third quarter of 2026
Filed Oct 30, 2026Consolidated revenues of $170 million increased 8% sequentially; net income was $3 million, or $0.05 per share; Adjusted EBITDA was $20 million.
Third-quarter revenue increased sequentially and year over year, with strong sequential growth in Offshore Manufactured Products and Downhole Technologies and record-since-December-2014 Offshore backlog. However, GAAP operating income and net income declined sequentially, segment EBITDA margins declined in all three operating segments, and cash flow from operations was tempered by net working capital investments.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenues, three months ended September 30, 2026GAAP | $169.8M | 8% | 3% |
| Products revenue, three months ended September 30, 2026GAAP | $109.8M | – | – |
| Services revenue, three months ended September 30, 2026GAAP | $59.92M | – | – |
| Cost of revenues, three months ended September 30, 2026GAAP | $130.1M | – | – |
| Product costs, three months ended September 30, 2026GAAP | $88.64M | – | – |
| Service costs, three months ended September 30, 2026GAAP | $41.44M | – | – |
| Selling, general and administrative expense, three months ended September 30, 2026GAAP | $23.99M | – | – |
| Depreciation and amortization expense, three months ended September 30, 2026GAAP | $8.05M | – | – |
| Other operating expense, net, three months ended September 30, 2026GAAP | $1.31M | – | – |
| Operating income, three months ended September 30, 2026GAAP | $6.33M | (46)%“ | 33% |
| Adjusted operating income, excluding charges and credits, three months ended September 30, 2026non-GAAP | $11.85M | 12% | 43% |
| Interest expense, net, three months ended September 30, 2026GAAP | −$1.31M | – | – |
| Income before income taxes, three months ended September 30, 2026GAAP | $5.25M | – | – |
| Income tax provision, three months ended September 30, 2026GAAP | −$2.14M | – | – |
| Net income, three months ended September 30, 2026GAAP | $3.12M | (47)%“ | 64% |
| Basic net income per share, three months ended September 30, 2026GAAP | $0.05 | – | – |
| Diluted net income per share, three months ended September 30, 2026GAAP | $0.05 | – | – |
| Adjusted net income, excluding charges and credits, three months ended September 30, 2026non-GAAP | $8.48M | 1% | 80% |
| Adjusted diluted net income per share, excluding charges and credits, three months ended September 30, 2026non-GAAP | $0.15 | – | – |
| Adjusted EBITDA, three months ended September 30, 2026non-GAAP | $20.12M | 6% | (3)% |
| Net cash flows provided by operating activities, three months ended September 30, 2026GAAP | $5.30M | – | – |
| Capital expenditures, three months ended September 30, 2026GAAP | −$3.21M | – | – |
| Free cash flow, three months ended September 30, 2026non-GAAP | $7.14M | – | – |
| Total revenues, nine months ended September 30, 2026GAAP | $471.8M | – | – |
| Operating income, nine months ended September 30, 2026GAAP | $22.32M | – | – |
| Net income, nine months ended September 30, 2026GAAP | $10.13M | – | – |
| Adjusted EBITDA, nine months ended September 30, 2026non-GAAP | $55.80M | – | – |
| Free cash flow, nine months ended September 30, 2026non-GAAP | −$129K | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Offshore Manufactured ProductsStrong demand; contract bookings increased 18% sequentially to $135 million, resulting in a book-to-bill ratio of 1.3x. | $104.4M | 13% | (4)% |
| Completion and Production ServicesNo specific revenue driver was provided. | $23.16M | (5)% | (16)% |
| Downhole TechnologiesStrong demand. | $42.22M | 6% | 45% |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Capital returns
- Purchased $4.0 million of its common stock in the third quarter of 2026 under a Board-approved program that expired on October 24, 2026.
- On October 29, 2026, the Board of Directors approved a new $50.0 million stock repurchase plan, which extends through October 2028.
- Purchases of treasury stock were $(9,105) for the nine months ended September 30, 2026.
What drove it
- Offshore and international revenue was $121,752, up 9% sequentially and down 1% year over year.
- U.S. land revenue was $48,012, up 7% sequentially and 15% year over year.
- Offshore Manufactured Products backlog totaled $482 million as of September 30, 2026, its highest level since December 2014.
- Offshore Manufactured Products third-quarter bookings totaled $135 million, yielding a quarterly book-to-bill ratio of 1.3x and raising the year-to-date ratio to 1.2x.
- Third-quarter operating income included $5.5 million of charges, primarily associated with the retirement of the former President and Chief Executive Officer and facility exit costs.
Concerns
- GAAP operating income decreased 46% sequentially to $6,335 and net income decreased 47% sequentially to $3,116.
- Adjusted EBITDA of $20,121 was down 3% year over year.
- Offshore Manufactured Products adjusted segment EBITDA margin was 18%, compared with 19% in the second quarter of 2026.
- Completion and Production Services adjusted segment EBITDA margin was 26%, compared with 27% in the second quarter of 2026.
- Downhole Technologies adjusted segment EBITDA margin was 8%, compared with 11% in the second quarter of 2026.
- Completion and Production Services revenue declined 16% year over year.
- Nine-month free cash flow was $(129), compared with $40,614 for the nine months ended September 30, 2025.
What to watch
- Conversion of the $482 million Offshore Manufactured Products backlog and sustaining bookings after the third-quarter 1.3x book-to-bill ratio.
- Whether Offshore Manufactured Products, Completion and Production Services, and Downhole Technologies adjusted segment EBITDA margins improve from third-quarter levels.
- Working-capital requirements after third-quarter net working capital investments of $9.6 million.
- Execution of the $50.0 million stock repurchase plan extending through October 2028.
- The effect of interest expense, including non-cash amortization of deferred debt issuance costs following the July 2026 expiration of $30 million in undrawn lender commitments under the term loan facility.
Balance sheet and cash flow
- Cash and cash equivalents were $22,915 at September 30, 2026, compared with $69,914 at December 31, 2025.
- Borrowings and letters of credit outstanding under the Cash Flow Credit Agreement totaled $19.8 million and $17.0 million, respectively, leaving $58.0 million available to be drawn.
- Current portion of long-term debt was $1,617 and long-term debt was $18,423 at September 30, 2026.
- Third-quarter cash flows from operations were $5.3 million, tempered by net working capital investments of $9.6 million.
- Third-quarter proceeds from the sale of assets totaled $5.1 million and capital expenditures were $3.2 million.
- Net cash flows used in operating activities were $(2,844) for the nine months ended September 30, 2026, compared with net cash flows provided by operating activities of $54,975 for the nine months ended September 30, 2025.
Analysis
Oil States reported third-quarter revenue of $169,764, up 8% sequentially and 3% year over year. The sequential increase was led by Offshore Manufactured Products, where revenue rose 13% to $104,384, and Downhole Technologies, where revenue increased 6% to $42,221. Completion and Production Services revenue declined 5% sequentially to $23,159. Offshore and international revenue was $121,752, up 9% sequentially, while U.S. land revenue was $48,012, up 7%.
Profitability was mixed. GAAP operating income was $6,335, down 46% sequentially, while net income was $3,116, or $0.05 per diluted share, down from $5,910, or $0.10 per diluted share, in the second quarter. The quarter included $5.5 million of charges, primarily associated with executive transition and facility exit costs. Excluding charges and credits, adjusted operating income was $11,849, up 12% sequentially, adjusted net income was $8,485, up 1%, and adjusted diluted EPS was $0.15, up from $0.14. Adjusted EBITDA increased 6% sequentially to $20,121 but was down 3% year over year.
The Offshore Manufactured Products order profile was the principal operating positive. Third-quarter bookings were $135 million, up 18% sequentially, producing a 1.3x quarterly book-to-bill ratio. Backlog reached $482 million as of September 30, 2026, the highest level since December 2014. Segment adjusted EBITDA rose to $18,751, although its adjusted EBITDA margin declined to 18% from 19%. Completion and Production Services and Downhole Technologies also experienced lower sequential adjusted EBITDA margins, at 26% and 8%, respectively.
Cash generation improved sequentially but remained constrained by working capital. Operating cash flow was $5,298, tempered by $9.6 million of net working capital investments, and free cash flow was $7,139 after $3,211 of capital expenditures and asset-sale proceeds. For the nine-month period, operating cash flow was $(2,844) and free cash flow was $(129). Cash and cash equivalents were $22,915 at September 30, 2026, while borrowings and letters of credit under the Cash Flow Credit Agreement totaled $19.8 million and $17.0 million, respectively.
Capital allocation included $4.0 million of third-quarter common-stock repurchases. The prior repurchase program expired on October 24, 2026, and the Board approved a new $50.0 million stock repurchase plan on October 29, 2026, extending through October 2028. The release did not provide forward financial guidance, though management stated that third-quarter results exceeded guidance provided in July.
Management, verbatim
Our third quarter results exceeded the guidance we provided back in July and reflect continued execution across our diversified portfolio and the resilience of our offshore and international operations. Revenues increased 8% sequentially, driven by strong demand within our Offshore Manufactured Products and Downhole Technologies segments. We generated Adjusted EBITDA of $20.1 million. Contract bookings in our Offshore Manufactured Products segment increased 18% sequentially to $135 million, resulting in a book-to-bill ratio of 1.3x and backlog reaching its highest level since December 2014.
Lloyd Hajdik, President and Chief Executive Officer
Looking ahead, we remain focused on expanding our backlog, delivering profitable growth and strong cash flows, and returning capital to stockholders through disciplined capital allocation.
Lloyd Hajdik, President and Chief Executive Officer
Not in the filing
stated, not guessed- Forward financial guidance for revenue, gross margin, operating expenses, tax rate, earnings, EBITDA, capital expenditures, cash flow, or other periods was not provided in this filing.
- Previous-release outlook was not provided, so reported results cannot be compared with prior quantified guidance.
- GAAP gross profit and gross margin were not reported.
- A GAAP or non-GAAP tax rate was not reported.
- Dividend information was not reported.
- A specific revenue driver for Completion and Production Services was not provided.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.