Nine Energy Service Swings to Q2 Loss as Coiled Tubing Setbacks and Inflation Squeeze Margins
Summary
Nine Energy Service posted a Q2 2026 net loss of $4.9 million on revenue of $141.8 million, pressured by coiled tubing margin compression and cost inflation. Two coiled tubing units were out of service, and the company guided for flat to lower Q3 performance.
Key Events · Earnings and Guidance · NINE
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Q2 Net Loss of $4.9M
Revenue of $141.8 million was down 4% year-over-year, and the company swung to a net loss of $4.9 million from a $10.4 million loss a year ago, driven by coiled tubing margin compression and cost inflation.
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Coiled Tubing Operational Issues
Two large-diameter coiled tubing units were taken out of service during the quarter due to maintenance issues. One unit returned to service in early Q3, but the second is expected to remain offline until near year-end, weighing on revenue and profitability.
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Liquidity and Cash Burn
Cash used in operations was $4.7 million for the Successor Period. Total liquidity stood at $46.8 million, consisting of $16.8 million in cash and $30.0 million in availability under the Exit ABL Facility.
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Q3 Outlook Flat to Lower
Management expects Q3 2026 revenue and profitability to be flat to modestly lower compared to Q2, citing sustained revenue loss from the offline coiled tubing unit and ongoing cost inflation.
Analysis · NINE · Energy & Transportation
A $4.9 million net loss in the second quarter of 2026 underscores the operational headwinds Nine Energy Service faces post-bankruptcy, as margin compression in coiled tubing and persistent cost inflation eroded profitability. Revenue slipped 4% year-over-year to $141.8 million, while Adjusted EBITDA contracted sharply to $8.6 million from $14.1 million a year ago. Two large-diameter coiled tubing units were sidelined during the quarter for maintenance; one has since returned to service in early Q3, but the other is expected to remain offline until near year-end, prolonging the revenue drag. Cash used in operations reached $4.7 million in the Successor Period, leaving total liquidity at $46.8 million. Looking ahead, management guided for Q3 revenue and profitability to be flat to modestly lower, citing the ongoing impact of the offline unit and sustained cost inflation. These results, the first full quarterly report under fresh start accounting following the company's Chapter 11 emergence on March 5, 2026, highlight the challenges still confronting the restructured business.
At the time of this filing, NINE was trading at $0.25 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $25.4M. This filing was assessed with negative market sentiment and an importance score of 7 out of 10.