military product awards, which lowers the 12-month backlog conversion rate from the historical 65%-70% range to approximately 55%. Despite this, he reiterated a full-year book-to-bill ratio of above 1.0x. Q: What product mix could drive the OMP segment's EBITDA margin back to around 22%, and how does that relate to the current order backlog?A: Lloyd Hajdik clarified that the company is guiding to a 20% EBITDA margin for this year, not higher. He explained that higher backlog levels drive better manufacturing absorption, which could push margins above 20%. This would be driven by traditional energy subsea and production products, new drilling products like the managed pressure drilling system, and the new low-impact workover package expected to launch next year. Q: Are customers trying to move projects around within their portfolios given the Middle East situation?A: Lloyd Hajdik stated that national oil companies and major operators are focused on developing resources in more secure environments outside the Middle East, which favors deepwater. He expects a deepwater upcycle rolling out from 2027 through 2030, as energy security is front and center for operators, and deepwater typically has lower break-evens than land resource plays. Q: What is the outlook for military product orders for the second half of 2026 and into 2027?A: Lloyd Hajdik explained that the military business operates on large "block" orders from the US Navy, and the company is now in Block 6. While they won't see the magnitude of the $100 million-$110 million Block 5 award booked last year, they expect ongoing military orders of $25 million-$30 million per year. The Block 6 awards will start generating revenue in 2027 as Block 5 wraps up. Q: Does the outlook for the US land businesses continue to improve over the next 12-18 months if oil prices don't move from current levels?A: Lloyd Hajdik confirmed that the outlook does improve. While operators are being careful with capital spending due to oil price volatility, demand is rising modestly. US land still represents 25% of consolidated revenues. He noted growth in both the Bakken service business and Downhole Technologies product sales, with expectations for increased LNG exports starting next year supporting natural gas activity. Q: How should free cash flow trend in the second half of the year, and what are the key drivers to getting back to positive free cash flow?A: Matthew Autenrieth (CFO) stated that full-year free cash flow is expected to be $35 million to $40 million, including first-half asset sale proceeds. Incremental asset sales in the second half could add another $5 million to $10 million. He noted that $27 million was invested in inventory in the first half for long lead-time materials and rising raw material costs, but expects this working capital investment to unwind in the second half, driving free cash flow generation. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Image source: The Motley Fool. Thursday, July 30, 2026, at 10 a.m. ET Senior Counsel and Vice President of HR - Ellen Pennington President and Chief Executive Officer - Lloyd Hajdik Executive Vice President and Chief Financial Officer - Matthew Autenrieth Operator: Hello, everyone. Thank you for joining us, and welcome to the Oil States 2Q '26 earnings call. [Operator Instructions] I will now turn the conference over to Ellen Pennington, Senior Counsel and Vice President of HR. Ellen, please go ahead. Ellen Pennington: Thank you, Trevor. Good morning, and welcome to Oil States' second quarter 2026 earnings conference call. Our call today will be led by our President and CEO, Lloyd Hajdik, and Matt Autenrieth, Oil States' Executive Vice President and Chief Financial Officer. Before we begin, we would like to caution listeners regarding forward-looking statements. To the extent that our remarks today contain information other than historical information, please note that we are relying on the safe harbor protections afforded by federal law. No one should assume that these forward-looking statements remain valid later in the quarter or beyond. Any such remarks should be weighed in the context of the many factors that affect our business, including those risks disclosed in our 2025 Form 10-K and Form 10-K/A, along with other recent SEC filings. This call is being webcast and can be accessed at Oil States' website. A replay of the conference call will be available 2 hours after the completion of this call and will continue to be available for 12 months. I'll now turn the call over to Lloyd. Lloyd Hajdik: Thanks, Ellen, and good morning, everyone. Thank you for joining our conference call today, where we will discuss our second quarter of 2026 results and provide our thoughts on market trends, in addition to discussing our company-specific strategy and outlook for the remainder of the year. As we progress through 2026, our end markets continue to be influenced by a combination of constructive long-term fundamentals and ongoing near-term uncertainty. During the second quarter, commodity prices remained volatile, driven largely by geopolitical developments, supply disruptions, and moderated expectations for global economic growth. Conflict in the Middle East region continues to impact our operations and again contributed to certain contract award delays. Notwithstanding these and other award delays, we achieved a book-to-bill ratio of 1.2x. While these dynamics have tempered near-term revenue conversion in our project-driven businesses, they do not change our long-term offshore and international opportunity set. The need for secure and diversified energy supply continues to drive longer-cycle deepwater investment as well as incremental land-based activity levels. We believe that national oil companies and major operators will refocus on increasing production capacity, making multi-year investments to meet global energy demand once the Middle East disruptions settle down. In the United States, customer activity rose modestly as operators continued to demonstrate capital discipline and prioritize operational efficiency and return of capital to stockholders. During the second quarter, we generated revenues of $157 million and adjusted EBITDA of $19 million, up 8% and 14% sequentially. These increases were driven in large part by growth within our Downhole Technologies and Completion and Production Services segments, favorable mix and disciplined execution. Our strategy remains focused on higher-margin, differentiated products and technologies within the markets we serve. Over 70% of our consolidated revenues generated in the first half of 2026 were driven by offshore and international activity, which is a substantial increase from around 50% in 2023. This strategic shift in business mix has positioned Oil States well for sustained growth in future months and years. Our Offshore Manufactured Products segment generated sequential revenue growth with strong segment EBITDA margins. Production platform and connector products, as well as higher service activity, provided positive uplift in the quarter. Backlog increased to its highest level in more than a decade, totaling $451 million, supported by bookings of $114 million, and a quarterly book-to-bill ratio of 1.2x. Based on our bidding, quoting, and order visibility, we reiterate our view that our full-year book-to-bill ratio should be 1x or greater. Our Completion and Production Services segment reported sequential revenue and segment EBITDA growth coupled with a strong margin profile, which is the direct result of our efforts to high-grade the portfolio of technologies and service lines within this segment. In our Downhole Technologies segment, revenue and segment EBITDA improved materially, supported by stronger perforating and completion product sales and favorable product mix. Headwinds remain elevated related to charge powder availability and raw material cost increases, which are pressuring margins. Continued pricing discipline and inventory management remain priorities. With our extensive portfolio of differentiated technologies and a diversified footprint across the major global basins, we believe we are well positioned to support our customers' evolving needs. We will continue to invest selectively in technologies that improve performance, efficiency, and reliability in increasingly complex operating environments. Matt now will review our operating results along with our financial position in more detail. Matthew Autenrieth: Thank you, Lloyd, and good morning, everyone. During the second quarter, as Lloyd mentioned, we generated revenues of $157 million and adjusted EBITDA of $19 million, representing sequential increases of 8% and 14% respectively. We reported net income of $6 million, or $0.10 per share, which included charges associated with the extinguishment of our convertible senior notes, facility exit charges, and executive transaction cost -- transition costs, which were partially offset by a gain on the disposal of a facility [Audio Gap] Excluding these charges and credits, our adjusted net income totaled $8 million, or $0.14 per share. Turning to the segment performance, our Offshore Manufactured Products segment generated revenues of $93 million and segment EBITDA of $18 million in the second quarter, resulting in a segment EBITDA margin above 19%. Our backlog totaled $451 million as of June 30, an increase of 5% sequentially, and 24% from June 30, 2025. This is our highest reported level of backlog in over 10 years. We achieved a 1.2x book-to-bill ratio in the quarter. Our growing backlog continues to reflect a diversified mix of offshore and international energy projects as well as military programs. Our Completion and Production Services segment generated $24 million in revenues and segment EBITDA of $7 million in the second quarter, resulting in a segment EBITDA margin of approximately 27%. Revenue and segment EBITDA increased 13% and 7% sequentially. In our Downhole Technologies segment, we generated revenues of $40 million and segment EBITDA of $4 million. Second quarter revenues were at the highest level since the second quarter of 2023. Results improved significantly on stronger perforating and completion product demand and favorable product mix. Input costs for our shaped charges remain elevated, particularly the cost of tungsten, explosive powder, and copper. Second half trajectory will depend on continued pricing discipline, product mix, and raw material availability. Cash used in operating activities totaled $6 million in the second quarter, reflecting continued working capital investments tied to anticipated growth, the execution of backlog, especially for military product awards, and increasing demand for our downhole consumable products. Investing activities provided a cash flow benefit of $4 million during the quarter. Proceeds from asset sales totaled $7 million, which more than offset the $3 million of capital investment made during the quarter. We remain focused on continuing to monetize our remaining assets held for sale, which currently total $19 million. As discussed on our first quarter earnings call, Oil States retired the remaining $53 million of principal amount of our convertible senior notes on April 1 with a combination of cash, borrowings under the credit facility, and the issuance of our common stock. As of June 30, the company had $20 million of cash on hand and $18 million of outstanding debt. Our strong balance sheet and ample liquidity continue to provide flexibility to invest in organic growth and R&D, and to return capital to stockholders. During the second quarter, we repurchased $5 million of our common stock, and we will remain opportunistic with additional share repurchases as we continue to prioritize returns to stockholders. Now Lloyd will offer some market outlook and concluding comments. Lloyd Hajdik: Thanks, Matt. As we look ahead, the broader energy backdrop continues to support our strategic focus. While near-term operator timing can vary, particularly in our project-driven offshore and international businesses. We continue to see customers sanctioning new field developments and investing in project opportunities where Oil States has built deep expertise and a strong competitive position. With ongoing supply disruptions, commodity prices remain volatile, reflecting geopolitical uncertainty and evolving OPEC+ production policies. Inventories in several regions remain well below historical norms, and spare production capacity remains concentrated among a limited number of producers. Longer term, energy security concerns are expected to continue supporting investments in domestic resource development, offshore and international production, export infrastructure, and LNG projects. Taken together, these factors continue to reinforce our core strategy of offshore, deepwater, subsea, and international investment. We believe these markets will remain constructive for Oil States over the longer term. Our strategy remains unchanged: partner closely with our customers, solve their technical problems, and deliver differentiated engineered products, services, and technologies that support reliable energy supply. Across our portfolio of products and services, we continue to make targeted investments in technologies and capabilities that strengthen execution, improve operating efficiency, and enhance reliability in the environments where our customers operate. As we carry out this strategy, we will remain disciplined in how we manage the business for our stakeholders, with continued attention to cash generation and prudent capital allocation. Our focus is on leveraging our technologies to drive growth, converting firm backlog into revenue, continuing to improve margins, and working capital conversion. While our bookings and backlog continue to grow to decade-high levels, a large part of the bookings awarded over the last year have been tied to multi-year military product contracts. Conversely, certain drilling, connector, and production facility product orders have lagged from a timing perspective. We expect to receive these orders in the third and fourth quarters of 2026, but the delay in receiving these awards will push some revenue recognition into 2027 that was originally expected in 2026. With that in mind, our third quarter guidance calls for revenues in the range of $157 million to $167 million, and adjusted EBITDA of $18 million to $20 million. Our full-year guidance is expected to range from $640 million to $660 million of revenue and $77 million to $83 million of adjusted EBITDA. Customer schedules and timelines, geopolitical conditions, and the timing of the contract awards continue to create quarter-to-quarter variations in our results. Even so, our current backlog and the breadth of opportunities across numerous business lines support our confidence in future earnings growth. We see compelling opportunities to strengthen customer relationships and continue shaping the portfolio toward higher-value, technology-driven offerings. The longer-term offshore deepwater subsea and international opportunity set remains constructive, and our backlog continues to reflect that demand. Incremental land-based activity could also provide an uplift. Oil States is well positioned with a focused portfolio, a resilient operating base, and a strong capacity to generate cash. Supported by a disciplined strategy, a healthy balance sheet, and meaningful exposure to long-cycle markets, we believe the company has a solid foundation for continued progress. This concludes our prepared remarks. Trevor, please open the call up for questions. Operator: [Operator Instructions] Your first question comes from the line of Connor Jensen with Raymond James. Connor Jensen: It was nice to see the backlog reach its highest level since 2015. Given the optimism across the industry around a ramp in offshore heading into the next few years, we'd love to hear about how pricing and margins are trending across those new orders you guys are picking up. Lloyd Hajdik: Yes, so thanks, Connor. Good question. I would say in terms of the margins, they're accretive to the existing awards that are in backlog. Overall, and for the segment, we guide to an overall EBITDA margin of around 20%. A little bit lighter this quarter, 19.3%, but kind of right at that 20% level. Historically, if you look back where we had higher levels of backlog, even dating back, call it 10 years ago, we had reached quarterly EBITDA margins of the low 20s, so 22%, 23%, and I could see us achieving that, not this year, but certainly in 2027 and beyond as our backlog continues to grow, buoyed by the more traditional production facility pipeline and drilling-type content. Connor Jensen: Got it. And then it was impressive to see Downhole Technologies post its strongest revenue in several years this quarter. How much of that improvement reflects the restructuring benefits you guys had in the segment versus an improving U.S. land market? And then how sustainable are those margins from here? Lloyd Hajdik: Yes, I think it's more currently an improving land market. Frac spread count was up quarter-over-quarter, rig count was up, so you think about completion-related activity. And in terms of volumes for us, when I looked at our shaped charges and our [ shotguns ], which are largely sold in the U.S. as well as international, those volumes doubled quarter-over-quarter. The restructuring efforts that we've done over the kind of, call it the prior year or 2, and I wouldn't call them restructuring, is more a revamp of our product line within perforating and coming up with our new Flex -- precision guns and Flex Orbit have had really tremendous customer uptake. So the demand for both perforating and completion tools, which is effectively plugs and toe valves, really ramped up in the second quarter. And we're really expecting for the third and fourth quarter kind of that, I'd say not continued ramp, but certainly at these levels that we've experienced in the second quarter. Connor Jensen: Got it. I'll just sneak 1 more in here. You noted working capital was a headwind to free cash flow in the quarter. How do you expect the free cash flow to trend in the second half? And then what are the key drivers to getting that back to positive free cash flow? Matthew Autenrieth: Yes, Lloyd, I'll jump in on that one. Connor, we expect free cash flow for the full year to be $35 million to $40 million. Now, that includes proceeds from asset sales in the first half of the year. What it doesn't include is any incremental asset sales in the second half of the year, which could provide an additional $5 million to $10 million of free cash flow. And with regards to working capital, in the first half of the year, we invested $27 million in inventory. That's primarily 2 things. One, it's long lead time materials that we invested in for the execution of projects from our backlog. And two, it's rising costs, input costs for raw materials in our Downhole Technologies segment. And it's -- we expect that working capital investment to begin to unwind here in the second half of the year. That's going to be a critical driver of free cash flow generation here in the back half of the year. Operator: Our next question comes from the line of Jawad Bhuiyan with Stifel. Jawad Bhuiyan: I guess could we just understand your guys' expectations for order flow for the balance of the year for the offshore manufacturing piece? And I guess, how should we think about the backlog conversion rates for that business? And how much of that existing backlog is likely to convert to revenue this year and also next year? Lloyd Hajdik: Yes, sir, absolutely. So in terms of our bookings for the second half of the year, we're watching certain drilling connector products and production facility type orders that we expect to come in. And I mentioned in the notes, here in the third and fourth quarter. Those have been delayed, quite frankly, since the beginning of the year. The Middle East disruptions have caused some of these award delays, specifically connector products orders that we'd expected to sell into the Middle East. We have not received those orders yet. We do expect to receive those. So I think that's all just basically based on timing. Nothing underlying in the fundamentals of the business in terms of whether or not we'll receive these awards. In terms of backlog conversion, I mentioned this on our first quarter call and said this in the notes here, but we did receive over $100 million of military products awards in the third and fourth quarter of last year, third quarter, fourth quarter of 2025. Those are multi-year orders that will unwind or convert to revenue over the next 4 to 5 years. So today about half of our backlog, actually it's 48% of our backlog, is tied to military. Historically, our conversion rate of backlog converting over the forward 12 months has been in that 65% to 70% range. Now with these multi-year military products orders, that's going to weight down to, let's just say it's about 55% currently, but that's still strong given we have these multi-year orders that are rolling out and converting to backlog, as well as anticipation of these other orders coming into backlog for the year, which drives my commentary of a book-to-bill ratio of above 1 for the full year. Operator: Our next call comes from the line of Jeff Robertson with Water Tower Research, LLC. Jeffrey Robertson: Lloyd, you mentioned getting back to around 22% potentially in the OMP segment in adjusted EBITDA margin. What is the mix of products that could drive that? And how does that relate to what you're seeing in or what you expect to see in your order book? Lloyd Hajdik: Yes, I just want to be clear. We're guiding to our goal for this year of a 20% EBITDA margin. I don't want to construe that we're guiding to a higher margin. My commentary is, at higher levels of backlog, which drives better absorption in your manufacturing facilities, could drive the EBITDA margins above 20%. And that mix of backlog, I'd say it's in our traditional energy subsea and energy production products, and now drilling products with our introduction of our new managed pressure drilling system over the last 2 years. Those type of products and new technologies that we've developed, as well as one of the newer suites of technology, our Low Impact Workover Package that we're bringing to the market here, more in development, but should bring it into the market next year, accretive -- very good margins, that could -- you could see the margins start to move above 20%. I'm not guiding that this year. I want to be very clear about that. Jeffrey Robertson: Thank you. And with respect to your customer conversations, do you get any sense that customers might be trying to move projects around within their portfolios given what's going on in the Middle East, or is it still too new with people trying to figure out how that situation settles? Lloyd Hajdik: Yes, there's a shorter-term, medium-term, longer-term conversation to be had there. I would say focusing on the medium-term, the national oil companies and the other major operators are really focused on finding -- or not finding, but developing those resources that are in a much kind of more secure environment outside of maybe the Middle East and the disruptions that we have there. So that favors deepwater. And with our product set specifically in Offshore Manufactured Products, we're well suited to participate in that what we expect to see a deepwater upcycle over the next 3 to 4 years, really kind of rolling out 2027 through 2030, and some of the third-party research that we subscribe to certainly supports that. But energy security is front and center for these operators. I mentioned that spare production capacity is limited to a handful of operators. So deepwater, because it's long-life reserves, typically lower break-evens than some of the land resource plays, I think certainly the operators will be focusing on deepwater. Operator: Our next question comes from the line of Josh Jayne with Daniel Energy Partners. Joshua Jayne: I wanted to go back to the military business. Could you speak to your outlook specifically for orders for that business, not only for the second half of this year, but also into 2027? You just alluded to the strength that you had in Q3 and Q4 of last year, but what's the outlook for orders over the back half of this year and into 2027, and how the conversations evolving for incremental orders? Lloyd Hajdik: Yes, Josh, great question. So I'll give a little bit of a background. So our military products orders are what we refer to as large block-type orders. The military, specifically U.S. Navy, will let out orders over a block. We are now in Block 6. And these are multi-year, 4 to 5 year orders. That's why you see large dollar amount awards that will come into backlog every, call it, 3 to 5 years. But ongoing-wise, we have military product orders every week. They're not likely to be at the magnitude of $100 million to $110 million like we booked last year as a large block award, but there's ongoing $25 million to $30 million a year, if not a little bit more on military products orders. But the large set of the awards, again, sit in backlog, convert to revenue over the next 4 to 5 years. These Block 6 awards will really start generating revenue in 2027. We're wrapping up the last vestiges of the Block 5 awards that we booked probably 5 years ago. Joshua Jayne: Okay, thanks. And then it sounds as if, just listening to your calls over the last couple of years, it sounds like you're as confident or more increasingly confident in the non-offshore business maybe at any point over the last 2 years? Could you just speak to your outlook for the U.S. land businesses, where geographically you're seeing pockets of strength, and if oil basically doesn't move from here, does the outlook still continue to improve for that business over the next 12 to 18 months? Lloyd Hajdik: Yes, Josh, great question. We believe it does. I mean, it was up modestly in the second quarter, really modestly the first half of the year. Now operators, both privates and publics, are being very careful. They're not rushing to increase capital spending -- really on the volatile levels of WTI that we've seen. We've been as low as $74, as high as back as $95, now back around in that $80, $85 range. So a lot of volatility in pricing is driving careful considerations by the operators, but again, I just want to be clear, in the U.S. land regions in which we operate, and this is Completion and Production Services, service business, we really operate in 1 region up in the Bakken where we have great customers, great people, and great equipment. So we're obviously committed to that land basin. Outside of that, within Downhole Technologies, obviously we sell products, perforating products and completion products, tools and toe valves into the U.S., and the demand has clearly picked up there as well. So I'd say demand's rising modestly. It's, U.S. land is still 25% of our overall revenues, consolidated revenues, so it's still very important to us. We do see growth in the business. We see growth in the U.S., certainly at these prices, as the U.S. continues to increase production, not only traditional oil, but natural gas with expectations of LNG exports to start increasing pretty significantly starting next year. Operator: [Operator Instructions] I will now pass the call back to Lloyd for closing remarks. Lloyd Hajdik: Thanks, Trevor. Thank you again for joining us today and for the thoughtful questions. We appreciate the continued engagement and interest in our company. Looking ahead, we remain focused on the execution of our core strategy to drive consistent performance and maintain a disciplined approach to capital allocation. We believe these efforts strategically position Oil States well for the opportunities ahead. Thanks again, and have a great rest of your day. Operator: This concludes today's call. Thank you for attending. You may now disconnect. 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Image source: The Motley Fool. Thursday, July 30, 2026, at 10 a.m. ET Senior Counsel and Vice President of HR - Ellen Pennington President and Chief Executive Officer - Lloyd Hajdik Executive Vice President and Chief Financial Officer - Matthew Autenrieth Operator: Hello, everyone. Thank you for joining us, and welcome to the Oil States 2Q '26 earnings call. [Operator Instructions] I will now turn the conference over to Ellen Pennington, Senior Counsel and Vice President of HR. Ellen, please go ahead. Ellen Pennington: Thank you, Trevor. Good morning, and welcome to Oil States' second quarter 2026 earnings conference call. Our call today will be led by our President and CEO, Lloyd Hajdik, and Matt Autenrieth, Oil States' Executive Vice President and Chief Financial Officer. Before we begin, we would like to caution listeners regarding forward-looking statements. To the extent that our remarks today contain information other than historical information, please note that we are relying on the safe harbor protections afforded by federal law. No one should assume that these forward-looking statements remain valid later in the quarter or beyond. Any such remarks should be weighed in the context of the many factors that affect our business, including those risks disclosed in our 2025 Form 10-K and Form 10-K/A, along with other recent SEC filings. This call is being webcast and can be accessed at Oil States' website. A replay of the conference call will be available 2 hours after the completion of this call and will continue to be available for 12 months. I'll now turn the call over to Lloyd. Lloyd Hajdik: Thanks, Ellen, and good morning, everyone. Thank you for joining our conference call today, where we will discuss our second quarter of 2026 results and provide our thoughts on market trends, in addition to discussing our company-specific strategy and outlook for the remainder of the year. As we progress through 2026, our end markets continue to be influenced by a combination of constructive long-term fundamentals and ongoing near-term uncertainty. During the second quarter, commodity prices remained volatile, driven largely by geopolitical developments, supply disruptions, and moderated expectations for global economic growth. Conflict in the Middle East region continues to impact our operations and again contributed to certain contract award delays. Notwithstanding these and other award delays, we achieved a book-to-bill ratio of 1.2x. While these dynamics have tempered near-term revenue conversion in our project-driven businesses, they do not change our long-term offshore and international opportunity set. The need for secure and diversified energy supply continues to drive longer-cycle deepwater investment as well as incremental land-based activity levels. We believe that national oil companies and major operators will refocus on increasing production capacity, making multi-year investments to meet global energy demand once the Middle East disruptions settle down. In the United States, customer activity rose modestly as operators continued to demonstrate capital discipline and prioritize operational efficiency and return of capital to stockholders. During the second quarter, we generated revenues of $157 million and adjusted EBITDA of $19 million, up 8% and 14% sequentially. These increases were driven in large part by growth within our Downhole Technologies and Completion and Production Services segments, favorable mix and disciplined execution. Our strategy remains focused on higher-margin, differentiated products and technologies within the markets we serve. Over 70% of our consolidated revenues generated in the first half of 2026 were driven by offshore and international activity, which is a substantial increase from around 50% in 2023. This strategic shift in business mix has positioned Oil States well for sustained growth in future months and years. Our Offshore Manufactured Products segment generated sequential revenue growth with strong segment EBITDA margins. Production platform and connector products, as well as higher service activity, provided positive uplift in the quarter. Backlog increased to its highest level in more than a decade, totaling $451 million, supported by bookings of $114 million, and a quarterly book-to-bill ratio of 1.2x. Based on our bidding, quoting, and order visibility, we reiterate our view that our full-year book-to-bill ratio should be 1x or greater. Our Completion and Production Services segment reported sequential revenue and segment EBITDA growth coupled with a strong margin profile, which is the direct result of our efforts to high-grade the portfolio of technologies and service lines within this segment. In our Downhole Technologies segment, revenue and segment EBITDA improved materially, supported by stronger perforating and completion product sales and favorable product mix. Headwinds remain elevated related to charge powder availability and raw material cost increases, which are pressuring margins. Continued pricing discipline and inventory management remain priorities. With our extensive portfolio of differentiated technologies and a diversified footprint across the major global basins, we believe we are well positioned to support our customers' evolving needs. We will continue to invest selectively in technologies that improve performance, efficiency, and reliability in increasingly complex operating environments. Matt now will review our operating results along with our financial position in more detail. Matthew Autenrieth: Thank you, Lloyd, and good morning, everyone. During the second quarter, as Lloyd mentioned, we generated revenues of $157 million and adjusted EBITDA of $19 million, representing sequential increases of 8% and 14% respectively. We reported net income of $6 million, or $0.10 per share, which included charges associated with the extinguishment of our convertible senior notes, facility exit charges, and executive transaction cost -- transition costs, which were partially offset by a gain on the disposal of a facility [Audio Gap] Excluding these charges and credits, our adjusted net income totaled $8 million, or $0.14 per share. Turning to the segment performance, our Offshore Manufactured Products segment generated revenues of $93 million and segment EBITDA of $18 million in the second quarter, resulting in a segment EBITDA margin above 19%. Our backlog totaled $451 million as of June 30, an increase of 5% sequentially, and 24% from June 30, 2025. This is our highest reported level of backlog in over 10 years. We achieved a 1.2x book-to-bill ratio in the quarter. Our growing backlog continues to reflect a diversified mix of offshore and international energy projects as well as military programs. Our Completion and Production Services segment generated $24 million in revenues and segment EBITDA of $7 million in the second quarter, resulting in a segment EBITDA margin of approximately 27%. Revenue and segment EBITDA increased 13% and 7% sequentially. In our Downhole Technologies segment, we generated revenues of $40 million and segment EBITDA of $4 million. Second quarter revenues were at the highest level since the second quarter of 2023. Results improved significantly on stronger perforating and completion product demand and favorable product mix. Input costs for our shaped charges remain elevated, particularly the cost of tungsten, explosive powder, and copper. Second half trajectory will depend on continued pricing discipline, product mix, and raw material availability. Cash used in operating activities totaled $6 million in the second quarter, reflecting continued working capital investments tied to anticipated growth, the execution of backlog, especially for military product awards, and increasing demand for our downhole consumable products. Investing activities provided a cash flow benefit of $4 million during the quarter. Proceeds from asset sales totaled $7 million, which more than offset the $3 million of capital investment made during the quarter. We remain focused on continuing to monetize our remaining assets held for sale, which currently total $19 million. As discussed on our first quarter earnings call, Oil States retired the remaining $53 million of principal amount of our convertible senior notes on April 1 with a combination of cash, borrowings under the credit facility, and the issuance of our common stock. As of June 30, the company had $20 million of cash on hand and $18 million of outstanding debt. Our strong balance sheet and ample liquidity continue to provide flexibility to invest in organic growth and R&D, and to return capital to stockholders. During the second quarter, we repurchased $5 million of our common stock, and we will remain opportunistic with additional share repurchases as we continue to prioritize returns to stockholders. Now Lloyd will offer some market outlook and concluding comments. Lloyd Hajdik: Thanks, Matt. As we look ahead, the broader energy backdrop continues to support our strategic focus. While near-term operator timing can vary, particularly in our project-driven offshore and international businesses. We continue to see customers sanctioning new field developments and investing in project opportunities where Oil States has built deep expertise and a strong competitive position. With ongoing supply disruptions, commodity prices remain volatile, reflecting geopolitical uncertainty and evolving OPEC+ production policies. Inventories in several regions remain well below historical norms, and spare production capacity remains concentrated among a limited number of producers. Longer term, energy security concerns are expected to continue supporting investments in domestic resource development, offshore and international production, export infrastructure, and LNG projects. Taken together, these factors continue to reinforce our core strategy of offshore, deepwater, subsea, and international investment. We believe these markets will remain constructive for Oil States over the longer term. Our strategy remains unchanged: partner closely with our customers, solve their technical problems, and deliver differentiated engineered products, services, and technologies that support reliable energy supply. Across our portfolio of products and services, we continue to make targeted investments in technologies and capabilities that strengthen execution, improve operating efficiency, and enhance reliability in the environments where our customers operate. As we carry out this strategy, we will remain disciplined in how we manage the business for our stakeholders, with continued attention to cash generation and prudent capital allocation. Our focus is on leveraging our technologies to drive growth, converting firm backlog into revenue, continuing to improve margins, and working capital conversion. While our bookings and backlog continue to grow to decade-high levels, a large part of the bookings awarded over the last year have been tied to multi-year military product contracts. Conversely, certain drilling, connector, and production facility product orders have lagged from a timing perspective. We expect to receive these orders in the third and fourth quarters of 2026, but the delay in receiving these awards will push some revenue recognition into 2027 that was originally expected in 2026. With that in mind, our third quarter guidance calls for revenues in the range of $157 million to $167 million, and adjusted EBITDA of $18 million to $20 million. Our full-year guidance is expected to range from $640 million to $660 million of revenue and $77 million to $83 million of adjusted EBITDA. Customer schedules and timelines, geopolitical conditions, and the timing of the contract awards continue to create quarter-to-quarter variations in our results. Even so, our current backlog and the breadth of opportunities across numerous business lines support our confidence in future earnings growth. We see compelling opportunities to strengthen customer relationships and continue shaping the portfolio toward higher-value, technology-driven offerings. The longer-term offshore deepwater subsea and international opportunity set remains constructive, and our backlog continues to reflect that demand. Incremental land-based activity could also provide an uplift. Oil States is well positioned with a focused portfolio, a resilient operating base, and a strong capacity to generate cash. Supported by a disciplined strategy, a healthy balance sheet, and meaningful exposure to long-cycle markets, we believe the company has a solid foundation for continued progress. This concludes our prepared remarks. Trevor, please open the call up for questions. Operator: [Operator Instructions] Your first question comes from the line of Connor Jensen with Raymond James. Connor Jensen: It was nice to see the backlog reach its highest level since 2015. Given the optimism across the industry around a ramp in offshore heading into the next few years, we'd love to hear about how pricing and margins are trending across those new orders you guys are picking up. Lloyd Hajdik: Yes, so thanks, Connor. Good question. I would say in terms of the margins, they're accretive to the existing awards that are in backlog. Overall, and for the segment, we guide to an overall EBITDA margin of around 20%. A little bit lighter this quarter, 19.3%, but kind of right at that 20% level. Historically, if you look back where we had higher levels of backlog, even dating back, call it 10 years ago, we had reached quarterly EBITDA margins of the low 20s, so 22%, 23%, and I could see us achieving that, not this year, but certainly in 2027 and beyond as our backlog continues to grow, buoyed by the more traditional production facility pipeline and drilling-type content. Connor Jensen: Got it. And then it was impressive to see Downhole Technologies post its strongest revenue in several years this quarter. How much of that improvement reflects the restructuring benefits you guys had in the segment versus an improving U.S. land market? And then how sustainable are those margins from here? Lloyd Hajdik: Yes, I think it's more currently an improving land market. Frac spread count was up quarter-over-quarter, rig count was up, so you think about completion-related activity. And in terms of volumes for us, when I looked at our shaped charges and our [ shotguns ], which are largely sold in the U.S. as well as international, those volumes doubled quarter-over-quarter. The restructuring efforts that we've done over the kind of, call it the prior year or 2, and I wouldn't call them restructuring, is more a revamp of our product line within perforating and coming up with our new Flex -- precision guns and Flex Orbit have had really tremendous customer uptake. So the demand for both perforating and completion tools, which is effectively plugs and toe valves, really ramped up in the second quarter. And we're really expecting for the third and fourth quarter kind of that, I'd say not continued ramp, but certainly at these levels that we've experienced in the second quarter. Connor Jensen: Got it. I'll just sneak 1 more in here. You noted working capital was a headwind to free cash flow in the quarter. How do you expect the free cash flow to trend in the second half? And then what are the key drivers to getting that back to positive free cash flow? Matthew Autenrieth: Yes, Lloyd, I'll jump in on that one. Connor, we expect free cash flow for the full year to be $35 million to $40 million. Now, that includes proceeds from asset sales in the first half of the year. What it doesn't include is any incremental asset sales in the second half of the year, which could provide an additional $5 million to $10 million of free cash flow. And with regards to working capital, in the first half of the year, we invested $27 million in inventory. That's primarily 2 things. One, it's long lead time materials that we invested in for the execution of projects from our backlog. And two, it's rising costs, input costs for raw materials in our Downhole Technologies segment. And it's -- we expect that working capital investment to begin to unwind here in the second half of the year. That's going to be a critical driver of free cash flow generation here in the back half of the year. Operator: Our next question comes from the line of Jawad Bhuiyan with Stifel. Jawad Bhuiyan: I guess could we just understand your guys' expectations for order flow for the balance of the year for the offshore manufacturing piece? And I guess, how should we think about the backlog conversion rates for that business? And how much of that existing backlog is likely to convert to revenue this year and also next year? Lloyd Hajdik: Yes, sir, absolutely. So in terms of our bookings for the second half of the year, we're watching certain drilling connector products and production facility type orders that we expect to come in. And I mentioned in the notes, here in the third and fourth quarter. Those have been delayed, quite frankly, since the beginning of the year. The Middle East disruptions have caused some of these award delays, specifically connector products orders that we'd expected to sell into the Middle East. We have not received those orders yet. We do expect to receive those. So I think that's all just basically based on timing. Nothing underlying in the fundamentals of the business in terms of whether or not we'll receive these awards. In terms of backlog conversion, I mentioned this on our first quarter call and said this in the notes here, but we did receive over $100 million of military products awards in the third and fourth quarter of last year, third quarter, fourth quarter of 2025. Those are multi-year orders that will unwind or convert to revenue over the next 4 to 5 years. So today about half of our backlog, actually it's 48% of our backlog, is tied to military. Historically, our conversion rate of backlog converting over the forward 12 months has been in that 65% to 70% range. Now with these multi-year military products orders, that's going to weight down to, let's just say it's about 55% currently, but that's still strong given we have these multi-year orders that are rolling out and converting to backlog, as well as anticipation of these other orders coming into backlog for the year, which drives my commentary of a book-to-bill ratio of above 1 for the full year. Operator: Our next call comes from the line of Jeff Robertson with Water Tower Research, LLC. Jeffrey Robertson: Lloyd, you mentioned getting back to around 22% potentially in the OMP segment in adjusted EBITDA margin. What is the mix of products that could drive that? And how does that relate to what you're seeing in or what you expect to see in your order book? Lloyd Hajdik: Yes, I just want to be clear. We're guiding to our goal for this year of a 20% EBITDA margin. I don't want to construe that we're guiding to a higher margin. My commentary is, at higher levels of backlog, which drives better absorption in your manufacturing facilities, could drive the EBITDA margins above 20%. And that mix of backlog, I'd say it's in our traditional energy subsea and energy production products, and now drilling products with our introduction of our new managed pressure drilling system over the last 2 years. Those type of products and new technologies that we've developed, as well as one of the newer suites of technology, our Low Impact Workover Package that we're bringing to the market here, more in development, but should bring it into the market next year, accretive -- very good margins, that could -- you could see the margins start to move above 20%. I'm not guiding that this year. I want to be very clear about that. Jeffrey Robertson: Thank you. And with respect to your customer conversations, do you get any sense that customers might be trying to move projects around within their portfolios given what's going on in the Middle East, or is it still too new with people trying to figure out how that situation settles? Lloyd Hajdik: Yes, there's a shorter-term, medium-term, longer-term conversation to be had there. I would say focusing on the medium-term, the national oil companies and the other major operators are really focused on finding -- or not finding, but developing those resources that are in a much kind of more secure environment outside of maybe the Middle East and the disruptions that we have there. So that favors deepwater. And with our product set specifically in Offshore Manufactured Products, we're well suited to participate in that what we expect to see a deepwater upcycle over the next 3 to 4 years, really kind of rolling out 2027 through 2030, and some of the third-party research that we subscribe to certainly supports that. But energy security is front and center for these operators. I mentioned that spare production capacity is limited to a handful of operators. So deepwater, because it's long-life reserves, typically lower break-evens than some of the land resource plays, I think certainly the operators will be focusing on deepwater. Operator: Our next question comes from the line of Josh Jayne with Daniel Energy Partners. Joshua Jayne: I wanted to go back to the military business. Could you speak to your outlook specifically for orders for that business, not only for the second half of this year, but also into 2027? You just alluded to the strength that you had in Q3 and Q4 of last year, but what's the outlook for orders over the back half of this year and into 2027, and how the conversations evolving for incremental orders? Lloyd Hajdik: Yes, Josh, great question. So I'll give a little bit of a background. So our military products orders are what we refer to as large block-type orders. The military, specifically U.S. Navy, will let out orders over a block. We are now in Block 6. And these are multi-year, 4 to 5 year orders. That's why you see large dollar amount awards that will come into backlog every, call it, 3 to 5 years. But ongoing-wise, we have military product orders every week. They're not likely to be at the magnitude of $100 million to $110 million like we booked last year as a large block award, but there's ongoing $25 million to $30 million a year, if not a little bit more on military products orders. But the large set of the awards, again, sit in backlog, convert to revenue over the next 4 to 5 years. These Block 6 awards will really start generating revenue in 2027. We're wrapping up the last vestiges of the Block 5 awards that we booked probably 5 years ago. Joshua Jayne: Okay, thanks. And then it sounds as if, just listening to your calls over the last couple of years, it sounds like you're as confident or more increasingly confident in the non-offshore business maybe at any point over the last 2 years? Could you just speak to your outlook for the U.S. land businesses, where geographically you're seeing pockets of strength, and if oil basically doesn't move from here, does the outlook still continue to improve for that business over the next 12 to 18 months? Lloyd Hajdik: Yes, Josh, great question. We believe it does. I mean, it was up modestly in the second quarter, really modestly the first half of the year. Now operators, both privates and publics, are being very careful. They're not rushing to increase capital spending -- really on the volatile levels of WTI that we've seen. We've been as low as $74, as high as back as $95, now back around in that $80, $85 range. So a lot of volatility in pricing is driving careful considerations by the operators, but again, I just want to be clear, in the U.S. land regions in which we operate, and this is Completion and Production Services, service business, we really operate in 1 region up in the Bakken where we have great customers, great people, and great equipment. So we're obviously committed to that land basin. Outside of that, within Downhole Technologies, obviously we sell products, perforating products and completion products, tools and toe valves into the U.S., and the demand has clearly picked up there as well. So I'd say demand's rising modestly. It's, U.S. land is still 25% of our overall revenues, consolidated revenues, so it's still very important to us. We do see growth in the business. We see growth in the U.S., certainly at these prices, as the U.S. continues to increase production, not only traditional oil, but natural gas with expectations of LNG exports to start increasing pretty significantly starting next year. Operator: [Operator Instructions] I will now pass the call back to Lloyd for closing remarks. Lloyd Hajdik: Thanks, Trevor. Thank you again for joining us today and for the thoughtful questions. We appreciate the continued engagement and interest in our company. Looking ahead, we remain focused on the execution of our core strategy to drive consistent performance and maintain a disciplined approach to capital allocation. We believe these efforts strategically position Oil States well for the opportunities ahead. Thanks again, and have a great rest of your day. Operator: This concludes today's call. Thank you for attending. You may now disconnect. 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Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Achieved a 1.2x book-to-bill ratio and a decade-high backlog of $451 million, driven by a strategic shift where offshore and international activity now represents over 70% of consolidated revenue. Attributed sequential revenue and EBITDA growth to high-grading the technology portfolio and disciplined execution within the Completion and Production Services and Downhole Technologies segments. Noted that while Middle East geopolitical conflict has caused near-term contract award delays, the fundamental demand for secure, diversified energy supply continues to support long-cycle deepwater investment. Reported material improvement in Downhole Technologies due to stronger perforating and completion product sales, despite persistent headwinds from raw material cost increases and charge powder availability. Emphasized that national oil companies are increasingly prioritizing deepwater resources as a more secure alternative to regions currently experiencing supply disruptions. Highlighted that U.S. land activity rose modestly as operators maintained capital discipline, focusing on operational efficiency rather than aggressive production increases. Anticipated that delayed drilling, connector, and production facility orders will be received in the second half of 2026, pushing some revenue recognition into 2027. Projected full-year 2026 revenue between $640 million and $660 million, with adjusted EBITDA ranging from $77 million to $83 million based on current award timelines. Expected a book-to-bill ratio of 1x or greater for the full year, supported by strong bidding visibility and the conversion of firm backlog. Assumed that multi-year military product contracts will weight the 12-month backlog conversion rate to approximately 55%, compared to the historical 65-70% range. Forecasted that the deepwater upcycle will accelerate between 2027 and 2030, supported by lower break-even costs and long-life reserves compared to land resource plays. Retired the remaining $53 million of convertible senior notes on April 1, significantly strengthening the balance sheet and reducing debt to $18 million. Identified elevated input costs for tungsten, explosive powder, and copper as a primary margin pressure for the Downhole Technologies segment. Invested $27 million in working capital during the first half of 2026 to secure long-lead materials for military awards and manage rising raw material costs. Targeted $19 million in remaining assets held for sale to further bolster liquidity and support opportunistic share repurchases. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management stated that new awards are margin-accretive to the existing backlog, with a current segment EBITDA target of 20%. Suggested that as backlog grows and manufacturing absorption improves, margins could reach the low 20s by 2027. Attributed the segment's strength to a revamp of the perforating product line and increased completion activity rather than broad market restructuring. Expected demand to remain stable at Q2 levels through the second half of the year, supported by rising natural gas production and LNG export trends. Projected full-year free cash flow of $35 million to $40 million, excluding potential incremental asset sales. Anticipated that the $27 million inventory investment made in the first half will begin to unwind in the second half, serving as a critical cash flow driver. Explained that military revenue is driven by 'large block' awards from the U.S. Navy every 3 to 5 years, with the current Block 6 awards set to ramp in 2027. Noted that while large $100 million+ awards are periodic, the business maintains a baseline of $25 million to $30 million in annual ongoing orders.

Interested in Oil States International, Inc.? Here are five stocks we like better. Q2 performance improved: Revenue rose 8% sequentially to $157 million and adjusted EBITDA increased 14% to $19 million, supported by stronger Downhole Technologies and Completion and Production Services results. Offshore backlog reached a more-than-decade high: Offshore Manufactured Products backlog increased 24% year over year to $451 million, though delayed project awards are expected to shift some revenue from 2026 into 2027. Management maintained its outlook: Oil States expects 2026 revenue of $640 million-$660 million and adjusted EBITDA of $77 million-$83 million, while forecasting $35 million-$40 million in free cash flow as working-capital investments unwind. Chaos and Cash: Finding Opportunity in Volatility Oil States International (NYSE:OIS) reported second-quarter revenue of $157 million and adjusted EBITDA of $19 million, representing sequential increases of 8% and 14%, respectively, as growth in its Downhole Technologies and Completion and Production Services businesses supported results. The company reported net income of $6 million, or $0.10 per share. Excluding charges related to the retirement of convertible senior notes, facility exit costs and executive transition expenses, partially offset by a gain on a facility disposal, adjusted net income was $8 million, or $0.14 per share. → Why SK hynix Could Be the Best AI Chip Stock to Buy Now President and Chief Executive Officer Lloyd Hajdik said the company continues to navigate volatile commodity prices, geopolitical developments, supply disruptions and moderated expectations for global economic growth. Conflict in the Middle East contributed to delays in certain contract awards, although Oil States recorded a quarterly book-to-bill ratio of 1.2 times. “While these dynamics have tempered near-term revenue conversion in our project-driven businesses, they do not change our long-term offshore and international opportunity set,” Hajdik said. → Microsoft Just Flipped the AI Spending Narrative Overnight Oil States’ Offshore Manufactured Products segment generated $93 million in second-quarter revenue and $18 million in segment EBITDA, for an EBITDA margin above 19%. Segment backlog stood at $451 million as of June 30, up 5% sequentially and 24% from a year earlier, marking the company’s highest reported backlog level in more than 10 years. Bookings totaled $114 million during the quarter, and backlog includes a diversified mix of offshore and international energy projects as well as military programs. Hajdik said the company expects its full-year book-to-bill ratio to be at least one times. → Carrier Earnings Could Send the Stock to a New All-Time High However, management said some anticipated orders for drilling, connector and production-facility products have been delayed, including connector orders expected in the Middle East. The company expects those awards in the third and fourth quarters, but said the timing delays will shift some revenue previously expected in 2026 into 2027. Hajdik said approximately 48% of the company’s backlog is tied to military contracts. More than $100 million in military product awards received in the third and fourth quarters of 2025 are multi-year orders expected to convert into revenue over four to five years. As a result, Oil States expects roughly 55% of its backlog to convert into revenue over the next 12 months, compared with a historical conversion rate of 65% to 70%. Management said ongoing military orders could total about $25 million to $30 million annually, excluding larger block awards. The company’s Block 6 military awards are expected to begin contributing revenue in 2027. The Completion and Production Services segment posted second-quarter revenue of $24 million and segment EBITDA of $7 million, producing an EBITDA margin of approximately 27%. Revenue rose 13% sequentially, while segment EBITDA increased 7%. Downhole Technologies generated $40 million in revenue and $4 million in segment EBITDA. Revenue in the business was its highest since the second quarter of 2023, aided by stronger sales of perforating and completion products and a favorable product mix. Hajdik said volumes for the company’s shaped charges and shot guns, which are sold in the U.S. and international markets, doubled sequentially. He attributed the improvement primarily to an improving land market and customer uptake for the company’s newer precision guns and FlexOrbit products, rather than restructuring actions. Management expects demand for perforating and completion tools to remain at second-quarter levels through the third and fourth quarters. Still, the segment faces elevated costs for tungsten, charge powder and copper, as well as supply constraints involving charge powder. The company said pricing discipline, product mix and raw-material availability will affect second-half performance. Oil States’ Completion and Production Services operations are concentrated in the Bakken, while its Downhole Technologies products serve broader U.S. land activity. Hajdik said U.S. land activity increased modestly during the quarter, but operators remain cautious amid oil-price volatility and continued capital discipline. Cash used in operating activities was $6 million in the quarter, reflecting working-capital investments tied to backlog execution, military awards and rising demand for downhole consumable products. The company invested $27 million in inventory during the first half, including long-lead materials for backlog projects and higher-cost raw materials for Downhole Technologies. Chief Financial Officer Matt Autenrieth said Oil States expects working-capital investment to begin unwinding during the second half, supporting free-cash-flow generation. The company forecast full-year free cash flow of $35 million to $40 million, including first-half asset-sale proceeds but excluding potential additional asset sales that could add $5 million to $10 million. Investing activities generated a $4 million cash benefit in the quarter, as $7 million in asset-sale proceeds exceeded $3 million of capital expenditures. Assets held for sale totaled $19 million at quarter-end. Oil States retired the remaining $53 million principal balance of its convertible senior notes on April 1 using cash, credit-facility borrowings and common-stock issuance. As of June 30, the company had $20 million in cash and $18 million of debt. It repurchased $5 million of common stock during the quarter. For the third quarter, Oil States guided for revenue of $157 million to $167 million and adjusted EBITDA of $18 million to $20 million. Full-year guidance calls for revenue of $640 million to $660 million and adjusted EBITDA of $77 million to $83 million. Management said more than 70% of consolidated first-half revenue came from offshore and international activity, compared with about 50% in 2023. Hajdik said energy-security concerns, limited spare production capacity and the need for diversified supply should support longer-cycle investment in offshore, deepwater, subsea and international markets. While not providing guidance for higher margins, Hajdik said Offshore Manufactured Products margins could move above 20% in 2027 and beyond if higher backlog improves manufacturing-facility absorption and is supported by a greater mix of production, pipeline, drilling and newer technology offerings. Oil States International, Inc is a Houston-based provider of products and services to the global oil and gas industry. Through its well site solutions and flat steel solutions segments, the company supplies critical equipment and consumables used in drilling, completion and production operations. Its well site offerings include a broad range of rental products—such as coiled tubing, frac iron, pressure control equipment and downhole tool rentals—designed to support drilling rigs and well completion crews. In addition to rental and service offerings, Oil States International's flat steel solutions business manufactures and distributes steel pipeline and flowback products. 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Consolidated revenues of $157 million increased 8%, sequentially Net income of $6 million, or $0.10 per share Adjusted net income totaled $8 million, or $0.14 per share, excluding charges and credits (a non-GAAP measure(1)) Adjusted EBITDA (a non-GAAP measure(1)) of $19 million rose 14% from the prior quarter Offshore Manufactured Products segment's backlog increased 5% sequentially, with quarterly bookings totaling $114 million, yielding a book-to-bill ratio of 1.2x Downhole Technologies segment generated revenues of $40 million, the highest level reported since the second quarter of 2023 Retired the remaining $53 million principal amount of our convertible senior notes on April 1 Purchased $5 million of our common stock HOUSTON, July 30, 2026--(BUSINESS WIRE)--Oil States International, Inc. (NYSE: OIS): Oil States International, Inc. reported net income of $5.9 million, or $0.10 per share, and Adjusted EBITDA of $19.0 million for the second quarter of 2026 on revenues of $156.7 million. These results compare to revenues of $145.4 million, net income of $1.1 million, or $0.02 per share, and Adjusted EBITDA of $16.7 million reported in the first quarter of 2026. Oil States’ President and Chief Executive Officer, Lloyd Hajdik, stated: "Our second quarter results demonstrated the resilience of Oil States’ product and services portfolio, as Adjusted EBITDA was in line with our expectations despite revenue being tempered by the timing of certain customer awards. We are encouraged by the continued strength of our backlog, with quarterly bookings totaling $114 million, yielding a 1.2x quarterly book-to-bill ratio and total backlog of $451 million, the highest level in over a decade. With sequential quarterly improvements reported in our Downhole Technologies and Completion and Production Services segments, we believe we are in the early stages of increased investment by our customers. "The sustained growth in our backlog, combined with improving activity across offshore, international and military markets, reinforces our confidence in the long-term opportunity set ahead of us. As we progress through the second half of 2026, we continue build upon our differentiated portfolio of products and services that are aligned with our customers’ most critical projects, and we remain focused on growing our backlog, expanding margins and improving cash generation for our stockholders." Business Segment Results (See Segment Data and Adjusted Segment EBITDA tables below) Offshore Manufactured Products Offshore Manufactured Products reported revenues of $92.7 million, operating income of $13.9 million and Adjusted Segment EBITDA of $17.9 million in the second quarter of 2026, compared to revenues of $91.4 million, operating income of $14.4 million and Adjusted Segment EBITDA of $18.5 million reported in the first quarter of 2026. Adjusted Segment EBITDA margin was 19% in the second quarter of 2026, compared to 20% in the first quarter of 2026. Backlog totaled $451 million as of June 30, 2026, our highest level since March 2015. Second quarter bookings totaled $114 million, yielding a quarterly book-to-bill ratio of 1.2x and 1.1x year-to-date. Second quarter segment bookings were augmented by a significant contract award for production platform and pipeline equipment. Completion and Production Services Completion and Production Services reported revenues of $24.3 million, operating income of $3.9 million and Adjusted Segment EBITDA of $6.6 million in the second quarter of 2026, compared to revenues of $21.5 million, operating income of $3.5 million and Adjusted Segment EBITDA of $6.1 million reported in the first quarter of 2026. Adjusted Segment EBITDA margin was 27% in the second quarter of 2026, compared to 29% in the first quarter of 2026. Downhole Technologies Downhole Technologies reported revenues of $39.7 million, operating income of $2.7 million and Adjusted Segment EBITDA of $4.2 million in the second quarter of 2026, compared to revenues of $32.4 million, an operating loss of $0.4 million and Adjusted Segment EBITDA of $1.1 million in the first quarter of 2026. Corporate Corporate operating expenses in the second quarter of 2026 totaled $8.9 million. In the second quarter of 2026, the Company recognized charges of $6.6 million associated with the extinguishment of debt, facility exits and the pending retirement of its former President and Chief Executive Officer. These costs were partially offset by a gain of $4.1 million recognized in connection with the sale of a previously idled facility. Interest Expense, Net Net interest expense totaled $0.5 million in the second quarter of 2026, which included $0.2 million of non-cash amortization of deferred debt issuance costs. Income Taxes During the second quarter of 2026, the Company recognized income tax expense of $2.0 million, which included the impact of changes in valuation allowances recorded against deferred tax assets, certain discrete tax items and other non-deductible expenses, on pre-tax income of $7.9 million. Cash Flows During the second quarter of 2026, the Company used $6.3 million of cash flows in operations, driven by net working capital increases of $21.3 million. Proceeds from the sale of assets totaled $7.1 million during the quarter, which were partially offset by $2.9 million in capital expenditures. The Company used $50.5 million in cash to settle its 2026 Notes and $5.1 million in cash was used to fund stock repurchases. Financial Condition On January 28, 2026, the Company entered into an amended and restated cash-flow based credit agreement (the "Cash Flow Credit Agreement") providing for aggregate lender commitments of up to: $75.0 million under a revolving credit facility (the "Revolving Credit Facility") and $50.0 million under a multi-draw term loan facility (the "Term Loan Facility"), which was available for a six-month period. Subsequent to June 30, 2026, the Company repaid $20.0 million of outstanding borrowings under the Revolving Credit Facility with borrowings under the Term Loan Facility. The remaining lender commitments under the Term Loan Facility lapsed on July 28, 2026. On April 1, 2026, the Company retired the remaining $52.7 million of outstanding principal of its 4.75% convertible senior notes (the "Convertible Notes"), with a combination of $50.5 million of cash and the issuance of 529,428 shares of the Company’s common stock (with a fair value of $5.9 million). The Company recognized a $3.6 million loss on the extinguishment of the Convertible Notes in the second quarter of 2026 due to their settlement at a premium. Conference Call Information The call is scheduled for July 30, 2026 at 9:00 a.m. Central Daylight Time, is being webcast and can be accessed from the Company’s website at www.ir.oilstatesintl.com. Participants may also join the conference call by dialing 1 (833) 461-5787 in the United States or by dialing +1 (585) 542-9983 internationally and using the passcode 647 603 275. A replay of the conference call will be available approximately two hours after the completion of the call and can be accessed from the Company’s website at www.ir.oilstatesintl.com. About Oil States Oil States International, Inc. is a global provider of manufactured products and services to customers in the energy, military and industrial sectors. The Company’s manufactured products include highly engineered capital equipment and consumable products. Oil States is headquartered in Houston, Texas with manufacturing and service facilities strategically located across the globe. Oil States is publicly traded on the New York Stock Exchange and NYSE Texas under the symbol "OIS". For more information on the Company, please visit Oil States International’s website at www.oilstatesintl.com. Cautionary Language Concerning Forward Looking Statements The foregoing contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements are those that do not state historical facts and are, therefore, inherently subject to risks and uncertainties. The forward-looking statements included herein are based on current expectations and entail various risks and uncertainties that could cause actual results to differ materially from those forward-looking statements. Such risks and uncertainties include, among others, the impact of geopolitical conflicts and tensions, changes in tariffs and duties on imported materials and exported finished goods, the level of supply and demand for oil and natural gas, fluctuations in the current and future prices of oil and natural gas, the level of exploration, drilling and completion activity, general global economic conditions, the cyclical nature of the oil and natural gas industry, the financial health of our customers, the actions of the Organization of Petroleum Exporting Countries ("OPEC") and other producing nations (together with OPEC, "OPEC+") with respect to crude oil production levels and pricing, supply chain disruptions, including as a result of natural disasters, industrial accidents, additional trade restrictions or the adoption of or increase in tariffs, or the threat thereof, the impact of environmental matters, including executive actions and regulatory efforts to adopt environmental or climate change regulations that may result in increased operating costs or reduced oil and natural gas production or demand globally, consolidation of our customers, our ability to access and the cost of capital in the bank and capital markets, our ability to develop new competitive technologies and products, and other factors discussed in the "Business" and "Risk Factors" sections of the Company’s Annual Report on Form 10-K, as amended by its Annual Report on Form 10-K/A, for the year ended December 31, 2025, and the subsequently filed Quarterly Report on Form 10-Q and Periodic Reports on Form 8-K. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date hereof, and, except as required by law, the Company undertakes no obligation to update those statements or to publicly announce the results of any revisions to any of those statements to reflect future events or developments. View source version on businesswire.com: https://www.businesswire.com/news/home/20260730574417/en/ Contacts Company Contact:Matthew AutenriethOil States International, Inc.Executive Vice President, Chief Financial Officer and Treasurer(713) 652-0582

Oil States International (OIS) came out with quarterly earnings of $0.14 per share, beating the Zacks Consensus Estimate of $0.11 per share. This compares to earnings of $0.09 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +27.27%. A quarter ago, it was expected that this energy services company would post earnings of $0.08 per share when it actually produced earnings of $0.09, delivering a surprise of +12.5%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Oil States International, which belongs to the Zacks Oil and Gas - Mechanical and and Equipment industry, posted revenues of $156.66 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 0.01%. This compares to year-ago revenues of $165.41 million. The company has topped consensus revenue estimates just once over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Oil States International shares have added about 14.5% since the beginning of the year versus the S&P 500's gain of 6.9%. While Oil States International has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Oil States International was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.17 on $167.57 million in revenues for the coming quarter and $0.53 on $647.54 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Oil and Gas - Mechanical and and Equipment is currently in the top 38% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Innovex International (INVX), has yet to report results for the quarter ended June 2026. The results are expected to be released on August 3. This maker of offshore drilling and production equipment is expected to post quarterly earnings of $0.30 per share in its upcoming report, which represents a year-over-year change of +7.1%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Innovex International's revenues are expected to be $240 million, up 7% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Oil States International, Inc. (OIS) : Free Stock Analysis Report Innovex International, Inc. (INVX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

NOV Inc. NOV is set to release second-quarter 2026 results on July 28. The Zacks Consensus Estimate for earnings is pegged at 16 cents per share, and that for revenues is pinned at $2.1 billion. Let us delve into the factors that are likely to have influenced NOV’s performance in the second quarter. But first, it is worth taking a look at NOV’s performance in the last reported quarter. In the last reported quarter, the Houston, TX-based oil and gas equipment company missed the consensus mark due to conflict in the Middle East, which disrupted logistics, delayed deliveries and increased operational costs. NOV reported adjusted earnings of 15 cents per share, missing the Zacks Consensus Estimate of 17 cents. However, revenues of $2.05 billion beat the Zacks Consensus Estimate by $2 million. NOV’s earnings missed the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average negative surprise of 40.3%. This is depicted in the graph below: NOV Inc. price-eps-surprise | NOV Inc. Quote The Zacks Consensus Estimate for second-quarter 2026 earnings has remained unchanged over the past 30 days. The estimated figure indicates a 44.8% year-over-year decrease. The Zacks Consensus Estimate for revenues indicates a 4.7% decrease from the year-ago period. NOV makes money by selling tools and equipment used to drill and produce oil and gas. These include things like drill bits, pipes and machinery for onshore and offshore drilling. The company’s outlook appears somewhat positive for the second quarter of 2026, as much of the first-quarter weakness stemmed from shipment delays rather than lost demand, with several deferred deliveries expected to be recognized in the quarter to be reported. NOV had reported its strongest first-quarter Energy Equipment order intake since 2019, record bookings in its fiberglass business and a 2.5-year high drill pipe backlog, supporting healthy revenue conversion. Strong offshore demand, record profitability in the subsea flexible pipe business, rising adoption of digital services and drill bit market share gains further strengthen the outlook. In addition, ongoing cost-reduction initiatives, including facility consolidations and workforce optimization, should partially offset inflationary pressures and support margin performance. However, on a bearish note, NOV could still miss expectations as persistent Middle East disruptions continue to delay shipments, inflate freight costs and weigh on manufacturing efficiency. Management also expects the Energy Equipment and Energy Products & Services segments to post year-over-year revenue declines in the to-be-reported quarter, while weak global drilling activity, tariff-related costs and an unfavorable aftermarket revenue mix remain near-term headwinds. The proven Zacks model predicts an earnings beat for NOV this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates. That is exactly the case here. NOV’s Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, for this company is +19.69%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter. NOV’s Zacks Rank: NOV currently carries a Zacks Rank #2. Here are some other firms from the energy space that you may want to consider, as these have the right combination of elements to post an earnings beat this reporting cycle. Enterprise Products Partners L.P. EPD has an Earnings ESP of +1.37% and a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here. Enterprise Products is scheduled to release earnings on July 30. The Zacks Consensus Estimate for 2026 earnings indicates year-over-year growth of about 9.8%. Valued at around $84.1 billion, EPD’s shares have gained 23.1% in a year. TC Energy Corporation TRP has an Earnings ESP of +5.53% and a Zacks Rank #3 at present. It is scheduled to release earnings on July 30. The Zacks Consensus Estimate for TRP’s 2026 earnings indicates year-over-year growth of about 8.4%. Valued at around $72.8 billion, TRP’s shares rose 48.2% in a year. Oil States International, Inc. OIS currently has an Earnings ESP of +27.27% and a Zacks Rank #3. It is scheduled to release earnings on July 30. Notably, the Zacks Consensus Estimate for OIS’ 2026 earnings indicates year-over-year growth of about 43.2%. Valued at around $525.5 million, OIS’ shares have jumped 50.1% in a year. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NOV Inc. (NOV) : Free Stock Analysis Report Enterprise Products Partners L.P. (EPD) : Free Stock Analysis Report Oil States International, Inc. (OIS) : Free Stock Analysis Report TC Energy Corporation (TRP) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

The market expects Oil States International (OIS) to deliver a year-over-year increase in earnings on lower revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates. The earnings report, which is expected to be released on July 30, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower. While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise. This energy services company is expected to post quarterly earnings of $0.11 per share in its upcoming report, which represents a year-over-year change of +22.2%. Revenues are expected to be $156.65 million, down 5.3% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 3.13% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For Oil States International, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +27.27%. On the other hand, the stock currently carries a Zacks Rank of #3. So, this combination indicates that Oil States International will most likely beat the consensus EPS estimate. While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that Oil States International would post earnings of $0.08 per share when it actually produced earnings of $0.09, delivering a surprise of +12.50%. Over the last four quarters, the company has beaten consensus EPS estimates two times. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Oil States International appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Oil States International (OIS), another stock in the Zacks Oil and Gas - Mechanical and and Equipment industry, is expected to report earnings per share of $0.11 for the quarter ended June 2026. This estimate points to a year-over-year change of +22.2%. Revenues for the quarter are expected to be $156.65 million, down 5.3% from the year-ago quarter. The consensus EPS estimate for Oil States International has been revised 3.1% higher over the last 30 days to the current level. However, a higher Most Accurate Estimate has resulted in an Earnings ESP of +27.27%. When combined with a Zacks Rank of #3 (Hold), this Earnings ESP indicates that Oil States International will most likely beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates two times. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Oil States International, Inc. (OIS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Expand Energy Corporation EXE is set to release second-quarter 2026 earnings on July 28. The Zacks Consensus Estimate for the to-be-reported quarter is pegged at a profit of $1.16 per share on revenues of $2.01 billion. Let us delve into the factors that might have influenced EXE’s performance in the to-be-reported quarter. Before that, it is worth taking a look at the company’s performance in the last reported quarter. In the first quarter, the U.S.-based natural gas producer’s adjusted earnings of $3.83 per share beat the Zacks Consensus Estimate of $3.69, driven by strong production and higher natural gas price realization. Moreover, revenues of $3.3 billion beat the Zacks Consensus Estimate of $3.1 billion. Expand Energy’s earnings beat the consensus estimate in three of the trailing four quarters and missed in one, delivering an average surprise of 4.1%. This is depicted in the graph below. Expand Energy Corporation price-eps-surprise | Expand Energy Corporation Quote The Zacks Consensus Estimate for the second-quarter bottom line has remained unchanged in the past seven days. The estimated figure indicates a 5.5% year-over-year surge. However, the top-line estimate implies a 0.4% decrease from the year-ago period’s level. Expand Energy's second-quarter results could face pressure from higher capital spending, as management indicated that this quarter would represent the year's peak CapEx due to increased drilling and completion activity, leasehold acquisitions and seasonal workovers, while production is expected to remain flat sequentially. The Gulf Coast also experienced weather-related disruptions that shifted spending into the quarter to be reported, potentially weighing on free cash flow. Additionally, management acknowledged exposure to softer natural gas prices, noting it could defer activity if markets weaken, while diesel inflation tied to geopolitical tensions may modestly increase operating costs. However, on a positive note, Expand Energy could outperform expectations, supported by resilient operations, strong marketing gains and improved commercial execution. The company generated nearly $90 million from market volatility in the first quarter, expanded access to premium LNG markets through the Delfin agreement and maintained full-year production guidance. Strong hedging, stable operating costs and continued efficiency improvements could further support earnings in the quarter to be reported. The proven Zacks model does not predict an earnings beat for Expand Energy this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates. However, this is not the case here. EXE’s Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, for this company is -1.82%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter. EXE’s Zacks Rank: Expand Energy currently carries a Zacks Rank #4 (Sell). Here are some firms from the energy space that you may want to consider, as these have the right combination of elements to post an earnings beat this reporting cycle. ProPetro Holding Corp. PUMP has an Earnings ESP of +52.38% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here. ProPetro is scheduled to release earnings on July 29. The Zacks Consensus Estimate for current quarter earnings indicates year-over-year growth of about 85.7%. Valued at around $1.6 billion, PUMP’s shares have surged 122.4% in a year. Cactus, Inc. WHD has an Earnings ESP of +7.04% and a Zacks Rank #2 at present. It is scheduled to release earnings on July 29. The Zacks Consensus Estimate for WHD’s 2026 earnings indicates year-over-year growth of about 8.6%. Valued at around $4.4 billion, WHD’s shares rose 21% in a year. Oil States International, Inc. OIS currently has an Earnings ESP of +27.27% and a Zacks Rank #3. It is scheduled to release earnings on July 30. Notably, the Zacks Consensus Estimate for OIS’ 2026 earnings indicates year-over-year growth of about 43.2%. Valued at around $517.1 million, OIS’ shares have gained 55.3% in a year. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Expand Energy Corporation (EXE) : Free Stock Analysis Report Oil States International, Inc. (OIS) : Free Stock Analysis Report ProPetro Holding Corp. (PUMP) : Free Stock Analysis Report Cactus, Inc. (WHD) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research