Nine Energy Service, Inc. (NINE)
XASE:NINE
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Nine Energy Service, Inc.
(NYSE MKT:NINE)
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Rating:47Neutral
Price Target:
$10.00
Action:Reiterated
Date:05/15/26
The score is weighed down primarily by weak and volatile financial performance, especially negative recent operating/free cash flow and thin operating profitability despite balance-sheet improvement. Technicals provide some support via positive momentum, but overbought indicators add near-term risk. Valuation is difficult to anchor due to a negative P/E, while the earnings call is modestly supportive on improving Q2 guidance but tempered by liquidity and pricing pressures.
Positive Factors
Post‑bankruptcy balance‑sheet improvement
Emerging from Chapter 11 with fresh‑start accounting and materially reduced debt improves structural financial flexibility. A positive equity base and lower leverage reduce default risk, expand borrowing capacity, and give management room to invest in equipment and R&D to capture cyclical upswings.
Negative Factors
Weak cash generation
Sustained negative operating and free cash flow pressures liquidity and forces dependence on revolver borrowings or equity alternatives. Weak cash generation limits capacity for organic capex, fleet refreshes, and R&D without external funding, raising execution risk in tougher cycles.
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Positive Factors
Negative Factors
Post‑bankruptcy balance‑sheet improvement
Emerging from Chapter 11 with fresh‑start accounting and materially reduced debt improves structural financial flexibility. A positive equity base and lower leverage reduce default risk, expand borrowing capacity, and give management room to invest in equipment and R&D to capture cyclical upswings.
Read all positive factors
Nine Energy Service, Inc. (NINE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$455.29K
Dividend YieldN/A
Average Volume (3M)N/A
Price to Earnings (P/E)0.8
Beta (1Y)-0.44
Revenue Growth-3.74%
EPS GrowthN/A
CountryUS
Employees1,077
SectorEnergy
Sector Strength52
IndustryOil & Gas Equipment & Services
Share Statistics
EPS (TTM)1.42
Shares Outstanding13,949,990
10 Day Avg. VolumeN/A
30 Day Avg. VolumeN/A
Financial Highlights & Ratios
PEG Ratio0.00
Price to Book (P/B)-2.92
Price to Sales (P/S)0.60
P/FCF Ratio-14.43
Enterprise Value/Market Cap1.22K
Enterprise Value/Revenue1.03
Enterprise Value/Gross Profit11.96
Enterprise Value/Ebitda13.39
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)-1.05
Revenue Forecast (FY)$413.00M
Nine Energy Service, Inc. Business Overview & Revenue Model
Company Description
Nine Energy Service, Inc. operates as an onshore completion services provider that targets unconventional oil and gas resource development across North American basins and internationally. It offers cementing services, which consist of blending hi...
How the Company Makes Money
Nine Energy Service makes money by selling oilfield services and completion-related products to E&P operators, generating revenue primarily from (1) service-based work performed in the field and (2) sales/rental of completion tools and related pro...
Nine Energy Service, Inc. Earnings Call Summary
Earnings Call Date:May 13, 2026
(Q1-2026)
| Next Earnings Date:Jul 30, 2026
Earnings Call Sentiment Positive
The call balanced clear near-term challenges (a $5.5M inventory write-down, severe weather disruptions, Q1 negative operating cash flow, declines in wireline and completion tool revenue, and elevated revolver borrowings) with a set of meaningful positives: the company emerged from Chapter 11 with fresh start accounting and improved positioning, reported $130M revenue and $13.8M adjusted gross profit, provided constructive Q2 guidance ($136M–$146M revenue and $10M–$15M adjusted EBITDA), demonstrated international and Haynesville growth opportunities, and hit a product milestone of 500k Scorpion plugs sold. Management expressed confidence that weather-related impacts and bankruptcy-related noise are behind the company and expects normalized and improved financial performance in Q2 and the back half of the year.Positive Updates
Quarterly Revenue and Profitability
Reported revenue of $130.0M for Q1 2026 with adjusted gross profit of $13.8M and reported adjusted EBITDA of $3.0M (note: includes a $5.5M noncash inventory write-down).
Negative Updates
Inventory Write-Down and EBITDA Impact
A $5.5M noncash inventory write-down in Q1 negatively affected net income and adjusted EBITDA; management elected not to add this amount back to reported adjusted EBITDA.
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Q1-2026 Updates
Positive
Negative
Quarterly Revenue and Profitability
Reported revenue of $130.0M for Q1 2026 with adjusted gross profit of $13.8M and reported adjusted EBITDA of $3.0M (note: includes a $5.5M noncash inventory write-down).
Read all positive updates
Company Guidance
Nine guided second‑quarter revenue of $136 million to $146 million and adjusted EBITDA of $10 million to $15 million, expecting sequential improvement from Q1 (Q1 revenue $130 million; reported adjusted EBITDA $3 million, which included a $5.5 million noncash inventory write‑down). They reiterated full‑year CapEx of $20–$30 million and annual cash interest of about $7 million; as of March 31 Nine had $11.2 million cash, $35.7 million revolver availability (total liquidity $46.9 million) with $90.4 million revolver borrowings (and an additional $5 million borrowed April 28). Q1 operational and financial metrics disclosed include adjusted gross profit $13.8 million, 1,022 cementing jobs (+4% vs. Q4) with cementing revenue $53.4 million (+1%) and avg. revenue per job down ~2%, 6,890 wireline stages (‑4%) and wireline revenue $23.9 million (‑5%), 19,422 completion tool stages (‑10%) and completion tool revenue $25.8 million (‑10%), coiled tubing revenue $26.9 million (+4%) with days worked +28% and avg. day rate down ~18%, G&A $17.7 million, D&A $8.2 million, net cash used in operations $12.4 million, DSO 61 days and Q1 CapEx $5.6 million. Management expects no meaningful change in U.S. rig count in Q2 but anticipates better financial performance due to less weather‑related downtime and operational efficiencies, with potential additional upside later in the year from DUC drawdown and incremental activity.Nine Energy Service, Inc. Financial Statement Overview
Summary
Income Statement
43
Neutral
Balance Sheet
34
Negative
Cash Flow
27
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 541.44M | 561.91M | 554.10M | 609.53M | 593.38M | 349.42M |
| Gross Profit | 46.43M | 60.16M | 60.60M | 78.12M | 96.04M | -3.59M |
| EBITDA | 41.45M | 53.31M | 60.47M | 72.67M | 96.34M | 20.97M |
| Net Income | 62.37M | -51.32M | -41.08M | -32.21M | 14.39M | -64.58M |
Balance Sheet | ||||||
| Total Assets | 326.04M | 353.70M | 360.08M | 401.98M | 426.83M | 381.61M |
| Cash, Cash Equivalents and Short-Term Investments | 21.86M | 19.84M | 27.88M | 30.84M | 17.45M | 21.51M |
| Total Debt | 126.52M | 382.65M | 358.79M | 366.32M | 377.80M | 372.07M |
| Total Liabilities | 192.06M | 468.66M | 426.14M | 437.61M | 450.34M | 420.88M |
| Stockholders Equity | 133.98M | -114.96M | -66.06M | -35.63M | -23.51M | -39.27M |
Cash Flow | ||||||
| Free Cash Flow | -32.80M | -23.25M | -1.57M | 20.91M | -11.88M | -55.83M |
| Operating Cash Flow | -14.40M | -7.31M | 13.20M | 45.51M | 16.67M | -40.42M |
| Investing Cash Flow | -15.09M | -13.59M | -14.18M | -23.16M | -25.42M | -11.92M |
| Financing Cash Flow | 34.13M | 12.86M | -1.68M | -8.89M | 4.85M | 5.05M |
Nine Energy Service, Inc. Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | $114.64M | -109.55 | 16.53% | ― | 6.81% | 122.00% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
64 Neutral | $389.22M | 33.71 | 5.12% | 1.71% | 0.25% | -27.15% | |
59 Neutral | $2.09B | -115.61 | -1.43% | ― | -15.55% | 91.88% | |
54 Neutral | $541.74M | 151.76 | -17.52% | ― | -4.50% | -2286.91% | |
49 Neutral | $1.40B | -3.01 | -53.92% | ― | -18.94% | -69.29% | |
47 Neutral | $455.29K | 0.83 | ― | ― | -3.74% | ― |
* Energy Sector Average
NINE
Nine Energy Service, Inc.
10.40
2.20
26.83%
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103.67%
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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.