Oil States Q2 Revenue Climbs 8% Sequentially as Backlog Reaches a Decade High

summarizeSummary

Oil States reported Q2 2026 revenue of $156.7M, up 8% sequentially, with adjusted EBITDA of $19M. Backlog reached a decade high of $451M, but free cash flow was negative $2M.

check_boxKey Events · Earnings and Guidance · OIS

• Q2 Revenue Up 8% Sequentially

  Consolidated revenues of $156.7 million increased 8% from Q1 2026, driven by a 22% jump in Downhole Technologies and 13% growth in Completion and Production Services.

• Backlog Hits Decade High

  Offshore Manufactured Products backlog reached $451 million as of June 30, 2026, the highest since March 2015, with Q2 bookings of $114 million yielding a 1.2x book-to-bill ratio.

• Adjusted EBITDA Rises 14%

  Adjusted EBITDA of $19.0 million improved from $16.7 million in Q1 2026, with Downhole Technologies swinging from a $0.4M operating loss to a $2.7M profit.

• Convertible Notes Fully Retired

  The remaining $52.7 million principal of 4.75% convertible senior notes was retired on April 1, 2026, using $50.5 million in cash and issuing 529,428 shares.

auto_awesomeAnalysis · OIS · Energy & Transportation

A solid sequential rebound marked Oil States' Q2 2026, with revenues rising 8% to $156.7 million and adjusted EBITDA climbing 14% to $19 million. The Offshore Manufactured Products backlog swelled to $451 million—the highest since March 2015—fueled by $114 million in new bookings, which signals robust demand visibility. Downhole Technologies delivered its best revenue quarter since 2023, and the balance sheet got a clean-up with the retirement of the remaining convertible notes. Yet free cash flow was negative $2 million as working capital consumed cash, and the company remains in a cyclical recovery with year-over-year revenue still down 5%. The results underscore operational momentum but also highlight the cash-flow challenges of ramping up to meet growing orders.