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Nine Energy Service, Inc. (NINE)
:NINE
US Market
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Nine Energy Service, Inc. (NINE) AI Stock Analysis

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NINE

Nine Energy Service, Inc.

(NINE)

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Neutral 50 (OpenAI - Gpt-5.6Sol)
Rating:50Neutral
Price Target:
$11.50
▼(-0.43% Downside)
Action:Reiterated
Date:08/22/26
Overall score reflects financial risk from negative operating and free cash flow despite improved reported earnings, partially offset by a meaningfully repaired balance sheet. Earnings call signals continued near-term pressure (EBITDA miss and slightly lower Q3 outlook) despite operational wins in higher-margin lines. Technicals are mildly supportive but not strong, while valuation is a positive factor due to the very low P/E.
Positive Factors
Completion Tools Growth
Strong completion-tools volume and international growth indicate product adoption and potential share gains. Expanding technology-led offerings can diversify Nine’s revenue beyond domestic completion cycles over the next several quarters.
Negative Factors
Unsustainable Cash Generation
Negative operating and free cash flow shows that reported profitability is not yet converting into internally generated funds. Continued cash leakage could limit reinvestment, increase reliance on borrowing, and weaken resilience during a cyclical downturn.
Read all positive and negative factors
Positive Factors
Negative Factors
Completion Tools Growth
Strong completion-tools volume and international growth indicate product adoption and potential share gains. Expanding technology-led offerings can diversify Nine’s revenue beyond domestic completion cycles over the next several quarters.
Read all positive factors

Nine Energy Service, Inc. (NINE) vs. SPDR S&P 500 ETF (SPY)

Nine Energy Service, Inc. Business Overview & Revenue Model

Company Description
Nine Energy Service, Inc., headquartered in Houston, Texas, is a provider of onshore well completion solutions. The company primarily caters to the development of unconventional oil and gas resources throughout North American basins and globally. ...
How the Company Makes Money
Nine Energy Service generates revenue primarily by providing oilfield services and selling completion-related products to oil and natural gas producers (E&P companies) on a per-job and/or per-unit basis tied to drilling and completion activity. Ke...

Nine Energy Service, Inc. Earnings Call Summary

Earnings Call Date:Jun 30, 2026
(Q2-2026)
|
% Change Since: |
Next Earnings Date:Oct 29, 2026
Earnings Call Sentiment Neutral
The call presented a mix of encouraging operational wins (notably strong completion tools growth, cementing activity expansion, product commercialization and reasonable liquidity) alongside meaningful near-term challenges (an adjusted EBITDA miss, significant coiled tubing fleet disruptions representing ~17% of large-diameter capacity, inflation-driven margin compression, modest cash used in operations and elevated borrowings). Management expects Q3 to be flat to modestly down and is focused on cost control and execution while preserving key skilled crews and pursuing technology-led growth.
Positive Updates
Revenue In Line with Guidance
Q2 revenue of $141.8M was within original guidance, demonstrating topline stability quarter-over-quarter.
Negative Updates
Adjusted EBITDA Miss
Adjusted EBITDA of $8.6M was below original guidance, reflecting margin pressure across service lines in Q2.
Read all updates
Q2-2026 Updates
Negative
Revenue In Line with Guidance
Q2 revenue of $141.8M was within original guidance, demonstrating topline stability quarter-over-quarter.
Read all positive updates
Company Guidance
Guidance for Q3 calls for revenue of $133 million to $143 million and management expects Q3 revenue and adjusted EBITDA to be flat to modestly down versus Q2 (Q2 revenue $141.8M; adjusted EBITDA $8.6M; adjusted gross profit $19.9M), driven largely by one large‑diameter coiled‑tubing unit remaining under repair and cost inflation; CT days worked rose ~16% in Q2 while blended day rates fell ~15%, CT revenue was down ~2% to $26.4M and CT consumables/labor/repairs increased ~12% QoQ, with one unit returned early Q3 and the second expected near year‑end. Management expects average U.S. rig count in Q3 to be relatively flat to slightly up versus Q2 (rigs: end Q1 543, end Q2 573) and noted pricing power typically improves as rig counts approach ~600. Liquidity at June 30 was $16.8M cash plus $30M ABL availability (total liquidity $46.8M) with $97.3M drawn at ~7% interest; Q2 net cash used in operations was $2.3M, average DSO 59 days, Q2 CapEx $4.8M (YTD $10.4M) and full‑year CapEx reaffirmed at $20–30M (now expected mid‑to‑lower end) with the company targeting H2 cash‑flow neutrality. Key Q2 service metrics included completion tools: 28,256 stages (+45%) and $37.1M revenue (+44%; international revenue +17% YTD); cementing: 1,155 jobs (+13% vs Q1) and $55.3M revenue (+3%; avg revenue per job −8%); and wireline: 6,414 stages (−7%) and $23.0M revenue (−4%; avg revenue per stage +3%).

Nine Energy Service, Inc. Financial Statement Overview

Summary
Income statement shows a turnaround to reported profitability with strong EBITDA margin, but operating quality is mixed with negative EBIT, thin gross margin, and declining revenue versus the prior year. Balance sheet has improved materially (positive equity and sharply lower debt), but cash flow is the key weakness: negative operating cash flow and negative free cash flow indicate the business is not consistently self-funding despite positive net income.
Income Statement
56
Neutral
Balance Sheet
48
Neutral
Cash Flow
36
Negative
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue536.00M561.91M554.10M609.53M593.38M349.42M
Gross Profit49.15M60.16M60.60M78.12M96.04M-3.59M
EBITDA148.40M53.31M60.47M72.67M96.34M20.97M
Net Income67.87M-51.32M-41.08M-32.21M14.39M-64.58M
Balance Sheet
Total Assets317.65M353.70M360.08M401.98M426.83M381.61M
Cash, Cash Equivalents and Short-Term Investments18.25M19.84M27.88M30.84M17.45M21.51M
Total Debt128.87M382.65M358.79M366.32M377.80M372.07M
Total Liabilities188.09M468.66M426.14M437.61M450.34M420.88M
Stockholders Equity129.57M-114.96M-66.06M-35.63M-23.51M-39.27M
Cash Flow
Free Cash Flow-43.36M-23.25M-1.57M20.91M-11.88M-55.83M
Operating Cash Flow-26.78M-7.31M13.20M45.51M16.67M-40.42M
Investing Cash Flow-13.20M-13.59M-14.18M-23.16M-25.42M-11.92M
Financing Cash Flow40.66M12.86M-1.68M-8.89M4.85M5.05M

Nine Energy Service, Inc. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
$127.50M9.0611.46%3.44%9.13%
66
Neutral
$374.67M26.034.87%1.53%6.08%-38.85%
56
Neutral
$501.28M-4.43-17.80%-2.80%-1752.76%
56
Neutral
$1.33B-95.75-1.49%-15.14%92.26%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
50
Neutral
$455.29K1.68-7.15%
50
Neutral
$877.83M-1.97-56.47%-16.18%-32.58%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
NINE
Nine Energy Service, Inc.
10.56
2.36
28.78%
OIS
Oil States International
8.38
2.85
51.54%
PUMP
Propetro Holding
10.60
5.70
116.33%
NCSM
Ncs Multistage Holdings
48.65
10.88
28.81%
RNGR
Ranger Energy Services
16.01
2.26
16.43%
ACDC
ProFrac Holding
4.67
0.52
12.53%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 22, 2026