Nine Energy Service, Inc. Q3 FY2025 earnings call

• Market backdrop: Q3 was challenging with rig declines, pricing pressure, especially in Permian. Activity declines and pricing pressure impacted all service lines. Domestic completion tool division had market share losses due to customer consolidation and casing size changes. • International business: International revenue grew 19% YTD 2025, driven by UAE, Argentina, Australia. • Cementing division: Completed landmark cementing job in Haynesville basin, using latex-based cement slurry for challenging conditions.

Revenue for the quarter was $132 million. Adjusted EBITDA was $9.6 million. Cementing revenue for the quarter was $49.3 million, representing a decrease of approximately 6%. Wireline revenue was $28.2 million, a decrease of approximately 15%. Completion tool revenue was $31.2 million, a decrease of approximately 16%. Coiled tubing revenue was $23.4 million, a decrease of approximately 7%. For the first 9 months of 2025 compared to the same period in 2024, international revenue grew by approximately 19%, driven mostly by increased sales in the UAE, Argentina and Australia.

• Q4: Anticipates revenue between $122 million and $132 million, down from Q3, due to seasonality, weather, holidays, budget exhaustion, and continued low pricing. • Full year CapEx: Budget remains $15 million to $25 million but likely at lower end.

• Market activity declines and pricing pressure negatively impacting revenue and earnings across service lines. • Domestic completion tool division market share losses due to customer consolidation and casing size changes. • Northeast drought causing completion delays and inefficiencies for wireline and completion tool operations. • Borrowing base expected to be reduced due to inventory appraised value changes.

Q: When will customers recognize relief is needed in the service market and when will they listen?

A: Ann Fox said they are flirting with that point now, with frac availability problems in Northeast due to underinvestment. Operators are under pressure too with flat CapEx and moving to Tier 2 acreage. It's a complicated situation.

Q: Is there a chance of a step change in coiled tubing equipment needed due to long laterals?

A: Ann Fox said laterals are getting long, technically needs step change, but service sector under pressure makes capital investment challenging; operators not slowing on long laterals