OIL STATES INTERNATIONAL, INC Q1 FY2025 earnings call

• Cindy Taylor reported that first quarter 2025 revenues of $160 million to $170 million and EBITDA of $17.5 to $18.5 million were met or exceeded due to strength in international offerings, U.S. land-based optimization efforts, and recovery in Gulf of America operations. • Strong bookings of $136 million led to the highest backlog since September 2015 with a book-to-bill ratio of 1.5 times. • Reversed historical first quarter negative cash flow from operations by generating $9 million of cash flow from operations and received $9 million from monetization of equipment and inventory. • Cash flows were used to fund CapEx and $5 million of share repurchases. • Addressed impact of U.S. tariffs, discussing strategic sourcing, temporary import bonds, alternate supply sources, supply chain optimization, and pricing adjustments. • Lloyd Hajdik reviewed operating results, financial position, full-year cash flow from operations expected $65 - $75 million, and planned CapEx of $25 million.

Offshore manufactured product segment: Generated revenues of $93 million and adjusted segment EBITDA of $18 million in the first quarter, with an adjusted segment EBITDA margin of 19% (compared to 23% in the fourth quarter). Completion and production services segment: Generated revenues of $35 million and adjusted segment EBITDA of $9 million, with an adjusted segment EBITDA margin of 25% (compared to 12% in the fourth quarter), driven by strength in the Gulf of America and cost reduction efforts. Downhole technology segment: Generated revenues of $33 million and $2 million of adjusted segment EBITDA.

• Maintained full-year 2025 revenue guidance of $700 million to $735 million and full-year EBITDA guidance of $88 million to $93 million. • First quarter 2025 results met/exceeded initial guidance; upcoming quarter guidance: revenue $170 million to $180 million, EBITDA $20 million to $22 million. • Full-year cash flow from operations expected $65 - $75 million, CapEx $25 million. • Plan to be opportunistic with share repurchases given low stock price.

• Impact of U.S. broad-based tariffs creating market uncertainty, potential economic consequences, and individual company impacts. • Decline in global crude oil prices due to OPEC+ production increases and tariff concerns negatively affecting market conditions.

Q: Hey. Good morning, everyone, and congrats on a nice quarter, given everything going on. As we've gone through earnings season so far, there's obviously a lot of uncertainty about how the rest of the year might play out, but one theme I've kind of heard recurring is longer cycle projects internationally and especially offshore seem to be proceeding. I'm just curious, I mean, you're coming off a great booking quarter, but in conversations with your customers at this stage, I'm curious what you all are seeing from a willingness to proceed with plans that were already in progress, given kind of what's happened on the macro, just maybe as we think about bookings over the course of the rest of the year?

A: Thanks, Jim. It's a great question, and you've been doing this a long time, as I have. And typically development drilling programs that are milkier in nature don't depend on short-term movements up and down in the commodity price. And so I think this is a continuation of that theme, quite frankly and again, these are more development drilling programs that are decades long, if not, it's new exploratory programs. And again, it's always the short cycle weighted to U.S. shell that tends to be the quickest to flex up in a recovery and down in a softening. And so I think we're seeing that play out significantly as we go forward. Now, if I comment about our strong bookings. First of all, we're obviously thrilled to see that come early in the year, particularly in the first quarter. A lot of this really exemplifies what I'm talking about, which is the major subsea equipment production equipment that we offer the market, led by Brazil, they are the deepwater leader globally. And so that really benefited us in the quarter and will continue to benefit us throughout not only this year, but future years. And I'd say we are also beginning to see early benefits of the strategic investment we made in our new baton facility on our connector products. Again, that is a trend we expect to continue. And then other than that, we are expanding and broadening our service and refurb and repair business around a larger installed base that really is supported by our global operations. And so I think that gives you the color of not only the bookings we had, but are we getting positive around that. We added to a book-to-bill north of one in connection with our last quarter call. And I always say when you have a strong quarter like this, that guidance gets a lot more comfortable as we progress. And that would be on the back of higher revenues, which obviously implies greater year-over-year booking.

Q: Good morning, guys. Thanks for taking my question. Lloyd, maybe -- I know you mentioned – or you guys talked a little bit about the tariffs, maybe the potential impact. It sounds like it's minimal at this point from what you know today. Is it -- is there any way to handicap -- is that a 5% lower or is it 10% -- or 5% higher or 10% higher on cost? Have you done any kind of back of the envelope there?

A: Well, we're working on that. I'd say it's probably in that range. I'm looking at Scott and he's nodding his head yes. And again, we mentioned on the conference call, it's really -- the impacts are really around in the downhole technology segment specifically to the perforating business with the importation of the gun steel components, end plates, subs, et cetera, that are other competitors in the space are importing essentially from the same sources. So us and our competitors will be looking at similar price increases or cost increases that all things being equal would adjust in our selling prices to our customers.