Oil States Q2 Revenue Climbs 8% Sequentially, Backlog Hits Decade High, but Cash Burn Accelerates
OIS sits 59% above its 52-week low of $4.751.
Summary
Oil States reported Q2 revenue of $156.7M, up 8% sequentially, with backlog at a decade high of $451M. However, cash used in operations was $8.1M in H1 2026, and the cash balance fell to $19.8M after retiring convertible notes.
Key Events · Earnings and Guidance · OIS
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Revenue Up 8% Sequentially
Driven by higher demand for perforating and completion products in the Downhole Technologies segment, Q2 2026 revenue of $156.7M rose 8% from Q1 2026.
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Backlog Reaches Decade High
Offshore Manufactured Products backlog hit $451M, a decade high, with a book-to-bill ratio of 1.2x in Q2, signaling strong future revenue visibility.
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Cash Burn Accelerates
Cash used in operations was $8.1M in H1 2026, compared to $24.3M generated in H1 2025. The cash balance fell to $19.8M from $69.9M at year-end 2025, partly due to $50.5M used to retire convertible notes.
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Convertible Notes Retired at a Loss
The company retired $52.7M of 4.75% convertible notes with $50.5M cash and 529,428 shares, recognizing a $3.6M pre-tax loss on extinguishment.
Analysis · OIS · Energy & Transportation
Oil States delivered a mixed quarter. Revenue of $156.7M beat the sequential trend with 8% growth, and backlog reached a decade high of $451M, signaling strong future demand. However, the company burned $8.1M in cash from operations in the first half, and its cash balance halved to $19.8M after retiring $52.7M of convertible notes. The new $125M credit facility provides a lifeline, but the sharp cash decline and reliance on debt raise concerns about near-term liquidity. The quarter also included $1.7M in executive transition costs and $1.4M in impairment charges, muddying the bottom line.
At the time of this filing, OIS was trading at $7.55 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $454.2M. The 52-week trading range was $4.75 to $14.50. This filing was assessed with neutral market sentiment and an importance score of 7 out of 10.