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1. Company Snapshot

1.a. Company Description

Oil States International, Inc., through its subsidiaries, provides oilfield products and services for the drilling, completion, subsea, production, and infrastructure sectors of the oil and gas industry worldwide.The company operates through three segments: Well Site Services, Downhole Technologies, and Offshore/Manufactured Products.The Well Site Services segment offers a range of equipment and services that are used to drill for, establish, and maintain the flow of oil and natural gas from a well throughout its lifecycle.


It also provides wellhead isolation, frac valve, wireline and coiled tubing support, flowback and well testing, pipe recovery systems, gravel pack and sand control, blowout preventer, and drilling services.The Downhole Technologies segment provides oil and gas perforation systems, and downhole tools in support of completion, intervention, wireline, and well abandonment operations.This segment also designs, manufactures, and markets its consumable engineered products to oilfield service, and exploration and production companies.


The Offshore/Manufactured Products segment designs, manufactures, and markets capital equipment utilized on floating production systems, subsea pipeline infrastructure, and offshore drilling rigs and vessels; and short-cycle and other products.Its products include flexible bearings, advanced connector systems, high-pressure riser systems, deepwater mooring systems, cranes, subsea pipeline products, and blow-out preventer stack integration products.This segment also provides short-cycle products, such as valves, elastomers, and other specialty products that are used in the land-based drilling and completion markets; and other products for use in industrial, military, and other applications.


In addition, it offers specialty welding, fabrication, cladding and machining, offshore installation, and inspection and repair services.The company was incorporated in 1995 and is headquartered in Houston, Texas.

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1.b. Last Insights on OIS

The recent 3-month performance of Oil States International, Inc. was negatively impacted by a decline in revenues, with a 6% sequential decrease and a 21% year-over-year decline. The company's operating income and net income also saw significant fluctuations, with operating income increasing by 136% year-over-year but net income rising by 154%. The earnings release highlighted a decrease in revenues across all segments, with the offshore segment experiencing a 12% sequential decline.

1.c. Company Highlights

2. Oil States International's Q3 2025 Earnings: A Strong Offshore Performance

Oil States International, Inc. reported its third-quarter 2025 earnings, with consolidated revenues of $165 million and adjusted consolidated EBITDA of $21 million. The company's Offshore Manufactured Products segment generated revenues of $109 million and adjusted segment EBITDA of $22 million, with a backlog of $399 million, a decade-high level. The actual EPS came out at $0.08, slightly lower than the estimated $0.09. The revenue mix continues to shift towards offshore and international projects, which now account for 75% of consolidated revenues.

Publication Date: Nov -17

📋 Highlights
  • Offshore Segment Strength:: Offshore Manufactured Products drove $109 million in revenues and $22 million in adjusted EBITDA, with a decade-high $399 million backlog.
  • US Land Activity Decline:: Completion and Production Services revenue fell 61% sequentially, reflecting weaker US land-based activity.
  • Cash Flow Growth:: Cash flow from operations surged 105% to $31 million, generating $23 million in free cash flow for the quarter.
  • Margin Expansion Outlook:: EBITDA margins are projected to rise to high twenties to low thirties post-transition, up from mid-teens in 2024.
  • Backlog Conversion:: $399 million in backlog expected to convert to revenue over 12-15 months, slightly delayed by multi-year military awards.

Segment Performance

In contrast, the Completion and Production Services segment experienced sequential quarter revenue declines of 61% due to weaker US land-based activity. However, the company is being selective about which product lines to pursue, focusing on those with strong margins and free cash flow generation. The company's cash flow from operations grew to $31 million, a 105% increase sequentially, and generated $23 million of free cash flow.

Outlook and Guidance

For the fourth quarter, the company expects consolidated revenues to increase 8% to 13% sequentially, with adjusted EBITDA ranging from $21 million to $22 million. The company anticipates high twenties to low thirties EBITDA margins once the transition is complete, depending on the timing of work. This compares to mid-teens EBITDA margins in 2024. Revenue will be slightly lower in 2026, but with higher margins and greater free cash flow.

Valuation and Growth Prospects

Analysts estimate next year's revenue growth at 5.7%. With a P/E Ratio of 15.25 and an EV/EBITDA of 5.1, the market seems to be pricing in a moderate growth trajectory. The company's focus on product differentiation and technology to drive growth in the offshore market, along with its strong financial position, supports its plans to remain opportunistic with share buybacks and convertible senior note purchases. The Free Cash Flow Yield of 8.18% is also attractive, indicating a potential upside.

Operational Highlights

The company's industry-leading managed pressure drilling system and recent safety awards further highlight its commitment to operational safety and performance. The current backlog is expected to convert to revenue over the next 12-15 months, but at a slightly slower pace due to multi-year military awards. Key products driving the backlog build include connector products, crane operations, and production infrastructure, particularly in Brazil.

3. NewsRoom

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Oil States International (NYSE:OIS) Shares Cross Above 200 Day Moving Average – What’s Next?

Nov -20

Source: defenseworld.net

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OKYO Pharma to Present at OIS XV in San Diego

Nov -18

Source: globenewswire.com

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Oil States International Announces Dual Listing on NYSE Texas

Nov -13

Source: businesswire.com

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Ethic Inc. Has $82,000 Position in Oil States International, Inc. $OIS

Nov -01

Source: defenseworld.net

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Oil States International, Inc. (OIS) Q3 2025 Earnings Call Transcript

Oct -31

Source: seekingalpha.com

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Oil States International (OIS) Lags Q3 Earnings and Revenue Estimates

Oct -31

Source: zacks.com

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Oil States Announces Third Quarter 2025 Results

Oct -31

Source: businesswire.com

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Fujifilm Announces X-T30 III Camera and XC 13-33mm f/3.5-6.3 OIS Lens; YouTube First Look and More Info at B&H

Oct -23

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.56%)

6. Segments

Offshore/Manufactured Products

Expected Growth: 4.5%

The 4.5% growth in Offshore/Manufactured Products from Oil States International, Inc. is driven by increasing deepwater drilling activities, rising demand for subsea equipment, and growing adoption of advanced drilling technologies. Additionally, the company's strategic expansion into new markets and its focus on product innovation are contributing to the segment's growth.

Well Site Services

Expected Growth: 4.8%

The 4.8% growth in Well Site Services from Oil States International, Inc. is driven by increasing demand for completion services, rising oil prices, and growing drilling activities in North America. Additionally, the company's focus on technology advancements, cost savings initiatives, and strategic acquisitions have contributed to the segment's growth.

Downhole Technologies

Expected Growth: 4.2%

The 4.2% growth in Downhole Technologies from Oil States International, Inc. is driven by increasing demand for drilling and completion services, rising oil prices, and growing adoption of advanced technologies such as horizontal drilling and hydraulic fracturing. Additionally, the segment benefits from the company's strong market position, innovative product offerings, and expanding international presence.

7. Detailed Products

Accommodations

Oil States International, Inc. provides modular and modularized accommodations for the oil and gas industry, including workforce housing, camps, and other facilities.

Workforce Accommodation and Logistics

The company offers a range of services, including camp management, catering, and logistics support, to support the daily needs of workers in remote locations.

Offshore Products

Oil States International, Inc. designs and manufactures a range of offshore products, including conductor casing connections, and other equipment for the offshore oil and gas industry.

Downhole Technologies

The company provides a range of downhole technologies, including completion tools, and other equipment, to support the extraction of oil and gas from wells.

Well Intervention

Oil States International, Inc. offers a range of well intervention services, including coiled tubing, wireline, and other services, to support the maintenance and optimization of oil and gas wells.

8. Oil States International, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Oil States International, Inc. is medium due to the availability of alternative products and services in the oil and gas industry.

Bargaining Power Of Customers

The bargaining power of customers for Oil States International, Inc. is low due to the company's strong relationships with its customers and its ability to provide customized solutions.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Oil States International, Inc. is medium due to the company's dependence on a few key suppliers and the availability of alternative suppliers.

Threat Of New Entrants

The threat of new entrants for Oil States International, Inc. is low due to the high barriers to entry in the oil and gas industry and the company's established market position.

Intensity Of Rivalry

The intensity of rivalry for Oil States International, Inc. is high due to the competitive nature of the oil and gas industry and the company's need to continuously innovate and improve its products and services.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 18.53%
Debt Cost 7.28%
Equity Weight 81.47%
Equity Cost 17.04%
WACC 15.23%
Leverage 22.74%

11. Quality Control: Oil States International, Inc. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Forum Energy Technologies

A-Score: 4.9/10

Value: 9.0

Growth: 3.1

Quality: 4.2

Yield: 0.0

Momentum: 10.0

Volatility: 3.3

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Dril-Quip

A-Score: 4.7/10

Value: 6.8

Growth: 6.3

Quality: 7.9

Yield: 0.0

Momentum: 5.0

Volatility: 2.3

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Oil States International

A-Score: 4.2/10

Value: 6.3

Growth: 3.9

Quality: 4.6

Yield: 0.0

Momentum: 7.5

Volatility: 2.7

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Flotek

A-Score: 3.8/10

Value: 1.5

Growth: 5.0

Quality: 4.7

Yield: 0.0

Momentum: 10.0

Volatility: 1.3

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KLX Energy Services Holdings

A-Score: 3.1/10

Value: 9.8

Growth: 4.2

Quality: 3.7

Yield: 0.0

Momentum: 0.0

Volatility: 1.0

1-Year Total Return ->

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ProFrac

A-Score: 2.8/10

Value: 8.7

Growth: 4.0

Quality: 2.0

Yield: 0.0

Momentum: 1.0

Volatility: 1.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

6.8$

Current Price

6.8$

Potential

-0.00%

Expected Cash-Flows