Oil States International Inc. (NYSE: OIS) reported first‑quarter 2026 results on May 5, 2026, with revenue of $145.4 million, a 9 % year‑over‑year decline from $159.9 million in Q1 2025. Net income was $1.1 million, or $0.02 per share, while adjusted EBITDA fell to $16.7 million, a 27 % sequential drop from $22.8 million in Q4 2025. A $4.1 million restructuring charge related to the company’s ongoing exit of U.S. land‑based operations was recorded during the quarter.
The revenue decline reflects a combination of heightened geopolitical conflict and project deferrals that reduced contract awards, particularly in the U.S. market. The company’s shift toward offshore and international operations, which now account for 72 % of revenue, has helped mitigate the impact, but the overall mix shift and higher raw‑material and shipping costs have weighed on top‑line growth.
Adjusted earnings per share of $0.09 beat the consensus estimate of $0.08 by $0.01, driven largely by disciplined cost control and a favorable mix shift toward higher‑margin offshore segments. The company’s ability to maintain profitability despite a 9 % revenue decline underscores the effectiveness of its cost‑control initiatives and the resilience of its offshore portfolio.
Adjusted EBITDA contracted 27 % sequentially, largely due to higher input costs and the impact of the restructuring charge. While the Offshore Manufactured Products segment maintained a 20 % adjusted EBITDA margin, the Completion and Production Services segment saw its margin slip from 32 % to 29 %, reflecting pricing pressure and increased operating expenses in that business line.
Management guided for Q2 2026 revenue of $157 million to $162 million and adjusted EBITDA of $18 million to $20 million, but did not provide a full‑year outlook because of uncertainty surrounding the duration of Middle East conflict. CEO Lloyd Hajdik emphasized that the company remains focused on cost control, monetization of exited facilities, and supporting customers’ critical programs while navigating geopolitical risks.
Investors reacted cautiously to the results, with the revenue miss and the lack of a full‑year guidance contributing to a subdued market response. The company’s emphasis on strengthening its balance sheet through the retirement of convertible notes and securing a new credit facility was viewed positively, but the prevailing geopolitical uncertainty continues to weigh on investor sentiment.
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