Oil States International, Inc. Q1 FY2026 earnings call

• Global energy backdrop shifted due to Middle East geopolitical tensions, causing market volatility. Commodity prices strengthened, but sequential revenue decline was due to seasonal factors, timing of revenue recognition, Middle East delays, and soft U.S. land markets.
• Approximately 72% of first quarter revenues and 74% of last 12 - month revenues from offshore and international projects, a strategic shift to higher - margin work.
• Offshore manufactured product segment led performance, backlog near decade - high at $430 million. Completion and production services segment improved adjusted segment EBITDA margins. Downhole technologies segment focused on domestic market introductions and international expansion, and received 2026 Spotlight on New Technology awards for geolock geothermal wellhead and MPD drill ahead tool.

Offshore manufactured product segment: Generated revenues of $91 million and adjusted segment EBITDA of $19 million in the first quarter, resulting in an adjusted segment EBITDA margin of 20%. Completion and production services segment: Delivered $21 million in revenues and adjusted segment EBITDA of $6 million, with an adjusted segment EBITDA margin of 29%. Downhole technologies segment: Generated revenues of $32 million with adjusted segment EBITDA of $1 million. Revenues remain relatively flat sequentially despite geopolitical headwinds in certain international markets.

• Second quarter guidance: Revenues in the range of $157 to $162 million and EBITDA of $18 to $20 million.
• Limited visibility on Middle East conflict duration and magnitude, so four - year guidance not adjusted. Expedient resolution of conflict could support guidance, longer - drawn - out conflict at risk.

• Current Middle East conflict and ongoing market uncertainty contributed to contract award delays, reduced revenues, and increased costs.
• Geopolitical headwinds in certain international markets may influence timing of future international expansion for downhill technologies segment's products.

Q: Talk about offshore markets order flow and exposure to different markets.

A: Markets are global. Offshore manufactured product segment has manufacturing globally. Seeing uptick in Latin American markets (Guyana, Brazil, Suriname), West Africa, Southeast Asia, North Sea, Gulf of America.

Q: Iran war and U.S. land activity, pricing.

A: Believe there will be increased activity in U.S. land. Private operators lead, then public MPs follow. U.S. land has been lesser in activity/revenue base. 75% of revenues from outside U.S. land. Expect U.S. land to have increase in activity and pricing, with completion and production services, downhole technologies having related activities.

Q: Confidence level for revenue conversion of recent backlog, especially offshore manufactured products with macro uncertainty.

A: Historically, backlog conversion in offshore manufactured product segment has been about 70%, but military products orders with longer durations may elongate timing. Historically had virtually no cancellations, reiterate backlog book - to - bill ratio for 2026 at one time or greater, confident in backlog conversion