Nine Energy Service ((NINE)) has held its Q2 earnings call. Read on for the main highlights of the call.
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The recent earnings call for Nine Energy Service presented a balanced sentiment, reflecting both positive developments and significant challenges. While the company reported revenue within the upper range of guidance and growth in international tools and wireline segments, it also faced rig declines, pricing pressures, and anticipated declines in Q3 revenue and EBITDA.
Revenue within Upper Range of Guidance
Nine Energy Service reported a Q2 2025 revenue of $147.3 million, aligning with the upper range of their guidance of $138 million to $148 million. This achievement highlights the company’s ability to meet its financial targets despite a challenging market environment.
Increase in International Tools Revenue
The company saw a significant 20% increase in international tools revenue in the first half of 2025 compared to the same period in 2024. This growth was primarily driven by sales in the Middle East and an increase in plug sales, showcasing the company’s expanding international footprint.
Growth in Completion Tool and Wireline Revenue
Completion Tool revenue grew by approximately 9%, and Wireline revenue increased by about 11% in Q2 2025. These segments have shown resilience and growth, contributing positively to the company’s overall performance.
Significant Rig Declines and Pricing Pressure
The U.S. market saw a decline of 53 rigs, nearly 10%, between March 28 and July 3, leading to pricing pressure across all service lines, particularly in the Permian Basin. This decline poses a challenge to maintaining profitability in the domestic market.
Decline in Oil Prices and CapEx Reductions
Oil prices fell from an average of $72 in Q1 to $65 in Q2, prompting a reduction in U.S. activity and CapEx plans. This decline in oil prices has affected the company’s operations and financial planning.
Decrease in Cementing and Coiled Tubing Revenue
Cementing revenue decreased by approximately 9%, and Coiled Tubing revenue fell by about 16% in Q2 2025. These declines indicate challenges in these specific service lines, which the company will need to address moving forward.
Anticipated Revenue and Adjusted EBITDA Declines in Q3
Looking ahead, Nine Energy Service anticipates a decline in both revenue and adjusted EBITDA for Q3, with projected revenue between $135 million and $145 million. The company expects further activity declines but remains focused on international growth and cost management.
Forward-Looking Guidance
During the earnings call, Nine Energy Service provided guidance indicating a focus on international growth and cost management despite anticipated declines in Q3. The company holds $14.2 million in cash and has $51.3 million available under its revolving credit facility, positioning it to navigate upcoming challenges.
In summary, Nine Energy Service’s earnings call reflected a balanced sentiment with both positive achievements and significant challenges. The company met its revenue guidance and saw growth in international and wireline segments, yet it faces rig declines and pricing pressures. Looking forward, Nine Energy Service remains committed to international expansion and cost management to navigate the anticipated declines in Q3.