Oil States Tops Q4 Guidance, Builds Offshore Backlog and Outlines 2026 Growth
Stronger cash generation alongside a multi‑year high in offshore backlog underpins a 2026 outlook for higher revenue and EBITDA.
Overview
- Adjusted EBITDA exceeded guidance in Q4 as operations generated $50 million in cash, which was used to retire convertible notes and left cash exceeding debt by $15 million at year‑end.
- Offshore Manufactured Products backlog rose to $435 million, supported by $160 million in bookings and a 1.3x quarterly book‑to‑bill ratio, the highest backlog since March 2015.
- Offshore and international work accounted for 77% of quarterly revenue after exits from underperforming U.S. land operations shifted the business mix.
- For 2026, management guided to $680–$700 million in revenue, $90–$95 million in EBITDA, and $60–$65 million in operating cash flow, with book‑to‑bill expected to remain above 1.0 on backlog conversion.
- The company plans to retire the remaining $53 million of convertible notes by April 2026 using cash and a new $125 million credit facility, as 2025 results reflected a $117 million net loss driven largely by non‑cash impairments and tariff pressure on perforating.