Nine Energy Service reported a third-quarter net loss as stronger U.S. activity and improved cementing results were offset by constraints in coiled tubing and weaker international Completion Tools activity. The oilfield services company said it expects fourth-quarter revenue to be roughly flat with the third quarter, but profitability to improve modestly as more revenue comes from higher-margin cementing and international tools work.
- Third-quarter results: Revenue was $142.0 million. Nine recorded a net loss of $5.1 million, or 36 cents per share, and adjusted EBITDA of $8.3 million. Gross profit was $13.3 million, while adjusted gross profit was $20.6 million.
- Business trends: Cementing revenue rose 11% from the second quarter, supported by customer demand, higher activity and market-share gains. The company said stronger U.S. activity also helped results.
- Areas of pressure: One large-diameter coiled tubing unit remained out of service during the quarter, limiting that business’s performance. International Completion Tools activity declined from the second quarter, mainly because of the timing of customer orders.
- Fourth-quarter outlook: Nine expects U.S. activity to continue improving and anticipates flat revenue but modestly higher profitability compared with the third quarter. The large-diameter coiled tubing unit could return to service in December; the timing of its return, customer activity and the mix of services and products will affect near-term performance.
- Cash and spending: Operating activities generated $4.7 million in cash during the quarter. Capital expenditures were $2.8 million, down from $4.8 million in the second quarter. Full-year 2026 capital spending guidance remains $20 million to $30 million, with spending expected near the midpoint.
- Liquidity and borrowings: At Sept. 30, Nine had $16.1 million in cash and $29.9 million available under its revolving credit facility, for total liquidity of $46.0 million. It had $98.7 million borrowed under the facility.
- Costs: Third-quarter general and administrative expense was $16.5 million, depreciation and amortization was $7.4 million, and the tax provision was about $0.1 million.
The quarter’s results show the contrasting performance of Nine’s service lines: cementing improved, while coiled tubing and international tools weighed on results. The company’s stated fourth-quarter expectation combines flat revenue with slightly better profitability, reflecting an anticipated shift toward higher-margin work.