# OIS earnings call intelligence LOPJLB CallCard / temporal rollup · freemium · [stock page](https://www.lopjlb.com/stock/OIS) · [Earnings tab](https://www.lopjlb.com/stock/OIS?tab=earnings) Updated: 2026-10-31T06:47:40 Quarters analyzed: 8 ## Cross-quarter narrative Across 8 calls for OIS, management tone moved from +0.60 (2024 Q4) to +0.60 (2026 Q3). Latest guidance stance: maintained. Latest desk line: Oil States beat Q3 guidance with $170M revenue (+8% seq) and $20M adj EBITDA (+6% seq), driven by offshore/international mix (72% of revenue) and record $482M backlog (1.3x book-to-bill); Q4 guidance $172-184M revenue, $20-23M adj EBITDA; FCF lowered to $15-25M on working capital build; Downhole raw ## Latest CallCard · Q3 Oil States beat Q3 guidance with $170M revenue (+8% seq) and $20M adj EBITDA (+6% seq), driven by offshore/international mix (72% of revenue) and record $482M backlog (1.3x book-to-bill); Q4 guidance $172-184M revenue, $20-23M adj EBITDA; FCF lowered to $15-25M on working capital build; Downhole raw **Guidance:** maintained — Provided Q4 guidance of $172-184M revenue and $20-23M adj EBITDA after beating Q3 guidance; no explicit full-year guidance update; FCF guidance lowered to $15-25M for Q4 due to working capital build and seasonal factors. **Tone:** mgmt 0.6 · Q&A pressure 0.5 · divergence 0.3 Prepared remarks emphasize record backlog, strategic shift to offshore/international (72% of revenue), MPD momentum, and long-cycle visibility, while acknowledging near-term geopolitical uncertainties and project timing variations. ### Demand visibility Strong offshore/international backlog visibility with record $482M backlog (1.3x Q3 book-to-bill, 1.2x YTD), 90% of YTD bookings from offshore energy, supporting 2027 outlook. Backlog at highest level in almost 12 years, driven by deepwater projects in Brazil, Guyana, Asia; military awards also contribute but convert slower; MPD rental booked in Q3 with sale order expected Q4; deep-sea mineral opportunities progressing; US land activity changes create near-term variability in Completion Services. ### Margins / costs Offshore margin 18% (down sequentially on mix) but guiding to 20%+ with growth potential; Downhole facing elevated input costs (tungsten, explosive powders, copper) but expects moderation in Q1/Q2 2027; Completion Services margin 26% on high-graded service lines. Offshore/Manufactured Products margin tempered by project/service mix; no pricing concessions on capital equipment per management; Downhole raw material headwinds significant in 2026, especially explosive powder availability; $38M inventory build YTD supports backlog execution and Downhole consumable demand. ### Capital allocation Three-pillar framework: organic CapEx/R&D, selective/opportunistic M&A (more aggressive), and opportunistic share repurchases ($50M new 2-year authorization); $9M repurchased YTD; $10M CapEx YTD; $13M asset sales; net cash position maintained. Management explicitly not content with current portfolio, actively evaluating M&A to fill technology gaps; balance sheet flexibility supports both M&A and buybacks; retired convertible notes; new credit facility in place; assets held for sale ($14M remaining) monetization timing subject to market conditions. ### Milestones - **Managed Pressure Drilling (MPD) rental project** [delivered]: Booked in Q3 2026; MPD sale order expected in Q4; modeling $35-40M annual MPD revenue at good margins. - **MPD sale order** [on_track]: Expected in Q4 2026 per management commentary. - **Deep-sea mineral gathering system opportunities** [on_track]: Progressing per prepared remarks; leverages riser, connector, pressure control capabilities. - **Backlog conversion to revenue** [on_track]: Record $482M backlog provides visibility into 2027; focus on reliable delivery and profitable conversion. - **Military product awards conversion** [on_track]: Large multiyear awards from 2025 converting slower but accretive to margins. - **Downhole product portfolio expansion** [on_track]: Revenue highest since Q1 2023; expanded portfolio driving growth across completion and perforating products. - **Inventory build for backlog execution** [delivered]: $38M invested YTD in inventory purchases to support growing backlog and Downhole consumable demand. - **Asset monetization** [at_risk]: $14M assets held for sale; proceeds not expected in Q4, likely carry into 2027. ### Fears / risks - **Geopolitical**: Ongoing conflicts in Middle East and Europe drive oil price volatility and disrupt Middle East export access, creating uncertainty on timing of broader regional recovery. - **Cost inflation**: Elevated input costs for shaped charges (tungsten, explosive powders, copper) pressuring Downhole Technologies margins; explosive powder availability a specific constraint. - **Cash conversion**: Significant working capital build ($38M inventory YTD) and seasonal collection slowdown reducing near-term free cash flow; Q4 FCF guidance lowered to $15-25M range. - **Execution**: Customer project delays and quarter-to-quarter variations in results from contract award timing and project schedules. - **Market concentration**: Heavy reliance on offshore/international markets (72% of revenue) exposes company to regional spending fluctuations. - **M&A integration**: More aggressive M&A posture carries integration and capital allocation risk if pursued. - **Pricing pressure**: Analyst inquiry on whether industry pricing reflects inflation; management asserts no concessions but risk remains if market dynamics shift. - **Backlog conversion timing**: Military backlog converts slower than energy backlog; overall conversion subject to customer schedules and geopolitical conditions. ### Key quotes > “72% of our consolidated revenues generated in the first 9 months of 2026 were driven by offshore and international activity, which is a substantial increase from around 50% in 2023.” ## Quarter one-liners - **2026 Q3:** Oil States beat Q3 guidance with $170M revenue (+8% seq) and $20M adj EBITDA (+6% seq), driven by offshore/international mix (72% of revenue) and record $482M backlog (1.3x book-to-bill); Q4 guidance $172-184M revenue, $20-23M adj EBITDA; FCF lowered to $15-25M on working capital build; Downhole raw - **2026 Q2:** Oil States posted 8% revenue growth and a 14% EBITDA rise in Q2 2026, backed by a record backlog but warns of award delays and raw‑material cost pressure. - **2026 Q1:** Oil States Q1 2026 shows flat revenue, modest EBITDA and strong offshore backlog but faces Middle East conflict‑driven uncertainty and modest upside in U.S. land activity. - **2025 Q4:** Oil States posted strong Q4 results, record backlog and higher margins, reaffirmed 2026 revenue/EBITDA guidance, while noting tariff impacts, ongoing facility exits and offshore cycle uncertainty. - **2025 Q3:** — - **2025 Q2:** — - **2025 Q1:** — - **2024 Q4:** Oil States posted $165M Q4 revenue, offshore growth offset US land decline, generated $18M cash flow, repurchased $9M stock, and guided 2025 revenue $700‑735M with focus on offshore/international expansion and shareholder returns. ## Theme arcs - **Management tone** (stable): Δ mgmt=+0.00 ## Fear persistence - **offshore capacity** [resolved]: 2024 Q4 - **us land demand** [resolved]: 2024 Q4 - **debt level** [resolved]: 2024 Q4 - **margin pressure** [resolved]: 2024 Q4 - **international market exposure** [resolved]: 2024 Q4 - **regulatory environment** [resolved]: 2024 Q4 - **seasonality** [resolved]: 2024 Q4 - **competitive landscape** [resolved]: 2024 Q4 - **tariff risk** [resolved]: 2025 Q4 - **inventory disposition** [resolved]: 2025 Q4 ## Guidance path 2024 Q4:maintained → 2025 Q1:vague → 2025 Q2:vague → 2025 Q3:vague → 2025 Q4:maintained → 2026 Q1:maintained → 2026 Q2:maintained → 2026 Q3:maintained --- Research context only. Not personalized investment advice. API: `GET /bff/api/bigfive/earnings-intel/OIS`