Thu, May 1, 7:04 PM (10 days ago)
### Oil States International, Inc. (OIS) Q1 2025 Financial Summary **Financial Health and Performance:** - **Revenue:** Total revenue for Q1 2025 was $159.9 million, down 4% from $167.3 million in Q1 2024. Product revenue increased by 7% to $100.6 million, while service revenue decreased by 19% to $59.4 million. - **Profit Margins:** Operating income was $5.6 million, a significant improvement from a loss of $11.2 million in Q1 2024. Net income was $3.2 million, compared to a net loss of $13.4 million in the same period last year. - **Cash Flow:** Net cash from operating activities was $9.3 million, an improvement from the $11.4 million used in operations in Q1 2024. Capital expenditures were $9.2 million, offset by $9.2 million from asset sales. **Segment Performance:** - **Offshore Manufactured Products:** Revenue increased by 7% to $92.6 million, driven by international and offshore project-driven connector and valve products. Operating income was $14.3 million, up from $10.6 million in Q1 2024. - **Completion and Production Services:** Revenue decreased by 27% to $34.5 million due to the exit of underperforming service offerings. Operating income was $3.5 million, compared to a loss of $0.4 million in Q1 2024. - **Downhole Technologies:** Revenue decreased slightly by 1% to $32.8 million. Operating loss was $2.1 million, an improvement from a $12.1 million loss in Q1 2024, excluding a $10 million goodwill impairment charge. **Trends and Uncertainties:** - **Market Conditions:** The energy market faces uncertainties due to geopolitical conflicts, tariffs, and supply chain disruptions. The company is monitoring these factors and their impact on customer spending and operations. - **Cost Reduction Initiatives:** The company continues to implement cost-saving measures, including facility exits and headcount reductions, to improve financial performance. - **Future Operations:** The company plans to invest approximately $25 million in capital expenditures for 2025, focusing on new product development and strategic acquisitions. **Future Outlook:** - **Liquidity and Debt:** The company has $66.8 million in cash and cash equivalents and $62.1 million available under its ABL Facility. The 2026 Notes, totaling $123.5 million, are set to mature on April 1, 2026. The company is engaged in discussions to eliminate the springing maturity provision in its ABL Facility to facilitate the retirement of the 2026 Notes. - **Stock Repurchase Program:** The company repurchased $5.3 million of its common stock in Q1 2025, with $36 million remaining under the current authorization. **Conclusion:** Oil States International, Inc. showed significant improvement in Q1 2025, driven by cost reduction initiatives and strategic exits of underperforming segments. The company remains focused on navigating market uncertainties and maintaining liquidity to support future growth and debt repayment.