Oil States International (NYSE:OIS) reported fourth-quarter 2025 results that management said came in ahead of its expectations, highlighting stronger profitability, historically high operating cash flow, and continued progress in a multi-year strategy to tilt the business toward offshore and international markets.
Fourth-quarter results and year-end balance sheet
President and CEO Cindy Taylor said the company delivered “strong fourth quarter results,” with adjusted EBITDA exceeding guidance and operating cash flow reaching “historically high levels.” The company generated $50 million of cash flow from operations in the quarter and used it to retire $50 million of its outstanding Convertible Senior Notes. After the repayment, Taylor said cash on hand exceeded outstanding debt by $15 million at year-end.
Oil States posted a net loss of $117 million, or $2.04 per share, which Hajdik said reflected long-lived asset impairments, restructuring charges, and valuation allowances on U.S. deferred tax assets. After excluding those items, adjusted net income was $8 million, or $0.13 per share.
Cash flow and capital deployment
Cash generation was a central theme. Hajdik said operating cash flow was $50 million in the fourth quarter, up 63% sequentially. Capital expenditures were $3 million during the quarter, and the company recorded $6 million in proceeds from asset sales.
For full-year 2025, Oil States reported:
- Adjusted consolidated EBITDA of $83 million
- Adjusted net income of $22 million
- Adjusted EPS of $0.37
- Cash flow from operations of $105 million
- Free cash flow of $94 million, which Hajdik said exceeded prior guidance
Hajdik also discussed financing and shareholder returns. In January, the company entered into a four-year cash flow-based credit agreement providing up to $75 million under a revolving credit facility and $50 million under a multi-draw term loan, replacing its asset-based lending facility. At December 31, Oil States had $53 million of Convertible Senior Notes outstanding and $70 million of cash on hand; Hajdik said the company intends to use U.S. cash and borrowings under the new credit agreement to retire the remaining notes on or before their April 1, 2026 maturity.
During 2025, the company repurchased $71 million in principal amount of its notes and bought back $17 million of common stock, representing about 5% of shares outstanding as of January 1, 2025. Hajdik said Oil States intends to remain “opportunistic” with additional repurchases while prioritizing returns to shareholders.
Segment performance: Offshore backlog builds, onshore actions reshape mix
Taylor said consolidated revenue growth was tempered by strategic decisions to exit underperforming U.S. land-based operations. The shift in mix pushed offshore and international revenue to 77% of total revenue in the quarter, up from 72% in the year-ago period.
Offshore Manufactured Products (OMP) again led results. Taylor said OMP revenue and adjusted segment EBITDA increased 13% and 12% sequentially, respectively. Hajdik reported OMP revenue of $123 million and adjusted segment EBITDA of $25 million, for a 20% margin. Backlog ended the year at $435 million, which management described as the highest level since March 2015, supported by quarterly bookings of $160 million and a book-to-bill ratio of 1.3x in the quarter and for the full year.
Management emphasized the diversified nature of backlog growth, including offshore energy, international projects, and military product awards. On the call, Taylor also said the company expects to exceed a 1.0 book-to-bill ratio again in 2026.
Completion and Production Services (CPS) posted improved profitability following restructuring. Hajdik reported revenue of $23 million and adjusted segment EBITDA of $7 million, with margins expanding to 32% from 29% in the third quarter. The segment recorded $5 million of facility exit and other restructuring charges in the quarter, which Hajdik said should decline in 2026 as equipment and facilities are sold. In response to an analyst question, management said about $1 million of fourth-quarter revenue came from operations that have been exited, and about $21 million of 2025 revenue was derived from those exited operations.
Downhole Technologies delivered sequential revenue growth but also recorded substantial non-cash charges. Hajdik said the segment generated revenue of $32 million, up 11% sequentially, and adjusted segment EBITDA of $1.3 million. The segment recorded $112 million of non-cash, long-lived asset and inventory impairment charges related primarily to intangible assets established at a 2018 acquisition date; Hajdik said older product technology is being abandoned in favor of revamped products.
Technology deployments, offshore outlook, and tariffs
Management pointed to new contract wins and deployments as evidence of momentum in differentiated offshore technologies. Taylor said Oil States saw continued adoption of its managed pressure drilling (MPD) systems and achieved the “first successful deployment” of its low-impact workover package. She said these deployments reduced non-productive time, enhanced safety, and improved project efficiency for customers.
After quarter end, Taylor said the company’s Merlin Deepsea Mineral Riser System achieved a record deployment in water depth of over 18,000 feet (3.5 miles), which she said underscores Oil States’ engineering capabilities and positioning in emerging ultra-deepwater and offshore resource applications.
In the question-and-answer session, Taylor discussed global offshore opportunities, highlighting Brazil and Guyana as strong markets and noting a legacy foothold in Southeast Asia, including manufacturing in Batam, Indonesia. She also described “recovering activity” in West Africa and said much of the company’s Middle East activity is currently on land rather than offshore.
Tariffs were cited as a headwind for Downhole Technologies, particularly perforating products. Taylor said the company and others source gun steel from China and that tariff rates increased from 25% to 98% around mid-year 2025, which hurt cost of goods sold on existing orders. She said it was difficult to pass through higher costs amid weaker U.S. land activity and increased competition.
2026 guidance
Looking ahead, Taylor provided full-year 2026 guidance calling for revenue of $680 million to $700 million and EBITDA of $90 million to $95 million, which she said would be “up meaningfully year-over-year.” For the first quarter of 2026, the company forecast revenue of $150 million to $155 million and EBITDA of $18 million to $19 million, noting the first quarter is typically the weakest due to order releases, material deliveries, and working capital dynamics.
Oil States expects 2026 operating cash flow of $60 million to $65 million, down from 2025 due to anticipated working capital builds, and plans capital expenditures of $20 million to $25 million.
Taylor said the company’s priorities remain advancing differentiated technologies, driving margin durability, generating free cash flow, and delivering long-term stockholder value creation, while noting U.S. land activity is expected to remain “relatively subdued.”
About Oil States International (NYSE:OIS)
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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