Nine Energy Service, Inc. Q2 FY2025 earnings call

• Revenue of $147.3 million was in the upper range of original guidance despite significant rig declines.
• Oil prices declined, U.S. activity and CapEx plans reduced, leading to rate declines.
• Natural gas prices supportive but declined, with positive sentiment in natural gas levered basins.
• Operational team performed well; Completion Tool and Wireline businesses grew revenue.
• International Tools revenue increased by ~20% in first half of 2025 vs first half of 2024.
• Cementing and Coiled Tubing declined due to activity and pricing declines in the Permian Basin.

Revenue for the quarter was $147.3 million. Adjusted EBITDA was $14.1 million. Completion Tool revenue grew by approximately 9% to $37 million, historically generating ~40% of total revenue. Wireline revenue increased by approximately 11% to $33 million. Cementing revenue decreased by approximately 9% to $52.2 million. Coiled Tubing revenue decreased by approximately 16% to $25.1 million.

• Anticipates Q3 revenue between $135 million and $145 million, down from Q2.
• Full year CapEx budget remains unchanged at $15 million to $25 million.

• Commodity price declines, increased costs due to tariffs, and global economic uncertainty.
• Rig count flat in some regions, pricing pressure in the Permian impacting revenue and earnings.

Q: Waqar Syed asks if expectation of private E&Ps tempering work is based on firm discussions or view on commodity prices.

A: Based on knowledge that private operators react more quickly to negative commodity price movements.

Q: John Daniel asks about Completion Tools facility.

A: It's ~30,000 square feet, to be next to Jacksboro assembly/manufacturing location, with test wells, next year opening.

Q: John Daniel asks about private operators and margins.

A: Smaller privates are operationally driven, gas markets like Haynesville and Northeast set up well.

Q: John Daniel asks about remedial Wireline market share driver.

A: Annual strategic meetings, leader diversified top line from pump down work.