Loading...
01/10 16:56
Loading...
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call reveals strong financial metrics, including a high backlog, robust bookings, and a positive book-to-bill ratio. The company is strategically exiting low-margin operations, resulting in improved EBITDA and free cash flow. Despite a decline in U.S. land-based revenues, the focus on offshore and international markets offers stability. The Q&A highlights management's confidence in future growth and margin improvement. Although CapEx is slightly above initial guidance, it's offset by asset sales. Overall, the positive outlook and strategic focus on high-margin areas suggest a positive stock price movement.
Consolidated Revenues $165 million in Q2 2025, with 72% generated from offshore and international projects, up significantly year-over-year due to strategic actions to grow international revenues and optimize U.S. land operations.
Adjusted Consolidated EBITDA $21 million in Q2 2025, achieving the midpoint of the guided range due to product and service mix.
Net Income $3 million in Q2 2025, or $0.05 per share, including $3 million in facility exit, severance, and other charges. Adjusted net income was $5 million or $0.09 per share after excluding these charges.
Offshore/Manufactured Products Segment Revenues $107 million in Q2 2025, with adjusted segment EBITDA of $21 million and a margin of 20%, up from 19% in Q1 2025, driven by strong offshore project activity.
Completion and Production Services Segment Revenues $29 million in Q2 2025, with adjusted segment EBITDA of $8 million and a margin of 28%, benefiting from facility and equipment sale gains. Revenues declined 15% sequentially due to reduced U.S. land-based activity.
Downhole Technologies Segment Revenues $29 million in Q2 2025, with $1 million in adjusted segment EBITDA. Revenues declined 10% sequentially due to reduced U.S. land-based activity and included a $1 million noncash operating lease and asset impairment charge.
Cash Flow from Operations $15 million in Q2 2025, up 61% sequentially, with $8 million in free cash flow used for stock repurchases and debt reduction.
Backlog $363 million in Q2 2025, the highest level since September 2015, supported by robust bookings of $112 million and a quarterly book-to-bill ratio of 1.1x.
Low-impact workover package: Recognized with a 2025 Meritorious Engineering Award for enhancing subsea plug and abandonment operations while ensuring the integrity of aging wells.
Offshore and international markets: 72% of consolidated revenues were generated from offshore and international projects, reflecting a strategic focus on these markets.
Backlog growth: Backlog increased to $363 million, the highest level since September 2015, supported by robust bookings of $112 million and a book-to-bill ratio of 1.1x for the quarter.
U.S. land operations optimization: Exited 3 additional land-based facilities and reduced U.S. land-focused workforce in response to declining U.S. land drilling and completion activity.
Cash flow and debt management: Generated $8 million of free cash flow, repurchased $7 million of common stock, and $15 million of convertible senior notes, approaching net debt 0.
Shift to offshore and international markets: Strategic actions to grow international project-driven revenues and optimize U.S. land operations due to lower activity levels in the U.S.
Investment in manufacturing facility: Ongoing construction of a new manufacturing facility in Batam, Indonesia, to be completed in Q3 2025.
Geopolitical instability: The company highlighted geopolitical instability as a factor impacting market conditions, which could affect operations and financial performance.
Lower crude oil prices: Weaker crude oil prices were noted as a challenge, driven by macroeconomic uncertainty and OPEC+ production decisions, leading to reduced U.S. land drilling and completion activity.
Fluctuating U.S. trade policies: Uncertainty around U.S. trade policies was mentioned as a risk, potentially impacting market dynamics and operations.
Decline in U.S. land-based activity: Significant reductions in U.S. land drilling and completion activity were reported, with rig counts and frac spread counts declining, affecting revenue and workforce levels.
Facility exit and workforce reductions: The company made strategic decisions to exit three additional land-based facilities and reduce its U.S. land-focused workforce, reflecting challenges in the U.S. market.
Economic volatility and trade tariffs: Economic volatility and uncertainty around new trade tariffs were highlighted as risks, potentially impacting demand and operations.
Asset impairment and restructuring charges: The company incurred noncash operating lease and asset impairment charges, as well as restructuring costs, reflecting operational challenges.
Capital expenditure pressures: Elevated capital expenditures were noted due to ongoing construction projects and manufacturing commitments, which could strain financial resources.
Revenue Guidance: The company has updated its full-year revenue guidance to a range of $685 million to $700 million, reflecting the streamlining of U.S. land operations. Third-quarter revenue is projected to be in the range of $165 million to $170 million.
EBITDA Guidance: Full-year EBITDA guidance is maintained in the range of $88 million to $93 million. Third-quarter EBITDA is projected to be between $21 million and $23 million.
Market Trends and Growth Expectations: Offshore and international markets are expected to lead upstream growth, driven by a global pivot towards exploration and offshore development for lower-cost, lower-carbon resources. U.S. land-based activity is expected to remain subdued.
Backlog and Future Bookings: The company's backlog remains at a decade-high level of $363 million, with strong future bookings anticipated. The backlog supports incremental revenue and earnings growth for the remainder of 2025.
Cash Flow and Capital Allocation: Projected cash flow from operations for the full year is expected to range between $65 million and $75 million. The company plans to continue repurchasing common stock and convertible senior notes, prioritizing returns to stockholders.
Capital Expenditures: Capital expenditures include the ongoing construction of a new manufacturing facility in Batam, Indonesia, expected to complete in the third quarter of 2025.
Share Repurchase: During the second quarter, the company repurchased $7 million of its common stock under the current share repurchase authorization. Additionally, $15 million of convertible senior notes were purchased at a slight discount. The company intends to remain opportunistic with additional purchases of common stock and convertible senior notes, given its solid free cash flow outlook, and will continue to prioritize returns to stockholders.
The earnings call reveals mixed signals: strong cash flow and backlog, but challenges like tariffs and revenue decline in U.S. land-based activity. Optimistic guidance on future cash flow and backlog supports a neutral sentiment. However, unclear management responses and negative EBITDA in the Downhole Technologies segment temper positive aspects. Given these factors, stock price movement is expected to remain stable in the short term.
The earnings call reveals strong financial metrics, including a high backlog, robust bookings, and a positive book-to-bill ratio. The company is strategically exiting low-margin operations, resulting in improved EBITDA and free cash flow. Despite a decline in U.S. land-based revenues, the focus on offshore and international markets offers stability. The Q&A highlights management's confidence in future growth and margin improvement. Although CapEx is slightly above initial guidance, it's offset by asset sales. Overall, the positive outlook and strategic focus on high-margin areas suggest a positive stock price movement.
The earnings call highlights strong international growth, met or exceeded financial guidance, and strategic streamlining. Despite challenges like tariffs and oil price declines, management's proactive measures and strong demand (book-to-bill ratio of 1.5) are promising. The Q&A indicates sustained drilling programs and margin improvements. Share repurchases and a high backlog further support a positive outlook. Given these factors, a positive stock price movement is likely, with potential for a 2% to 8% increase.
The earnings call reveals mixed signals: positive EPS growth and share repurchases are offset by flat market conditions and operational challenges. The Q&A section highlights comfort with debt levels and potential revenue growth, but also reveals management's unclear response to margin-related queries. The strategic plan includes promising partnerships and technology introductions but faces regulatory and market risks. Given these factors, the stock price is likely to remain stable, leading to a neutral sentiment.
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
